AUSTIN, TX, Dec. 4, 2002 -- Former Senator J.E. "Buster" Brown has become the chairman of the board of the newly formed water resources company WaterTexas, the company announced Tuesday.
Brown was a member of the Texas Legislature for more than 20 years and chairman of the Senate Natural Resources Committee from 1995 to 2002.
WaterTexas uses water equity transactions to bridge the gap between communities and much needed water resources in a manner that is fair, respectful and prudent.
It is the first company in Texas dedicated exclusively to the systematic development of wholesale water projects using private equity. This includes locating available water resources, partnering with landowners to create a marketable water supply, negotiating water supply agreements with communities, and constructing and financing the infrastructure to transport water produced.
"Senator Brown?s knowledge of water issues combined with his expertise in dealing with municipalities and local interests give WaterTexas a distinct advantage in developing water projects across the state," said Lynn Sherman, president of WaterTexas. "Our company partners with landowners and communities to locate and cultivate water supplies in a manner that respects the environment and economy of the region."
Historically, water development has been a government function, with government entities accounting for about 85 percent of the nation?s public water-supply business. However, due to growing complexities and costs of water development, governments are less inclined to take on water projects.
"With almost 400 communities in 96 counties in Texas facing water shortfalls today, the most viable solution is water transfers and accessing water rights through transactions," said Brown. "Through WaterTexas, we facilitate water equity transactions with private funds to meet regional water needs."
Sherman points out that while WaterTexas privatizes water resources, its corporate philosophy is grounded in respect for water, its history and value to landowners and communities.
"We are focused on responsible water development that is fair and equitable to our partners from landowners to municipalities," said Sherman. "For example, our projects invite those landowners who will be affected by the project to participate. We work hard to identify ways to share a portion of the proceeds from our water projects with the local communities for their economic development efforts."
In addition to Brown, who is primarily responsible for business development, WaterTexas is led by Sherman as president and Derek Saunders as chief executive officer, a team of experienced managers and policymakers knowledgeable about water issues, state and municipal regulations, landowner rights and enterprise financing.
Saunders, who founded the company, is responsible for day-to-day operations, strategic planning and financing. He has more than 15 years of corporate, securities and finance law experience.
"Given that more than half of the identified water projects in Texas don?t have a funding source, there?s no doubt the private sector will play a major role," said Saunders. "The private sector is attracted to private water development projects because they offer the opportunity for equity-like returns with risks comparable to bonds of any public revenue-backed infrastructure project."
Sherman is responsible for developing and managing water projects and negotiating water contracts. A longtime water attorney and recent executive with the Lower Colorado River Authority, he has worked to develop and market water supplies throughout Texas for more than a decade.
WaterTexas is funded through private investors, primarily individuals, trusts and investment funds based in Texas. The company will form separate limited partnerships to own and develop each wholesale water project. Other partners could include landowners who own or control groundwater or surface water rights and special limited partners such as hydrologists and engineers.
