Groundwater Leases of Metropolitan Water Company, L.P.
Groundwater Development Business

Leased Properties
Extent of Carrizo-Wilcox
Aquifer in Central Texas
Water Lease Properties

Watch animation of groundwater lease acquisition over time

During the past 15 years, Met Water has devoted a significant amount of time and resources acquiring groundwater leases over the most productive areas of the Carrizo-Wilcox Aquifer. The groundwater leases being obtained are similar in nature to an oil and gas lease and contain the following basic terms and conditions:

• Bonus Payment - payable to the owner of the groundwater rights (most cases being the surface owner) when the lease is executed. This payment will maintain the lease in force and effect for the first year of the primary term.

• Delay Rental Payment - paid each of the subsequent years during the primary term of the lease to delay the drilling of a well or wells. This payment will maintain the lease in force and effect for a one (1) year period.

• Primary Term - this is the amount of time in which the lease can be maintained in full force and effect solely by the payment of bonus and delay rentals. The drilling of a well and the establishment of production will occur during this time frame. Once production has commenced, the leases will remain in full force and effect for so long as water is produced and royalties and/or shut-in royalties are paid to the landowners (Lessors).

• Royalty Payment - this is an amount paid to the surface owner for each acre foot of water produced on an annual basis.

• Pooling - the pooling of tracts to create water units will be necessary due to the various sizes of tracts and to be able to abide by a particular groundwater conservation district’s spacing requirements.

• Water Use - the groundwater leases allow landowners to continue to use water for their domestic and livestock watering purposes.

• Water Well Mitigation - In the event that Lessee's operations hereunder are directly related to a water well on Said Lands, or on neighboring lands, to cease producing, then Lessee shall be subject to mitigation procedures in association therewith. Mitigation procedures shall mean that Lessee, at its sole cost and expense, would perform for Lessor and/or its successors and assigns (I) recompletion of the existing well; (ii) drill, complete and equip a new well that produces a like quantity of potable water; or (iii) provide potable water from a well or supply system in the area for a like quantity of potable water.

Met Water’s Porters Branch Groundwater Project, located in Burleson and Milam Counties, Texas, was the first large scale Groundwater Lease Project in the State of Texas.  This Project is now allocated into two (2) well fields:

130 Well Field contains 1,603 Groundwater Leases covering 20,000 acres of land.  Met Water has assigned the development rights in these leases to Blue Water Systems.  This well field has the necessary Permits from POSGCD for the drilling of six (6) wells, which will produce 20,000 ac-ft/annually (18 MGD).  The first production well, in this well field, began producing water on July 5, 2011.  This water is being delivered to the Manor area of Travis County through a 53 mile long pipeline owned and operated by Cross County Water Supply Corporation.

SAWS/Vista Ridge Well Field contains 1,312 Groundwater Leases covering 50,000 acres of land.  Met Water has assigned these leases to the Vista Ridge Project for a thirty (30) year term.  This well field has the necessary Permits from POSGCD for the drilling of fourteen (14) wells, which will produce 50,993 ac-ft/annually (45 MGD).  The water from these wells will be delivered to San Antonio through a 142 mile pipeline, which is being developed.

Met Water’s Brazos River Lower Basin Project is located in the Eastern portions of Burleson and Milam Counties, Texas.  Met Water has devoted a significant amount of time to this Project area during the past two (2) years, having acquired more than 2,000 Groundwater Leases, which cover approximately 32,000 acres of land.

Cade Lakes Subdivision

The Cade Lakes Subdivision is located in Burleson County and adjoins the Porters Chapel Well Field in the Project Area. Met Water has acquired more than 1,143 groundwater leases covering more than 2,740 lots in the Cade Lakes Subdivision. Sections 2 and 3 of the Cade Lakes Subdivision are included in the Porters Branch Production Unit for the water production being produced from PW-1.

Cade Lakes Subdivision Map Cade Lakes Summary Map

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