Trouble in river cities
Lower Neches water group claims 'Homeland Security' as they try to control water flow at Lake Columbia
BY TERRIE GONZALEZ

Invoking the name "Homeland Security," a water authority in Southeast Texas is trying to extend its reach beyond Lake Sam Rayburn in order to insure a continuous flow of water to a burgeoning industrial complex of petrochemical plants in Southeast Texas.

"Extending its reach" means the Lower Neches Valley Authority (LNVA) wants the autonomy to pump water from the watershed above Sam Rayburn, which includes Lake Columbia, to serve the industrial needs of Beaumont-Port Arthur.

The Neches and Angelina Rivers are parting like the Red Sea, and a battle is in the offing between two quasi-state agencies that generally work together as friends. ANRA has threatened legal action against LNVA by seeking a contested hearing before the Texas Committee on Environmental Quality (TCEQ).

An alarm was sounded Oct. 9 by ANRA, which represents the stakeholder cities and water districts in Lake Columbia. The board of directors met more than three hours before passing a tightly drafted resolution.

"This is not going to be LNVA vs. ANRA," said Kenneth Renneau, ANRA general manager. "I think it will be LNVA vs. everyone above (Lake Sam) Rayburn. The move by LNVA will usurp municipal water rights of cities." (See the chart at left listing cities that are participating in the construction of Lake Columbia.)

Although the TCEQ legal hearing may be several months away, new ANRA board member Greg James, a Rusk businessman, said the group plans to use the interval to educate people in the watershed that this is a serious, potential problem.

"We were caught off guard by LNVA's aggressiveness," said Mr. James. "There was a warning sign more than six months ago when they unexpectedly stopped using our laboratory services." But no one picked up on it.

And in August 2006, LNVA filed an application to amend a permit at Lake Sam Rayburn. Specifically, they sought to remove two conditions on subordination from a 1963 permit on water rights on Lake Sam Rayburn.

This application, which is pending, went undetected on ANRA's radar until recently, which prompted the board's decision to pursue legal action.

"To alienate neighbors doesn't make good sense," said Mr. Renneau. "We will take legal action to protect the water rights we hold for participants in the Lake Columbia proj- ect."

LNVA General Manager Robert Stroder said he had no choice on seeking to amend the subordinate water rights at Lake Sam Rayburn. He said that representatives from Homeland Security, FBI agents and the U.S. Coast Guard showed up at his doorstep more than a year ago and essentially told him to pursue this course of action.

He feels like his request is on solid ground, legally speaking. "Federal law always trumps state law," he said.

Mr. Renneau disagrees.

"There is nothing in the Homeland Security Act that allows water to be taken away from one person and given to another without compensation," he said.

Agencies like LNVA and ANRA make decisions on water flow based on a timehonored, established order of need: (1.) municipal, (2.) agricultural and (3.) industrial.

ANRA will contend in their case to TCEQ that municipal requirements supersede agricultural and industrial needs.

Mr. Stroder said he is not allowed to confirm the reason that LNVA wants to change the subordinate water rights. However, parties close to both agencies say LNVA will likely assert that because of the petrochemical complex in Beaumont Port Arthur, industrial needs are vital to protecting the nation's homeland in the event of a terrorist act.

Round-about Neches

The Neches River makes a lot of detours before it finally reaches the Gulf of Mexico. In the 1900s, a 400-mile canal system was constructed on the lower Neches to irrigate rice farms. In 1974, more than 60,000 acres was cultivated. That number dropped to 15,000 in 2005.

LNVA is the oversight agency for the canal system, which serves the industrial complex in addition to the dwindling rice farmers.

"You don't take water out of homes to ship it to a rice farmer. This is long-standing Texas law," contends Mr. Renneau.

Giant petrochemical plants are now served by the canals, and they eclipse the local economic impact of agriculture. Some are referring to Southeast Texas as a "petrochemical superpower."

The Beaumont Chamber of Commerce said three companies are constructing new liquid natural gas (LNG) terminals - Golden Pass, Sempra and Cheniere - each at a cost of $1 billion. And those plants will require water to cool the gas at the points of transfer.

While these corporations may not be household names, some of the companies helping to finance them are, like ExxonMobil and ConocoPhillips.

Making a case

When ANRA attorney John Stover makes a case before TCEQ, he will attempt to debunk the Homeland Security claim to water in the watershed above Lake Sam Rayburn. He will also attempt to prove:

•that LNVA's request is not consistent with the 2006 regional water plan, which has already been adopted by the Texas Water Development Board.

•that Industrial water needs in the Beaumont area should not be considered at the expense of future needs in the middle and upper basin areas.

•that if additional water is needed by the industrial complex in Beaumont, they can purchase it from other sources.

"Certainly better water conservation methods need to be put in place (in the Beaumont area)," said Mr. Renneau.

The City of Dallas may weigh in on the side of ANRA when the case is heard by TCEQ. "I heard that Dallas has assigned engineers to look at how this case would impact their water," said Mr. Renneau.

With 37 percent of Lake Columbia's water shares not yet committed, observers wonder how Dallas will fit into the equation.

"There doesn't seem to be a rational reason for what they (LNVA) are asking to do," said Mr. Renneau.

When LNVA constructed a salt water barrier on the Neches River, it saved 200,000-300,000 acre feet of water annually from Lake Sam Rayburn, which had been used to flush salt water out of the river.

ANRA thinks that LNVA has a leak in its system, causing an overall loss of 92,000 acre feet per year. Possible culprits are faulty meters, evaporation, engineering problems or a leak within the canal system.

"We've looked at their numbers and tried to support their need for this," said Mr. Renneau. "We don't understand. It's very strange and peculiar the way they have approached this, and colleagues around the state don't understand either."

Twists and bends on the

political landscape

State and local officials are trying to familiarize themselves with new political twists and bends on the Angelina Neches landscape.

State Rep. Chuck Hopson (D-Jacksonville) said that one of his tenets to constituents is to maintain local control of natural resources.

"We must protect the natural resources of East Texas at all costs. Lake Columbia is vital to the future of East Texas and our water needs. The protection of our municipalities' water must be upheld."

State Sen. Robert Nichols (R-Jacksonville) finds himself in the position of a parent observing a dispute between two siblings. Both ANRA and LNVA are located in his 16- county district.

"When you talk about 'homeland security,' are you saying you want water to put out a big fire, or are you asking for water to allow communities to build more industry," asked Sen. Nichols. "I'm guessing this is water to help provide for industries, which would be helpful to the nation.

"However, if this is removing future water rights from municipalities, I do not like that."

Sen. Nichols said that urban communities are becoming very concerned about water. "It is a serious problem for us to all help solve," he said. "It also bothers me that we have some communities, municipalities that have made commitments since 1963," he said. "And one action from TCEQ can take that away after almost half a century?

"I think we're going to be talking about this issue for a while."

Cities like Rusk and Jack- sonville made commitments to Lake Columbia in the 1980s, and are cautiously watching developments.

"I hope that ANRA is taking care of our interests on this matter," said Mike Murray, Rusk city manager. "We will be watching this issue very closely as it unfolds."

"I am very concerned about water, now and in the future," said Jacksonville Mayor Robert Haberle. "Our ability to hold on to it as a resource becomes more critical over time." He said he will be monitoring the Lake Columbia dispute and will travel to Austin, if necessary, to protect Jacksonville's interest in the reservoir.

Unquenchable thirst

Squabbles between water districts sometimes occur, particularly in West Texas during a drought. However, LNVA's motive in seeking control over Lake Columbia's water flow is murky, primarily because of the gag order Homeland Security has imposed on LNVA.

The case takes added significance because of a precedent that would be set of placing industrial needs ahead of municipal and household needs. Mr. Renneau believes if LNVA is allowed to control the water flow of Lake Columbia, by extension they would have the same authority on all sources of drinking water upstream, which could include Lake Naconiche, Lake Nacogdoches, Lake Pinkston and Lake Fastrill, if it is ultimately constructed.

A three-member TCEQ board will have to sort through a number of issues raised by ANRA and LNVA.

Mr. Stroder said that he has approached ANRA and offered to buy water rights from Lake Columbia on three separate occasions. "We wanted water rights so we would have a say in the water we would be purchasing."

Mr. Renneau confirmed that point, but said that their request was not for "contractual rights," like the other participants.

Contractual rights are options to purchase water, whereas "water rights" assume ownership of water.

The difference between the two, said ANRA officials, is like leasing a car vs. owning one.

"We don't see putting LNVA on a different level than, say, Rusk, or any other participant.

"They (LNVA) want the water, and they don't want to pay for it."

Mr. James agrees. "The win-win scenario here is for the industrial complex, such as the LNG plants, to buy the water rights from Lake Columbia. The river would benefit from increased flow down river."

Mr. Renneau asked rhetorically, "Is this all about sheer greed?"

With a philosophical viewpoint from a chapter of Texas history, Mr. James said, "The colonization of East Texas continues as we export our resources. FAST FACTS ON LAKE COLUMBIA

The primary purpose of Lake Columbia is water supply. Lake Columbia is not a flood control reservoir nor is it envisioned to have hydroelectric capabilities.

The lake will be located in the Mud Creek floodplain, approximately 10 miles northeast of Jacksonville, primarily in Cherokee County, with the northern limits of the lake extending into Smith County.

It will be 14 miles in length, 1.5

LAKE COLUMBIA

miles wide; cover 10,000 acres; contain 187,839 acre feet of water; and provide 85,507 acre feet of water per year to water supply customers.

Environmental impact studies are complete and have been submitted to the U.S. Army Corps Engineers. The next step is a 404 construction permit.

Officials say the lake could be completed by 2010-11.