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A Publication of Guidry News Service |
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A Publication of Guidry News Service |
Jerry Patterson, Commissioner of the Texas General Land Office, addressed the Senate Select Committee on Water today in El Paso. Patterson discussed a possible exploration and development lease with Rio Nuevo, Ltd., and outlined the tasks Rio must perform before a lease could be signed. Patterson said that the
exploration phase of the lease could potentially cost several million
dollars and involve drilling numerous wells to determine the
availability and quality of the water in West Texas. Under
Patterson's proposed lease, Rio Nuevo would pay the state to hire
experts to drill test wells on state lands in the region. "We need good
science to make good decisions on water," Patterson said.
"The exploratory part of this lease means that a private company
spends their money to determine how much water lies under West Texas
public lands. It gives us the data everyone is looking for at no
cost to the state. That's a good deal anyway you look at it."
Patterson made it clear that in the exploratory phase of the lease, no water would leave West Texas. Only after the exploration phase has been completed and the availability of water evaluated, would Rio Nuevo have right of first refusal on any production of the water under the pre-negotiated terms of the contract.
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