Lindale Rural Water Supply Corporation (WSC) claimed in a Western District of Texas complaint on Monday that it should have exclusive rights to provide water to Crook Rose Inc, however, under Texas Water Code those rights are set to be infringed. The plaintiff’s service area includes land owned and operated by a farm, Crook Rose, which filed for a release to allow them to use another water source.
The lawsuit was filed against Crook Rose, along with three individuals who are commissioners on the Public Utility Commission of Texas (PUC). Lindale Rural WSC claimed that as the recipient of a $542,000 loan from the United States Department of Agriculture Rural Development, it has protection under United States law, specifically, it is protected from its service area being curtailed or limited.
According to the complaint, Crook Rose filed an application for expedited release from using Lindale Rural WSC for its water source in September 2020. The plaintiff claimed that as the property was certificated to Lindale Rural WSC at the time the federal loan was granted the application should not be granted, however, its motion to dismiss the application on those grounds was denied by PUC which cited Texas Water Code. Crook Rose’s application is reportedly scheduled to be granted by the PUC on January 29.
The plaintiff explained that Texas Water Code section 13.2541(d) prohibits PUC from following the cited federal law, the code says, “the utility commission may not deny the petition based on the fact that the certificate holder is a borrower under a federal loan program.” Because of this, the defendants cannot comply with the code and give the plaintiff the relief it is allegedly entitled to under federal code. Lindale Rural WSC claimed that the federal law should be the supreme law, and because the statutes conflict the federal laws should be followed.
Lindale Rural WSC further argued that it has made water service available to Crook Rose, owns and operates pipes near the property, and can provide sufficient water service to the defendant. The plaintiff asked the court to enjoin the PUC from depriving it of its rights to provide water and rule that the Texas water code is unconstitutional. In addition to damages, the plaintiff is seeking a preliminary injunction and a temporary restraining order against the approval of Crook Rose’s petition for an expedited release.
The plaintiff is represented by Terrill & Waldrop.
