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Judge Dan Mills, of the 424th District Court in Blanco County, ruled a bank account held in Texland Electric Cooperative’s name at Cattleman’s National Bank belongs entirely to the venture. “We have always maintained these funds belong to Texland,” said Kathryn Scanlon, Texland board president and Pedernales Electric Cooperative District 3 Director.

PEC and Bluebonnet Electric Cooperative formed Texland in the 1980s as a joint venture to build coal-fired generation plants. The plan was abandoned after the Public Utility Commission of Texas denied licensing for the plants. The discovery in 2008 of a still-active Texland bank account with $565,350.62 at Cattleman’s National Bank spurred a reconstitution of the Texland board and litigation over ownership of the account.

The court concluded that Texland proved its rights to the funds and therefore granted Texland the funds, as no other parties claimed ownership.

“We have acted in the best interests of the membership and PEC in pursuing the recovery of these funds,” said Texland treasurer and PEC District 7 Director Dr. Patrick Cox. “The legal expenses associated with the recovery have been largely the result of the contested issues brought by Cattleman’s Bank.

“Once the 30-day period for appeal has passed, the Texland board will be able to convene, properly disburse the funds to PEC and take other necessary actions to permanently dissolve this ill-fated venture.”