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A West Texas pecan farm fights to save its water supply as neighbors sell it to growing cities

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Thursday, October 31, 2024

Subscribe to The Y’all — a weekly dispatch about the people, places and policies defining Texas, produced by Texas Tribune journalists living in communities across the state. FORT STOCKTON — Zachary Swick plucked a pecan from one of the 78,000 trees at a sprawling West Texas farm — a rare sight in the desert known for oil rigs and pump jacks. He peeled away the pecan’s layers, leaving a stain on his hands that would be difficult to wash off. One day, Swick said, there might not be any pecans left to peel. Swick is the farm manager at Belding Farms, which has been owned for decades by the Cockrell family. Each year, the farm produces 5 million pounds of the iconic Texas nut. The farm sits atop a reservoir of underground water used to produce the pecans since the 1960s. The farm shares the water with its neighbors. Under Texas law, all property owners have the right to use the water underneath their boots. One of those neighbors is Fort Stockton Holdings, a company established by oil baron and one-time gubernatorial candidate Clayton Williams. Fort Stockton Holdings, for years, has sought to sell its share of the water to West Texas’ growing cities. The 50-year deal between the company and the cities of Midland, Abilene and San Angelo would exchange water from the aquifers for $261 million. Midland is the capital of the Permian Basin, a 61-county region that holds the state’s vast oil reserves. Over the last decade, Midland has added 10,000 people. About 138,000 people call it home. And more are expected as the oil industry shows no signs of slowing. “Our goal was to secure a long-term, sustainable water supply that requires minimal treatment and can meet the city's future needs,” Midland Mayor Lori Blong said in a statement. Fort Stockton Holdings did not return requests for comment. The most important Texas news,sent weekday mornings. Belding Farms has asked the Middle Pecos Groundwater Conservation District, the local governing body tasked with managing water rights, to protect the water to ensure it isn’t swallowed up by the deal. Fort Stockton Holdings will sell 28,400 acre-feet of water per year as part of the contract, more than twice as much as the farm uses on an annual basis. Earlier this month, the groundwater district rejected Belding Farms’ request to put more rules and fees around the exports. However, the decision is only one factor in a yearslong feud between the two powerful families. The conflict is a harbinger of the water wars the state will face as the population continues to swell. By 2060, Texas is expected to add up to 14 million more people, according to a study by Texas 2036 — and there is not enough water for everyone, let alone agriculture and industry, experts say. Already, the state has lost its sugar industry to a dearth of water in the Rio Grande Valley. Swick does not want pecans to be next. “We're mining a resource that is, in essence, being depleted, and that's our biggest concern,” Swick said. “Will that water be as consistent as it has been in the past?” General Manager Zachary Swick shows freshly picked pecans. Credit: Julian Mancha for The Texas Tribune Pecans are a Texas staple. It is the only nut indigenous to the state. The tree dates back to prehistoric times, according to the Texas State Historical Association. The Texas Legislature in 1919 declared pecans the official state tree. The Cockrell family began planting pecan trees in the 1960s. Today, about 40 employees work year-round to tend to the farm, from the orchard manager and foremen to mechanics. The season begins each year in March. Workers stimulate cross-pollination throughout the year. The pecans mature during the summer and fall. And in the winter, the farm shucks the trees. Farming the 2,200 acres requires water — and a lot of it. The farm uses between 11,000 acre-feet and 12,100 acre-feet of water annually. The farm employs different irrigation mechanisms to keep the farm hydrated efficiently, including a technique called land leveling, in which excess water pools on a terrace between the trees to prevent run-off. The farm also has cement canals along the property that hold the water and stop it from seeping into the soil. Over the years, the farm has bolstered its efforts to conserve water. In 2022, it spent about $455,000 to install a sprinkler system that covers 96 acres. Instead of a mist, the sprinklers shoot out a stream of water to prevent evaporation. Also scattered across the farm are soil moisture probes that monitor whether the ground needs to be watered. Swick said that he and the farm try to be proactive in conserving water because a dry spell could result in a crisis for the farm and the surrounding community. A particular concern is the wells, Swick said, which are not able to pump water if the aquifers are below a certain threshold. “If we are not proactive, the ramifications of that could be huge,” he said.” We could lose large sections of our farm if not all of it.” Belding Farms sits atop a reservoir of underground water used to produce the pecans since the 1960s. Credit: Julian Mancha for The Texas Tribune Texas has a long history of private property rights, which includes water. As the state’s population has grown, larger cities have turned to rural landowners to buy their water. Groundwater districts, like Middle Pecos, can act as an arbiter. The 98 groundwater conservation districts, which are mostly in rural or sparsely populated communities, manage the water supply. Groundwater districts are the state’s “preferred method of groundwater management in order to protect property rights,” an update to an old mandate known as the rule of capture that allowed landowners to pump water as they wished. The conflict between Belding Farms and Fort Stockton Holdings began in 2009 when the latter first attempted to sell roughly 50,000 acre-feet annually. One acre-foot of water is about 325,851 gallons of water. The groundwater district initially rejected the request, in part because the exports needed more protections attached to it. At the time, then-mayor of Fort Stockton, Ruben Falcon, said the residents felt “that the future water supply is threatened by having a large amount of water transferred out of the aquifer.” In 2017, Fort Stockton Holdings and the groundwater district reached an agreement to allow the holding company to pump and sell 28,400 acre-feet of water. That’s when Belding Farms sued the groundwater district, which controls the permits for export agreements like the one between Fort Stockton Holding and the other cities. In total, the farm has sued five times and petitioned the groundwater district to establish controls around the exports, including defining so-called unreasonable impacts. Unreasonable impacts would define the points at which the aquifer is too low. The farm also asked the district to impose a 20-cent export fee for every 1,000 gallons. These collections would provide financial compensation to landowners affected by unreasonable impacts, such as having to deepen their wells. The groundwater district rejected both in its October session. Two of the cases reached the Supreme Court of Texas. The first is the settlement agreement between Fort Stockton Holdings and the groundwater district, which allowed the company to sell the water. The second case concerns a renewal permit for Fort Stockton Holdings, which will need to continue to sell the water. Groundwater District board members say they must grant companies and individuals the ability to use the groundwater as they see fit, adding it has been caught in the crosshairs of a generational dispute. In 2012, the Texas Supreme Court ruled in an unrelated case that groundwater districts could not severely limit landowners from pumping water. At the time, the attorney for the Edwards Aquifer Authority said the ruling would “make life much more complicated for groundwater districts.” “When you’re giving big chunks of the pie, it's like you have to keep giving big chunks of that pie out because if you start telling people no, you’re going to get sued,” said Robert Mace, executive director at The Meadows Center for Water and the Environment. “That’s a case the district’s probably going to lose.” Still, landowners who drill a water well that is within the jurisdiction of a groundwater conservation district must register it. Groundwater conservation districts issue permits for commercial wells or wells that pump large volumes of water from the aquifer. They also issue spacing, drilling and production requirements. Groundwater districts determine their supply by monitoring the water underground. Every five years, they submit a report to the Texas Water Development Board that calculates the available water for the next 50 years. The groundwater district uses that information for regional planning and how much water can be permitted for pumping. Justin Thompson, a research assistant professor at the Bureau of Economic Geology at the University of Texas, said the goal was to maximize the use of the available water while balancing that against protecting the supply. “They have an unenviable task,” he said. A watering runoff system runs down the orchard rows at Belding Farms. It acts as an irrigation mechanism to prevent run-off. Credit: Julian Mancha for The Texas Tribune Left: In 2022, Belding Famrs spent about $455,000 to install a sprinkler system that covers 96 acres. Right: Newly grown pecans at Belding Farms. Credit: Julian Mancha for The Texas Tribune Ty Edwards, the general manager of the Middle Pecos Groundwater Conservation District, said he sees his role less as a regulator and more as a relationship manager. The groundwater conservation district must represent and protect the interests of groundwater users. If a landowner disagrees with the groundwater district’s decision, they can approach the board members and request changes. Edwards said that is the point of a local governing agency. Three pools of water flow underneath the soil in Fort Stockton, a geographically unique makeup that isn’t common in Texas. The Edwards Trinity aquifer is closest to the surface. The Rustler aquifer is below it. The Capitan Reef Complex aquifer is the deepest one. The farm and holding company are not the only water rights owners in Pecos County. In the County, 4,000 wells tap into the aquifer. Almost 3,000 of those belong to landowners who registered their wells. Nearly 1,000 are permitted. One hundred wells make up the majority of the water use, including Fort Stockton Holdings, Belding Farms, the city of Fort Stockton, another pecan farm and a detention facility. Last year, a combined 42,205 acre-feet of water was pumped from the Edwards-Trinity aquifer. That’s more than Midland and Ector counties, which pumped a combined 25,000 acre-feet of groundwater in 2021, according to the regional water plan submitted by 32 counties to the Water Development Board. Fort Stockton Holdings’ deal with the cities will add 24,800 acre-feet more pumping annually. Edwards said that the groundwater district evaluated pumping levels over the years and determined that the impact on the aquifer would not be a risk. He said the monitoring mechanisms are protective of the aquifer. Since the deal was first proposed, Fort Stockton Holdings and the Cockrell family armed themselves with lawyers, scientists and consultants who have sparred for years, disputing the data they present to each other. Edwards said the data Belding Farms provided helped them arrive at their decision. Although it is not opposed to exports outright, the Cockrell family argues this amount could drain the aquifer faster than it can recharge. They said the groundwater conservation district's monitoring ability is not robust enough and can only provide estimates of the water levels. Experts also pointed to excessive agricultural pumping in the 1950s, which caused the local springs, called Comanche Springs, to dry up. Edwards, who volunteered at Belding Farms in his youth, said the water supply was not in danger. He said the historical data going back decades portrays a healthy aquifer capable of withstanding the added demand. “We’re not going to let their wells go dry,” Edwards said. General Manager Zachary Swick at the pecan assortment plant. The state has lost its sugar industry to a dearth of water in the Rio Grande Valley. Swick does not want pecans to be next. Credit: Julian Mancha for The Texas Tribune At the groundwater district’s October meeting, tensions were high. The 11 board members sat around a conference table beneath a wide-screen TV where scientists, lawyers and consultants gathered and waited their turn to speak. Opposite the TV, the Cockrell family’s attorney, Ryan Reed, sat in a folding chair. Behind him sat Carlos Rubenstein, a former commissioner for the Texas Commission on Environmental Quality, erstwhile chair and board member of the Texas Water Development Board, now a consultant for the family and farm. Reed once again asked the groundwater district to consider setting stricter rules and defining unreasonable impacts. What he is asking is not included in the law. It would be up to the groundwater district to establish. Fort Stockton Holding’s attorney spoke next, calling the request a fearmongering tactic. He said their studies show the aquifer can sustain the added pumping. Board members said they would convene the residents and discuss adding export fees at their discretion, not the 20-cent amount the Cockrell family recommended. After the meeting, Edwards sat in his office with a plate of barbecue in front of him. A groundwater field technician cooked the meal. He said Texas law compels them to treat groundwater users equally and that the Legislature does not give them enough teeth to take on every battle. In the meantime, he said he trusts the science. “Nobody likes the fact that water is going to leave Pecos County,” Edwards said. “None of the board members like it. You're not going to find anybody in the community that supports them moving water out of the county, but we didn't write the laws.” Shortly after the meeting, Reed said the groundwater district’s decision was shortsighted in refusing to agree to the farm’s terms. Reed did not say what the farm would do next, only that the fight was far from over. Disclosure: Edwards Aquifer Authority, Texas 2036 and Texas State Historical Association have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.

A yearslong dispute over exporting water to growing Texas cities offers a hint at the battles to come as the state’s population booms and water supply dwindles.

Subscribe to The Y’all — a weekly dispatch about the people, places and policies defining Texas, produced by Texas Tribune journalists living in communities across the state.


FORT STOCKTON — Zachary Swick plucked a pecan from one of the 78,000 trees at a sprawling West Texas farm — a rare sight in the desert known for oil rigs and pump jacks. He peeled away the pecan’s layers, leaving a stain on his hands that would be difficult to wash off.

One day, Swick said, there might not be any pecans left to peel.

Swick is the farm manager at Belding Farms, which has been owned for decades by the Cockrell family. Each year, the farm produces 5 million pounds of the iconic Texas nut.

The farm sits atop a reservoir of underground water used to produce the pecans since the 1960s. The farm shares the water with its neighbors. Under Texas law, all property owners have the right to use the water underneath their boots.

One of those neighbors is Fort Stockton Holdings, a company established by oil baron and one-time gubernatorial candidate Clayton Williams. Fort Stockton Holdings, for years, has sought to sell its share of the water to West Texas’ growing cities. The 50-year deal between the company and the cities of Midland, Abilene and San Angelo would exchange water from the aquifers for $261 million.

Midland is the capital of the Permian Basin, a 61-county region that holds the state’s vast oil reserves. Over the last decade, Midland has added 10,000 people. About 138,000 people call it home. And more are expected as the oil industry shows no signs of slowing.

“Our goal was to secure a long-term, sustainable water supply that requires minimal treatment and can meet the city's future needs,” Midland Mayor Lori Blong said in a statement.

Fort Stockton Holdings did not return requests for comment.

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Belding Farms has asked the Middle Pecos Groundwater Conservation District, the local governing body tasked with managing water rights, to protect the water to ensure it isn’t swallowed up by the deal. Fort Stockton Holdings will sell 28,400 acre-feet of water per year as part of the contract, more than twice as much as the farm uses on an annual basis.

Earlier this month, the groundwater district rejected Belding Farms’ request to put more rules and fees around the exports. However, the decision is only one factor in a yearslong feud between the two powerful families.

The conflict is a harbinger of the water wars the state will face as the population continues to swell. By 2060, Texas is expected to add up to 14 million more people, according to a study by Texas 2036 — and there is not enough water for everyone, let alone agriculture and industry, experts say. Already, the state has lost its sugar industry to a dearth of water in the Rio Grande Valley. Swick does not want pecans to be next.

“We're mining a resource that is, in essence, being depleted, and that's our biggest concern,” Swick said. “Will that water be as consistent as it has been in the past?”

General Manager Zachary Swick shows freshly picked pecans. Credit: Julian Mancha for The Texas Tribune

Pecans are a Texas staple. It is the only nut indigenous to the state. The tree dates back to prehistoric times, according to the Texas State Historical Association. The Texas Legislature in 1919 declared pecans the official state tree.

The Cockrell family began planting pecan trees in the 1960s. Today, about 40 employees work year-round to tend to the farm, from the orchard manager and foremen to mechanics.

The season begins each year in March. Workers stimulate cross-pollination throughout the year. The pecans mature during the summer and fall. And in the winter, the farm shucks the trees.

Farming the 2,200 acres requires water — and a lot of it. The farm uses between 11,000 acre-feet and 12,100 acre-feet of water annually. The farm employs different irrigation mechanisms to keep the farm hydrated efficiently, including a technique called land leveling, in which excess water pools on a terrace between the trees to prevent run-off. The farm also has cement canals along the property that hold the water and stop it from seeping into the soil.

Over the years, the farm has bolstered its efforts to conserve water. In 2022, it spent about $455,000 to install a sprinkler system that covers 96 acres. Instead of a mist, the sprinklers shoot out a stream of water to prevent evaporation. Also scattered across the farm are soil moisture probes that monitor whether the ground needs to be watered.

Swick said that he and the farm try to be proactive in conserving water because a dry spell could result in a crisis for the farm and the surrounding community. A particular concern is the wells, Swick said, which are not able to pump water if the aquifers are below a certain threshold.

“If we are not proactive, the ramifications of that could be huge,” he said.” We could lose large sections of our farm if not all of it.”

Belding Farms sits atop a reservoir of underground water used to produce the pecans since the 1960s. Credit: Julian Mancha for The Texas Tribune

Texas has a long history of private property rights, which includes water. As the state’s population has grown, larger cities have turned to rural landowners to buy their water. Groundwater districts, like Middle Pecos, can act as an arbiter.

The 98 groundwater conservation districts, which are mostly in rural or sparsely populated communities, manage the water supply. Groundwater districts are the state’s “preferred method of groundwater management in order to protect property rights,” an update to an old mandate known as the rule of capture that allowed landowners to pump water as they wished.

The conflict between Belding Farms and Fort Stockton Holdings began in 2009 when the latter first attempted to sell roughly 50,000 acre-feet annually. One acre-foot of water is about 325,851 gallons of water.

The groundwater district initially rejected the request, in part because the exports needed more protections attached to it. At the time, then-mayor of Fort Stockton, Ruben Falcon, said the residents felt “that the future water supply is threatened by having a large amount of water transferred out of the aquifer.”

In 2017, Fort Stockton Holdings and the groundwater district reached an agreement to allow the holding company to pump and sell 28,400 acre-feet of water. That’s when Belding Farms sued the groundwater district, which controls the permits for export agreements like the one between Fort Stockton Holding and the other cities.

In total, the farm has sued five times and petitioned the groundwater district to establish controls around the exports, including defining so-called unreasonable impacts. Unreasonable impacts would define the points at which the aquifer is too low. The farm also asked the district to impose a 20-cent export fee for every 1,000 gallons. These collections would provide financial compensation to landowners affected by unreasonable impacts, such as having to deepen their wells. The groundwater district rejected both in its October session.

Two of the cases reached the Supreme Court of Texas. The first is the settlement agreement between Fort Stockton Holdings and the groundwater district, which allowed the company to sell the water. The second case concerns a renewal permit for Fort Stockton Holdings, which will need to continue to sell the water.

Groundwater District board members say they must grant companies and individuals the ability to use the groundwater as they see fit, adding it has been caught in the crosshairs of a generational dispute.

In 2012, the Texas Supreme Court ruled in an unrelated case that groundwater districts could not severely limit landowners from pumping water. At the time, the attorney for the Edwards Aquifer Authority said the ruling would “make life much more complicated for groundwater districts.”

“When you’re giving big chunks of the pie, it's like you have to keep giving big chunks of that pie out because if you start telling people no, you’re going to get sued,” said Robert Mace, executive director at The Meadows Center for Water and the Environment. “That’s a case the district’s probably going to lose.”

Still, landowners who drill a water well that is within the jurisdiction of a groundwater conservation district must register it. Groundwater conservation districts issue permits for commercial wells or wells that pump large volumes of water from the aquifer. They also issue spacing, drilling and production requirements.

Groundwater districts determine their supply by monitoring the water underground. Every five years, they submit a report to the Texas Water Development Board that calculates the available water for the next 50 years. The groundwater district uses that information for regional planning and how much water can be permitted for pumping.

Justin Thompson, a research assistant professor at the Bureau of Economic Geology at the University of Texas, said the goal was to maximize the use of the available water while balancing that against protecting the supply.

“They have an unenviable task,” he said.

A watering runoff system runs down the orchard rows at Belding Farms. It acts as an irrigation mechanism to prevent run-off. Credit: Julian Mancha for The Texas Tribune
Left: In 2022, Belding Famrs spent about $455,000 to install a sprinkler system that covers 96 acres. Right: Newly grown pecans at Belding Farms. Credit: Julian Mancha for The Texas Tribune

Ty Edwards, the general manager of the Middle Pecos Groundwater Conservation District, said he sees his role less as a regulator and more as a relationship manager. The groundwater conservation district must represent and protect the interests of groundwater users.

If a landowner disagrees with the groundwater district’s decision, they can approach the board members and request changes. Edwards said that is the point of a local governing agency.

Three pools of water flow underneath the soil in Fort Stockton, a geographically unique makeup that isn’t common in Texas. The Edwards Trinity aquifer is closest to the surface. The Rustler aquifer is below it. The Capitan Reef Complex aquifer is the deepest one.

The farm and holding company are not the only water rights owners in Pecos County. In the County, 4,000 wells tap into the aquifer. Almost 3,000 of those belong to landowners who registered their wells. Nearly 1,000 are permitted.

One hundred wells make up the majority of the water use, including Fort Stockton Holdings, Belding Farms, the city of Fort Stockton, another pecan farm and a detention facility.

Last year, a combined 42,205 acre-feet of water was pumped from the Edwards-Trinity aquifer. That’s more than Midland and Ector counties, which pumped a combined 25,000 acre-feet of groundwater in 2021, according to the regional water plan submitted by 32 counties to the Water Development Board.

Fort Stockton Holdings’ deal with the cities will add 24,800 acre-feet more pumping annually. Edwards said that the groundwater district evaluated pumping levels over the years and determined that the impact on the aquifer would not be a risk. He said the monitoring mechanisms are protective of the aquifer.

Since the deal was first proposed, Fort Stockton Holdings and the Cockrell family armed themselves with lawyers, scientists and consultants who have sparred for years, disputing the data they present to each other. Edwards said the data Belding Farms provided helped them arrive at their decision.

Although it is not opposed to exports outright, the Cockrell family argues this amount could drain the aquifer faster than it can recharge. They said the groundwater conservation district's monitoring ability is not robust enough and can only provide estimates of the water levels. Experts also pointed to excessive agricultural pumping in the 1950s, which caused the local springs, called Comanche Springs, to dry up.

Edwards, who volunteered at Belding Farms in his youth, said the water supply was not in danger. He said the historical data going back decades portrays a healthy aquifer capable of withstanding the added demand.

“We’re not going to let their wells go dry,” Edwards said.

General Manager Zachary Swick at the pecan assortment plant. The state has lost its sugar industry to a dearth of water in the Rio Grande Valley. Swick does not want pecans to be next. Credit: Julian Mancha for The Texas Tribune

At the groundwater district’s October meeting, tensions were high. The 11 board members sat around a conference table beneath a wide-screen TV where scientists, lawyers and consultants gathered and waited their turn to speak.

Opposite the TV, the Cockrell family’s attorney, Ryan Reed, sat in a folding chair. Behind him sat Carlos Rubenstein, a former commissioner for the Texas Commission on Environmental Quality, erstwhile chair and board member of the Texas Water Development Board, now a consultant for the family and farm.

Reed once again asked the groundwater district to consider setting stricter rules and defining unreasonable impacts. What he is asking is not included in the law. It would be up to the groundwater district to establish.

Fort Stockton Holding’s attorney spoke next, calling the request a fearmongering tactic. He said their studies show the aquifer can sustain the added pumping.

Board members said they would convene the residents and discuss adding export fees at their discretion, not the 20-cent amount the Cockrell family recommended.

After the meeting, Edwards sat in his office with a plate of barbecue in front of him. A groundwater field technician cooked the meal.

He said Texas law compels them to treat groundwater users equally and that the Legislature does not give them enough teeth to take on every battle. In the meantime, he said he trusts the science.

“Nobody likes the fact that water is going to leave Pecos County,” Edwards said. “None of the board members like it. You're not going to find anybody in the community that supports them moving water out of the county, but we didn't write the laws.”

Shortly after the meeting, Reed said the groundwater district’s decision was shortsighted in refusing to agree to the farm’s terms.

Reed did not say what the farm would do next, only that the fight was far from over.

Disclosure: Edwards Aquifer Authority, Texas 2036 and Texas State Historical Association have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.

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Revealed: Thames Water diverted ‘cash for clean-ups’ to help pay bonuses

Exclusive: UK’s biggest water company assessed risks before cutting back on cost of environmental work, investigation showsThames Water intentionally diverted millions of pounds pledged for environmental clean-ups towards other costs including bonuses and dividends, the Guardian can reveal.The company, which serves more than 16 million customers, cut the funds after senior managers assessed the potential risks of such a move. Continue reading...

Thames Water intentionally diverted millions of pounds pledged for environmental clean-ups towards other costs including bonuses and dividends, the Guardian can reveal.The company, which serves more than 16 million customers, cut the funds after senior managers assessed the potential risks of such a move.Discussions – held in secret – considered the risk of a public and regulatory backlash if it emerged that cash set aside for work such as cutting river pollution had been spent elsewhere.This could be seen as a breach of the company’s licence commitments and leave it vulnerable to accusations it had broken the law, according to sources and material seen by the Guardian.Thames Water continued to pay staff bonuses worth hundreds of thousands of pounds, and also paid tens of millions in dividends as recently as March this year, while cutting back on its spending promises. The company did so despite public claims from its leaders that improvements to its environmental performance, including on pollution, were a priority.Wildlife presenter Liz Bonnin and naturalist and TV presenter Chris Packham join thousands of environmental campaigners from more than 130 organisations in a March for Clean Water on 3 November 2024 in London. Photograph: Mark Kerrison/In Pictures/Getty ImagesSources told the Guardian that internal deliberations about cutting back on the environmental works occurred as early as the end of 2021 and throughout 2022, when bosses weighed up the political and reputational risks of such a move.Meanwhile, Thames continued to charge customers for the works and Ofwat was only formally told of some of the company’s plans not to deliver these major projects in August 2023. A letter, seen by the Guardian, was sent to the head of the regulator Ofwat, David Black, by the company’s then interim co-chief executive and former boss of the watchdog, Cathryn Ross.In its response to the Guardian and the 2023 letter to Ofwat, Thames said sharp increases in its costs such as energy and chemicals – which it claims went beyond standard measures of inflation – lay behind its decisions to delay the works.It told the regulator that it would not deliver 98 of 826 schemes under the water industry national environment programme (Winep) during the five-year window it had promised. The delivery of these projects, which include schemes to reduce phosphorus pollution in rivers, was a key justification for how much Thames was allowed to charge customers.The revelation comes as Britain’s biggest water company fights for its survival. It is trying to secure £3bn in emergency funding and at least £3.25bn more in equity investment to prevent its collapse, after years of poor performance, fines and hefty dividend payouts.Winep projects include statutory obligations for water companies with potential criminal liability if they breach their licence by failing to deliver them.Thames decided behind the scenes to hold up almost 100 projects as early as 2022 without first warning its regulators. Sources said of some of the projects Thames delayed were among the largest it agreed to do when it asked Ofwat for higher bills as part of its 2019 price review.The cuts to environmental works did not stop the company from paying dividends or bonuses to staff. It continued to pay both throughout the 2020-25 billing period, for which it claimed it lacked the funds to complete works.Ofwat fined the company £18.2m on 19 December for breaching rules on paying “unjustified” dividends, after the company paid out £37.5m in October 2023 and £158.3m in March 2024. On the same day it also gave Thames permission to increase consumer bills by 35% by 2030.Thames’s regulated water services are part of a sprawling network of holding companies. Dividends were paid out of its operating company up towards its shareholders.Ofwat’s dividend rules, which were toughened in April 2023, are meant to stop companies taking money out businesses where their performance does not merit it, and where the payouts do not take financial resilience into account, or “service delivery for customers and the environment”.A spokesperson for Thames Water did not deny that it had delayed environmental works that it had promised and been paid to carry out. The spokesperson also did not deny that some of the funds had been used for other business costs including bonuses and dividend payments.When first asked for a response by the Guardian, Thames said that allegations that it had diverted funds were “entirely false and without merit”.In a later statement, Thames said only that the allegation that it did so “secretly” was false.In public statements from its six chief executives over the past five years, Thames has consistently maintained its position that environmental improvements are a high priority for the company.“Maintaining and improving the health of the rivers in our area matters to me, and I have made reducing pollution a key part of the turnaround plan for the company,” Chris Weston, the current chief executive at Thames Water, said in a river health report published by the company this year. His comments echo those of predecessors in the top job at the water company.The document states that “addressing the level of nutrients (particularly phosphorus) in our rivers remains a key focus”, despite the company secretly trying to cut the money pledged to address such concerns.Phosphorus in rivers and waterways can cause algal blooms that suffocate wildlife.“It is right that we are held to account for complying with our legal obligations,” Weston said on a call with journalists on 10 December, as he noted a sharp increase in pollution caused by the business.“We’ve also maintained high levels of capital investment for the benefit of our customers and the environment,” its former joint chief executive and chief financial officer Alastair Cochran said on the same call.The government’s Winep effort was created to address water companies’ “role in protecting and enhancing the environment” after a series of sewage and pollution scandals. It was intended to “challenge” water suppliers to provide resilient, safe and environment enhancing services to consumers.Thames could face criminal prosecution and unlimited fines if it was found to have breached its permits by Ofwat or the Environment Agency (EA).The EA has fined water companies more than £130m since 2015 and fined Southern Water £90m in 2021, after what was then its largest ever criminal investigation.In response to detailed questions from the Guardian, a Thames spokesperson said: “The allegation of ‘secretly diverted money’ is entirely false and without merit.“The board and leadership team of Thames Water remain focused on turning round the business, and have submitted to Ofwat a robust business plan for the next five years that proposes record investment in our assets.“We’ve been very open about the challenges of delivering all the elements of our Winep 7 programme, which has been impacted by cost increases that are higher than the inflation index applied to our allowances. In this Winep 7 period, we are forecast to spend £601m against an allowance of £369m. This is well documented in our business plan for 2025-30 and on our website.“We remain fully committed to delivering all our Winep commitments, and indeed all the outstanding projects are currently under way and in the process of being delivered.“Shareholders have not received an external dividend since 2017, and our business plan assumes dividends will not be paid before 2030.”

South Texas Groups Sue State Agency for Allowing SpaceX to Discharge Industrial Water Without Permit

Rio Grande Valley groups are accusing the Texas Commission on Environmental Quality in a lawsuit of bypassing state regulations by allowing SpaceX to temporarily discharge industrial water at its South Texas launch site without a proper permit

MCALLEN, Texas (AP) — Rio Grande Valley groups are suing the Texas Commission on Environmental Quality, accusing the agency of bypassing state regulations by allowing SpaceX to temporarily discharge industrial water at its South Texas launch site without a proper permit.The groups — the South Texas Environmental Justice Network, along with the Carrizo/Comecrudo Nation of Texas, and Save RGV — filed the lawsuit Monday after the agency decided last month to allow SpaceX to continue its operations for 300 days or until the company obtained the appropriate permit.It is the latest in a string of lawsuits filed by environmental groups aimed at curbing the possible environmental impacts of SpaceX’s operations at Boca Chica on the southern tip of Texas.Earlier this year, TCEQ cited SpaceX for discharging water into nearby waterways after it was used to protect the launchpad from heat damage during Starship launches four times this year.SpaceX did not admit to any violation but agreed to pay a $3,750 penalty. Part of the penalty was deferred until SpaceX obtains the proper permit and on the condition that future water discharges meet pollution restrictions.The environmental groups say that allowing SpaceX to continue is a violation of permitting requirements and that TCEQ is acting outside of its authority.“The Clean Water Act requires the TCEQ to follow certain procedural and technical requirements when issuing discharge permits meant to protect public participation and ensure compliance with Texas surface water quality standards,” Lauren Ice, the attorney for the three Rio Grande Valley organizations, said in a statement.“By bypassing these requirements, the Commission has put the Boca Chica environment at risk of degradation,” Ice said.A TCEQ spokesperson said the agency cannot comment on pending litigation.Some of the Rio Grande Valley groups are also involved in a lawsuit against the Federal Aviation Administration for allegedly failing to conduct an environmental review of SpaceX’s rocket test launch in April. The case remains pending in federal court.They also sued the Texas Parks and Wildlife Department for agreeing to a land exchange that would give 43 acres of Boca Chica State Park to SpaceX in exchange for 477 acres adjacent to Laguna Atascosa National Wildlife Refuge. SpaceX canceled the deal in November.This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Photos You Should See - Sept. 2024

After Victory Over Florida in Water War, Georgia Will Let Farmers Drill New Irrigation Wells

For more than a decade, farmers in parts of southwest Georgia haven’t been able to drill new irrigation wells to the Floridian aquifer

ATLANTA (AP) — Jason Cox, who grows peanuts and cotton in southwest Georgia, says farming would be economically impossible without water to irrigate his crops.“I'd be out of business,” said Cox, who farms 3,000 acres (1,200 hectares) acres around Pelham.For more than a decade, farmers in parts of southwest Georgia haven't been able to drill new irrigation wells to the Floridian aquifer, the groundwater nearest the surface. That's because Georgia put a halt to farmers drilling wells or taking additional water from streams and lakes in 2012. Farmers like Cox, though, will get a chance to drill new wells beginning in April. Gov. Brian Kemp announced Wednesday that Georgia's Environmental Protection Division will begin accepting applications for new agricultural wells in areas along the lower Flint River starting April 1. Jeff Cown, the division's director, said in a statement that things have changed since 2012. The moratorium was imposed amid a parching drought and the collapse of the once-prolific oyster fishery in Florida's Apalachicola Bay. The state of Florida sued in 2013, arguing that Georgia's overuse of water from the Flint was causing negative impacts downstream where the Flint and Chattahoochee River join to become the Apalachicola River. But a unanimous U.S. Supreme Court in 2021 rejected the lawsuit, saying Florida hadn't proved its case that water use by Flint River farmers was at fault.That was one lawsuit in decades of sprawling litigation that mostly focused on fear that Atlanta’s ever-growing population would suck up all the upstream water and leave little for uses downstream. The suits include the Apalachicola-Chattahoochee-Flint system and the Alabama-Coosa-Tallapoosa system, which flows out of Georgia to drain much of Alabama. Georgia also won victories guaranteeing that metro Atlanta had rights to water from the Chattahoochee River's Lake Lanier to quench its thirst.Georgia officials say new water withdrawals won't disregard conservation. No new withdrawals from streams or lakes will be allowed. And new wells will have to stop sucking up water from the Floridian aquifer when a drought gets too bad, in part to protect water levels in the Flint, where endangered freshwater mussels live. New wells will also be required to be connected to irrigation systems that waste less water and can be monitored electronically, according to a November presentation posted by the environmental agency.In a statement, Cown said the plans "support existing water users, including farmers, and set the stage to make room for new ones. We look forward to working with all water users as they obtain these newly, developed permits.”Georgia had already been taking baby steps in this direction by telling farmers they could withdraw water to spray vulnerable crops like blueberries during freezing temperatures.Flint Riverkeeper Gordon Rogers, who heads the environmental organization of the same name, said Georgia's action is “good news.” He has long contended that the ban on new withdrawals was “an admission of failure," showing how Georgia had mismanaged water use along the river. But he said investments in conservation are paying off: Many farmers are installing less wasteful irrigators and some agreed to stop using existing shallow wells during drought in exchange for subsidies to drill wells to deeper aquifers that don't directly influence river flow.“What we’re going to do is make it more efficient, make it more equitable and make it more fair," Rogers said. "And we’re in the middle of doing that.”A lawyer for Florida environmental groups that contend the Apalachicola River and Bay are being harmed declined comment in an email. Representatives for the Florida Department of Environmental Protection and state Attorney General Ashley Moody did not immediately respond to requests for comment.Cox, who lives about 165 miles (265 kilometers) south of Atlanta, said he's interested in drilling a new well on some land that he owns. Right now, that land relies on water from a neighboring farmer's well. He knows the drought restrictions would mean there would be times he couldn't water his crops, but said data he's seen show there wouldn't have been many days over the last 10 years when he would have been barred from irrigating, and that most of those days wouldn't have been during peak watering times for his crops.Three years ago, Cox drilled a well for some land into a deeper aquifer, but he said even spending $30,000 or more on a shallower well would boost the productivity and value of his land.“It would enhance my property if I had a well myself," Cox said.Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Photos You Should See - Sept. 2024

South Texas groups sue TCEQ for temporarily allowing SpaceX to discharge industrial water without a permit

In the lawsuit, the groups accuse TCEQ of exceeding its authority by allowing the discharges.

Sign up for The Brief, The Texas Tribune’s daily newsletter that keeps readers up to speed on the most essential Texas news. McALLEN — Rio Grande Valley groups are suing the Texas Commission on Environmental Quality, accusing the agency of bypassing state regulations by allowing SpaceX to temporarily discharge industrial water at its South Texas launch site without a proper permit. The groups — the South Texas Environmental Justice Network, along with the Carrizo/Comecrudo Nation of Texas, and Save RGV — filed the lawsuit Monday after the agency decided last month to allow SpaceX to continue its operations for 300 days or until the company obtained the appropriate permit. It is the latest in a string of lawsuits filed by environmental groups aimed at curbing the possible environmental impacts of SpaceX’s operations at Boca Chica on the southern tip of Texas. Earlier this year, TCEQ cited SpaceX for discharging water into nearby waterways after it was used to protect the launchpad from heat damage during Starship launches four times this year. SpaceX did not admit to any violation but agreed to pay a $3,750 penalty. Part of the penalty was deferred until SpaceX obtains the proper permit and on the condition that future water discharges meet pollution restrictions. The environmental groups say that allowing SpaceX to continue is a violation of permitting requirements and that TCEQ is acting outside of its authority. “The Clean Water Act requires the TCEQ to follow certain procedural and technical requirements when issuing discharge permits meant to protect public participation and ensure compliance with Texas surface water quality standards," Lauren Ice, the attorney for the three Rio Grande Valley organizations, said in a statement. "By bypassing these requirements, the Commission has put the Boca Chica environment at risk of degradation," Ice said. The most important Texas news,sent weekday mornings. A TCEQ spokesperson said the agency cannot comment on pending litigation. Some of the Rio Grande Valley groups are also involved in a lawsuit against the Federal Aviation Administration for allegedly failing to conduct an environmental review of SpaceX's rocket test launch in April. The case remains pending in federal court. They also sued the Texas Parks and Wildlife Department for agreeing to a land exchange that would give 43 acres of Boca Chica State Park to SpaceX in exchange for 477 acres adjacent to Laguna Atascosa National Wildlife Refuge. SpaceX canceled the deal in November. Reporting in the Rio Grande Valley is supported in part by the Methodist Healthcare Ministries of South Texas, Inc. Disclosure: Texas Parks And Wildlife Department has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.

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