Regional Water System
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Settlement Agreement Between North Texas Municipal Water District and Joseph Young Reed, Jr., Bertha Jenks Reed, Justin Reed as Trustee of the Justin Claude Reed Exempt Trust, Wesley Martin Reed, and Suzette S. Reed
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SUBJECT
recommendation
Authorize the Executive Director to execute a settlement agreement with Joseph Young Reed, Jr., Bertha Jenks Reed, Justin Reed as Trustee of the Justin Claude Reed Exempt Trust, Wesley Martin Reed, and Suzette S. Reed (“Reed Ranch”) to address impacts on NTMWD property in and adjacent to Bois d’Arc Lake caused by trespass and unauthorized impoundment of water along the Bois d’Arc Lake Shoreline.
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PURPOSE
This settlement agreement will require Reed Ranch to continue restoration activities and address impacts to NTMWD property and Bois d’Arc Lake caused by their trespass and unauthorized activities.
RECOMMENDATION
The Executive Director, NTMWD staff, and Saunders | Walsh recommend the Board of Directors authorize the Executive Director to execute a settlement agreement with Reed Ranch, as follows:
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Entities: |
Joseph Young Reed, Jr., Bertha Jenks Reed, Justin Reed as Trustee of the Justin Claude Reed Exempt Trust, Wesley Martin Reed, and Suzette S. Reed |
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Scope: |
Settlement Agreement |
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Committee: |
This item was discussed at the August 26, 2026, Real Estate Committee |
DRIVER(S) FOR THIS PROJECT
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☐ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
• Bois d’Arc Lake (the Lake) is a water supply reservoir developed to meet water needs of the NTMWD’s Member Cities and Customers.
• Given the importance of the Lake as a significant public water supply source for the NTMWD, the NTMWD Board of Directors adopted Resolution 20-53 Authorizing the Adoption, Implementation and Enforcement of the Bois d’Arc Lake Shoreline Management Plan (the “Plan”) to protect and manage the Lake shoreline, protect and maintain water quality within the Lake, promote the safe use of the shoreline and waters by the general public, and allow for some recreational uses to support the economy of Fannin County.
• The Plan establishes guidelines and standards for public and private uses and improvements on NTMWD-owned property along the Bois d’Arc Lake shoreline.
• In December 2023, Administrative Memorandum 23-5974 authorized amendments to the Plan to reflect current administrative systems and processes, update agreement templates, and provide additional guidance to future applicants seeking approval for certain shoreline uses and improvements.
• NTMWD owns all lands around the perimeter of the Lake below elevation 541’ mean sea level (MSL) in fee simple (i.e. the Lake shoreline).
• Reed Ranch owns approximately 725 acres adjacent to the Lake shoreline which is being used for agricultural production.
• In Summer 2024, NTMWD staff observed fencing and five (5) ponds and dams constructed on NTMWD property without authorization.
• Upon discovery by NTMWD staff of the unauthorized modifications, a cease-and-desist letter was sent to Reed Ranch representatives directing them to halt all activities on the NTMWD property and to submit a plan to restore NTMWD property.
• A restoration plan was provided by Reed Ranch representatives but significant progress on restoration activities identified in that plan has not been observed.
• Reed Ranch representatives requested to mediate with NTMWD following communication from NTMWD legal counsel indicating NTMWD is prepared to perform the work and seek reimbursement from Reed Ranch for costs incurred.
• The mediation occurred on October 5, 2026, and identified key settlement terms as follows.
KEY SETTLEMENT AGREEMENT PROVISIONS
• Reed Ranch shall remove all fencing currently on NTMWD land and reset the fencing to the Reed Ranch side of the property line by a date certain in Spring 2027, or earlier.
• Reed Ranch shall remove all dams for the five ponds by a date certain in Winter 2027, or earlier, and reestablish hydraulic connections between Bois d’Arc Lake and the ponds.
• All dams must be removed down to the level at which the land under the dam is at the original contour of the land as it existed before construction of the dam to prevent any further impoundment of water.
• Reed Ranch is responsible for compliance with all laws and regulations involved in such work, including but not limited to all USACE requirements.
• Reed Ranch agrees to allow access to their land for inspection by NTMWD to verify the fence realignment has been satisfactorily completed, and dam removal has returned the land underlying the dam to the original contour of the land as it existed before construction of the dam.
• In the event of a material breach of the settlement agreement, Reed Ranch shall grant access to NTMWD across Reed Ranch’s land to correct and complete the work.
o Reed Ranch agrees to reimburse NTMWD for any costs incurred to correct and complete the work.
• The settlement agreement will include the key settlement agreement provisions and generally conform to the attached draft.
FUNDING
N/A