77R11358 SGA-F                           
         By Walker                                             H.B. No. 3037
         Substitute the following for H.B. No. 3037:
         By Walker                                         C.S.H.B. No. 3037
                                A BILL TO BE ENTITLED
 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 that a well be spaced a certain
1-15     distance from property lines or adjacent wells;
1-16                       (B)  requiring that a well with a certain
1-17     production capacity, pump size, or other characteristic related to
1-18     the construction or operation of the well be spaced a certain
1-19     distance from property lines or adjacent wells; or
1-20                       (C)  adopting other spacing requirements; and
1-21                 (2)  the production of groundwater by:
1-22                       (A)  limiting total annual production;
1-23                       (B)  limiting the amount of water that may be
1-24     produced based on acreage or tract size;
 2-1                       (C)  limiting the amount of water that may be
 2-2     produced from a maximum number of acres assigned by the district to
 2-3     an authorized well site;
 2-4                       (D)  limiting the maximum amount of water that
 2-5     may be produced from a number of acres assigned by the district on
 2-6     an acre-foot-per-acre or gallons-per-minute basis for an authorized
 2-7     well site; or
 2-8                       (E)  adopting other production limits [and may
 2-9     regulate the production of wells].
2-10           (b)  Any spacing or production requirements adopted by a
2-11     district under Subsection (a) do not apply to a dewatering or
2-12     monitoring well drilled for mining purposes under a permit issued
2-13     by the Railroad Commission of Texas.
2-14           SECTION 2.  This Act takes effect immediately if it receives
2-15     a vote of two-thirds of all the members elected to each house, as
2-16     provided by Section 39, Article III, Texas Constitution.  If this
2-17     Act does not receive the vote necessary for immediate effect, this
2-18     Act takes effect September 1, 2001.