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.