May 7, 2026 – The wastewater permit holder for Lennar Corp.’s controversial Guajolote Ranch development is “inactive,” according to Texas Secretary of State records, raising questions about the validity of the permit and plans to release treated sewage from 2,900 homes into the Helotes Creek watershed.
Municipal Operations, LLC, of Cypress, Texas, listed by the Texas Commission on Environmental Quality as permit applicant and permittee of record for the proposed wastewater treatment facility, shows an inactive state registration status, with the notation, “franchise tax involuntarily ended” under “right to transact business in Texas.”
That typically means that a business entity’s franchise tax status has been terminated by the state for failure to file required tax reports or pay taxes owed, and it may lose its legal right to operate in Texas as a result.
“After the permit was issued, the company lost its legal status with the state, and so it cannot legally operate, and hold a permit or transfer it,” said Randy Neumann, chair of the steering committee of the nonprofit Scenic Loop-Helotes Creek Alliance “And even if the company is somehow reinstated, that compliance gap remains. TCEQ is required to ensure continuous compliance of the permit-holder and failed to do so. Therefore, we hold that the permit is defective and should be vacated.”
As of the time of this release, May 7 at 1 p.m., Municipal Operations, LLC, was still inactive: https://comptroller.texas.gov/taxes/franchise/account-status/search/32059046162
Lennar continues to face formidable opposition to the proposed development on 1,160 acres in northwest Bexar County for its plans to release up to 4 million gallons a day of treated sewage – 1 million gallons average, daily – into the state’s most sensitive aquifer zones, including the Edwards and Trinity aquifers, which provide drinking water for 2.5 million people.
All 10 state representatives of Bexar County and four state senators representing Bexar and Travis counties, of both parties, along with cities of San Antonio, Helotes and Grey Forest, and Bexar County commissioners, are opposed. And TCEQ faces a judicial review in state district court filed by the Greater Edwards Aquifer Alliance challenging the Texas Pollutant Discharge Elimination System (TPDES) permit issued for Guajolote Ranch.
Neumann sent letters to three separate TCEQ offices in early March, seeking “administrative clarification” of what Municipal Operation’s inactive status means for the permit. So far, TCEQ has failed to respond to any of the three letters.
View one of those letters, here: https://www.scenicloop.org/wp-content/uploads/TCEQ-Letter-1_pdf.pdf
“In reviewing publicly available records from the Texas Secretary of State, we noted that Municipal Operations, LLC … is currently shown as INACTIVE due to involuntary termination for franchise tax forfeiture,” Neumann wrote. “Because the legal status of the permittee affects the validity and enforceability of a TPDES permit, we respectfully request clarification on the following points:
“Whether Municipal Operations, LLC, is currently recognized by TCEQ as an active and legally authorized permittee for TPDES Permit No. WQ001617001. Whether the agency has received any filings, updates or transfer requests related to this permit since the permittee’s reported change in status. Whether the permit file will be updated to reflect the permittee’s current legal standing as shown in the Secretary of State’s records.
“This request is made solely for the purpose of ensuring administrative accuracy in the permit record,” he concluded.
The Scenic Loop-Helotes Creek Alliance is a nonpartisan, nonprofit 501(c)(3) group representing the largest neighborhood by square mile recognized by the San Antonio Neighborhood & Housing Services Department, a wide corridor along Scenic Loop Road from Bandera Road to north of Babcock Road.
Scenic Loop-Helotes Creek Alliance contact:
Steve Lee, 210-415-2402, text; media@scenicloop.orgReplyReply allForward