What happened: The Midland County Utility District (MCUD) board met on Monday, June 15, and voted to enter into a letter of intent with Park Water, Greenwood Water Corporation, and Park Sewer. MCUD still cannot legally provide water service to parts of Greenwood and has been fighting the private utilities in court and with the Public Utility Commission of Texas (PUC). MCUD is now potentially trying to acquire the three entities’ systems.

The board did not publicly disclose the terms of the letter during the meeting. That letter is now publicly on file, but it is sealed from public view, so what the district and the utilities have actually agreed to is not public. The district said it is also finalizing an engineering master plan for its future water system, which the board aims to have on hand before it potentially calls for an November election for a bond amount the board has not yet formally set.

Editor’s note: MCUD is not part of the Midland County government. It is a voter-created, taxpayer-supported public utility district. MCUD did not release video of its June 15 meeting until July 7. This report is based on that recording and on publicly available information since the meeting.

Key points:

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  • Park Water fight: MCUD and Park Water have been battling in two separate legal proceedings: contested cases before the PUC over Park Water’s request to expand its service territory and a district court contract lawsuit now on appeal.

Park Water currently holds the legal right to serve parts of Greenwood under a state-issued Certificate of Convenience and Necessity (CCN). Because of the CCN, MCUD cannot serve those areas, even though they fall within the district’s voter-approved boundaries.

If the negotiations ultimately result in MCUD purchasing the private utilities, the district would acquire both the utilities’ infrastructure and service territories, potentially ending the disputes. The board did not publicly discuss purchase price, timeline, or other terms.

On June 24, both sides jointly notified the administrative law judge overseeing the PUC proceedings that they reached a settlement in principle, and the PUC cases are now paused while the parties work out the agreement. The district court appeal remains active. MCUD filed its opening brief on June 12, and Park Water’s response is due July 22.

  • System build-out: Engineers now project the district will eventually serve roughly 47,000 water connections with a maximum daily demand approaching 29 million gallons, figures several times larger than earlier estimates presented to the board.

District officials said they currently have about 3 million gallons per day of identified water capacity. The long-term plan would build the system in phases, first extending major transmission lines toward Greenwood and the chromium plume area before filling in service between those corridors as additional capacity becomes available.

Officials said groundwater levels in district wells have risen about two feet since heavy spring rains. They said they plan to begin publishing regular aquifer measurements after residents raised concerns about groundwater levels.

  • State water grant: The board approved applying for a $21 million Texas Water Development Board (TWDB) Water Supply and Infrastructure Grant. In a press release, the district said the funding would help build water infrastructure needed to support continued residential growth, economic development, and future public facilities. The City of Midland also applied for a $21 million grant from the TWDB.
  • Resident water station: The board discussed constructing a public water station at its treatment plant, where residents could fill tanks or totes.

District officials said they continue to receive calls from Greenwood residents whose private wells are running dry, as well as from a commercial water-hauling company interested in purchasing bulk water for delivery. The board did not discuss pricing and expects to revisit the proposal at a future meeting.

  • District finances: The district reported about $13.4 million in cash, with approximately $3.1 million remaining to complete construction of the treatment plant. Officials said they expect to finish construction with an estimated $7–8 million on hand. Revenue is running more than $1 million ahead of budget this fiscal year, while administrative expenses remain around $150,000 per month.