The effect you are seeing is not caused by the distance, but by the angle you are looking at the surface. To solve it you should raise the max level of anisotrophic filtering allowed. First make sure the filter of the texture is set to “Default (from Texture Group)” or no anisotropic filtering will be used. Then raise your scalability settings for texture quality as it also defines anisotrophy level. If you want to go even further you can manually set r.MaxAnisotropy to 16, either through the console or in your ini files.