By Walker                                             H.B. No. 3587
         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 exemptions, exceptions, and limitations on well
 1-3     permitting requirements for groundwater conservation districts.
 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           (a)  A district may exempt wells from the requirements to
 1-8     obtain a drilling permit, an operating permit, or any other permit
 1-9     required by this chapter or the district's rules.
1-10           (b)  A district may not require any permit issued by the
1-11     district for the following:
1-12                 (1)  [drilling or producing from] a well solely for
1-13     domestic use, or providing water for livestock or poultry, on a
1-14     tract of land larger than ten acres that is either drilled,
1-15     completed, or equipped so that it is incapable of producing more
1-16     than 25,000 gallons of groundwater a day;
1-17                 (2)  the drilling of a water well used to supply water
1-18     solely for a drilling rig which is actively engaged in drilling or
1-19     exploration operations for a well that is permitted by the Railroad
1-20     Commission of Texas, provided that the person holding the permit is
1-21     responsible for the water well and the well is located on the
1-22     lease; or [the drilling or alteration of the size of a well or to
1-23     restrict the production of a well if the water produced or to be
 2-1     produced from the well is used or to be used to supply the domestic
 2-2     needs of 10 or fewer households and a person who is a member of
 2-3     each household is either the owner of the well, a person related to
 2-4     the owner or a member of the owner's household within the second
 2-5     degree by consanguinity, or an employee of the owner;]
 2-6                 (3)  the drilling of a water well permitted by the
 2-7     Railroad Commission of Texas under the Texas Surface Coal Mining
 2-8     and Reclamation Act, Chapter 134, Natural Resource Code, or
 2-9     production from any such well the extent the withdrawals are
2-10     required for mining purposes regardless of any subsequent use of
2-11     the water.  [the drilling or alteration of the size of a well or to
2-12     restrict the production from the well if the water produced or to
2-13     be produced from the well is used or to be used to provide water
2-14     for feeding livestock and poultry connected with farming, ranching,
2-15     or dairy enterprises;]
2-16                 [(4)  water wells to supply water for hydrocarbon
2-17     production activities, regardless of whether those wells are
2-18     producing, that are associated with any well permitted by the
2-19     Railroad Commission of Texas drilled before September 1, 1985.]
2-20           [(b)  The board shall adopt rules determining the
2-21     applicability of Subsection (a)(3) to facilities used primarily for
2-22     feeding livestock.]
2-23           [(c)  The district shall not deny the owner of a tract of
2-24     land, or his lessee, who has no well equipped to produce more than
2-25     25,000 gallons a day on the tract, either a permit to drill a well
2-26     on his land or the privilege to produce groundwater from his land,
 3-1     subject to the rules of the district.]
 3-2           (c) [(d)]  A district may not restrict the production of any
 3-3     well exempt under Subsection (b)(1) [equipped to produce 25,000
 3-4     gallons or less a day].
 3-5           (d)  A district may require a well exempt under Subsection
 3-6     (b)(2) and (b)(3) to be permitted and comply with all district
 3-7     rules when:
 3-8                 (1)  the purpose of the well exempt under Subsection
 3-9     (b)(2) is no longer to supply water for a drilling rig which is
3-10     actively engaged in drilling or exploration operations for a well
3-11     that is permitted by the Railroad Commission of Texas; or
3-12                 (2)  the withdrawals from the well exempt under
3-13     Subsection (b)(3) are no longer necessary for mining purposes or
3-14     are greater than the amounts necessary for mining purposes under
3-15     the permit issued by the Railroad Commission of Texas under the
3-16     Texas Surface Coal Mining and Reclamation Act, Chapter 134, Natural
3-17     Resource Code.
3-18           (e)  An entity holding a permit from the Railroad Commission
3-19     of Texas under the Texas Surface Coal Mining and Reclamation Act,
3-20     Chapter 134, Natural Resources Code, shall report to the district
3-21     on a monthly basis the total amount of water withdrawn, the
3-22     quantity necessary for mining purposes, and the quantity withdrawn
3-23     for other purposes.  A district may not require a well exempt under
3-24     Subsection (b)(3) to comply with the spacing requirements of the
3-25     district notwithstanding Subsection (d).  [Nothing in this chapter
3-26     applies to wells drilled for oil, gas, sulphur, uranium, or brine,
 4-1     or for core tests, or for injection of gas, saltwater, or other
 4-2     fluid, or for any other purpose, under permits issued by the
 4-3     Railroad Commission of Texas.  Any well that ceases to be used for
 4-4     these purposes and is then used as an ordinary water well is
 4-5     subject to the rules of the district.  Water wells drilled after
 4-6     September 1, 1997, to supply water for hydrocarbon production
 4-7     activities must meet the spacing requirements of the district
 4-8     unless no space is available within 300 feet of the production well
 4-9     or the central injection station.]
4-10           (f)  A district shall not deny an application for a permit to
4-11     drill and produce water for hydrocarbon production activities if
4-12     the application is in compliance with the spacing, density, and
4-13     production rules of the district.  [Water wells exempted under this
4-14     section shall be equipped and maintained so as to conform to the
4-15     district's rules requiring installation of casing, pipe, and
4-16     fittings to prevent the escape of groundwater from a groundwater
4-17     reservoir to any reservoir not containing groundwater and to
4-18     prevent the pollution or harmful alteration of the character of the
4-19     water in any groundwater reservoir.]
4-20           (g)  A [district shall require] water well [wells] exempted
4-21     under Subsections (a) or (b) of this section:
4-22                 (1)  shall [to] be registered [with the district before
4-23     drilling.] in accordance to rules promulgated by the district;
4-24                 (2)  [All exempt water wells] shall be equipped and
4-25     maintained so as to conform to the district's rules requiring
4-26     installation of casing, pipe, and fittings to prevent the escape of
 5-1     groundwater from a groundwater reservoir to any reservoir not
 5-2     containing groundwater and to prevent the pollution or harmful
 5-3     alteration of the character of the water in any groundwater
 5-4     reservoir; and;
 5-5                 (3)  shall have the drilling log for the well filed
 5-6     with the district by the driller of the well.
 5-7           (h)  A well to supply water for a subdivision of land for
 5-8     which a plat approval is required by Local Government Code, Chapter
 5-9     232 [law] is not exempted under Subsection (b) of this section.
5-10           SECTION 2.  This Act takes effect immediately if it receives
5-11     a vote of two-thirds of all the members elected to each house, as
5-12     provided by Section 39, Article III, Texas constitution.  If this
5-13     Act does not receive the vote necessary for immediate effect, this
5-14     Act takes effect September 1, 2001.