STW Resources signs Fort Stockton brackish water recovery agreement

STW Resources Holding has signed a lease agreement with the city of Fort Stockton, Texas, for drilling multiple wells on municipal lands to recover brackish water from the Capitan Reef Brackish Water Aquifer.

Recent hydrogeological studies of the area reveal that more than 100 million gallons can be drawn a day for more than 100 years. Though slightly salty, the water is potable and can be consumed directly. STW has also prepared processing technology for brackish water in case samples turn up differently.

The water will be provided for various industrial consumers and local West Texas municipalities. The water rates range from $4 to $8 per 1,000gal.

Costing $28m initially, the company is currently in the negotiation phase. Once the project is underway, STW has the right to sell water to consumers for 100 years or the term of the contract.

The initial agreement with Fort Stockton is to construct several water stations. Along with this, STW is planning to provide nine communities with water by laying a 189 mile pipeline through the Permian Basin in West Texas. It will be used to transport water to towns such as San Angelo, Midland and Odessa.

STW Water president Alan Murphy said: "This joint effort between STW and the City Fort Stockton Counsel will provide water to thousands of West Texans and not to mention create revenues for the town. This is our first project of this kind but we’ve already begun working with other municipalities to provide a water management plan for their future."

Fort Stockton City Manager Raul Rodriquez said: "City and county residents will benefit by keeping local entities involved in the production of water from Pecos County. City residents will benefit from the new revenue source in the form of lower tax and utility rates.