After the redirection of the Colorado River into West Matagorda Bay in 1992, the Port of Bay City Authority (POBCA), the U.S. Army Corps of Engineers (USACE) and Matagorda County sought a solution  to the public access, public safety, water quality and shoreline erosion concerns in regard to West Matagorda Bay, the old Colorado River Access Channel and the Colorado River Locks on the Gulf Intracoastal Waterway.  Several studies and numerical modeling efforts were conducted by the USACE and Coastal Tech, seeking a consensus solution to some or all of these concerns. Ultimately it was the consensus of the state and federal agencies that a cut from the Bypass Channel below the Diversion Dam into West Matagorda Bay was the preferred alternative for addressing the multiple concerns.

Although the Galveston District initiated the preparation of design documents for the Project, the District determined that they did not have the funds necessary to complete the design documents or to construct the Project.  Coastal Tech  and Matagorda County assisted the POBCA in obtaining Coastal Impact Assistance Grant funds to help design, permit and construct  the project.  Coastal Tech was tasked to obtain the project design from the USACE Galveston and then obtain a Section 404 permit and other required permits.  Coastal Tech provided preliminary and final design phase services, including preparation of detailed plans and specifications for construction (now completed) and construction oversight (ongoing). A Section 404  application and General Land Office Surface Lease application were filed and processed.  The USACE permit application for the project  included the preparation of an Environmental Assessment (EA), in collaboration with the POBCA.  Working through the agencies during the permitting process,  the Project design was realigned to avoid the loss of .36 acres of wetlands.