What happened: The legal battles between the Midland County Utility District (MCUD) and Park Water Company are over, and MCUD confirmed to The Permian Press that purchasing Park Water remains a possibility. MCUD General Manager Norman Ashton said the district expects to have a better understanding in the coming weeks of whether purchasing the company is feasible.

“MCUD is still evaluating the possible purchase of Park Water,” Ashton said. “We remain in the due diligence phase of the process and are working with engineers and consultants to evaluate the system and its assets.”

On July 23, MCUD, Park Water, Paleo Land Company, and Permian Basin Water Resources jointly asked the 11th Court of Appeals to dismiss MCUD’s appeal, stating they settled and that their dispute “is currently moot.” The motion also says that the entities are dropping the underlying lawsuit in Midland County’s 441st District Court.

Editor’s note: MCUD is not part of the Midland County government. It is a voter-created, taxpayer-supported public utility district.

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Why it matters: The settlement removes a significant legal uncertainty as MCUD prepares for a Nov. 3 bond election asking district voters to authorize up to $299 million to expand its water system. The previous $645.8 million bond proposal from May 2025 was rejected by 76% of MCUD voters.

Catch up quick: Park Water currently holds the legal right to serve portions of Greenwood under a state-issued Certificate of Convenience and Necessity (CCN). Last year, Park Water asked the Public Utility Commission of Texas (PUC) for permission to expand its service territory deeper into MCUD’s boundaries. MCUD stepped in to oppose those applications.

Park Water, Paleo Land Company, and Permian Basin Water Resources responded by suing MCUD, arguing the district had signed agreements promising not to oppose Park Water’s expansion efforts. In March, a district judge temporarily sided with Park Water and ordered MCUD to withdraw its opposition. MCUD appealed that ruling to the 11th Court of Appeals.

MCUD withdrew from the PUC proceedings on July 20, and the parties filed their agreed dismissal motion with the 11th Court of Appeals on July 23.

The big picture: MCUD’s board voted in June to enter into a letter of intent with Park Water, Greenwood Water Corporation and Park Sewer. Although the agreement remains sealed from public view, Ashton confirmed to The Permian Press that part of the agreement is that MCUD will supply treated water to Park Water’s distribution system during periods of peak demand.

“This partnership is intended to strengthen the overall regional water system by allowing the two utilities to work together to help ensure a reliable water supply for customers, improve operational flexibility, and support the continued growth of our community,” Ashton said. “We believe this type of regional cooperation is beneficial for both utilities and, most importantly, for the residents and businesses we serve.”

On KWEL’s The Morning Show with Craig Anderson and Lisa Kay, Ashton said they could complete the connection within the next couple of months and that it does not depend on the November bond election.

“We are going to start supplementing water into their system to help in their peak times, to help with pressure issues,” Ashton said.

What’s next: District residents do not yet know what a purchase of Park Water would cost or how MCUD could pay for it. In a press release, MCUD said the district’s $299 million November bond proposition authorizes the acquisition of related facilities, meaning MCUD could potentially use bond proceeds to buy Park Water if voters approve the bond.

If MCUD ultimately decides to purchase Park Water, the transaction would require approval from the PUC and would place a sale and purchase price on the public record. Any district funds used to complete the acquisition would also require approval through MCUD’s board meeting process.