STWR President Presents Facts On Proposed Water Pipeline To Uvalde City Council

Online, July 21, 2010 (Newswire.com) - July 16, 2010

SAN ANTONIO, July 16, 2010 - Rodney T. Smith, Ph.D., President of the Board of Managers of Southwest Texas Water Resources, LP (STWR), spoke Tuesday evening before the Uvalde City Council and a gathering of Uvalde County citizens, providing facts and answering questions on his team's approach to managing the Edwards Aquifer -- the proposed Uvalde Water Project.

"The Uvalde Water Project aims to diversify the region's water supply off the San Antonio Pool of the Edwards Aquifer, while still protecting those served by the Uvalde Pool of the Edwards." Smith told the Council and citizens. "It is a balanced approach that, when teamed with conservation efforts, respects the region's environment and agricultural heritage, while also delivering a powerful economic boost to a region that is experiencing tremendous growth."

"The Uvalde Water Project will provide the Edwards Aquifer region with a more reliable source of water by ensuring that the San Antonio Pool and the Uvalde Pool of the aquifer are utilized in a manner that benefits the entire region," Smith continued. "As regional water usage increases, we need to ensure that proper management of the aquifer protects the San Marcos and Comal springs, and that is what the Uvalde Water Project will do by diversifying off the San Antonio Pool."

In his presentation before the Uvalde City Council, Smith emphasized the following points:

- The proposed pipeline is a key component of STWR's strategy to provide a water resource management tool for Edwards Aquifer;
- The project enables owners of unrestricted Edwards permits in the Uvalde Pool to realize the economic value of the superior reliability of their water rights under Texas law;
- The project would maintain all existing protections of water supplies for Uvalde County under the Edwards Aquifer Authority Act and provide long-term economic stimulus to the local community.

Smith outlined for the Council how the Uvalde Water Project would create a water company based in Uvalde County to develop, finance and operate a well field there and construct a regional water pipeline from Uvalde County to Bexar County:

- Operation of new water company;
- New recurring income stream for participants in STWR leasing program;
- Project construction;

Water company & STWR water right leasing program will generate 74 to 121 jobs
permanently and increase annual output in Uvalde County by $15 million;

Construction activity generates 173 jobs and increases output in Uvalde County by
$44 million.

"The fact is that the Uvalde Water Project will help protect springflows and offer a cost-effective solution to ensure superior water supply reliability," Smith said. "Aside from the economic benefits of the project, we believe that an effective habitat conservation plan must recognize that the location of pumping in the Edwards Aquifer has environmental consequences, and the Uvalde Water Project would serve as a solution to this concern."

During the City Council meeting local citizens spoke both in support of and in opposition to the proposed pipeline project. Members of the Uvalde City Council asked numerous questions seeking to ensure that the water needs of the community would not be adversely affected by any effort to move water from the Uvalde Pool. The Uvalde City Council asked for a dialogue to continue with STWR in order to share scientific data, but until data could be shown that the local impact would be minimal the Council passed a resolution opposing the project at this time.

In February, Rodney Smith presented the environmental benefits of the Uvalde Water Project to the Edwards Aquifer Recovery Implementation Program (EARIP). Since the Uvalde Water Project would require a change in Texas law, the Texas Legislature itself could make the changes in law to take advantage of the project's benefits. Additionally, the EARIP could consider recommending that the Texas Legislature take notice of the project as a resource management tool during its ongoing deliberations. Smith also testified in April before the Texas House of Representatives Natural Resources Committee at the State Capitol in Austin and spoke in June to a group of San Antonio and Bexar County business leaders at the Frost Bank quarterly Business Advisory Council luncheon.

"We will continue to work with elected officials, environmental groups, water utilities, and business and civic leaders in all communities in the Edwards Aquifer region to inform and educate on our plans to help provide a reliable long-term water supply," Smith said.

About Southwest Texas Water Resources: Southwest Texas Water Resources (STWR) is a private business founded to protect and develop water resources across the United States to meet growing municipal needs for reliable and affordable water supplies consistent with environmental stewardship. Visit www.uvaldewaterproject.com for additional information