Laserfiche WebLink
through some type of ?? review. Maybe a more abbreviated environmental assessment, maybe a full - <br />blown ? ?? assessment. <br />Let me address No. 9: why would Irving offer Paris $200,000 to participate in studies when Irving could <br />do these on their own? <br />JM: That's a question I do not have a direct answer to. That would require speculation on my part. It <br />just makes sense for them to approach you in a friendly manner, saying, "We would like to do this, be our <br />partner." Because they'd have a hard as heck time trying to take your water from you, OK? So they're <br />trying to look for a partner and look for some way to work in cooperation with other people. That would be <br />my assessment of it. But only they know what their true motivation is. But to me it only makes good <br />business and political sense to try to find somebody who would participate in the study as a part of that <br />process. You'd be more likely to have some confidence that the study is being done in a fashion that <br />would address your needs. That's all I can tell you about that, but that's my speculation. <br />No. 10, a very good question, and it's basically whether it's possible for Paris to structure a contract <br />with Irving in light of the existing contractual obligations of the City of Paris. This is a question that is <br />going to require a considerable amount of analysis concerning your contractual rights vis a vis the Corps <br />of Engineers, and what are your appropriative water rights vis a vis the State of Texas. <br />You have a large water right with the State'of Texas. You have the right in total to 55 million gallons of <br />water a day of diversions from Lake Pat Mayse alone. That's the equivalent of about 51,610 acre -feet a <br />year. That's a lot of water. You have contracts right now with Campbell Soup, Direct Energy, Lamar <br />County Water Supply District, and Lamar Power Partners, that totals 30.3 million gallons of water, or <br />about 34,000 acre -feet. <br />And so, that plus whatever water the city uses to run its own municipal supply system is the water <br />you're currently obligated to supply. So there's some amount of water over and above your current <br />contractual commitments, plus your own needs, that is clearly surplus water to your needs and would be <br />available for sale to Irving. The thing that complicates this is, many of your contractual obligations are not <br />nearly fully utilized. And so while you may have a entity that has a contractual right to 9,000 acre feet a <br />year, if you look at their last three, four or five years average, it may be 3,000 acre feet a year. So you <br />have a lot of under - utilized contractual water. There are clearly mechanisms by which you could sell that <br />water to Irving as long as that water sale to Irving was subordinate to your existing customers. And that <br />would require a fair amount of technical analysis about how much can you safely commit to Irving. And <br />when I say safely commit, it's always going to be subordinate to your existing contractual arrangements. <br />But if you could do an analysis, and you could find out, if you looked at your last five years and you <br />worked with your customers in terms of what their future needs would be, you could find out how much of <br />your contractual obligations were surplus to the anticipated needs of the customer. And you could make <br />arrangements to sell that water to Irving, as long as you had the right to get that water back if it was truly <br />needed by your customers. And there are currently contracts structured like that in the state of Texas for <br />other courses. I've been involved in some of those. I know there is one between the Sabine River <br />Authority, which contracts to sell water to Greenville and Longview and a number of other smaller <br />communities, but that water is not fully utilized, so they have sold a portion of that water to the North <br />Texas Municipal Water District, subordinated to the rights of those existing customers. But they are <br />getting a revenue off of that sale to North Texas, as well as the revenue they have off contracts with <br />existing customers. So it is possible to structure something like that. <br />Question: (inaudible) <br />This is a technical question you want to have your engineers address for you, but I would submit to you <br />that because you have a storage reservoir, and you have a delivery system that's capable of meeting <br />those peak demands, and because Irving is fixing to take that water and move it to another storage <br />