Texas Dairy Review


	All’s quiet on area dairy front *Dairymen/advertisers invited to annual Texas Dairy Review party* “Grandfathered” wells may provide benefits to owners Get ready to scramble… Gear up for Tx Ag Expo *Dairyman takes big risk to follow lifelong dream*
	All’s quiet on area dairy front ...as supporters stay very active
	Although the month of July and early August has been relatively quiet regarding any further action in the City of Waco's lawsuits against 14 Bosque River watershed dairies, area businesses and individuals have graciously donated their time and money to help pay legal expenses for these dairies. Stephenville New Holland, owned by J.R.Walker, contributed $1900 to the Dairymen's Legal Defense Fund from sales of equipment made during the month of June. Walker and employees had already raised $830.00 from a barbecue luncheon held at the tractor dealership. He pledged an additional $100 to the fund from every new piece of equipment he sold during June which was presented in mid-July to Cheatham and Lansford, CPAs, who are overseeing the defense fund. Paul Lansford reported in early August the fund is making progress with contributions of $35,000 collected from agribusinesses and individuals in addition to the near $53,000 that will be deposited from Erath County Dairy Sales in the next few weeks. Erath County Dairy Sales succeeded in raising the funds during their special heifer sale and a silent auction held in June. Besides businesses and individual citizens, dairy support has come from other entities. Local area schools, such as Stephenville and Dublin Independent School District boards, have adopted resolutions to support area dairies. Dublin ISD makes a strong statement at the end of their resolution that says, "Be it further resolved that until said lawsuits are withdrawn or settled, no school district money will be spent in the City of Waco without prior authorization from the superintendent of schools." Also showing its support for the dairies is Texas Farm Bureau, releasing a statement on July 29 that "authorizes up to $50,000 from the Texas Farm Bureau Legal Defense Fund to be used for scientific environmental and legal consultants in the City of Waco lawsuits filed against the 14 Bosque River watershed dairies which includes Farm Bureau members." The statement went on to say the board believes "that making the expertise of these consultants available to the defendants and their attorneys is an equitable and effective role for the Texas Farm Bureau in this lawsuit. It further states, the board is "concerned about the expensive and potentially far-reaching implications of this lawsuit on the dairy industry and agriculture, itself. The Texas Farm Bureau is committed to the goal of a high quality water supply for the greater Waco area, but believes this can be accomplished without irreparable harm to the Central Texas dairy industry." According to John Cowan, executive director of the Texas Association of Dairymen (TAD), the federal court has not responded to all dairy lawsuits thus far. "The lawsuits may continue to be quiet for awhile until the court decides to take action or makes a ruling. A preliminary court date is set for March, 2005," Cowan said.
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	Dairymen/advertisers invited to annual Texas Dairy Review party
	After a hard grueling year of Waco lawsuits and recovering milk prices, no one deserves a party better than dairymen, their supporters, the Texas Dairy Review, and its supporters. So, get ready, because that's what's going to happen on Thurs., Sept. 16 after the Texas Ag Expo ends. The TDR Appreciation party will begin 6 p.m. at The Pub, 1400 Swan St., Stephenville, Texas. The annual party was originally started as a way for the Texas Dairy Review to express its appreciation to dairymen who have supported the paper's efforts and to all the advertisers who have made the publication possible for the past 13 years. The party is designed so that dairymen and advertisers can meet in an informal setting for a fun time. So NO ONE feels left out, the party is open to ALL DAIRYMEN who can read this story or have good enough hearing so their dairy friends can tell them about it. If you've never attended the party, this year is as good a time as any to start. You won't want to miss this festive occasion! All those who attend must sign in at the door and wear a name tag. If you are an exhibitor at Texas Ag Expo, please wear your name tag from the show to the party. We sincerely hope you will join us on Sept. 16 for food, refreshments, and music. This year, we are asking that if you know you're going to attend, please give us a call so that we can better prepare for the crowd. Contact Sherry Webb, 254-965-2255 or 1-800-344-4901.
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	“Grandfathered” wells may provide benefits to owners
	Officials from the Middle Trinity Groundwater Conservation District (MTGCD), which serves Erath and Comanche counties, encourage landowners to register their existing water wells on or before May 10, 2005, to take advantage of "grandfather" provisions. There is no cost for the registration. The necessary forms are available at both MTGCD offices or may be printed of MTGCD's web site at middletrinitygcd.org. New MTGCD rules that took effect on May 11, 2004, include a one-year claim period for all wells drilled prior to May 11. The one-year claim period, that allows landowners to "grandfather" their wells and exempt them from the new rules, ends May 10, 2005 at which time all unregistered existing wells will fall under the new rules that regulate spacing and production limits of new wells. Joe Cooper, general manager of the MTGCD, said registration allows Groundwater Conservation Districts (GCDs) to know where existing wells are located so they may be protected from new wells through appropriate spacing. Registration also provides the MTGCD with a better understanding of aquifer demands and how the aquifer can be sustained for years to come. Cooper said "grandfathered" wells might increase long-term property values because at some future date, when the amount of water withdrawn from the aquifer equals the amount of recharge, new wells will not be permitted. A "grandfathered" well will be an asset protected by the MTGCD that others won't have. Cooper added that a well does not have to be in use to be "grandfathered." A non-working, undeteriorated well that has been properly capped may be registered as an inactive grandfathered well. If an owner decides to uncap a registered well, he can do so by filing an amendment to the registration. Additionally, to help avoid pollution, the MTGCD may provide funding for materials used to plug deteriorated wells, but labor costs are the responsibility of the owner. For many years, Texas groundwater law known as "the rule of capture," has presented problems for some landowners. This right to capture water, often jokingly referred to as "the rule of the biggest pump," sometimes resulted in sucking a neighbor's well dry since there were no limitations on how much water could be pumped or how close a well could be located to a neighbor. Since 1904, Texas courts have used "the rule of capture" to determine liability for damages relating to the withdrawal and use of groundwater. This doctrine and interpretation through case law provides that groundwater, once it's been captured by a well and delivered to the surface, belongs to the landowner. In turn, landowners may use or sell all of the water they can capture from beneath their land. State courts, including the Supreme Court as recently as 1999, have ruled that landowners may pump as much water as they wish no matter what effect it has on an adjacent landowners' wells. The Texas Legislature amended groundwater law by creating GCDs as the preferred method of managing the State's groundwater resources. Legislation gave GCDs the authority to regulate well spacing, production levels of water wells, types of wells subject to GCD permitting and oversight, transfer of groundwater out of a district, and enforcement of rules. The MTGCD incorporated three of these rules to discourage export of water out of Erath and Comanche including production limits, a transport fee for moving water out of the district, and a requirement that operating permits must be renewed every two years. Cooper said the new rules require that new wells be spaced appropriately from pre-existing wells based on the size of the new wells. Production on new wells is limited to 3 acre-feet of water per year per contiguous acre to a well site. (An acre-foot of water is 325,851 gallons of water---enough to cover one acre, one foot deep.) "For example, if a property owner has 100 acres of land, he will multiply 100 X 3 acre feet which allows him 300 acre-feet of water each year. This is equal to almost a million gallons of water. Even though we have new production limits and spacing, everyone will still have plenty of water," Cooper said. Cooper said landowners who do not register existing wells by May 10, 2005, are subject to civil penalties of up to $10,000 per day, per well. Unregistered wells will be treated as new wells after May10, 2005. Consequently, some unregistered wells may have to be plugged in order to comply with spacing requirements in the rules. GCDs were created in areas found to be suitable for management of groundwater resources. Currently, the Middle Trinity is one of 87 Groundwater Conservation Districts in the state. Voters in Erath and Comanche counties confirmed the MTGCD on May 4, 2002. It consists of six board of directors, which in Erath County includes Jerry Hinshaw, Ed Withers, and Boyd Waggoner, and in Comanche County, Rodney Stephens, George Bingham, and Jerry Fronterhouse. Voters granted the MTGCD authority to levy and collect a property tax in an amount not to exceed one and three quarter (.0175) cents per $100 of property valuation to pay for maintenance and operation of the district. The MTGCD is currently funded at a rate of one and one half cents (.015) per $100 valuation with a budget last year of $275,005. In recent years, many agencies have begun to study water resources to prevent a possible shortage in the future. The overall purpose of groundwater districts in Texas is to preserve, conserve and protect the groundwater resources of Texas. One goal of the Middle Trinity Water Conservation District is to sustain the aquifer's water at its present level through permitting of new wells and production limits. "Aquifers are primarily recharged by rain water," Cooper said. "Studies by the Texas Water Development Board have indicated that while we have enough water in Erath and Comanche Counties to meet the projected demand for another 50 years, a time will come when you won't be able to get a permit for a new well." Assisting Cooper in Erath County is Cindy McCroskey, located in Stephenville at 150 N. Harbin, Suit 434 (Town and Country Bank building) 254-965-6705. In Comanche County, call Tracey McMillian, 119 W. Grand across from the Comanche County Courthouse, 325-356-9200.
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	Get ready to scramble…
	It’s time to polish up your trusty clubs and get a team together for the Texas Ag Expo Golf Tournament next month. Sponsored by TriCounty Agribusiness Association (TCAA), the tournament will be on Tues., Sept. 14, at Legends Country Club in Stephenville. It will consist of a foursome team scramble from a shotgun start beginning at 9 a.m. Golfers will vie for a $10,000 hole-in-one prize sponsored by Gore Brothers, Inc. along with other cash prizes. Entries are $75 per golfer and include green fees, cart and lunch. Hole sponsorships are available for businesses who would like to support this activity. Everyone is encouraged to come out and join the fun-filled day of golf. To enter call TCAA at 254-965-2406 today. All golfers must be registered by 8am Tuesday, the day of the tournament.
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	Gear up for Tx Ag Expo
	Make plans now to attend the 2004 Texas Ag Expo on Sept. 15 and 16 at Lone Star Arena in Stephenville. The annual event, sponsored by TriCounty Agribusiness Association (TCAA), provides agribusiness suppliers the opportunity to reach area dairymen, farmers, and ranchers. Exhibitor booth spaces are currently available for the show. The Texas Ag Expo (formerly named Texas Dairy, Farm & Ranch Show) provides a market place to showcase equipment, supplies and services available to agribusiness producers. In past years, more than 100 exhibitors from 20 states have participated in this annual trade show attended by thousands. The trade show is in Texas' leading dairy region with Erath County ranking number one in milk production in the state, Comanche ranking third, and Hamilton ranking eighth. In addition to the dairy industry, agribusiness is the primary economic element throughout the area that includes beef cattle and other livestock, peanuts, pecans, melons, grains, hay & silage, horticulture production, and a booming horseindustry. If your target market includes dairy producers, ranchers, farmers, livestock breeders, or horsemen in Texas and the surrounding region, then this is one event you won't want to miss. Activities during the show will include sponsored lunches, seminars, Farm Safety 4 Kids, an Antique Tractor Show, and much more to be announced at a later date. The deadline is Aug. 20 for those who would like to be in the event program and other publicity. The Annual Texas Ag Expo Golf Tournament will precede the show on Tues., Sept. 14, 9 AM at Legends Golf Course in Stephenville. Hole sponsorships are available. To reserve a booth for the show or for more information, call TCAA at 254-965-2406, email tcaa@our-town.com, or visit www.tricountyag.com.
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	*Dairyman takes big risk to follow lifelong dream*
	“You’ve got to follow that dream, wherever that dream may lead” is an old saying easy enough to believe but sometimes hard to achieve. No one knows that any better than Shane Stegall of Huckabay, Texas, who keeps jumping over hurdles as their thrown in front of him. A fourth generation dairyman, Stegall has had a vision for years of building a new dairy on his 85-acres where he could quietly milk under 200 cows to feed his family of four. He never had aspirations of owning a big dairy operation---just one that he could enjoy and afford. Staying under the legal 200 cow limit by the state for an unpermitted dairy, suits him just fine. No hassle, no sweat. But, he’s found out, that other people, mainly neighbors, don’t share his enthusiasm. When folks pass by his place on Hwy. 108, some seriously question his objectives asking why he would want to start a new dairy when there’s been nothing but controversy and pure hell for other dairies located in the Bosque River watershed for the past few years. This point is especially well-taken considering that 14 dairies are currently being sued by the City of Waco, 80 miles downstream, for allegedly polluting their lake. The Bosque River is considered an impaired watershed on the Texas Commission Environmental Quality’s (TCEQ) 303d list that has stunted dairy growth in Erath County for several years. In fact, no new dairy of any kind has been built in the county since the mid 90s. Looking at how the odds are stacked against him, and with complaining neighbors much closer than Waco, it appears Stegall is fighting a losing battle. However, that’s not necessarily true. While Stegall’s neighbors have complained in written form to the TCEQ and the Texas State Soil Conservation Water Board (TSSCWB), both agencies say that Stegall is within his rights. Stegall’s dairy is a small, unpermitted dairy, viewed by the state as an Animal Feeding Operation (AFO). The dairies being sued by Waco are Concentrated Animal Feeding Operations (CAF0s), regulated by the TCEQ. According to Darrell Williams of the TCEQ, the bottom line is that “as long as a non-permitted dairy does not cause a significant water quality problem, they have the right to operate.” He added that TCEQ rules, do say, however, that the executive director can require a dairy of any size to obtain a permit if the state should find a significant problem. Although it may be a comforting thought to know he’s within his rights, this does not lighten the load on Stegall. He still has to deal with his neighbors one way or another. In an effort to reassure his neighbors, he invited them over for an ice cream social at which time he tried to explain what his plans are concerning the dairy. Stegall said he told his neighbors he has every intention of doing what is right regarding runoff. “I have a family here, too,” he said. “That’s what people don’t seem to understand. I’m not going to do anything that would cause my family or anybody else’s family a problem.” Be that as it may, his neighbors were unreceptive to his efforts. In a signed letter to both state agencies, neighbors expressed their concerns about the dairy being located in what has primarily been a small-tract residential area for the past 6-8 years. The letter also states that the dairy will cause devaluation of close-proximity property, lower water quality from runoff into the Bosque River watershed, create nuisances for local residences that includes: odor, flies, insect pests, noise, livestock diseases transmitted through insects and runoff, increased traffic on Hwy. 108, manure and lagoon water buildup and disposal, and rodents. “I don’t want to make my neighbors mad,” Stegall said after viewing the letter. “But, you know, we were here first. There’s one neighbor who moved in here about six months ago and they’re pretty close to the fence line but we’ve been here for 10 years. I think as a property owner, I have the right to do what I want with the land as long as I follow the rules. It’s just not right that everyone wants to tell you what to do or to keep you from doing something when you’re making an effort to comply with the law.” Currently milking at the Hurrsell Whitefield Dairy, Stegall said for the first time in a long time, milk prices are good and he feels he can make a “go” of his own dairy. “I looked around at plenty of places. I’ve leased three dairies already and when I started looking to buy one, they were either too big, or too expensive. So, I thought I’ll just build a dairy on the land I already have.” The new barn under construction is a double 10 Herringbone parlor, outfitted with used milking equipment Stegall bought from a dairy that went out of business. Doing most of the work himself under the guidance of Toby McInroe, Stegall said he’s slowly getting to the finish line. But, it hasn’t been easy. “I’m pretty determined,” he said, even though there was a time not too long ago when he began to ask, “do you take your dream and trash it or do you follow your heart and keep insisting that you’re going to do this, no matter what the risk?” Stegall’s determination won out, and he and his wife Letha have gained a very positive attitude about what they’re doing. The couple is young, enterprising and enthusiastic, and it appears that the problems that may lie ahead are just not big enough right now to dampen their spirits. The parents of two children, Morgan 12, and Tyler, 7, one can look at this idealistic little family and perhaps empathize with the fact that they are trying to do something in life that will make them a living. Stegall said dairying is basically what he knows how to do and what he wants to do. Moving out of the county was a fleeting thought that didn’t stand much chance of materilizaing. His wife Letha, doesn’t envision herself living in West Texas or the Panhandle. “She just doesn’t want to move, period,” Stegall said.”This is our home where we are right now and this is where she wants to stay and raise our kids.” Letha juggles her talents back and forth between working for an insurance company in Hamilton and expressing her own creativeness by selling western décor. She enjoys where she’s at in her life and takes a special interest in the dairy. “It’s something we both can do together,” she said, “right here.” As an afterthought, Stegall laughed and said, “It’s either fight my neighbors or fight my wife. What would you do?” The Stegalls both agree that they’re taking a big risk to try to get what they want out of life. But, they realize sometimes you just have to do it and see what happens. After all, it’s been said numerous times that “anything that’s worth doing always involves a risk and a struggle.”
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	VOLUME XIII, NO. 8	AUGUST 2004