City of Midland closing multi-million deal with Pioneer Natural - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com |

City of Midland closing multi-million deal with Pioneer Natural Resources

(Source: KWES) (Source: KWES)
MIDLAND, TX (KWES) -

The city of Midland is working out a multi-million deal with Pioneer Natural Resources to save you a few bucks. The company is paying millions for the renovation of Midland's secondary water treatment facility.

Tuesday morning the city of Midland will sign an agreement with Pioneer Natural Resources. As part of the agreement Pioneer will invest $110 million into Midland's secondary water treatment plant. The improvements will help the facility get up to date on all state and federal regulations.

In return Midland will give Pioneer exclusive access to the treated water for fracking and drilling.

"Pioneer is the one who came to the table and worked out the partnership with us,” said Midland mayor, Jerry Morales. “They then can sell the water, if they choose, to other oil companies. They'll purchase it from us and at that point it becomes their business to do what they wish with the water."

The agreement has been under negotiation for two years. The city of Midland said if this agreement wouldn't have worked out, the secondary water treatment facility would still have had renovations done but the millions of dollars would have come out of your pockets.

"With this private partnership coming in, if we had not worked out an agreement with a company or group then the city would have looked into going into some debt and certificates of obligations to bring the sewer treatment plant up to the requirements needed," said Morales.

When passed the deal will be good for about 28 years.

"This is a great partnership. We're taking care of the oil and gas industry, in my opinion it's creating jobs and it's helping that [oil] industry with water needs, it's helping water get into compliance and continues serving the water needs of Midland, there's conservation so it's a win-win for all of us," said Morales.

The city said after the agreement is signed it will go to Austin for legislative approval. Groundbreaking is expected to happen in spring 2017 and the facility should be done 18 months after that.

Copyright 2016 KWES. All rights reserved.

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