County judge looks for answers from energy center
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Matagorda County Judge Nate McDonald voiced concerns over White Stallion’s reply to a request sent to them asking for a contractual obligation request.
In the letter dated May 5, McDonald listed seven requirements the energy center must agree upon before it can build in the county.
“I have asked them in a form of a letter, asking for obligation that obligates this company to be the cleanest there is,” he said.
But the judge says the energy center has not delivered.
Some of the requirements in the letter include issues on the environment, water supply, the economy and the tax base.
In return, McDonald said he received a letter, dated June 14, from Randy Bird, chief operating officer for White Stallion, outlining each request, but no contractual obligation.
“I want something that is going to tie his company and its successors to what it is I need to feel to be doing business with them,” he said.
If the energy center wants to come to the county to do business, they must do that, in good faith, for the county if they want to be good partners, said McDonald.
When the judge first met with Bird, he asked that the coal plant be the cleanest not just in Texas and America, but everywhere.
He also asked about the workforce and requested workers stay in the county.
“If you are going to be doing business with us, I want you living with us,” the judge said.
This is a $2 billion deal, and a handshake is not enough, he added.
“I want something that’s negotiable, that obligates White Stallion, its successors and airs to bill and keep this the cleanest plant, to this point he has not produced that for me and that is disappointing,” he said.
Bird, on the other hand, said he has answered the judge’s entire request in a letter.
“We are committing to the seven action items that he requested in that letter,” said Bird.
It may not be in the form that he wants, but it is in writing, he said.
McDonald also expressed concern about the use of water by White Stallion, saying he would not trade agriculture water for coal water.
Agriculture has performed very well in the county for well in excess of 100 years, said McDonald.
“This is something we know works well, and we want to maintain and grow, and if you go trading that water for industrial water it is just not a good management decision,” he said.
In response to concerns over water issues, Bird stated the company’s engineering team has worked to reduce the water needs of the project and has adopted several water-saving techniques.
One of the commitments White Stallion has made is to pay for the installation of a pipeline from the Bay City pumping station, to the site, along the existing canal right-of-way, to reduce system losses, said Bird.
Another requirement set by the county judge is for the energy center to use the Port of Bay City facilities.
“I don’t care for another unloading facility. My letter to him states I would like for them to use the existing facilities,” he said.
McDonald wants to see a contract between the port of Bay City and White Stallion, for the company to use the existing port facilities.
“Until he gets me that contract, he is not a good fit for my market,” McDonald said.
In initial meetings with the Port of Bay City, Bird said, the energy center was discouraged from using the existing port facilities and was encouraged to use a facility 15 miles away along the Gulf Coast Intracoastal Water Way in Matagorda.
The county judge stated he is speaking with an attorney who will be able to help with the type of contract he needs from White Stallion.
Bringing in the Environmental Protection Agency to the county would be a bad decision, McDonald said, saying some have requested the EPA to step in.
“Any time you ask a federal agency to come in and do the states business, I think we are now moving ourselves to socialism,” he said.
The judge said that White Stallion’s plans, some are concerned Matagorda County might be classified as a non-attainment air quality region by the EPA as early as the end of this year.
“We all know they have not started construction, so it’s obvious they are not polluting the air, but all this has been raised over air quality and the county,” he said.
Clean air and clear water are the jewels of this county, he added.
“We don’t let that go without a fight.”
The judge also is concerned about the possibility of White Stallion being purchased in the future by a non-tax identity.
Currently, White Stallion Energy Center has engaged a team of experts with wide ranging skills and experience related to project financing and school, county, city and special district.
“We have engaged some two different tax groups in Austin to help us with that,” Bird said.
“We have committed to him by the end of July with our plan to give him what he wants,” he added.
The project, once operational, is expected to contribute $10 million to $20 million per year in direct taxes to the Bay City school district, Matagorda Fiscal Court, Matagorda County Hospital, Port of Bay City and Reclamation and Conservation District.
“We want to make sure that who ever owns this company until the end it quits producing, is obligated to doing the right thing environmentally, tax wise and water wise, testing wise,” he said.
Until then McDonald will wait for a written contract from White Stallion, he said.
“At some point you start pressing the issue, I want this done or I can’t support them,” he said.