Discussion of Alternative Water Sources.

Staff Report & Agenda Item Details

Discussion of Alternative Water Sources. Mr. Arnold Wiese and Mr. Terry Arnold representing Seven Seas provided an update on the desalination plant in Alice, Texas. They explained that the plant is expected to be operational by the end of April. The project involves no upfront capital through the engineering, building and operation phases. Seven Seas will only get paid if the buyer approves the water. Mr. Marez stated that Mr. Wiese sent documents to him which he will forward to the Board. Mr. Wiese also reported that Seven Seas is in discussions with the City of Mathis and has been reaching out to legislators for their support. He stated that for STWA, they are researching drilling 900-950 feet deep in a plot of land along the 42” waterline. Kleberg County Judge Rudy Madrid voiced concerns about the impact this might have on the 1PointFive Direct Air Capture Project. When STWA Regular Meeting Minutes February 27, 2024 Page 2 asked about the water rate, Mr. Wiese said it would be higher than the City of Corpus Christi’s rate but would be based on the scope of the project. Mr. Christopher Williams, Raftelis, then provided a presentation on Industrial Customer Negotiations. He noted that the Lynx and Engineering Report provided by Tesla forecasts Tesla’s water commitment at an estimated 30,000 gallons per day in January 2024 before plateauing at 1.1 million gallons per day by October 2025. Additionally, Tesla later stated that the daily usage could be as high as 8 million

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.7/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.