Consider and take action on Resolution No. 2025-156 regarding an agreement for the purchase and delivery of treated wastewater effluent between the City of Texas City and Valero Refining-Texas, L.P.

Valero Refining - Texas, LP owns and operates a petroleum refinery located in Texas City, TX.  On July 10, 2013, the City of Texas City entered into an agreement with Valero Refining - Texas, L.P., pursuant to which Valero was granted a five (5)- year, non-exclusive option to purchase treated wastewater effluent for various approved uses, as specified in 30 TAC Chapter 210, including cooling tower make-up water. The Option Agreement has been extended through February 20, 2026 by various amendments approved by the City Commission.  
 
Valero exercised the option by notice provided on August 29, 2024, and the parties have been working diligently to negotiate terms and draft a long-term agreement for the purchase of treated wastewater effluent and for the lease of property necessary to construct facilities to deliver the treated wastewater to the Valero refinery in Texas City. 

The City of Texas City and Valero Refining - Texas, L.P. have reached an agreement for the delivery of treated wastewater to Valero upon terms which are acceptable to Valero and recommended to the City Commission by staff for approval.  A copy of the final draft of the agreement is attached.  

Staff recommend approval of the Agreement for the Delivery of Treated Wastewater between Valero Refining - Texas, L.P and the City of Texas City.