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TCEQ dismisses Johnson Ranch MUD appeal, finds dispute outside agency jurisdiction
Summary
The commission dismissed the Johnson family's appeal of a Johnson Ranch Municipal Utility District decision, concluding the matter concerns private contract and land‑use disputes rather than the cost/purchase/use of constructed facilities the commission may review under Texas Water Code §54.239.
The Texas Commission on Environmental Quality dismissed an appeal brought by the Johnson family partnership seeking review of a Johnson Ranch Municipal Utility District decision denying use of district water and sewer facilities for a proposed development.
Petitioner counsel Ray Jeffrey argued the MUD board had refused to process an application and effectively denied use of existing facilities, requesting the commission reverse the board’s decision and order service. Jeffrey said the MUD’s actions obstructed a roughly $7 million development contract and that the commission has supervisory authority under Texas Water Code §54.239.
District counsel and Executive Director attorneys (represented in the hearing by counsel for the district and ED staff) told commissioners the claim centers on private development and contract provisions, that no constructed facilities are at issue, and that the matter is already pending in district court. OPIC recommended dismissal for lack of jurisdiction, citing the statutory and rule limits that require a nexus to constructed developer facilities and reimbursement disputes.
Commissioners agreed and voted to dismiss the petition for lack of jurisdiction, noting the dispute is best resolved in Comal County district court and that the commission lacks authority to adjudicate the private contract and land‑use dispute as presented.
