Montgomery County Utility District No.4

Montgomery County Utility District No.4 (the “District”) was created by an Act of the 62nd Legislature of the State of Texas, Regular Session, 1971, in accordance with the Texas Water Code, Chapter 54. The District was consolidated with Montgomery County Utility District No. 23 pursuant to a consolidation agreement effective February 27, 1978. The Board of Directors held its first meeting on June 6, 1972, and the first bonds were sold on September 7, 1978. The District is empowered, among other things, to purchase, to construct, to operate, and to maintain all works, improvements and facilities necessary for the supply of water, for the collection and processing of wastewater, and for the control and diversion of storm water. The District also contracts for garbage service.

The District primarily serves a large portion of the April Sound subdivision as well as Water Oak, April Villas and other smaller areas some of which were annexed into MCUD4. All of these service areas are located in the extraterritorial jurisdiction of theCity of Conroe. The District is located in northwest Montgomery County, on the north side of FM 105, west of the Lake Conroe dam on the southern shore of Lake Conroe. The location is midway between the cities of Conroe and Montgomery

The developer of the April Sound subdivision formed two Municipal Utility Districts with the result that MCUD3 services the center portion of April Sound on either side of the April Sound Boulevard and MCUD4 services the western side as well as the eastern side of April Sound.

The sewage treatment plant is jointly owned and operated by MCUD3 and 4 and is in the process of being replaced by a new plant that should be operative in 2012. The two water plants consisting of storage tanks, water wells and distribution systems are separately owned but completely integrated service wise. Operating costs of the treatment plant and water plants are shared based on usage within each district.

Much has been written and said about the Montgomery County water needs in the future and the mandated 30% reduction in groundwater usage by 2016. The San Jacinto River Authority will be developing a water treatment plant at a site close to the dam to treat and provide potable water from Lake Conroe for the needs of the City of Conroe, The Woodlands and others. It will cost many millions of dollars to construct and operate with the cost being shared by all large water users in the County. Large users who are able to provide 30% or more of their needs from sources other than the traditional aquifers are exempt from participating in the SJRA group. The Catahoula aquifer is exempt from the restrictions on pumpage imposed by the Lone Star Groundwater Conservation District.

MCUD3 and 4 have recently successfully completed a water well in the Catahoula aquifer based on which we will be exempt from having to join in the SJRA group. This will save our Districts and hence our service area residents many millions of increased water costs in the future.

We are justly proud of this accomplishment.