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Dumas authorizes continued talks with Valero on effluent water supply agreement
Summary
The City Commission authorized the city manager to continue negotiating an effluent water supply agreement with Diamond Shamrock Refining Company (Valero); Valero said the contract contains no minimum delivery requirement and its last legal review was May 1, 2026.
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The Dumas City Commission on June 2 authorized City Manager Mark Hall to continue negotiations with Diamond Shamrock Refining Company (Valero) on a proposed effluent water supply agreement.
Commissioner Shannon Gillespie asked whether Valero’s legal team had reviewed the draft. Valero representative Shawn Wilhelm said "the last legal review occurred May 1, 2026," and that "there is no effluent water minimums in the contract." Mayor Pat Sims asked whether the city would be contractually bound if it developed an alternative plan; City Attorney Matthew Murray said there are "details that need to be worked out" but that negotiators could craft flexibility into the agreement.
The commission recorded a motion by Commissioner Gillespie, seconded by Mayor Pro-Tem Justin Willis, authorizing the city manager to continue negotiations. No formal minimum delivery requirement was reported by Valero during the discussion.
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