South Texas Water Authority offers 3 MGD commitment; council presses for contract, pipeline and permit details

STWA’s executive director John Matas told the Corpus Christi City Council that the South Texas Water Authority board on Sept. 9 voted to offer water to the city, including a firm 3 million‑gallon‑a‑day (MGD) supply that STWA would be prepared to deliver if agreements and permitting are completed. STWA said water‑quality laboratory results collected by 7 Seas had been provided to the city and its staff for review.

The briefing mattered because council members and staff are weighing multiple supplemental water options — including brackish groundwater wells, a private Evangeline Laguna project, reuse alternatives and regional desalination proposals — while lake storage and inflows remain low. “We will have all that data to your team at least a week prior” to any next briefing, Matas said, and STWA committed to continued negotiations with city legal counsel and staff.

Why it matters: Council must decide which combination of sources to pursue and whether to accept contracts that could include take‑or‑pay language or delivery points that depend on third‑party pipeline capacity. Those choices affect rates, reliability and how much debt the city would carry to secure new supplies.

What council pressed STWA on - Contract terms and pricing: Council members asked whether STWA can disclose the 7 Seas purchase price and whether STWA will take delivery risk for water that cannot be delivered because of pipeline conditions. STWA counsel Charlie Zahn said the project’s purchase document has been provided to city staff under legal review; he said some pricing detail will require further engineering refinement before it can be finalized. - Pipeline condition and reversal risk: STWA and city staff confirmed a pipeline condition assessment is under way and could take up to eight months. Council members repeatedly warned against signing long take‑or‑pay obligations before the 42‑inch transmission line’s capacity and condition are verified. - Delivery point and mixing: Staff and STWA discussed likely meter/delivery points near County Road 52 and the need for blending/storage to maintain consistent water quality and pressure across the system.

Regional context and next steps - STWA said it had requested 7 Seas testing and that the samples “exceed TCEQ primary and secondary drinking‑water requirements” for the expected treated brackish product, subject to final engineering and permitting. - STWA described a staged approach: a 3 MGD initial commitment with potential future expansion if additional off‑takers and permitting allow. STWA and city staff will continue negotiations; STWA said it expects to return with more detailed data and potential contract language for review.

What remains uncertain - Pricing mechanics and whether a take‑or‑pay structure will apply to water that fails to reach city meters because of third‑party pipeline failures. - The final schedule for delivery because of required permits (including TCEQ intake/discharge and U.S. Army Corps work) and the need to either reverse or upgrade existing transmission infrastructure.

Where the process goes next: STWA and city staff will continue technical and legal review; council members asked staff to return with a clear timeline and draft terms so elected officials can weigh fiscal and operational risks before voting on any long‑term purchase.

Sources: Briefing and exchange on Sept. 23, 2024, with John Matas and counsel Charlie Zahn of the South Texas Water Authority and Corpus Christi water staff. Direct excerpts are from city council proceedings.