Wayne-Sanderson Farms, a leading poultry processor and major economic driver in East Texas, has taken legal action to stop a controversial plan that would allow for the drilling of more than 40 high-capacity water wells across Anderson, Henderson, and Houston counties.
The lawsuit, filed in a Texas county court, targets the Neches and Trinity Valleys Groundwater Conservation District, questioning the integrity of its permit review process and highlighting alleged conflicts of interest. Two former board members—one reportedly linked to hedge fund manager Kyle Bass, the figure behind the water extraction project—have resigned amidst growing scrutiny. Another, who was also a local city councilman, allegedly served on the board in violation of eligibility rules.
At the heart of the lawsuit is a concern shared by many: that large-scale groundwater extraction could severely damage the aquifer system that supplies water to farms, ranches, homes, and industries throughout the region.
“Water is the fuel for East Texas and its agricultural economy,” said Jeremy Kilburn, Chief Legal and Compliance Officer at Wayne-Sanderson Farms. “The volumes sought in the contested applications jeopardize our water supply and the long-term viability of the aquifer.”
The company, which operates poultry processing facilities in Tyler and Palestine and works with hundreds of family farms, is sounding the alarm on what it views as a speculative and dangerous land-and-resource grab.
Local and state leaders are also stepping in. State Rep. Cody Harris (R-Palestine) has voiced opposition and is working to bring the issue before the governor during an upcoming special legislative session.
As this legal battle unfolds, the case could set a precedent for how Texas balances water resource management with economic development and community sustainability.
