RCH Takes Decisive Legal Action Against Blackland WSC

Dear RCH Members,

I am writing to inform you of a critical action RCH Water Supply Corporation took to protect your water rights and our community’s access to reliable water service. After repeated unlawful interference by Blackland Water Supply Corporation, RCH has filed a lawsuit to defend our established contractual agreements and ensure we continue serving the Sonoma Verde development and surrounding areas. Maintaining the integrity of our system is essential to providing each customer with reliable service.

Since 2014, RCH has had exclusive water service agreements with the Sonoma Verde developer, securing our right to provide water to the 550-acre residential community. Further, as a part of that arrangement, RCH has a license agreement with the City of McLendon Chisolm to deliver water to Sonoma Verde.   Despite these binding agreements, Blackland, in collaboration with the City, has aggressively undermined our role. They have conspired to unlawfully terminate our license agreement and replace RCH as the water provider for the current and future phases of Sonoma Verde, which includes over 850 residential lots.

In January 2024, Blackland approved a Memorandum of Understanding (MOU) with the City of McLendon-Chisholm to take over water service for Phases 3 and 5 of Sonoma Verde. They did this without any legal right or notification to the Public Utility Commission (PUC). This action is a direct interference with  RCH’s exclusive contracts and an attempt to strip us of our service area unlawfully.

We did not take this legal action lightly. For months, we sought to resolve these issues through dialogue, even sending a formal cease-and-desist letter in March 2024 demanding that Blackland, the City, and the developer cease their interference. Unfortunately, they ignored our demands and continued to push forward with their plans, leaving us no choice but to protect our legal rights through the courts.

This lawsuit is necessary to protect RCH’s rights and, most importantly, the rights of our members. We will not allow another entity to unlawfully seize control of our service area or jeopardize the water supply to which you are entitled.

Thank you for your continued support as we take this necessary step to safeguard the future of our community’s water service.

Sincerely,

David Naylor
RCH Board President