1-1                                   AN ACT
 1-2     relating to the regulation of spacing and production of wells by a
 1-3     groundwater conservation district.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 36.116, Water Code, is amended to read as
 1-6     follows:
 1-7           Sec. 36.116.  REGULATION OF SPACING AND PRODUCTION. (a)  In
 1-8     order to minimize as far as practicable the drawdown of the water
 1-9     table or the reduction of artesian pressure, to control subsidence,
1-10     to prevent interference between wells, to prevent degradation of
1-11     water quality, or to prevent waste, a district by rule may
1-12     regulate:
1-13                 (1)  [provide for] the spacing of water wells by:
1-14                       (A)  requiring all wells to be spaced a certain
1-15     distance from property lines or adjoining wells;
1-16                       (B)  requiring wells with a certain production
1-17     capacity, pump size, or other characteristic related to the
1-18     construction or operation of the well be spaced a certain distance
1-19     from property lines or adjoining wells; or
1-20                       (C)  imposing spacing requirements adopted by the
1-21     board; and
1-22                 (2)  the production of groundwater by:
1-23                       (A)  setting production limits on wells;
1-24                       (B)  limiting the amount of water produced based
 2-1     on acreage or tract size;
 2-2                       (C)  limiting the amount of water that may be
 2-3     produced from a defined number of acres assigned to an authorized
 2-4     well site;
 2-5                       (D)  limiting the maximum amount of water that
 2-6     may be produced on the basis of acre-feet-per-acre or
 2-7     gallons-per-minute per well site; or
 2-8                       (E)  any combination of the methods listed above
 2-9     in Paragraphs (A) through (D) [and may regulate the production of
2-10     wells].
2-11           (b)  In promulgating any rules limiting groundwater
2-12     production, the district may preserve historic use prior to the
2-13     effective date of these rules to the maximum extent practicable
2-14     consistent with the district's comprehensive management plan under
2-15     Section 36.1071.
2-16           (c)  In regulating the production of groundwater based on
2-17     tract size or acreage, a district may consider the service area of
2-18     a retail water utility.  For the purposes of this subsection,
2-19     "retail water utility" shall have the meaning provided at Section
2-20     13.002.
2-21           SECTION 2.  This Act takes effect immediately if it receives
2-22     a vote of two-thirds of all the members elected to each house, as
2-23     provided by Section 39, Article III, Texas Constitution.  If this
2-24     Act does not receive the vote necessary for immediate effect, this
2-25     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3037 was passed by the House on April
         20, 2001, by the following vote:  Yeas 142, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 3037 on May 25, 2001, by the following vote:  Yeas 114, Nays 0,
         2 present, not voting; and that the House adopted H.C.R. No. 329
         authorizing certain corrections in H.B. No. 3037 on May 28, 2001,
         by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3037 was passed by the Senate, with
         amendments, on May 23, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting; and that the Senate adopted H.C.R. No.
         329 authorizing certain corrections in H.B. No. 3037 on May 28,
         2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor