Corpus Christi approves $28m groundwater deal as reservoir levels hit critical lows

Corpus Christi approves $28m groundwater deal as reservoir levels hit critical lowsWith combined surface water storage under 10 percent, the Texas utility secures additional groundwater rights to delay projected water emergencies.

Council approved a $28 million agreement with ERF Real Estate for groundwater rights on ~2,500 acres.

The project is expected to yield up to 15 MGD, serving as a bridge until desalination and other sources come online.

Combined surface reservoir levels have dropped to 9.4 percent, with a 'Level 1' water emergency projected for November 2026.

The decision comes as the separate Evangeline Groundwater Project faces a preliminary hearing that could lead to significant permitting delays.

Rate impact is estimated at a $0.52 increase per 1,000 gallons, or approximately $3 per month for residential customers.

The Corpus Christi City Council has voted to approve a $28 million Groundwater Rights Purchase and Sale Agreement with ERF Real Estate, Inc., securing access to approximately 2,478 acres of groundwater rights in Nueces County. The move is part of an aggressive strategy to diversify the city's water portfolio as historic drought conditions threaten the region’s traditional surface water supplies. The agreement includes the conveyance of one existing production well and the drilling of five additional wells by the seller. Interim Chief Operating Officer for Corpus Christi Water, Nick Winkleman, stated that hydrogeological data suggests the property can provide up to 15 million gallons per day (MGD) of water with lower total dissolved solids (TDS) than the city's existing Eastern Well Field. The project is located adjacent to the city’s developing Western Well Field. The decision was driven by urgent hydrological data. City Manager Peter Zanoni reported that the combined capacity of the Choke Canyon and Lake Corpus Christi reservoirs has fallen to 9.4 percent. Without new supplies or significant rainfall, the city projects entering a 'Level 1' water emergency by November 2026. 'We have to backfill 40 million gallons of water supply,' Zanoni told the council, referring to the volume currently drawn from the dwindling western reservoirs. He explained that while the Western Well Field will contribute 17 MGD and the Evangeline Groundwater Project is expected to start delivering partial capacity by November, a deficit remains. 'If you take 17 plus 4, that's 21, and that's not 40... This is the next and only source of water that we're aware of, and this adds 15.' The purchase also serves as a hedge against potential delays facing the Evangeline Groundwater Project. Winkleman briefed the council that while the San Patricio Groundwater Conservation District has issued permits for Evangeline, a preliminary hearing is scheduled for March 2 to determine if protesters have standing. If standing is granted, the project could move to a contested case hearing, which officials warned could delay full implementation by up to two years. The ERF purchase faced scrutiny regarding its long-term impact on the aquifer and local agriculture. Councilwoman Carolyn Vaughn voted against the measure, citing a lack of sufficient data to guarantee the project would not harm neighboring farmers and ranchers. 'There is not enough data to tell us that it's not going to harm the ranchers, the farmers, huge communities out there,' Vaughn said. Winkleman emphasized that the 15 MGD figure is a 'provisional' estimate provided by hydrogeologists and that the city intends to manage the resource conjunctively with other supplies, rather than pumping at maximum capacity indefinitely. 'We're not looking to pump this at its max 24 hours a day... till eternity,' Winkleman said. 'We've got to manage the resource.' Financial staff estimated the project, including conveyance lines and brackish reverse osmosis treatment, would result in a rate impact of approximately $0.52 per 1,000 gallons. The $28 million purchase price includes a $200,000 option fee, with the balance due one year after closing. The urgency of the situation was underscored by updates on water quality. Winkleman noted that as lake levels decline, arsenic levels in the reservoirs have risen, though treated water remains well within safety standards. The new groundwater source is viewed as a critical stopgap to push back the date of a water emergency until longer-term solutions, such as the proposed Inner Harbor seawater desalination plant, can be realized.