Maverick County Landfill becomes dumping ground for Eagle Ford Shale
By: Jose G. Landa©
The Maverick County Solid Waste Authority, Inc. (MCSWA) Board of Directors held a regular meeting on Monday, November 26, 2012, at the Maverick County Commissioners Court Chambers, located at 500 Quarry Street, in Eagle Pass, Texas to hear a presentation from Lee McCormick, President of Community Development Associates, on how to finance the construction and expansion of Cell Number Two of the Maverick County Landfill among a busy agenda.
Maverick County Solid Waste Authority, Inc.’s (MCSWA) Landfill Manager, Hector Chavez, Jr., advised the Board of Directors that the Landfill’s Cell No. One was quickly reaching its full capacity and the need to construct and finance the Landfill’s Cell No. 2 ahead of schedule is imminent due to the Maverick County Solid Waste Authority’s decision to accept waste from oil and gas drilling and service companies operating in the Eagle Ford Shale oil and gas boom.
Originally, Maverick County taxpayers approved the sale of Maverick County bonds to finance the construction and operation of a solid waste landfill to accept and accommodate the residential and commercial waste of Eagle Pass and Maverick County. The Maverick County Landfill original clients were the City of Eagle Pass, the Kickapoo Traditional Tribe of Texas, and Maverick County in 2009 when it opened. The Landfill’s Cell No. One was projected to serve the local community “between 5 to 15 years” stated MCSWA Board of Director Benjamin Rodriguez. But Maverick County Landfill General Manager Hector Chavez, Jr. contradicted Rodriguez by stating that Cell No. One was supposed to serve the community only “between 3 to 5 years.”
Today, the Maverick County Landfill has over 35 clients, including the City of Laredo and many oil and gas drilling and service companies who are operating in the Eagle Ford Shale play causing Cell No. One to fill-up to capacity ahead of its expected life expectancy and service to the community.
The MCSWA Board of Directors listened attentively as Lee McCormick of Community Development Associates and a representative of Oppenheimer & Company explained the process, time requirements, and fees for the approval of tax-exempt bonds or notes by Maverick County to enable the financing and construction of Cell No. Two by the MCSWA’s targeted date of completion by February of 2013.
MCSWA Board member Benjamin Rodriguez expressed his concerns regarding the imminent dilemma the Maverick County Landfill is facing with the rapid fill to capacity of Cell No. One’s life expectancy. Rodriguez stated “I am just sorry that we are in this situation. We are in a bind.
I know that something did not go right. We need to do something. When I started here [on the Board] a year ago, I asked what was the lifespan of Cell No. One and I was told that it was 5 to 15 years. I don’t know whether it is the design [of Cell No. One].
I know something went wrong. We are not supposed to be here [in this situation.]
Maverick County Landfill General Manager Hector Chavez, Jr. replied to Rodriguez’s concerns that the lifespan of Cell No. One was supposed “to be 3 to 5 years.” Chavez stated that the reason Cell No. One lifespan is almost full is because the Maverick County Landfill is now receiving 200 tons of solid waste per day instead of the 100 tons per day for which it was designed due to the large increase of oil and gas companies from the Eagle Ford Shale play who have been given contracts by the Maverick County Solid Waste Authority to dispose their waste into the Maverick County Landfill located on Farm to Market Road 1021(El Indio Hwy) in southern Maverick County.
In order to meet the MCSWA’s targeted date for Cell No. Two to open in February of 2013, McCormick advised the MCSWA’s Board of Directors that they needed to approved the project consultant, financial underwriter, and professional team quickly to try to close the transaction by the first or second week of January of 2013. However, McCormick noted that he questioned who had the legal authority to hire them – whether the MCSWA or Maverick County Commissioner’s Court. This legal question was left unresolved.
MCSWA Board Chairman/President Rolando Jasso advised the consultants that he could not vote on their proposal until he has had time to study and review their proposal “even though time is of the essence” and left it to the Board of Directors discretion. MCSWA Board Member Enrique Montalvo made a Motion to Table the item until the next meeting which was seconded by Board Member Benjamin Rodriguez and unanimously approved by the Board.
The financing issue of Cell No. Two and the legal issue as to which entity has authority to hire the consultants and underwriter was tabled until MCSWA’s next Board Meeting.
The MCSWA Board of Directors are Chairman Rolando Jasso, Roberto Mireles, Michael Luna, Enrique Montalvo, and Benjamin Rodriguez. MCSWA General Manager is Hector Chavez, Jr. and legal counsel is Earl Herring.
Meanwhile, the Maverick County Landfill continues to daily race towards full capacity as it accepts the 200 tons of waste per day in Cell No. One according to its contractual obligations with its over 35 clients, who are mostly Eagle Ford Shale oil and gas companies.
As Chairman Rolando Jasso stated “time is of the esence” as the Maverick County Landfill Cell No. One is expected to reach full capacity of its life expectancy in February of 2013.
