Private equity firm pursuing Texarkana water deal was co-founded by son of former Texas Gov. Rick Perry - The Arkansas Democrat-Gazette

According to the Arkansas Democrat-Gazette, a private equity firm co-founded by Griffin Perry, son of former Texas Gov. Rick Perry, is behind a proposed plan to sell water from southwest Arkansas to Texas. Griffin Perry, 43, is a co-founder and officer of Grey Rock Management Partners, a Dallas-based firm behind the Millwood Lake Water Conveyance Project. Grey Rock and the Southwest Arkansas Water District are exploring the possible sale of surplus water from Millwood Lake to unidentified buyers in Texas. Grey Rock is using Heartland Water Partners of Dallas as a holding company to explore and execute any deal. Perry is one of four Grey Rock officers listed in Texas secretary of state filings. His father, who sought the GOP presidential nomination in 2012 and 2016 and later served as U.S. energy secretary, was an early investor holding $50,000 to $100,000 in the firm. The report states there is no indication Rick Perry is involved with the Texarkana proposal.

Heartland CEO Kevin Lafferty said the group identified Millwood Lake as a possible resource after Texarkana secured additional water rights in 2016, and reached out to the city to discuss a project. Texarkana, Ashdown and Ogden have voted to move forward with the application process. Under the proposal, Heartland would upgrade the Millwood intake infrastructure and build a 72-inch pipeline at its own expense. Lafferty said design and testing would take 12 to 18 months and construction could take as much as four years. The agreement includes an exclusivity clause binding the cities and Heartland until the Arkansas Natural Resources Commission recommends to lawmakers whether the project is in the public interest. Heartland has pledged a $500,000 reservation payment when the application is filed and another $500,000 if lawmakers back the plan. The commission's next meeting is scheduled for Nov. 17, though no agenda has been released.

The deal faces early political resistance. State Sen. Jimmy Hickey, R-Texarkana, said he had heard from multiple legislators that the idea is a bad idea and, along with Rep. Carol Dalby, R-Texarkana, raised concerns about lobbyists Chris Caldwell, a senior campaign adviser to Gov. Sarah Huckabee Sanders who managed her 2022 gubernatorial campaign, and Robert Moery, a former aide to Gov. Asa Hutchinson, representing Heartland. Hickey said a similar proposal to sell Red River water to Texas collapsed when the governor's office declined to back it. Up to 110 million gallons per day would be sold, while Texarkana's average daily demand is about 7 million gallons and the state's projected 2050 demand for the city is 9.2 million gallons per day. Ashdown, Ogden and Hope could also contribute water rights, each reserving capacity separately. Texarkana City Manager Tyler Richards has said the project could generate more than $1 billion over 40 years. Lafferty said the project would still require several years and that officials and residents would need to evaluate its financial and environmental implications. If the commission approves, a 120-day public comment period would precede consideration by the General Assembly.