By Ellis                                              H.B. No. 2001
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operation, and financing of the Walker Groundwater Conservation
 1-4     District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  CREATION. (a)  A groundwater conservation
 1-7     district, to be known as the Walker Groundwater Conservation
 1-8     District, is created in Walker County subject to approval at a
 1-9     confirmation election under Section 14 of this Act.  The district
1-10     is a governmental agency and a body politic and corporate.
1-11           (b)  The district is created under and is essential to
1-12     accomplish the purposes of Section 59, Article XVI, Texas
1-13     Constitution; and
1-14           (c)  The purpose of this Act is to create a locally
1-15     controlled groundwater district in order to protect, recharge, and
1-16     prevent the waste of groundwater, and to control subsidence caused
1-17     by withdrawal of water from the groundwater reservoirs in the area,
1-18     and to regulate the transport of water out of the boundaries of the
1-19     district;
1-20           SECTION 2.  DEFINITION. In this Act, "district" means the
1-21     Walker Groundwater Conservation District.
1-22           SECTION 3.  BOUNDARIES. The boundaries of the district are
 2-1     coextensive with the boundaries of Walker County.
 2-2           SECTION 4.  FINDING OF BENEFIT. All of the land and other
 2-3     property included within the boundaries of the district will be
 2-4     benefitted by the works and projects that are to be accomplished by
 2-5     the district under powers conferred by Section 59, Article XVI,
 2-6     Texas Constitution.  The district is created to serve a public use
 2-7     and benefit.
 2-8           SECTION 5.  GENERAL POWERS. (a)  Except as otherwise provided
 2-9     by this Act, the district has all the rights, powers, privileges,
2-10     authority, functions, and duties provided by the general law of
2-11     this state, including Chapter 36, Water Code, applicable to
2-12     groundwater conservation districts created under Section 59,
2-13     Article XVI, Texas Constitution.  This Act prevails over any
2-14     provision of general law, including Chapter 36, Water Code, that is
2-15     in conflict or is inconsistent with this Act.
2-16           (b)  The district does not have the authority granted by the
2-17     following provisions of Chapter 36, Water Code:
2-18                 (1)  Section 36.105, relating to eminent domain; and
2-19                 (2)  Sections 36.020 and 36.201-36, 204, relating to
2-20     taxes.
2-21           SECTION 6.  FEES. (a)  The board of directors of the district
2-22     by rule may impose reasonable fees on each well for which a permit
2-23     is issued by the district and that is not exempt from regulation by
2-24     the district.  A fee may be based on the size of column pipe used
2-25     by the well or on the actual, authorized, or anticipated amount of
2-26     water to be withdrawn from the well.
 3-1           (b)  Fees shall not exceed:
 3-2                 (1)  one dollar per acre foot for water used for
 3-3     irrigating agricultural crops; or
 3-4                 (2)  17 cents per thousand gallons for water used for
 3-5     any other purpose.
 3-6           (c)  In addition to the fee authorized under Subsection (b)
 3-7     of this section, the district may assess a fee on groundwater from
 3-8     a well that is produced for transport outside the district.  The
 3-9     combined fees may not exceed the limit on a fee amount set by
3-10     Section 36.205(c), Water Code.
3-11           (d)  Fees authorized by this section may be assessed annually
3-12     and may be used to fund the cost of District operations and
3-13     expenses of the district's or council's operations.
3-14           SECTION 7.  EXEMPTIONS. (a)  Pursuant to Section 36.117,
3-15     Water Code, as amended, a district may exempt wells from the
3-16     requirements to obtain a drilling permit, an operating permit, or
3-17     any other permit required by this chapter or the district's rules. 
3-18     A district may not require a permit for:
3-19                 (1)  drilling or producing from a well either drilled,
3-20     completed, or equipped so that it is incapable of producing more
3-21     than 25,000 gallons of groundwater a day;
3-22                 (2)  the drilling or alteration of the size of a well
3-23     or to restrict the production of a well if the water produced or to
3-24     be produced from the well is used or to be used to supply the
3-25     domestic needs of 10 or fewer households and a person who is a
3-26     member of each household is either the owner of the well, a person
 4-1     related to the owner or a member of the owner's household within
 4-2     the second degree by consanguinity, or an employee of the owner;
 4-3                 (3)  the drilling or alteration of the size of a well
 4-4     or to restrict the production from the well if the water produced
 4-5     or to be produced from the well is used or to be used to provide
 4-6     water for feeding livestock and poultry connected with farming,
 4-7     ranching, or dairy enterprises; or
 4-8                 (4)  water wells to supply water for hydrocarbon
 4-9     production activities, regardless of whether those wells are
4-10     producing, that are associated with any well permitted by the
4-11     Railroad Commission of Texas drilled before September 1, 1985.
4-12           (b)  The board shall adopt rules determining the
4-13     applicability of Subsection (a)(3) to facilities used primarily for
4-14     feeding livestock.
4-15           (c)  The district shall not deny the owner of a tract of
4-16     land, or his lessee, who has no well equipped to produce more than
4-17     25,000 gallons a day on the tract, either a permit to drill a well
4-18     on his land or the privilege to produce groundwater from his land,
4-19     subject to the rules of the district.
4-20           (d)  A district may not restrict the production of any well
4-21     equipped to produce 25,000 gallons or less a day.
4-22           (e)  Water wells exempted under this section shall be
4-23     equipped and maintained so as to conform to the district's rules
4-24     requiring installation of casing, pipe, and fittings to prevent the
4-25     escape of groundwater from a groundwater reservoir to any reservoir
4-26     not containing groundwater and to prevent the pollution or harmful
 5-1     alteration of the character of the water in any groundwater
 5-2     reservoir.
 5-3           (f)  A district shall require water wells exempted under this
 5-4     section to be registered with the district before drilling.  All
 5-5     exempt water wells shall be equipped and maintained so as to
 5-6     conform to the district's rules requiring installation of casing,
 5-7     pipe, and fittings to prevent the escape of groundwater from a
 5-8     groundwater reservoir to any reservoir not containing groundwater
 5-9     and to prevent the pollution or harmful alteration of the character
5-10     of the water in any groundwater reservoir.
5-11           (g)  A well to supply water for a subdivision of land for
5-12     which a plat approval is required by law is not exempted under this
5-13     section.
5-14           SECTION 8.  MINING EXEMPTION. (a)  A groundwater well that is
5-15     used by a mining operation and permitted by the Railroad Commission
5-16     of Texas is exempt from permit requirements, regulations, and fees
5-17     imposed by the district if the amount of water withdrawn from the
5-18     well is not greater than the amount required by the mining
5-19     operation for mining purposes.  A mining operation that withdraws
5-20     the amount of water required for mining purposes, uses that water
5-21     for mining purposes, and then puts that water to another use does
5-22     not forfeit the exemption granted by this section, but any
5-23     production of water in addition to water withdrawn for mining
5-24     purposes is subject to district permitting and regulation.
5-25           (b)  The district may require a well used for mining purposes
5-26     and exempt under this section to comply with the spacing
 6-1     requirements of the district if any withdrawals from that well are
 6-2     in addition to withdrawals for mining purposes.
 6-3           (c)  A mining operation may voluntarily waive the exemption
 6-4     granted by this section.
 6-5           SECTION 9.  MANAGEMENT PLAN. The district shall develop or
 6-6     contract to develop its own management plan under Section 36.1071,
 6-7     Water Code.
 6-8           SECTION 10.  PERMITTING. (a)  The district shall issue
 6-9     permits for wells based on the consideration of whether:
6-10                 (1)  the application conforms to the requirements
6-11     prescribed by Chapter 36, Water Code, and is accompanied by the
6-12     prescribed fees;
6-13                 (2)  the proposed use of water is consistent with the
6-14     district's certified water management plan;
6-15                 (3)  the proposed use of water is dedicated to any
6-16     beneficial use;
6-17                 (4)  the applicant has agreed to avoid waste and
6-18     achieve water conservation; and
6-19                 (5)  the applicant has agreed that reasonable diligence
6-20     will be used to protect groundwater quality and that the applicant
6-21     will follow well plugging guidelines at the time of well closure.
6-22                 (6)  the proposed use would not present the possibility
6-23     of unreasonable interference with the production of water from
6-24     exempt, existing, or previously permitted wells;
6-25                 (7)  the proposed use would not unreasonably interfere
6-26     with an adjoining landowner's ability to produce water from his
 7-1     property.
 7-2           SECTION 11.  BOARD OF DIRECTORS. (a)  The district is
 7-3     governed by a board of directors appointed as provided by Section
 7-4     12.
 7-5           (b)  Initial directors serve until permanent directors are
 7-6     appointed under Section 12 of this Act and qualified as required by
 7-7     Subsection (d) of this section.
 7-8           (c)  Permanent directors serve four-year staggered terms.
 7-9           (d)  Each director must qualify to serve as a director in the
7-10     manner provided by Section 36.055, Water Code.
7-11           (e)  A director serves until the director's successor has
7-12     qualified.
7-13           (f)  A director may serve consecutive terms.
7-14           (g)  If there is a vacancy on the board, the governing body
7-15     of the entity that appointed the director who vacated the office
7-16     shall appoint a director to serve the remainder of the term.
7-17           (h)  Directors are not entitled to receive compensation for
7-18     serving as a director but may be reimbursed for actual, reasonable
7-19     expenses incurred in the discharge of official duties.
7-20           (i)  A majority vote of a quorum is required for board
7-21     action.  If there is a tie vote, the proposed action fails.
7-22           SECTION 12.  APPOINTMENT OF DIRECTORS. (a)  The Walker County
7-23     Commissioners Court shall appoint eight directors, of whom:
7-24                 (1)  two must represent municipal interests in the
7-25     county;
7-26                 (2)  two must represent agriculture interests in the
 8-1     county;
 8-2                 (3)  two must represent rural water suppliers' interest
 8-3     in the county; and
 8-4                 (4)  two must represent industrial interests in the
 8-5     county.
 8-6           (b)  The governing body authorized by this section to make an
 8-7     appointment shall appoint the appropriate number of initial
 8-8     directors as soon as practicable following the effective date of
 8-9     this Act, but not later than the 45th day after the effective date
8-10     of this Act.
8-11           (c)  The initial directors shall draw lots to determine their
8-12     terms.  Five initial directors from Walker County serve terms that
8-13     expire on January 1 of the second year following the confirmation
8-14     of the district at an election held under Section 14 of this
8-15     article.  The remaining five initial directors serve terms that
8-16     expire on January 1 of the fourth year following the confirmation
8-17     of the district.  On January 1 of the second year following
8-18     confirmation of the district and every two years after that date,
8-19     the commissioners court shall appoint the appropriate number of
8-20     permanent directors.
8-21           SECTION 13.  ORGANIZATION MEETING. As soon as practicable
8-22     after all the initial directors have been appointed and have
8-23     qualified as provided in this Act, a majority of the directors
8-24     shall convene the organizational meeting of the district at a
8-25     location within the district agreeable to a majority of the
8-26     directors.  If no location can be agreed on, the organizational
 9-1     meeting of the directors shall be at the Walker County Courthouse.
 9-2           SECTION 14.  CONFIRMATION ELECTION. (a)  The initial board of
 9-3     directors shall call and hold, on the same date in each county to
 9-4     be included in the district, an election to confirm the creation of
 9-5     the district.
 9-6           (b)  Except as provided by this section, a confirmation
 9-7     election must be conducted as provided by Sections 36.017, 36.018,
 9-8     and 36.019, Water Code, and the Election Code.
 9-9           (c)  If the majority of qualified voters in a county who vote
9-10     in the election to confirm the creation of the district, that
9-11     county is included in the district.  If the majority of qualified
9-12     voters in a county who vote in the election vote not to confirm the
9-13     creation of the district, that county is excluded from the
9-14     district.
9-15           (d)  If the creation of the district is not confirmed by an
9-16     election held under this section before the second anniversary of
9-17     the effective date of this Act, the district is dissolved and this
9-18     Act expires on that date.
9-19           SECTION 15.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a)
9-20     The proper and legal notice of the intention to introduce this Act,
9-21     setting forth the general substance of this Act, has been published
9-22     as provided by law, and the notice and a copy of this Act have been
9-23     furnished to all persons, agencies, officials, or entities to which
9-24     they are required to be furnished by the constitution and other
9-25     laws of this state, including the governor, who has submitted the
9-26     notice and Act to the Texas Natural Resource Conservation
 10-1    Commission.
 10-2          (b)  The Texas Natural Resource Conservation Commission has
 10-3    filed its recommendations relating to this Act with the governor
 10-4    and the speaker of the house of  representatives within the
 10-5    required time.
 10-6          (c)  All requirements of the constitution and laws of this
 10-7    state and the rules and procedures of the legislature with respect
 10-8    to the notice, introduction, and passage of this Act are fulfilled
 10-9    and accomplished.
10-10          SECTION 16.  EFFECTIVE DATE. This Act takes effect September
10-11    1, 2001.