Presentation, Discussion and Appropriate Action Regarding the Fourth Amendment to the Temporary Water Supply Agreement with Select Energy Services, LLC for Industrial Water Use in Wilson and Karnes Counties

Staff Report & Agenda Item Details

The San Antonio River Authority (River Authority) has leased 333 acre-feet of our surface water rights to Select Energy Services, LLC (SES) since 2011. SES has used surface water for beneficial purposes in connection with SES's efforts to explore, develop, and produce oil and gas in Wilson and Karnes Counties. The Temporary Water Supply Agreement will expire in April 2026 and SES is requesting an extension of the term of the agreement for an additional three years. The proposed amendment with SES will extend the term and will adjust the price of the water as provided under the terms of the agreement. No other changes will be made to the agreement. The agreement does state that SES will need to abide by any restrictions set forth by the Texas Commission on Environmental Quality during periods with drought conditions. This also includes the Environmental Flow Restriction recommendations. For this amendment, the adjusted cost for the water is set at $897.16 per acre-foot/year. SES will also cover any administrative fees incurred by the River Authority in the processing of this amendment including legal costs. A preliminary draft of the amendment agreement is attached for your review.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.5/10). 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.