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College Station, groundwater district reach settlement capping large export and funding mitigation

College Station City Council · June 6, 2025
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Summary

The council approved a settlement capping a proposed groundwater export and securing roughly $180M+ in export fees over 30 years to mitigate impacts on city wells; the agreement phases export volumes and makes exported water subject to the same curtailment rules as city production.

City attorneys said the June 26 council meeting concluded with approval of a settlement limiting a large groundwater export application and establishing mitigation funding to protect local water supplies.

City counsel explained the background: a groundwater conservation district had previously permitted a 50,000 acre-foot export; a subsequent application sought an additional 50,000 acre-feet for export, a level the city concluded would trigger curtailment of the city’s pumping under the district’s modeling and threaten max-day supply reliability by the mid-2030s. The city intervened and negotiated a settlement rather than prolonged litigation.

Under the approved agreement, the export is capped at 50,000 acre-feet, with a phased ramp: 23,000 acre-feet per year until 2034; 38,000 acre-feet until 2039; then 50,000 acre-feet thereafter. The export will be subject to the district’s curtailment rules in parity with city wells. The settlement also secures more than $180 million in export fees over a 30-year term, to be used for mitigation measures in the Simsboro aquifer — including mitigation of the city’s nine impacted wells — and generally to offset hydrologic impacts.

City staff and counsel characterized the result as a favorable outcome that limits near-term pumping and funds mitigation. Council voted to approve the settlement unanimously and authorized city representatives to sign final documents.

Staff said the settlement provides a defined, multi-decade framework that allows the city to plan water-supply investments and mitigation work with the district and limits immediate legal uncertainty.