In late July, the Texas General Land Office (“GLO”) executed a Memorandum of Understanding (“MOU”) with Seven Seas Water Corporation (“Seven Seas”) governing the possible development of a seawater desalination facility in the Corpus Christi area.
While the MOU is not legally binding, it expresses the intent of the parties to work together on a desalination facility to meet the water supply needs of industrial water customers in the region and outlines the responsibilities of each party as they move forward.
Seven Seas will take responsibility for matters related to the plant—including design, engineering, construction, operation and maintenance, financial modeling, and project funding. The company will also handle negotiation and preparation of water purchase agreements and contracts with third-party contractors.
GLO will take responsibility for real estate and government matters—such as securing a site, providing easements on state-owned submerged land, assisting with the acquisition of easements and permits from other government agencies, and facilitating discussions with state and local officials. The site for the plant may be leased to the project or contributed for an equity stake in the project.
The parties expect to secure water purchase agreements for at least 10 MGD.
This MOU represents a first step toward meeting the water supply needs of industrial water users in the Gulf Coast, but the community is still open to other options. At the Lone Star Water Summit in September, both Corpus Christi Mayor Nelda Martinez and State Representative Todd Hunter expressed an open door policy for anyone with a potential solution to the area’s water supply needs.
Written by Marta L. Weismann