Officials express opposition to new high-capacity wells
Posted/updated on: June 4, 2025 at 4:33 am
CROCKETT – The City of Crockett city administrator John Angerstein, State Rep. Cody Harris and State Rep. Trent Ashby have all expressed their opposition to a new permit application for wells in Anderson County according to our news partner KETK.
Redtown Ranch Holdings LLC in Anderson County has submitted a groundwater production permit application for 21 high-capacity groundwater wells that he said could extract 10 billion gallons of water a year from the Carrizo and Wilcox aquifers. Angerstein said the permit application also lists 11 more wells in Houston County that could drain another 5 billion gallons of water a year but aren’t covered by the Neches and Trinity Valleys Groundwater Conservation District (NTVGCD) like the 21 proposed wells in Anderson County.
According to Angerstein, the 21 wells would extract 52 times more water than the city of Crockett uses for its population.
“This volume of water is staggering. Using the City of Crockett’s per capita water usage, it is equivalent for a population of 338,000 or 52 times the City of Crockett. Yet, none of this water is designated for our communities,” Angerstein said. “It is likely intended to support unchecked development and sprawl in other parts of Texas, presumably in the DFW metroplex or Hill Country, areas that have failed to plan responsibly for their own water needs.”
Angerstein said these speculative water wells could jeopardize the area’s aquifers and investments that the city is making to develop their own water supply.
“These types of speculative water projects jeopardize not only the integrity of our aquifer system, but also the significant taxpayer investments already being made to responsibly develop local supply. My concerns are not hypothetical. The proposed well field lies in close proximity to Crockett’s existing and planned wells, threatening aquifer pressure and yield,” Angerstein said. “The Carrizo and Wilcox aquifers, which this permit targets, is the same formation that Crockett depends on to serve thousands of residents. If surrounding private or shallow wells are compromised, Crockett will likely face increased pressure to provide emergency water connections, placing operational and financial burdens on the City.”
Angerstein also alleged that Redtown Ranch Holdings LLC is tied to Conservation Equity Management Partners, Pine Bliss LLC and 24th Parallel Holding, which he claimed are connected to Hayman Capital Management of Dallas. Kyle Bass is listed as a founder by Conservation Equity Management Partners’ and Hayman Capital’s websites.
The proposed well locations, photo courtesy of the City of Crockett.
“We cannot support the wholesale extraction of rural water to satisfy distant, unplanned urban growth,” Angerstein said. “Especially when done through layered corporate structures, incomplete applications, and without regard for the future of our communities.”
His statement was issued in an attempt to get local landowners, leaders and state representatives to submit their own statements in opposition of this permit to the NTVGCD by emailing [email protected] before June 19 at 11 a.m. Angerstein is also asking The Crockett City Council to issue a resolution in opposition to the permits.
East Texas State Representatives Cody Harris of Palestine and Trent Ashby of Lufkin have both put out statements expressing their opposition to the 21 proposed wells.
“As a lifelong resident of East Texas and a member of the Texas House of Representatives, I have consistently supported responsible groundwater management and local control over water resources,” Ashby said on Saturday. “This proposed project is deeply troubling. The sheer volume of water involved equivalent to the annual usage of more than two million Texans raises serious concerns about aquifer depletion, potential impacts on surrounding private and municipal wells, and the long-term sustainability of our region’s water supply.”
Harris is the Chairman of the Texas House of Representatives Committee on Natural Resources and he expressed his opposition while noting that the state legislature is working to fix water problems across the state.
“While we are working rigorously at the state level to propose and enact significant legislation that will help ease the ongoing burdens across the state, I will not stand by while attempts are made to drain my own district,” Harris said on Friday.
KETK reached out to Redtown Ranch Holdings LLC and Conservation Equity Management Partners for comment on this story and received the following statement from Conservation Equity Management CEO Kyle Bass:
“The great state of Texas is in the midst of a water supply source crisis. Our drilling applications are intended to be part of the solution to that crisis. We seek authority pursuant to current Texas law to drill wells that we will test to collect actual field data to prove up the results of the rigorous hydrogeologic modeling and analysis we have conducted that supports the issuance of production and export permits based upon the best available sound science in compliance with all applicable Texas laws. Our drilling applications are the first step in our ongoing constructive dialogue with the Neches & Trinity Valleys Groundwater Conservation District. Following our completion of the aquifer testing pursuant to our drilling permits, we will continue the process by reporting our findings and data to the District along with our application for additional permits authorizing production and exploration.”
Conservation Equity Management CEO Kyle Bass
In a document providing background on their applications to NTVGCD, Conservation Equity Management said that they aren’t seeking to produce or export any water from the area at this time. The first phase of their project was creating water models that they’re now trying to validate by drilling.
“Let’s be clear: we are not seeking to produce or export water at this time. Texas law requires a permit to drill any well—we cannot “wildcat” and then apply after the fact,” Conservation Equity Management said. “Once wells are drilled, they will be tested according to the standards of both the Texas Department of Licensing and Regulation and NTVGCD. We will then submit those results to the district.”
The document then states that if the data produced from the drilling in this second phase of their project validates their model, they’ll enter their third phase.
“Only if the data supports our modeling—and confirms that the aquifer can sustainably
support production—will we advance to Phase III: submitting production permit
applications,” Conservation Equity Management said. “Those applications will include detailed projections of any annual production and any proposed exports, if applicable.”
Conservation Equity Management’s document cited Texas law and “basic economics” as reasons the project is ensured to avoid overuse.
“Texas law contains clear regulatory guardrails to protect aquifers from overuse. Beyond that, basic economics ensures that only sustainable projects are viable—no investor benefits from draining an aquifer and destroying the value of their own investment,” Conservation Equity Management said. “Our phased, science-based approach reflects a responsible path forward for helping meet the growing water needs of communities impacted by the rapid pace of change in Texas.”
