Rio Nuevo expects lease by April

In a phone interview on Tuesday, Dec. 9, Robert Cannon, a partner in Rio Nuevo, Ltd., said, "We are still negotiating some points." He said he expects "sometime between February and April to have a lease issued" with the General Land Office.

The first step Rio Nuevo will take, according to Cannon, is a feasibility study that could include drilling as many as 20 test/monitor wells. "We are considering several areas for this study," he said. The GLO will hire a firm to do the testing and Rio Nuevo will reimburse the state. The water district in the test area will be contacted, and "will be involved every step of the way," Cannon said. During the study period potential customers will be contacted, "El Paso being the most obvious," he said.

"For now, I am going to wait and see and certainly hope that the GLO and Commissioner Patterson will heed the advice of those who said to slow down," said Brewster County Judge Val Beard. "I am not pleased."

State Sen. Frank Madla's response Wednesday to the possibility of lease so quickly was "shock."

"I don't believe Jerry Patterson will go back on his word. We need time to finalize our report to the senate. This could take 90 days or 120 days. We need adequate information to make an intelligent decision," he said.

In response to public comments at last week's School Land Board meeting, Commissioner Patterson said numerous times that he is slowing down the lease process regarding the water mining lease application submitted by Rio Nuevo.

A slowing down of the process appears to be 90 days. He presented a lease template, or draft, the GLO will use for water mining proposals, and set a 90-day public comment period after which the lease format will be finalized. This review period ends March 2.

Patterson also said he will consider legislative input before making a decision regarding Rio Nuevo's lease. "What I have committed to Sen. Frank Madla is to make no final decision until the legislature has the opportunity for input," said Patterson. Madla chairs the Senate interim subcommittee reviewing issues related to water mining.

Jason Anderson, legislative assistant to Madla, said Tuesday, "Senator Madla's first committee meeting is in Austin Dec. 18, which is primarily an organizational hearing." Meetings are scheduled in his district in Dell City sometime in mid-January, followed by meetings in Marfa or Fort Davis and Midland. Anderson said the subcommittee's report to the full committee is due Dec. 1, 2004, well beyond the time period in which Rio Nuevo is expecting their lease from the GLO.

An interim committee report is a study with recommendations that may or may not be considered by the legislature in the next legislative session. It does not represent the legislature, only its five committee members.

Patterson's responsibilities as commissioner of the GLO are defined by the Texas constitution and statues. Patterson, at this point, has the power to sign a lease with Rio Nuevo, with or without the blessing of the legislature, or West Texans.

Comments? E-mail editor@alpineavalanche.com

Rio Nuevo expects lease by April

In a phone interview on Tuesday, Dec. 9, Robert Cannon, a partner in Rio Nuevo, Ltd., said, "We are still negotiating some points." He said he expects "sometime between February and April to have a lease issued" with the General Land Office.

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