Kyle Bass Entities File Takings Lawsuit in East Texas Water Row

In a new federal lawsuit filed Tuesday, two East Texas real estate entities owned by Dallas hedge fund operator Kyle Bass accuse the Neches and Trinity Valleys Groundwater Conservation District of violating the constitution by effectively “taking” property without compensation. 

The federal takings lawsuit, filed in the Tyler Division of the U.S. District Court for the Eastern District of Texas, alleges the conservation district has “effectively confiscated” the Bass entities’ real property rights by instituting a moratorium May 21 preventing them from exercising their groundwater rights. The lawsuit was filed by Bass’ Redtown Ranch Holdings, a 7,221-acre ranch in Anderson County, and Pine Bliss, his 4,355-acre family ranch in Henderson County. The two ranches are about 50 miles apart.