Details of Lake Conroe Contract between SJRA, City
8/21/24 – The City of Houston approved a new Lake Conroe contract with the San Jacinto River Authority (SJRA) last September.
For those interested in a deep dive, I’ve posted the entire 48-page document on my Reports Page under the San Jacinto River Authority tab.
For everyone else, I’ve posted a brief summary below. It covers key provisions, including those that affect lake lowering to help reduce flood risk. Spoiler alert: I made a startling discovery at the end of the contract doc.
But let’s start from the top of the Lake Conroe contract.
Key Definition
The first few pages lay out the customary recitals and definitions found in all contracts. The key definition is that of a 1987 Certificate of Adjudication (Number 10-4963, shown in Appendix A) that governs the impoundment, use, diversion, and priorities of water in Lake Conroe.
Ownership Interests
The meat of the contract starts in Article II on page 5: Interests of the Parties. Key points:
- SJRA owns the land that constitutes the Lake.
- The City owns two-thirds of the water in it.
- SJRA owns the remaining one-third.
- Each party has the right to sell its share of the water.
- Other revenues from the operation of Lake Conroe, such as income from marina leases, go toward operating and maintaining the lake.
Operational Responsibilities
Article III on Page 6 of the Lake Conroe contract lays out operational responsibilities.
SJRA:
- Operates and maintains the lake and dam.
- Handles all the accounting and reporting for water impounded and released.
- Maintains metering devices and monitors withdrawals (must be accurate within ±5% or better)
- Lets lakefront homeowners pump water directly from the lake for $150/year to water their lawns
Joint Responsibilities:
- Annual reports to public and TCEQ of withdrawals.
- Annual withdrawals by their respective customers.
Release of Water and Reservoir Levels (Section 3.04, )age 8)
- SJRA must release water when requested by City (subject to restrictions in the Certificate). But it must do so in a way that maximizes the operational yield of the lake.
Liability and Indemnification (Section 3.05, Page 9)
- Both parties are jointly liable for damages when the lake is operated according to established procedures.
- If one side is negligent, that party assumes sole responsibility for any damages.
Other sections in Article III cover:
- Defense of claims
- Regulatory compliance
- Water Quality
- Annual budget and what happens if City Council fails to approve the annual budget
- Monthly payments by the City to SJRA for capital, operations and maintenance expenses
- Flood mitigation (Section 3.16 (c), Page 17)
Reports and Inspections; Incidental Matters
Article IV, starting on Page 17 covers:
- Annual audits
- Inspection of records
- Disposal of surplus property
Length of Contract
This contract replaces the original 1968 Lake Conroe contract between the City and SJRA. It will remain in effect until terminated by mutual agreement during the useful life of Lake Conroe.
Default and Notice; Remedies; Mediation
Article V covers how the parties will handle disputes. It starts on page 18 and goes through page 23. Basically, it covers procedures leading up to mediation in the event of disagreements.
Force Majeure
Article VII covers force-majeure events. In law, “Force Majeure” means “unforeseeable circumstances that prevent someone from fulfilling a contract.” This section defines what happens during Acts of God, such as hurricanes, storms, floods, droughts, etc.
This Article allows the temporary suspension of normal rules, except those regarding payments. However, it requires resumption of the normal rules after the event.
Other Provisions
Article VIII contains addresses and contact information for each party and approval procedures.
Article IX includes provisions concerning applicable law (State of Texas), procedures for amendments, etc.
Exhibit A
The Certificate of Adjudication from the Texas Water Commission, dated February 25, 1987, limits total withdrawals from Lake Conroe to 100,000 acre feet per year. It lists the maximum withdrawal rate as 700 cubic feet per second.
Note: Some at the SJRA and City have chafed at this limitation. It restricts pre-release rates that could lower Lake Conroe in advance of approaching storms. Some want to raise the limit so that more water could be released earlier and reduce flood peaks.
The TCEQ amended the Certificate in 2010. It keeps the total withdrawals and max withdrawal rate above constant. But it added an additional use for the water. To the original municipal, industrial and mining categories, they added agriculture. It says they did that because they had not received any complaints about the previous limits within each category.
This is, in essence, a permit to release/sell water. And the permit comes with an obligation – to implement water conservation plans, which the TCEQ letter also spells out.
Exhibit B
This 2016 letter from SJRA’s management to the City explains a residential-lawn-watering permit program for lakefront homeowners. The program lets them pump water directly from the lake for a permit fee of $150 per year (as of 2016). That’s 41 cents per day.
They saved the best part for last. This was a real eye opener.
The permits mandate a “drought contingency plan” that impose watering restrictions when the level of the lake gets to 199 feet above mean sea level. Astute readers may remember that SJRA’s seasonal lake lowering plan took the lake down to 199 for large parts of the year.
Editorial Comment
Hmmmmm. Could that be why the Lake Conroe Association (LCA) fought seasonal lake lowering so vigorously?
We may never know with certainty whether the loss of lawn watering was the sole or a contributing reason. But either way, unlimited watering of giant lawns for only 41 cents per day certainly helps explain at least some of the pushback from the LCA.
Posted by Bob Rehak on 8/21/24
2549 Days since Hurricane Harvey
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
