Amend SB 2 in ARTICLE 3 by adding new PARTS 13-16 to read as
follows:
     PART 13.  BRAZOS VALLEY GROUNDWATER CONSERVATION DISTRICT
      SECTION 3.1301.  RATIFICATION OF CREATION. The creation by
Chapter 1331, Acts of the 76th Legislature, Regular Session, 1999
(SB 1911), of the Brazos Valley Groundwater Conservation District
in Robertson and Brazos counties is ratified as required by Section
15(a) of that Act, subject to approval at a confirmation election
under Section 3.1314 of this article.
      SECTION 3.1302.  DEFINITION. In this article, "district"
means the Brazos Valley Groundwater Conservation District.
      SECTION 3.1303.  BOUNDARIES. The boundaries of the district
are coextensive with the boundaries of Robertson and Brazos
counties, Texas.
      SECTION 3.1304.  GENERAL POWERS. (a)  Except as otherwise
provided by this article, the district has all of the rights,
powers, privileges, authority, functions, and duties provided by
the general law of this state, including Chapter 36, Water Code,
applicable to groundwater conservation districts created under
Section 59, Article XVI, Texas Constitution.  This article prevails
over any provision of general law that is in conflict or
inconsistent with this article, including any provision of Chapter
36, Water Code, or Chapter 1331, Acts of the 76th Legislature,
Regular Session, 1999 (SB 1911).
      (b)  The district does not have the authority granted by the
following provisions of Chapter 36, Water Code:
            (1)  Section 36.105, relating to eminent domain; and
            (2)  Sections 36.020 and 36.201-36.204, relating to
taxes.
      SECTION 3.1305.  BONDS. The district may issue bonds and
notes under Sections 36.171-36.181, Water Code, not to exceed
$500,000 of total indebtedness at any time.
      SECTION 3.1306.  FEES. (a)  The board of directors of the
district by rule may impose reasonable fees on each well for which
a permit is issued by the district and which is not exempt from
regulation by the district.  A fee may be based on the size of
column pipe used by the well or on the actual, authorized, or
anticipated amount of water to be withdrawn from the well.
      (b)  The initial fee shall be based on the amount of water to
be withdrawn from the well.  The initial fee:
            (1)  may not exceed:
                  (A)  $0.25 per acre-foot for water used for
irrigating agricultural crops or operating existing steam electric
stations; or
                  (B)  $0.0425 per thousand gallons for water used
for any other purpose; and
            (2)  may be increased at a cumulative rate not to
exceed three percent per year.
      (c)  In addition to the fee authorized under Subsection (b)
of this section, the district may impose a reasonable fee or
surcharge for an export fee using one of the following methods:
            (1)  a fee negotiated between the district and the
transporter; or
            (2)  a combined production and export fee not to exceed
17 cents per thousand gallons for water used.
      SECTION 3.1307.  EXEMPTIONS. (a)  The district may exempt
wells under Section 36.117, Water Code, from the requirements to
obtain a drilling permit, an operating permit, or any other permit
required by Chapter 36, Water Code, or the district's rules.
      (b)  The district may not require a permit for:
            (1)  a well used solely for domestic use or for
providing water for livestock or poultry on a tract of land larger
than 10 acres that is either drilled, completed, or equipped so
that it is incapable of producing more than 25,000 gallons of
groundwater a day;
            (2)  the drilling of a water well used solely to supply
water for a rig that is actively engaged in drilling or exploration
operations for an oil or gas well permitted by the Railroad
Commission of Texas provided that the person holding the permit is
responsible for drilling and operating the water well and the well
is located on the same lease or field associated with the drilling
rig; or
            (3)  the drilling of a water well authorized under a
permit issued by the Railroad Commission of Texas under Chapter
134, Natural Resources Code, or for production from any such well
to the extent the withdrawals are required for mining activities
regardless of any subsequent use of the water.
      (c)  The district shall not deny the owner of a tract of
land, or his lessee, who has no well equipped to produce more than
25,000 gallons a day on the tract, either a permit to drill a well
on his land or the privilege to produce groundwater from his land,
subject to the rules of the district.
      (d)  The district may not restrict the production of any well
that is exempt from permitting under Subsection (b)(1) of this
section.
      (e)  Notwithstanding Subsection (b) of this section, the
district may require a well to be permitted by the district and to
comply with all district rules if:
            (1)  the purpose of a well exempted under Subsection
(b)(2) of this section is no longer solely to supply water for a
rig that is actively engaged in drilling or exploration operations
for an oil or gas well permitted by the Railroad Commission of
Texas; or
            (2)  the withdrawals from a well exempted under
Subsection (b)(3) of this section are no longer necessary for
mining activities or are greater than the amount necessary for
mining activities specified in the permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code.
      (f)  An entity holding a permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code, that
authorizes the drilling of a water well shall report monthly to the
district:
            (1)  the total amount of water withdrawn during the
month;
            (2)  the quantity of water necessary for mining
activities; and
            (3)  the quantity of water withdrawn for other
purposes.
      (g)  Notwithstanding Subsection (e) of this section, the
district may not require a well exempted under Subsection (b)(3) of
this section to comply with the spacing requirements of the
district.
      (h)  The district shall not deny an application for a permit
to drill and produce water for hydrocarbon production activities if
the application meets the spacing, density, and production rules
applicable to all permitted water wells in the district.
      (i)  A water well exempted under Subsection (a)  or (b) of
this section may:
            (1)  be registered in accordance with rules promulgated
by the district; and
            (2)  be equipped and maintained so as to conform to the
district's rules requiring installation of casing, pipe, and
fittings to prevent the escape of groundwater from a groundwater
reservoir to any reservoir not containing groundwater and to
prevent the pollution or harmful alteration of the character of the
water in any groundwater reservoir.
      (j)  The district may require the driller of a well exempted
under Subsection (a) or (b) of this section to file the drilling
log with the district.
      (k)  A well to supply water for a subdivision of land for
which a plat approval is required by Chapter 232, Local Government
Code, is not exempted under Subsection (b) of this section.
      (l)  Groundwater withdrawn from a well exempt from permitting
or regulation under this section and subsequently transported
outside the boundaries of the district shall be subject to any
applicable production and export fees under Section 3.1306 of this
article.
      (m)  This section applies to water wells, including water
wells used to supply water for activities related to the
exploration or production of hydrocarbons or minerals.  This
section does not apply to production or injection wells drilled for
oil, gas, sulphur, uranium, or brine, or for core tests, or for
injection of gas, saltwater, or other fluids, under permits issued
by the Railroad Commission of Texas.
      SECTION 3.1308.  MITIGATION ASSISTANCE. In addition to the
authority granted under Chapter 36, Water Code, the district may
assist in the mediation between landowners regarding the mitigation
of the loss of existing groundwater supply of exempt domestic and
livestock users due to the groundwater pumping of others.
      SECTION 3.1309.  PERMITTING. The district shall issue permits
for wells based on the consideration of whether:
            (1)  the application conforms to the requirements
prescribed by Chapter 36, Water Code, and is accompanied by the
prescribed fees;
            (2)  the proposed use of water unreasonably affects
existing groundwater and surface water resources or existing permit
holders;
            (3)  the proposed use of water is dedicated to any
beneficial use;
            (4)  the proposed use of water is consistent with the
district's certified water management plan;
            (5)  the applicant has agreed to avoid waste and
achieve water conservation; and
            (6)  the applicant has agreed that reasonable diligence
will be used to protect groundwater quality and that the applicant
will follow well plugging guidelines at the time of well closure.
      SECTION 3.1310.  REGIONAL COOPERATION. (a)  To provide for
regional continuity, the district shall:
            (1)  participate in a regular annual coordination
meeting with other groundwater districts in its designated
management area and may hold coordination meetings at other times
as needed;<>
            (2)  coordinate the collection of data with other
groundwater districts in its designated management area in such a
way as to achieve relative uniformity of data type and quality;
            (3)  coordinate efforts to monitor water quality with
other groundwater districts in its designated management area,
local governments, and state agencies;
            (4)  provide groundwater level data to other
groundwater districts in its designated management area;
            (5)  investigate any groundwater and aquifer pollution
with the intention of locating its source;
            (6)  notify other groundwater districts in its
designated management area and all appropriate agencies of any
detected groundwater pollution;
            (7)  annually provide to other groundwater districts in
its designated management area an inventory of water wells and an
estimate of groundwater production within the district; and
            (8)  include other groundwater districts in its
designated management area on the mailing lists for district
newsletters, seminars, public education events, news articles, and
field days.
      (b)  The district shall prepare a comprehensive management
plan as required by Section 36.1071, Water Code covering that
district's respective territory.  On completion and certification
of the plan as required by Section 36.1072, the district shall
forward a copy of the new or revised management plan to the other
districts in its designated management area.  The district shall
consider the management plans individually and shall compare them
to other management plans in the designated management area.
            (1)  The district shall, by resolution, call for joint
planning with the other districts in the designated management area
to review and coordinate the management plans and accomplishments
for the designated management area.  In reviewing and coordinating
the management plans, the boards shall consider:
                  (A)  the goals of each management plan and its
impact on planning throughout the management area;
                  (B)  the groundwater management standards of each
district describing the desired condition of the groundwater source
over time as indicated by indices of quantity of water in the
source, quality of water produced from the source, springflows, or
subsidence of the land surface;
                  (C)  the groundwater withdrawal rates adopted by
each district and the effectiveness of those rates in achieving the
groundwater management standard of the district;
                  (D)  the effectiveness of the measures
established by each management plan for conserving and protecting
groundwater and preventing waste, and the effectiveness of these
measures in the management area generally; and
                  (E)  any other matters that the boards consider
relevant to the protection and conservation of groundwater and the
prevention of waste in the management area.
            (2)  In the management plan the district may establish
and coordinate with the other districts within the designated
management area an annual total groundwater withdrawal limit and
equitable allocation as determined from an evaluation of the
overall scientific data of the groundwater resources in the region,
including the Texas Water Development Board's groundwater
availability model.  The determination of sustainable groundwater
withdrawal shall be reviewed at least every five years.
            (3)  Each district participating in the joint planning
process initiated under Subsection (b) shall ensure that the
groundwater management standards adopted by the district are
adequate to protect the groundwater within the area of each
district and are not incompatible with the groundwater management
standards adopted by the other districts in the management area.
            (4)  If a joint meeting of the boards of directors is
called, the meeting must be held in accordance with Chapter 551,
Government Code.  Notice of the meeting shall be given in
accordance with the requirements for notice of district board of
directors meetings under that Act.  In addition, notice of the
meeting shall be published not later than the 30th day before the
date of the scheduled meeting in a newspaper with general
circulation in each county in the management area.
            (5)  A district in the management area may file with
good cause a petition with the Texas Natural Resource Conservation
Commission requesting an inquiry if the petitioner district adopted
a resolution calling for joint planning and the other district or
districts refused to join in the planning process or the process
failed to result in adequate planning, and the petition provides
evidence that:
                  (A)  another district in the management area has
failed to adopt rules;
                  (B)  the groundwater in the management area is
not adequately protected by the rules adopted by another district;
or
                  (C)  the groundwater in the management area is
not adequately protected due to the failure of another district to
enforce substantial compliance with its rules.
            (6)  The district may contract to jointly conduct
studies or research, or to construct projects, under terms and
conditions that the districts consider beneficial with districts
located within the same management area or in adjacent management
areas. These joint efforts may include studies of groundwater
availability and quality, aquifer modeling, and the interaction of
groundwater and surface water; educational programs; the purchase
and sharing of equipment; and the implementation of projects to
make groundwater available, including aquifer recharge, brush
control, weather modification, desalination, regionalization, and
treatment or conveyance facilities.  The districts may contract
under their existing authorizations including those of Chapter 791,
Government Code, if their contracting authority is not limited by
Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government
Code.
      (c)  The district shall determine biennially, using the
overall available scientific data of groundwater resources in the
Central Carrizo-Wilcox area, whether pumping within the district or
an adjacent district is unreasonably affecting groundwater wells.
The district, in agreement with other districts within the
designated management area,  may adopt mitigation measures in
response to such unreasonable adverse effects only if the measures
are based on a scientific determination made.
      (d)  The district may assist in the mediation between
landowners regarding the mitigation of the loss of existing
groundwater supply of exempt domestic and livestock users due to
the groundwater pumping of others in adjoining districts.
      SECTION 3.1311.  BOARD OF DIRECTORS. (a)  The district is
governed by a board of eight directors.
      (b)  Initial directors serve until permanent directors are
appointed under Section 3.1313 of this article and qualified as
required by Subsection (d) of this section.
      (c)  Permanent directors serve four-year staggered terms.
      (d)  Each director must qualify to serve as a director in the
manner provided by Section 36.055, Water Code.
      (e)  A director serves until the director's successor has
qualified.
      (f)  A director may serve consecutive terms.
      (g)  If there is a vacancy on the board, the governing body
of the entity that appointed the director who vacated the office
shall appoint a director to serve the remainder of the term.
      (h)  Directors are not entitled to receive compensation for
serving as a director but may be reimbursed for actual, reasonable
expenses incurred in the discharge of official duties.
      (i)  A majority vote of a quorum is required for board
action. If there is a tie vote, the proposed action fails.
      SECTION 3.1312.  APPOINTMENT OF DIRECTORS. (a)  The Robertson
County Commissioners Court shall appoint four directors, of whom:
            (1)  one must represent municipal interests in the
county;
            (2)  one must represent agricultural interests in the
county;
            (3)  one must represent rural water suppliers'
interests in the county; and
            (4)  one must represent industrial interests in the
county.
      (b)  The Brazos County Commissioners Court shall appoint two
directors, of whom:
            (1)  one must represent rural water suppliers'
interests in the county; and
            (2)  one must represent agricultural interests in the
county.
      (c)  The governing body of the City of Bryan, with the
approval of the Brazos County Commissioners Court, shall appoint
one director.
      (d)  The governing body of the City of College Station, with
the approval of the Brazos County Commissioners Court, shall
appoint one director.
      (e)  Each of the governing bodies authorized by this section
to make an appointment shall appoint the appropriate number of
initial directors as soon as practicable following the effective
date of this Act, but not later than the 45th day after the
effective date of this Act.
      (f)  The four initial directors from Robertson County shall
draw lots to determine their terms.  Two initial directors from
Robertson County and the two initial directors from Brazos County
serve terms that expire on January 1 of the second year following
the confirmation of the district at an election held under Section
3.1315 of this article.  The remaining four initial directors serve
terms that expire on January 1 of the fourth year following the
confirmation of the district.  On January 1 of the second year
following confirmation of the district and every two years after
that date, the appropriate governing body shall appoint the
appropriate number of permanent directors.
      SECTION 3.1313.  ORGANIZATIONAL MEETING. As soon as
practicable after all the initial directors have been appointed and
have qualified as provided in this article, a majority of the
directors shall convene the organizational meeting of the district
at a location within the district agreeable to a majority of the
directors.  If no location can be agreed on, the organizational
meeting of the directors shall be at the Robertson County
Courthouse.
      SECTION 3.1314.  CONFIRMATION ELECTION. (a)  The initial
board of directors shall call and hold an election on the same date
in each county within the district to confirm the creation of the
district.
      (b)  Except as provided by this section, a confirmation
election must be conducted as provided by Sections 36.017, 36.018,
and 36.019, Water Code, and Section 41.001, Election Code.
      (c)  Confirmation of the district requires a vote in favor of
confirmation by a majority of the qualified voters voting in the
election.
      (d)  The district is dissolved and this article expires on
August 31, 2003, unless the voters confirm the creation of the
district before that date.
   PART 14.  POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT
      SECTION 3.1401.  CREATION. (a)  A groundwater conservation
district, to be known as the Post Oak Savannah Groundwater
Conservation District, is created in Milam and Burleson counties,
subject to approval at a confirmation election under Section 3.1414
of this article.  The district is a governmental agency and a body
politic and corporate.
      (b)  The district is created under and is essential to
accomplish the purposes of Section 59, Article XVI, Texas
Constitution.
      SECTION 3.1402.  DEFINITION. In this article, "district"
means the Post Oak Savannah Groundwater Conservation District.
      SECTION 3.1403.  BOUNDARIES. The boundaries of the district
are coextensive with the boundaries of Milam and Burleson counties.
      SECTION 3.1404.  FINDING OF BENEFIT. All of the land and
other property included within the boundaries of the district will
be benefitted by the works and projects that are to be accomplished
by the district under powers conferred by Section 59, Article XVI,
Texas Constitution.  The district is created to serve a public use
and benefit.
      SECTION 3.1405.  GENERAL POWERS. (a)  Except as otherwise
provided by this article, the district has all of the rights,
powers, privileges, authority, functions, and duties provided by
the general law of this state, including Chapter 36, Water Code,
applicable to groundwater conservation districts created under
Section 59, Article XVI, Texas Constitution.  This article prevails
over any provision of general law that is in conflict or
inconsistent with this article, including any provision of Chapter
36, Water Code.
      (b)  The district does not have the authority granted by the
following provisions of Chapter 36, Water Code:
            (1)  Section 36.105, relating to eminent domain; and
            (2)  Sections 36.020 and 36.201-36.204, relating to
taxes.
      SECTION 3.1406.  FEES. (a)  The board of directors of the
district by rule may impose reasonable fees on each well for which
a permit is issued by the district and which is not exempt from
regulation by the district.  A fee may be based on the size of
column pipe used by the well or on the actual, authorized, or
anticipated amount of water to be withdrawn from the well.
      (b)  Fees may not exceed:
            (1)  one dollar per acre-foot for water used for
irrigating agricultural crops; or
            (2)  17 cents per thousand gallons for water used for
any other purpose.
      (c)  In addition to the fee authorized under Subsection (b)
of this section, the district may impose a reasonable fee or
surcharge for an export fee using one of the following methods:
            (1)  a fee negotiated between the district and the
transporter; or
            (2)  a combined production and export fee not to exceed
17 cents per thousand gallons for water used.
      SECTION 3.1407.  EXEMPTIONS. (a)  The district may exempt
wells under Section 36.117, Water Code, from the requirements to
obtain a drilling permit, an operating permit, or any other permit
required by Chapter 36, Water Code, or the district's rules.
      (b)  The district may not require a permit for:
            (1)  a well used solely for domestic use or for
providing water for livestock or poultry on a tract of land larger
than 10 acres that is either drilled, completed, or equipped so
that it is incapable of producing more than 25,000 gallons of
groundwater a day;
            (2)  the drilling of a water well used solely to supply
water for a rig that is actively engaged in drilling or exploration
operations for an oil or gas well permitted by the Railroad
Commission of Texas provided that the person holding the permit is
responsible for drilling and operating the water well and the well
is located on the same lease or field associated with the drilling
rig; or
            (3)  the drilling of a water well authorized under a
permit issued by the Railroad Commission of Texas under Chapter
134, Natural Resources Code, or for production from any such well
to the extent the withdrawals are required for mining activities
regardless of any subsequent use of the water.
      (c)  The district shall not deny the owner of a tract of
land, or his lessee, who has no well equipped to produce more than
25,000 gallons a day on the tract, either a permit to drill a well
on his land or the privilege to produce groundwater from his land,
subject to the rules of the district.
      (d)  The district may not restrict the production of any well
that is exempt from permitting under Subsection (b)(1) of this
section.
      (e)  Notwithstanding Subsection (b) of this section, the
district may require a well to be permitted by the district and to
comply with all district rules if:
            (1)  the purpose of a well exempted under Subsection
(b)(2) of this section is no longer solely to supply water for a
rig that is actively engaged in drilling or exploration operations
for an oil or gas well permitted by the Railroad Commission of
Texas; or
            (2)  the withdrawals from a well exempted under
Subsection (b)(3) of this section are no longer necessary for
mining activities or are greater than the amount necessary for
mining activities specified in the permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code.
      (f)  An entity holding a permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code, that
authorizes the drilling of a water well shall report monthly to the
district:
            (1)  the total amount of water withdrawn during the
month;
            (2)  the quantity of water necessary for mining
activities; and
            (3)  the quantity of water withdrawn for other
purposes.
      (g)  Notwithstanding Subsection (e) of this section, a
district may not require a well exempted under Subsection (b)(3) of
this section to comply with the spacing requirements of the
district.
      (h)  The district shall not deny an application for a permit
to drill and produce water for hydrocarbon production activities if
the application meets the spacing, density, and production rules
applicable to all permitted water wells in the district.
      (i)  A water well exempted under Subsection (a) or (b) of
this section may:
            (1)  be registered in accordance with rules promulgated
by the district; and
            (2)  be equipped and maintained so as to conform to the
district's rules requiring installation of casing, pipe, and
fittings to prevent the escape of groundwater from a groundwater
reservoir to any reservoir not containing groundwater and to
prevent the pollution or harmful alteration of the character of the
water in any groundwater reservoir.
      (j)  The district may require the driller of a well exempted
under Subsection (a) or (b) of this section to file the drilling
log with the district.
      (k)  A well to supply water for a subdivision of land for
which a plat approval is required by Chapter 232, Local Government
Code, is not exempted under Subsection (b) of this section.
      (l)  Groundwater withdrawn from a well exempt from permitting
or regulation under this section and subsequently transported
outside the boundaries of the district shall be subject to any
applicable production and export fees under Section 3.1406 of this
article.
      (m)  This section applies to water wells, including water
wells used to supply water for activities related to the
exploration or production of hydrocarbons or minerals.  This
section does not apply to production or injection wells drilled for
oil, gas, sulphur, uranium, or brine, or for core tests, or for
injection of gas, saltwater, or other fluids, under permits issued
by the Railroad Commission of Texas.
      SECTION 3.1408.  MITIGATION ASSISTANCE. In addition to the
authority granted under Chapter 36, Water Code, the district may
assist in the mediation between landowners regarding the mitigation
of the loss of existing groundwater supply of exempt domestic and
livestock users due to the groundwater pumping of others.
      SECTION 3.1409.  PERMITTING. The district shall issue permits
for wells based on the consideration of whether:
            (1)  the application conforms to the requirements
prescribed by Chapter 36, Water Code, and is accompanied by the
prescribed fees;
            (2)  the proposed use of water unreasonably affects
existing groundwater and surface water resources or existing permit
holders;
            (3)  the proposed use of water is dedicated to any
beneficial use;
            (4)  the proposed use of water is consistent with the
district's certified water management plan;
            (5)  the applicant has agreed to avoid waste and
achieve water conservation; and
            (6)  the applicant has agreed that reasonable diligence
will be used to protect groundwater quality and that the applicant
will follow well plugging guidelines at the time of well closure.
      SECTION 3.1410.  REGIONAL COOPERATION. (a)  To provide for
regional continuity, the district shall:
            (1)  participate in a regular annual coordination
meeting with other groundwater districts in its designated
management area and may hold coordination meetings at other times
as needed;
            (2)  coordinate the collection of data with other
groundwater districts in its designated management area in such a
way as to achieve relative uniformity of data type and quality;
            (3)  coordinate efforts to monitor water quality with
other groundwater districts in its designated management area,
local governments, and state agencies;
            (4)  provide groundwater level data to other
groundwater districts in its designated management area;
            (5)  investigate any groundwater and aquifer pollution
with the intention of locating its source;
            (6)  notify other groundwater districts in its
designated management area and all appropriate agencies of any
detected groundwater pollution;
            (7)  annually provide to other groundwater districts in
its designated management area an inventory of water wells and an
estimate of groundwater production within the district; and
            (8)  include other groundwater districts in its
designated management area on the mailing lists for district
newsletters, seminars, public education events, news articles, and
field days.
      (b)  The district shall prepare a comprehensive management
plan as required by Section 36.1071, Water Code covering that
district's respective territory.  On completion and certification
of the plan as required by Section 36.1072, the district shall
forward a copy of the new or revised management plan to the other
districts in its designated management area.  The district shall
consider the management plans individually and shall compare them
to other management plans in the designated management area.
            (1)  The district shall, by resolution, call for joint
planning with the other districts in the designated management area
to review and coordinate the management plans and accomplishments
for the designated management area.  In reviewing and coordinating
the management plans, the boards shall consider:
                  (A)  the goals of each management plan and its
impact on planning throughout the management area;
                  (B)  the groundwater management standards of each
district describing the desired condition of the groundwater source
over time as indicated by indices of quantity of water in the
source, quality of water produced from the source, springflows, or
subsidence of the land surface;
                  (C)  the groundwater withdrawal rates adopted by
each district and the effectiveness of those rates in achieving the
groundwater management standard of the district;
                  (D)  the effectiveness of the measures
established by each management plan for conserving and protecting
groundwater and preventing waste, and the effectiveness of these
measures in the management area generally; and
                  (E)  any other matters that the boards consider
relevant to the protection and conservation of groundwater and the
prevention of waste in the management area.
            (2)  In the management plan the district may establish
and coordinate with the other districts within the designated
management area an annual total groundwater withdrawal limit and
equitable allocation as determined from an evaluation of the
overall scientific data of the groundwater resources in the region,
including the Texas Water Development Board's groundwater
availability model.  The determination of sustainable groundwater
withdrawal shall be reviewed at least every five years.
            (3)  Each district participating in the joint planning
process initiated under Subsection (b) shall ensure that the
groundwater management standards adopted by the district are
adequate to protect the groundwater within the area of each
district and are not incompatible with the groundwater management
standards adopted by the other districts in the management area.
            (4)  If a joint meeting of the boards of directors is
called, the meeting must be held in accordance with Chapter 551,
Government Code.  Notice of the meeting shall be given in
accordance with the requirements for notice of district board of
directors meetings under that Act.  In addition, notice of the
meeting shall be published not later than the 30th day before the
date of the scheduled meeting in a newspaper with general
circulation in each county in the management area.
            (5)  A district in the management area may file with
good cause a petition with the Texas Natural Resource Conservation
Commission requesting an inquiry if the petitioner district adopted
a resolution calling for joint planning and the other district or
districts refused to join in the planning process or the process
failed to result in adequate planning, and the petition provides
evidence that:
                  (A)  another district in the management area has
failed to adopt rules;
                  (B)  the groundwater in the management area is
not adequately protected by the rules adopted by another district;
or
                  (C)  the groundwater in the management area is
not adequately protected due to the failure of another district to
enforce substantial compliance with its rules.
            (6)  The district may contract to jointly conduct
studies or research, or to construct projects, under terms and
conditions that the districts consider beneficial with districts
located within the same management area or in adjacent management
areas.  These joint efforts may include studies of groundwater
availability and quality, aquifer modeling, and the interaction of
groundwater and surface water; educational programs; the purchase
and sharing of equipment; and the implementation of projects to
make groundwater available, including aquifer recharge, brush
control, weather modification, desalination, regionalization, and
treatment or conveyance facilities.  The districts may contract
under their existing authorizations including those of Chapter 791,
Government Code, if their contracting authority is not limited by
Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government
Code.
      (c)  The district shall determine biennially, using the
overall available scientific data of groundwater resources in the
Central Carrizo-Wilcox area, whether pumping within the district or
an adjacent district is unreasonably affecting groundwater wells.
The district, in agreement with other districts within the
designated management area,  may adopt mitigation measures in
response to such unreasonable adverse effects only if the measures
are based on a scientific determination made.
      (d)  The district may assist in the mediation between
landowners regarding the mitigation of the loss of existing
groundwater supply of exempt domestic and livestock users due to
the groundwater pumping of others in adjoining districts.
      SECTION 3.1411.  BOARD OF DIRECTORS. (a)  The district is
governed by a board of 10 directors.
      (b)  Initial directors serve until permanent directors are
appointed under Section 3.1412 of this article and qualified as
required by Subsection (d) of this section.
      (c)  Permanent directors serve four-year staggered terms.
      (d)  Each director must qualify to serve as a director in the
manner provided by Section 36.055, Water Code.
      (e)  A director serves until the director's successor has
qualified.
      (f)  A director may serve consecutive terms.
      (g)  If there is a vacancy on the board, the governing body
of the entity that appointed the director who vacated the office
shall appoint a director to serve the remainder of the term.
      (h)  Directors are not entitled to receive compensation for
serving as a director but may be reimbursed for actual, reasonable
expenses incurred in the discharge of official duties.
      (i)  A quorum exists when at least two-thirds of the board
members are present.  A majority vote of a quorum is required for
board action.  If there is a tie vote, the proposed action fails.
      SECTION 3.1412.  APPOINTMENT OF DIRECTORS. (a)  The Milam
County Commissioners Court shall appoint five directors, of whom:
            (1)  one must represent municipal interests in the
county;
            (2)  one must represent agricultural interests in the
county;
            (3)  one must represent rural water suppliers'
interests in the county;
            (4)  one must represent industrial interests in the
county; and
            (5)  one must represent the interests of the county at
large.
      (b)  The Burleson County Commissioners Court shall appoint
five directors, of whom:
            (1)  one must represent municipal interests in the
county;
            (2)  one must represent agricultural interests in the
county;
            (3)  one must represent rural water suppliers'
interests in the county;
            (4)  one must represent industrial interests in the
county; and
            (5)  one must represent the interests of the county at
large.
      (c)  Each of the governing bodies authorized by this section
to make an appointment shall appoint the appropriate number of
initial directors as soon as practicable following the effective
date of this Act, but not later than the 45th day after the
effective date of this Act.
      (d)  The initial directors shall draw lots to determine their
terms.  Two initial directors from Milam County and two initial
directors from Burleson County serve terms that expire on January 1
of the second year following the confirmation of the district at an
election held under 3.1414 of this article.  The remaining six
initial directors serve terms that expire on January 1 of the
fourth year following the confirmation of the district.  On January
1 of the second year following confirmation of the district and
every two years after that date, the appropriate commissioners
court shall appoint the appropriate number of permanent directors.
      SECTION 3.1413.  ORGANIZATIONAL MEETING. As soon as
practicable after all the initial directors have been appointed and
have qualified as provided in this article, a majority of the
directors shall convene the organizational meeting of the district
at a location within the district agreeable to a majority of the
directors.  If no location can be agreed on, the organizational
meeting of the directors shall be at the Milam County Courthouse.
      SECTION 3.1414.  CONFIRMATION ELECTION. (a)  The initial
board of directors shall call and hold an election on the same date
in each county within the district to confirm the creation of the
district.
      (b)  Except as provided by this section, a confirmation
election must be conducted as provided by Sections 36.017, 36.018,
and 36.019, Water Code, and Section 41.001, Election Code.
      (c)  If the majority of qualified voters in a county who vote
in the election vote to confirm the creation of the district, that
county is included in the district.
      (d)  The district is dissolved and this article expires on
August 31, 2003, unless the voters confirm the creation of the
district before that date.
    PART 15.  MID-EAST TEXAS GROUNDWATER CONSERVATION DISTRICT
      SECTION 3.1501.  CREATION. (a)  A groundwater conservation
district, to be known as the Mid-East Texas Groundwater
Conservation District, is created in Leon, Madison, and Freestone
counties, subject to approval at a confirmation election under
Section 3.151 4 of this article.  The district is a governmental
agency and a body politic and corporate.
      (b)  The district is created under and is essential to
accomplish the purposes of Section 59, Article XVI, Texas
Constitution.
      SECTION 3.1502.  DEFINITION. In this article, "district"
means the Mid-East Texas Groundwater Conservation District.
      SECTION 3.1503.  BOUNDARIES. The boundaries of the district
are coextensive with the boundaries of Leon, Madison, and Freestone
counties.
      SECTION 3.1504.  FINDING OF BENEFIT. All of the land and
other property included within the boundaries of the district will
be benefitted by the works and projects that are to be accomplished
by the district under powers conferred by Section 59, Article XVI,
Texas Constitution.  The district is created to serve a public use
and benefit.
      SECTION 3.1505.  GENERAL POWERS. (a)  Except as otherwise
provided by this article, the district has all of the rights,
powers, privileges, authority, functions, and duties provided by
the general law of this state, including Chapter 36, Water Code,
applicable to groundwater conservation districts created under
Section 59, Article XVI, Texas Constitution.  This article prevails
over any provision of general law that is in conflict or
inconsistent with this article, including any provision of Chapter
36, Water Code.
      (b)  The district does not have the authority granted by the
following provisions of Chapter 36, Water Code:
            (1)  Section 36.105, relating to eminent domain; and
            (2)  Sections 36.020 and 36.201-36.204, relating to
taxes.
      SECTION 3.1506.  FEES. (a)  The board of directors of the
district by rule may impose reasonable fees on each well for which
a permit is issued by the district and which is not exempt from
regulation by the district.  A fee may be based on the size of
column pipe used by the well or on the actual, authorized, or
anticipated amount of water to be withdrawn from the well.
      (b)  Fees may not exceed:
            (1)  one dollar per acre-foot for water used for
irrigating agricultural crops; or
            (2)  17 cents per thousand gallons for water used for
any other purpose.
      (c)  In addition to the fee authorized under Subsection (b)
of this section, the district may impose a reasonable fee or
surcharge for an export fee using one of the following methods:
            (1)  a fee negotiated between the district and the
transporter; or
            (2)  a combined production and export fee not to exceed
17 cents per thousand gallons for water used.
      SECTION 3.1507.  EXEMPTIONS. (a)  The district may exempt
wells under Section 36.117, Water Code, from the requirements to
obtain a drilling permit, an operating permit, or any other permit
required by Chapter 36, Water Code, or the district's rules.
      (b)  The district may not require a permit for:
            (1)  a well used solely for domestic use or for
providing water for livestock or poultry on a tract of land larger
than 10 acres that is either drilled, completed, or equipped so
that it is incapable of producing more than 25,000 gallons of
groundwater a day;
            (2)  the drilling of a water well used solely to supply
water for a rig that is actively engaged in drilling or exploration
operations for an oil or gas well permitted by the Railroad
Commission of Texas provided that the person holding the permit is
responsible for drilling and operating the water well and the well
is located on the same lease or field associated with the drilling
rig; or
            (3)  the drilling of a water well authorized under a
permit issued by the Railroad Commission of Texas under Chapter
134, Natural Resources Code, or for production from any such well
to the extent the withdrawals are required for mining activities
regardless of any subsequent use of the water.
      (c)  The district shall not deny the owner of a tract of
land, or his lessee, who has no well equipped to produce more than
25,000 gallons a day on the tract, either a permit to drill a well
on his land or the privilege to produce groundwater from his land,
subject to the rules of the district.
      (d)  The district may not restrict the production of any well
that is exempt from permitting under Subsection (b)(1) of this
section.
      (e)  Notwithstanding Subsection (b) of this section, the
district may require a well to be permitted by the district and to
comply with all district rules if:
            (1)  the purpose of a well exempted under Subsection
(b)(2) of this section is no longer solely to supply water for a
rig that is actively engaged in drilling or exploration operations
for an oil or gas well permitted by the Railroad Commission of
Texas; or
            (2)  the withdrawals from a well exempted under
Subsection (b)(3) of this section are no longer necessary for
mining activities or are greater than the amount necessary for
mining activities specified in the permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code.
      (f)  An entity holding a permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code, that
authorizes the drilling of a water well shall report monthly to the
district:
            (1)  the total amount of water withdrawn during the
month;
            (2)  the quantity of water necessary for mining
activities; and
            (3)  the quantity of water withdrawn for other
purposes.
      (g)  Notwithstanding Subsection (e) of this section, the
district may not require a well exempted under Subsection (b)(3) of
this section to comply with the spacing requirements of the
district.
      (h)  The district shall not deny an application for a permit
to drill and produce water for hydrocarbon production activities if
the application meets the spacing, density, and production rules
applicable to all permitted water wells in the district.
      (i)  A water well exempted under Subsection (a) or (b) of
this section may:
            (1)  be registered in accordance with rules promulgated
by the district; and
            (2)  be equipped and maintained so as to conform to the
district's rules requiring installation of casing, pipe, and
fittings to prevent the escape of groundwater from a groundwater
reservoir to any reservoir not containing groundwater and to
prevent the pollution or harmful alteration of the character of the
water in any groundwater reservoir.
      (j)  The district may require the driller of a well exempted
under Subsection (a) or (b) of this section to file the drilling
log with the district.
      (k)  A well to supply water for a subdivision of land for
which a plat approval is required by Chapter 232, Local Government
Code, is not exempted under Subsection (b) of this section.
      (l)  Groundwater withdrawn from a well exempt from permitting
or regulation under this section and subsequently transported
outside the boundaries of the district shall be subject to any
applicable production and export fees under Section 3.1506 of this
article.
      (m)  This section applies to water wells, including water
wells used to supply water for activities related to the
exploration or production of hydrocarbons or minerals.  This
section does not apply to production or injection wells drilled for
oil, gas, sulphur, uranium, or brine, or for core tests, or for
injection of gas, saltwater, or other fluids, under permits issued
by the Railroad Commission of Texas.
      SECTION 3.1508.  MITIGATION ASSISTANCE. In addition to the
authority granted under Chapter 36, Water Code, the district may
assist in the mediation between landowners regarding the mitigation
of the loss of existing groundwater supply of exempt domestic and
livestock users due to the groundwater pumping of others.
      SECTION 3.1509.  PERMITTING. The district shall issue permits
for wells based on the consideration of whether:
            (1)  the application conforms to the requirements
prescribed by Chapter 36, Water Code, and is accompanied by the
prescribed fees;
            (2)  the proposed use of water unreasonably affects
existing groundwater and surface water resources or existing permit
holders;
            (3)  the proposed use of water is dedicated to any
beneficial use;
            (4)  the proposed use of water is consistent with the
district's certified water management plan;
            (5)  the applicant has agreed to avoid waste and
achieve water conservation; and
            (6)  the applicant has agreed that reasonable diligence
will be used to protect groundwater quality and that the applicant
will follow well plugging guidelines at the time of well closure.
      SECTION 3.1510.  REGIONAL COOPERATION. (a)  To provide for
regional continuity, the district shall:
            (1)  participate in a regular annual coordination
meeting with other groundwater districts in its designated
management area and may hold coordination meetings at other times
as needed;
            (2)  coordinate the collection of data with other
groundwater districts in its designated management area in such a
way as to achieve relative uniformity of data type and quality;
            (3)  coordinate efforts to monitor water quality with
other groundwater districts in its designated management area,
local governments, and state agencies;
            (4)  provide groundwater level data to other
groundwater districts in its designated management area;
            (5)  investigate any groundwater and aquifer pollution
with the intention of locating its source;
            (6)  notify other groundwater districts in its
designated management area and all appropriate agencies of any
detected groundwater pollution;
            (7)  annually provide to other groundwater districts in
its designated management area an inventory of water wells and an
estimate of groundwater production within the district; and
            (8)  include other groundwater districts in its
designated management area on the mailing lists for district
newsletters, seminars, public education events, news articles, and
field days.
      (b)  The district shall prepare a comprehensive management
plan as required by Section 36.1071, Water Code covering that
district's respective territory.  On completion and certification
of the plan as required by Section 36.1072, the district shall
forward a copy of the new or revised management plan to the other
districts in its designated management area.  The district shall
consider the management plans individually and shall compare them
to other management plans in the designated management area.
            (1)  The district shall, by resolution, call for joint
planning with the other districts in the designated management area
to review and coordinate the management plans and accomplishments
for the designated management area.  In reviewing and coordinating
the management plans, the boards shall consider:
                  (A)  the goals of each management plan and its
impact on planning throughout the management area;
                  (B)  the groundwater management standards of each
district describing the desired condition of the groundwater source
over time as indicated by indices of quantity of water in the
source, quality of water produced from the source, springflows, or
subsidence of the land surface;
                  (C)  the groundwater withdrawal rates adopted by
each district and the effectiveness of those rates in achieving the
groundwater management standard of the district;
                  (D)  the effectiveness of the measures
established by each management plan for conserving and protecting
groundwater and preventing waste, and the effectiveness of these
measures in the management area generally; and
                  (E)  any other matters that the boards consider
relevant to the protection and conservation of groundwater and the
prevention of waste in the management area.
            (2)  In the management plan the district may establish
and coordinate with the other districts within the designated
management area an annual total groundwater withdrawal limit and
equitable allocation as determined from an evaluation of the
overall scientific data of the groundwater resources in the region,
including the Texas Water Development Board's groundwater
availability model.  The determination of sustainable groundwater
withdrawal shall be reviewed at least every five years.
            (3)  Each district participating in the joint planning
process initiated under Subsection (b) shall ensure that the
groundwater management standards adopted by the district are
adequate to protect the groundwater within the area of each
district and are not incompatible with the groundwater management
standards adopted by the other districts in the management area.
            (4)  If a joint meeting of the boards of directors is
called, the meeting must be held in accordance with Chapter 551,
Government Code.  Notice of the meeting shall be given in
accordance with the requirements for notice of district board of
directors meetings under that Act.  In addition, notice of the
meeting shall be published not later than the 30th day before the
date of the scheduled meeting in a newspaper with general
circulation in each county in the management area.
            (5)  A district in the management area may file with
good cause a petition with the Texas Natural Resource Conservation
Commission requesting an inquiry if the petitioner district adopted
a resolution calling for joint planning and the other district or
districts refused to join in the planning process or the process
failed to result in adequate planning, and the petition provides
evidence that:
                  (A)  another district in the management area has
failed to adopt rules;
                  (B)  the groundwater in the management area is
not adequately protected by the rules adopted by another district;
or
                  (C)  the groundwater in the management area is
not adequately protected due to the failure of another district to
enforce substantial compliance with its rules.
            (6)  The district may contract to jointly conduct
studies or research, or to construct projects, under terms and
conditions that the districts consider beneficial with districts
located within the same management area or in adjacent management
areas.  These joint efforts may include studies of groundwater
availability and quality, aquifer modeling, and the interaction of
groundwater and surface water; educational programs; the purchase
and sharing of equipment; and the implementation of projects to
make groundwater available, including aquifer recharge, brush
control, weather modification, desalination, regionalization, and
treatment or conveyance facilities.  The districts may contract
under their existing authorizations including those of Chapter 791,
Government Code, if their contracting authority is not limited by
Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government
Code.
      (c)  The district shall determine biennially, using the
overall available scientific data of groundwater resources in the
Central Carrizo-Wilcox area, whether pumping within the district or
an adjacent district is unreasonably affecting groundwater wells.
The district, in agreement with other districts within the
designated management area,  may adopt mitigation measures in
response to such unreasonable adverse effects only if the measures
are based on a scientific determination made.
      (d)  The district may assist in the mediation between
landowners regarding the mitigation of the loss of existing
groundwater supply of exempt domestic and livestock users due to
the groundwater pumping of others in adjoining districts.
      SECTION 3.1511.  BOARD OF DIRECTORS. (a)  The district is
governed by a board of nine directors.
      (b)  Initial directors serve until permanent directors are
appointed under Section 3.1512 of this article and qualified as
required by Subsection (d) of this section.
      (c)  Permanent directors serve four-year staggered terms.
      (d)  Each director must qualify to serve as a director in the
manner provided by Section 36.055, Water Code.
      (e)  A director serves until the director's successor has
qualified.
      (f)  A director may serve consecutive terms.
      (g)  If there is a vacancy on the board, the governing body
of the entity that appointed the director who vacated the office
shall appoint a director to serve the remainder of the term.
      (h)  Directors are not entitled to receive compensation for
serving as a director but may be reimbursed for actual, reasonable
expenses incurred in the discharge of official duties.
      (i)  A majority vote of a quorum is required for board
action.  If there is a tie vote, the proposed action fails.
      SECTION 3.1512.  APPOINTMENT OF DIRECTORS. (a)  The Leon
County Commissioners Court shall appoint three directors, of whom:
            (1)  one must represent the interests of rural water
suppliers or municipalities in the county, or both;
            (2)  one must represent agricultural interests in the
county; and
            (3)  one must represent industrial interests in the
county.
      (b)  The Madison County Commissioners Court shall appoint
three directors, of whom:
            (1)  one must represent the interests of rural water
suppliers or municipalities in the county, or both;
            (2)  one must represent agricultural interests in the
county; and
            (3)  one must represent industrial interests in the
county.
      (c)  The Freestone County Commissioners Court shall appoint
three directors, of whom:
            (1)  one must represent the interests of rural water
suppliers or municipalities in the county, or both;
            (2)  one must represent agricultural interests in the
county; and
            (3)  one must represent industrial interests in the
county.
      (d)  Each of the governing bodies authorized by this section
to make an appointment shall appoint the appropriate number of
initial directors as soon as practicable following the effective
date of this Act, but not later than the 45th day after the
effective date of this Act.
      (e)  The initial directors shall draw lots to determine their
terms.  A simple majority of the initial directors, if an odd
number of initial directors are appointed, or half the initial
directors, if an even number of initial directors are appointed,
serve terms that expire on January 1 of the fourth year following
the confirmation of the district at an election held under Section
3.1514 of this article.  The remaining initial directors serve
terms that expire on January 1 of the second year following the
confirmation of the district.  On January 1 of the second year
following confirmation of the district and every two years after
that date, the appropriate commissioners courts shall appoint the
appropriate number of permanent directors.
      SECTION 3.1513.  ORGANIZATIONAL MEETING. As soon as
practicable after all the initial directors have been appointed and
have qualified as provided by this article, a majority of the
directors shall convene the organizational meeting of the district
at a location within the district agreeable to a majority of the
directors.  If no location can be agreed on, the organizational
meeting of the directors shall be at the Leon County Courthouse.
      SECTION 3.1514.  CONFIRMATION ELECTION. (a)  The initial
board of directors shall call and hold an election on the same date
in each county within the district to confirm the creation of the
district.
      (b)  Except as provided by this section, a confirmation
election must be conducted as provided by Sections 36.017, 36.018,
and 36.019, Water Code, and Section 41.001, Election Code.
      (c)  If the majority of qualified voters in a county who vote
in the election vote to confirm the creation of the district, that
county is included in the district.  If the majority of qualified
voters in a county who vote in the election vote not to confirm the
creation of the district, that county is excluded from the
district.
      (d)  The district is dissolved and this article expires on
August 31, 2003, unless the voters confirm the creation of the
district before that date.