1-1     By:  Walker (Senate Sponsor - Barrientos)             H.B. No. 3587
 1-2           (In the Senate - Received from the House April 26, 2001;
 1-3     April 27, 2001, read first time and referred to Committee on
 1-4     Natural Resources; May 11, 2001, reported favorably, as amended, by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                           By:  Barrientos
 1-8     Amend House Bill 3587 in SECTION 1, as follows:
 1-9           (1)  On page 2, line 65, between "rules" and "of" insert
1-10     "applicable to all permitted water wells".
1-11           (2)  On page 3, between lines 13 and 14, insert the
1-12     following:
1-13     "(k)  Groundwater withdrawn from a well exempt from permitting or
1-14     regulation under this section and subsequently transported outside
1-15     the boundaries of the district shall be subject to any applicable
1-16     production and export fees under Sections 36.122 and 36.205.
1-17     (l)  This chapter applies to water wells, including water wells
1-18     used to supply water for activities related to the exploration or
1-19     production of hydrocarbons or minerals.  This chapter does not
1-20     apply to production or injection wells drilled for oil, gas,
1-21     sulphur, uranium, or brine, or for core tests, or for injection of
1-22     gas, saltwater, or other fluids, under permits issued by the
1-23     Railroad Commission of Texas."
1-24                            A BILL TO BE ENTITLED
1-25                                   AN ACT
1-26     relating to the exemption from permitting requirements for certain
1-27     wells in a groundwater conservation district.
1-28           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-29           SECTION 1. Section 36.117, Water Code, is amended to read as
1-30     follows:
1-31           Sec. 36.117.  EXEMPTIONS; EXCEPTION; LIMITATIONS. (a)  A
1-32     district may exempt wells from the requirements to obtain a
1-33     drilling permit, an operating permit, or any other permit required
1-34     by this chapter or the district's rules.
1-35           (b)  A district may not require a permit for:
1-36                 (1)  [drilling or producing from] a well on a tract of
1-37     land larger than 10 acres if the well is [either] drilled,
1-38     completed, or equipped so that it is incapable of producing more
1-39     than 25,000 gallons of groundwater a day and if the water produced
1-40     or to be produced from the well is used or to be used for domestic
1-41     purposes or to provide water for livestock or poultry;
1-42                 (2)  the drilling of a well to supply water solely for
1-43     a drilling rig that is actively engaged in drilling or exploration
1-44     operations permitted by the Railroad Commission of Texas if:
1-45                       (A)  the person holding the permit is responsible
1-46     for the water well; and
1-47                       (B)  the water well is located:
1-48                             (i)  on the lease on which the drilling rig
1-49     is located;
1-50                             (ii)  within the boundaries of the field in
1-51     which the drilling rig is located; or
1-52                             (iii)  in close proximity to the drilling
1-53     rig  [or alteration of the size of a well or to restrict the
1-54     production of a well if the water produced or to be produced from
1-55     the well is used or to be used to supply the domestic needs of 10
1-56     or fewer households and a person who is a member of each household
1-57     is either the owner of the well, a person related to the owner or a
1-58     member of the owner's household within the second degree by
1-59     consanguinity, or an employee of the owner]; or
1-60                 (3)  the drilling of a well or to restrict the
1-61     production of a well if the water produced or to be produced is
1-62     necessary or will be necessary for mining purposes permitted by the
1-63     Railroad Commission of Texas under Chapter 134, Natural Resources
 2-1     Code [or alteration of the size of a well or to restrict the
 2-2     production from the well if the water produced or to be produced
 2-3     from the well is used or to be used to provide water for feeding
 2-4     livestock and poultry connected with farming, ranching, or dairy
 2-5     enterprises; or]
 2-6                 [(4)  water wells to supply water for hydrocarbon
 2-7     production activities, regardless of whether those wells are
 2-8     producing, that are associated with any well permitted by the
 2-9     Railroad Commission of Texas drilled before September 1, 1985].
2-10           [(b)  The board shall adopt rules determining the
2-11     applicability of Subsection (a)(3) to facilities used primarily for
2-12     feeding livestock.]
2-13           (c)  [The district shall not deny the owner of a tract of
2-14     land, or his lessee, who has no well equipped to produce more than
2-15     25,000 gallons a day on the tract, either a permit to drill a well
2-16     on his land or the privilege to produce groundwater from his land,
2-17     subject to the rules of the district.]
2-18           [(d)]  A district may not restrict the production of any well
2-19     exempted under Subsection (b)(1) [equipped to produce 25,000
2-20     gallons or less a day].
2-21           (d)  A district may require a well exempted under Subsection
2-22     (b)(2) or  (b)(3) to obtain a permit and comply with district rules
2-23     if:
2-24                 (1)  a well exempted under Subsection (b)(2) is no
2-25     longer used to supply water for a drilling rig that is actively
2-26     engaged in drilling or exploration operations permitted by the
2-27     Railroad Commission of Texas; or
2-28                 (2)  withdrawals from a well exempted under Subsection
2-29     (b)(3) are:
2-30                       (A)  no longer necessary for mining purposes
2-31     permitted by the Railroad Commission of Texas under Chapter 134,
2-32     Natural Resources Code; or
2-33                       (B)  greater than the amount necessary for mining
2-34     purposes permitted by the Railroad Commission of Texas under
2-35     Chapter 134, Natural Resources Code.
2-36           (e)  A person required to obtain a permit for a well under
2-37     Subsection (d)(2) shall report monthly to the district the total
2-38     amount of water withdrawn from the well, the quantity of water
2-39     necessary for mining purposes, and the quantity of water withdrawn
2-40     for other purposes [Nothing in this chapter applies to wells
2-41     drilled for oil, gas, sulphur, uranium, or brine, or for core
2-42     tests, or for injection of gas, saltwater, or other fluid, or for
2-43     any other purpose, under permits issued by the Railroad Commission
2-44     of Texas.  A district may not require a drilling permit for a well
2-45     to supply water for drilling any wells permitted by the Railroad
2-46     Commission of Texas. Any well that ceases to be used for these
2-47     purposes and is then used as an ordinary water well is subject to
2-48     the rules of the district. Water wells drilled after September 1,
2-49     1997, to supply water for hydrocarbon production activities must
2-50     meet the spacing requirements of the district unless no space is
2-51     available within 300 feet of the production well or the central
2-52     injection station].
2-53           (f)  Notwithstanding Subsection (d), a district may not
2-54     require a well exempted under Subsection (b)(3) to meet the spacing
2-55     requirements of the district [Water wells exempted under this
2-56     section shall be equipped and maintained so as to conform to the
2-57     district's rules requiring installation of casing, pipe, and
2-58     fittings to prevent the escape of groundwater from a groundwater
2-59     reservoir to any reservoir not containing groundwater and to
2-60     prevent the pollution or harmful alteration of the character of the
2-61     water in any groundwater reservoir].
2-62           (g)  A district may not deny an application for a permit to
2-63     drill a water well to supply water for hydrocarbon production
2-64     activities if the application is in compliance with the spacing,
2-65     density, and production rules of the district.
2-66           (h)  A district shall require water wells exempted under this
2-67     section to be registered in accordance with rules adopted by the
2-68     district [before drilling].  All exempt water wells shall be
2-69     equipped and maintained so as to conform to the district's rules
 3-1     requiring installation of casing, pipe, and fittings to prevent the
 3-2     escape of groundwater from a groundwater reservoir to any reservoir
 3-3     not containing groundwater and to prevent the pollution or harmful
 3-4     alteration of the character of the water in any groundwater
 3-5     reservoir.  A driller of an exempt well shall file the well's
 3-6     drilling log with the district.
 3-7           (i) [(h)]  A well to supply water for a subdivision of land
 3-8     for which a plat approval is required under Chapter 232, Local
 3-9     Government Code, [by law] is not exempted under Subsection (b)
3-10     [this section].
3-11           (j)  An exemption under this section does not affect a
3-12     district's authority to impose fees under Section 36.122 or
3-13     Subchapter G.
3-14           SECTION 2. The changes in law made by this Act to Section
3-15     36.117, Water Code, apply only to an application for the drilling,
3-16     equipping, completion, or alteration of a well or pump filed on or
3-17     after the effective date of this Act. An application for the
3-18     drilling, equipping, completion, or alteration of a well or pump
3-19     filed before the effective date of this Act is governed by the law
3-20     in effect on the date on which the application was filed, and the
3-21     former law is continued in effect for that purpose.
3-22           SECTION 3. This Act takes effect September 1, 2001.
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