1-1                                   AN ACT
 1-2     relating to the exemption from permitting requirements for certain
 1-3     wells in a groundwater conservation district.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 36.117, Water Code, is amended to read as
 1-6     follows:
 1-7           Sec. 36.117.  EXEMPTIONS; EXCEPTION; LIMITATIONS. (a)  A
 1-8     district may exempt wells from the requirements to obtain a
 1-9     drilling permit, an operating permit, or any other permit required
1-10     by this chapter or the district's rules.
1-11           (b)  A district may not require a permit for:
1-12                 (1)  [drilling or producing from] a well on a tract of
1-13     land larger than 10 acres if the well is [either] drilled,
1-14     completed, or equipped so that it is incapable of producing more
1-15     than 25,000 gallons of groundwater a day and if the water produced
1-16     or to be produced from the well is used or to be used for domestic
1-17     purposes or to provide water for livestock or poultry;
1-18                 (2)  the drilling of a well to supply water solely for
1-19     a drilling rig that is actively engaged in drilling or exploration
1-20     operations permitted by the Railroad Commission of Texas if:
1-21                       (A)  the person holding the permit is responsible
1-22     for the water well; and
1-23                       (B)  the water well is located:
1-24                             (i)  on the lease on which the drilling rig
 2-1     is located;
 2-2                             (ii)  within the boundaries of the field in
 2-3     which the drilling rig is located; or
 2-4                             (iii)  in close proximity to the drilling
 2-5     rig  [or alteration of the size of a well or to restrict the
 2-6     production of a well if the water produced or to be produced from
 2-7     the well is used or to be used to supply the domestic needs of 10
 2-8     or fewer households and a person who is a member of each household
 2-9     is either the owner of the well, a person related to the owner or a
2-10     member of the owner's household within the second degree by
2-11     consanguinity, or an employee of the owner]; or
2-12                 (3)  the drilling of a well or to restrict the
2-13     production of a well if the water produced or to be produced is
2-14     necessary or will be necessary for mining purposes permitted by the
2-15     Railroad Commission of Texas under Chapter 134, Natural Resources
2-16     Code [or alteration of the size of a well or to restrict the
2-17     production from the well if the water produced or to be produced
2-18     from the well is used or to be used to provide water for feeding
2-19     livestock and poultry connected with farming, ranching, or dairy
2-20     enterprises; or]
2-21                 [(4)  water wells to supply water for hydrocarbon
2-22     production activities, regardless of whether those wells are
2-23     producing, that are associated with any well permitted by the
2-24     Railroad Commission of Texas drilled before September 1, 1985].
2-25           [(b)  The board shall adopt rules determining the
2-26     applicability of Subsection (a)(3) to facilities used primarily for
2-27     feeding livestock.]
 3-1           (c)  [The district shall not deny the owner of a tract of
 3-2     land, or his lessee, who has no well equipped to produce more than
 3-3     25,000 gallons a day on the tract, either a permit to drill a well
 3-4     on his land or the privilege to produce groundwater from his land,
 3-5     subject to the rules of the district.]
 3-6           [(d)]  A district may not restrict the production of any well
 3-7     exempted under Subsection (b)(1) [equipped to produce 25,000
 3-8     gallons or less a day].
 3-9           (d)  A district may require a well exempted under Subsection
3-10     (b)(2) or  (b)(3) to obtain a permit and comply with district rules
3-11     if:
3-12                 (1)  a well exempted under Subsection (b)(2) is no
3-13     longer used to supply water for a drilling rig that is actively
3-14     engaged in drilling or exploration operations permitted by the
3-15     Railroad Commission of Texas; or
3-16                 (2)  withdrawals from a well exempted under Subsection
3-17     (b)(3) are:
3-18                       (A)  no longer necessary for mining purposes
3-19     permitted by the Railroad Commission of Texas under Chapter 134,
3-20     Natural Resources Code; or
3-21                       (B)  greater than the amount necessary for mining
3-22     purposes permitted by the Railroad Commission of Texas under
3-23     Chapter 134, Natural Resources Code.
3-24           (e)  A person required to obtain a permit for a well under
3-25     Subsection (d)(2) shall report monthly to the district the total
3-26     amount of water withdrawn from the well, the quantity of water
3-27     necessary for mining purposes, and the quantity of water withdrawn
 4-1     for other purposes [Nothing in this chapter applies to wells
 4-2     drilled for oil, gas, sulphur, uranium, or brine, or for core
 4-3     tests, or for injection of gas, saltwater, or other fluid, or for
 4-4     any other purpose, under permits issued by the Railroad Commission
 4-5     of Texas.  A district may not require a drilling permit for a well
 4-6     to supply water for drilling any wells permitted by the Railroad
 4-7     Commission of Texas. Any well that ceases to be used for these
 4-8     purposes and is then used as an ordinary water well is subject to
 4-9     the rules of the district. Water wells drilled after September 1,
4-10     1997, to supply water for hydrocarbon production activities must
4-11     meet the spacing requirements of the district unless no space is
4-12     available within 300 feet of the production well or the central
4-13     injection station].
4-14           (f)  Notwithstanding Subsection (d), a district may not
4-15     require a well exempted under Subsection (b)(3) to meet the spacing
4-16     requirements of the district [Water wells exempted under this
4-17     section shall be equipped and maintained so as to conform to the
4-18     district's rules requiring installation of casing, pipe, and
4-19     fittings to prevent the escape of groundwater from a groundwater
4-20     reservoir to any reservoir not containing groundwater and to
4-21     prevent the pollution or harmful alteration of the character of the
4-22     water in any groundwater reservoir].
4-23           (g)  A district may not deny an application for a permit to
4-24     drill a water well to supply water for hydrocarbon production
4-25     activities if the application is in compliance with the spacing,
4-26     density, and production rules applicable to all permitted water
4-27     wells of the district.
 5-1           (h)  A district shall require water wells exempted under this
 5-2     section to be registered in accordance with rules adopted by the
 5-3     district [before drilling].  All exempt water wells shall be
 5-4     equipped and maintained so as to conform to the district's rules
 5-5     requiring installation of casing, pipe, and fittings to prevent the
 5-6     escape of groundwater from a groundwater reservoir to any reservoir
 5-7     not containing groundwater and to prevent the pollution or harmful
 5-8     alteration of the character of the water in any groundwater
 5-9     reservoir.  A driller of an exempt well shall file the well's
5-10     drilling log with the district.
5-11           (i) [(h)]  A well to supply water for a subdivision of land
5-12     for which a plat approval is required under Chapter 232, Local
5-13     Government Code, [by law] is not exempted under Subsection (b)
5-14     [this section].
5-15           (j)  An exemption under this section does not affect a
5-16     district's authority to impose fees under Section 36.122 or
5-17     Subchapter G.
5-18           (k)  Groundwater withdrawn from a well exempt from permitting
5-19     or regulation under this section and subsequently transported
5-20     outside the boundaries of the district shall be subject to any
5-21     applicable production and export fees under Sections 36.122 and
5-22     36.205.
5-23           (l)  This chapter applies to water wells, including water
5-24     wells used to supply water for activities related to the
5-25     exploration or production of hydrocarbons or minerals.  This
5-26     chapter does not apply to production or injection wells drilled for
5-27     oil, gas, sulphur, uranium, or brine, or for core tests, or for
 6-1     injection of gas, saltwater, or other fluids, under permits issued
 6-2     by the Railroad Commission of Texas.
 6-3           SECTION 2. The changes in law made by this Act to Section
 6-4     36.117, Water Code, apply only to an application for the drilling,
 6-5     equipping, completion, or alteration of a well or pump filed on or
 6-6     after the effective date of this Act. An application for the
 6-7     drilling, equipping, completion, or alteration of a well or pump
 6-8     filed before the effective date of this Act is governed by the law
 6-9     in effect on the date on which the application was filed, and the
6-10     former law is continued in effect for that purpose.
6-11           SECTION 3. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3587 was passed by the House on April
         25, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 3587 on May 25, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3587 was passed by the Senate, with
         amendments, on May 17, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor