By Cook H.B. No. 3588
77R9502 MI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to permit requirements for the transfer of certain
1-3 groundwater out of the basin of origin.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 11, Water Code, is amended by adding
1-6 Subchapter K to read as follows:
1-7 SUBCHAPTER K. INTERBASIN TRANSFER OF GROUNDWATER
1-8 Sec. 11.551. APPLICABILITY OF SUBCHAPTER. This subchapter
1-9 applies only to the transfer of groundwater that is withdrawn under
1-10 a surface mining permit issued by the Railroad Commission of Texas.
1-11 Sec. 11.552. PERMIT REQUIRED. A person who withdraws
1-12 groundwater for surface mining purposes under a surface mining
1-13 permit issued by the Railroad Commission of Texas may not transport
1-14 out of the basin of origin groundwater withdrawn under that permit
1-15 for mining purposes or in excess of amounts required for mining
1-16 without first obtaining a permit from the commission under this
1-17 subchapter.
1-18 Sec. 11.553. APPLICATION; DISTRIBUTION OF APPLICATION
1-19 SUMMARY. (a) An application for a permit under this subchapter
1-20 must include:
1-21 (1) for the year immediately preceding the date of the
1-22 notice of the proposed transfer, detailed information regarding:
1-23 (A) the volume of groundwater withdrawn for
1-24 mining purposes each month;
2-1 (B) the volume of groundwater actually used in
2-2 mining activities each month;
2-3 (C) the volume of water used for a purpose other
2-4 than mining;
2-5 (D) the volume of water proposed to be
2-6 transported out of the basin of origin each month;
2-7 (E) any change in mining practices or technology
2-8 that has or may have increased or reduced the permit holder's
2-9 requirements for groundwater to use in mining activities, and any
2-10 increase or decrease in the volume of groundwater withdrawn by the
2-11 permit holder in response to the change in practices or technology;
2-12 and
2-13 (F) the availability of other sources of water
2-14 for each use to which the groundwater was put;
2-15 (2) the contract price, if any, of the water to be
2-16 transferred;
2-17 (3) a statement of each general category of proposed
2-18 use of the water to be transferred and a detailed description of
2-19 the proposed uses and users under each category;
2-20 (4) the cost of withdrawing, conveying, distributing,
2-21 and supplying the water to, and treating the water for, the
2-22 proposed users;
2-23 (5) the projected effect on user rates and fees for
2-24 water use for each class of ratepayers in each basin;
2-25 (6) an analysis, prepared by an independent entity, of
2-26 whether and to what extent there is the need for the water in the
2-27 basin of origin and in the proposed receiving basin based on the
3-1 period for which the transfer is requested, but not to exceed 50
3-2 years;
3-3 (7) factors identified in the applicable approved
3-4 regional water plans that address the following:
3-5 (A) an analysis of the availability of feasible
3-6 and practicable alternative supplies in the receiving basin for the
3-7 uses to which the water is to be put;
3-8 (B) the amount of water and the purposes of use
3-9 in the receiving basin for the uses to which the water is to be
3-10 put;
3-11 (C) the proposed methods and efforts by water
3-12 users in the receiving basin to avoid waste and to implement water
3-13 conservation and drought contingency measures;
3-14 (D) the proposed methods and efforts by the
3-15 receiving basin to put the water proposed for transfer to
3-16 beneficial use; and
3-17 (E) the projected impacts of the proposed
3-18 transfer that are reasonably expected to occur on existing surface
3-19 water and groundwater rights, instream uses, surface water and
3-20 groundwater quality, aquatic and riparian habitat, and bays and
3-21 estuaries;
3-22 (8) a detailed hydrologic study of the basin of origin
3-23 showing the interrelation of surface water and groundwater in the
3-24 basin of origin;
3-25 (9) a separate detailed analysis of the effects,
3-26 including the risk of contamination of groundwater sources, that
3-27 the proposed transfer of groundwater out of the basin is likely to
4-1 have on both surface water supplies and groundwater supplies in the
4-2 basin of origin;
4-3 (10) a detailed analysis of economic effects resulting
4-4 directly or indirectly from the proposed transfer, including
4-5 effects on agriculture, industry, recreation, property values,
4-6 water rates, cost of living, and economic growth in the basin of
4-7 origin;
4-8 (11) a specific analysis of the effect that any
4-9 additional withdrawal and removal of groundwater will have on the
4-10 availability of groundwater and the stability of the ground for
4-11 owners of property adjoining the property where a well from which
4-12 groundwater is being withdrawn and transported is located;
4-13 (12) a description of any proposed mitigation for or
4-14 compensation to property owners and water users in the basin of
4-15 origin; and
4-16 (13) a detailed drought contingency and water
4-17 conservation plan for the receiving basin that assures the highest
4-18 practicable levels of water conservation and efficiency achievable
4-19 in that basin.
4-20 (b) The commission shall prepare and publish, at the permit
4-21 holder's expense, a summary of the information required by
4-22 Subsection (a), in language understandable by the ordinary person,
4-23 and shall mail the summary to each county judge, county
4-24 commissioner, mayor or other chief municipal officer, tax
4-25 assessor-collector, and property owner in the basin of origin. The
4-26 commission shall make the summary available at no cost to any
4-27 other person who requests the information. The commission shall
5-1 make every effort to disseminate information through other media
5-2 regarding the proposed transfer of groundwater.
5-3 Sec. 11.554. PUBLIC HEARINGS; CONTESTED CASE HEARING. (a) On
5-4 determination that the permit application is complete, the
5-5 commission shall hold at least two public hearings in each
5-6 population center in the basin of origin and at least one public
5-7 hearing in the receiving basin. Notice of the hearings shall be
5-8 published in each newspaper of general circulation in each basin at
5-9 least once each week for four weeks preceding the date of a
5-10 hearing. Any person who is a resident in the basin in which the
5-11 hearing is being held may appear and be heard on the matter of the
5-12 proposed groundwater transfer.
5-13 (b) Not later than the 30th day after the date of completion
5-14 of the public hearings the commission shall hold a contested case
5-15 hearing under Chapter 2001, Government Code, on the permit. Notice
5-16 of the hearing shall be mailed to the persons listed in Section
5-17 11.553(b) not later than the 30th day before the date of the
5-18 hearing and shall be published in the manner required for a public
5-19 hearing. Records of the public hearings may be introduced as part
5-20 of the administrative record.
5-21 Sec. 11.555. CONSIDERATION AND APPROVAL OF APPLICATION. The
5-22 commission shall consider the effects of the proposed transfer on
5-23 both basins as identified under Section 11.553, giving special
5-24 attention to the factors included in any applicable regional water
5-25 plan, and may approve the transfer only to the extent that:
5-26 (1) the detriments to the basin of origin resulting
5-27 from the transfer will be significantly less than the benefits to
6-1 the receiving basin, according to the factors listed under Section
6-2 11.553;
6-3 (2) the applicant has prepared drought contingency and
6-4 water conservation plans meeting the requirements of:
6-5 (A) rules adopted by the Texas Natural Resource
6-6 Conservation Commission or a groundwater conservation district with
6-7 jurisdiction over the area where a well from which groundwater is
6-8 being withdrawn and transported is located; and
6-9 (B) any applicable local, regional, or state
6-10 water plan;
6-11 (3) the applicant is and remains in compliance with
6-12 all regulations of any special district with jurisdiction over the
6-13 well from which the water is being withdrawn; and
6-14 (4) the applicant complies with Sections 11.556 and
6-15 11.557.
6-16 Sec. 11.556. MONITORING WELLS. (a) The commission by rule
6-17 shall require the holder of a permit issued under this subchapter
6-18 to establish:
6-19 (1) not fewer than four monitoring wells designed to
6-20 measure the level of the water table in the vicinity of a well from
6-21 which groundwater is being withdrawn and transported; and
6-22 (2) not fewer than four additional monitoring wells
6-23 with testing equipment designed to measure contamination of the
6-24 groundwater source.
6-25 (b) The permit holder described by Subsection (a) shall
6-26 present a report each week to the commission that shows:
6-27 (1) the level of the water table as measured at each
7-1 well from which groundwater is being withdrawn and transported; and
7-2 (2) the degree of purity of the groundwater source at
7-3 each well.
7-4 (c) Reports required by Subsection (b) are public
7-5 information. The permit holder shall pay the commission's costs for
7-6 providing copies of reports to interested members of the public.
7-7 Sec. 11.557. FINANCIAL ASSURANCE FOR INTERBASIN TRANSFERS;
7-8 DAMAGES. (a) The commission shall require the holder of a permit
7-9 under this subchapter to provide financial assurance in a form and
7-10 amount approved by the commission adequate to compensate property
7-11 owners in the basin of origin for:
7-12 (1) subsidence caused by the withdrawal of groundwater
7-13 for transport outside of the basin;
7-14 (2) any reduction in availability of groundwater
7-15 caused by the withdrawal of groundwater for transport outside of
7-16 the basin, including compensation for consequential damages and:
7-17 (A) resulting harm to people, livestock, or
7-18 crops; and
7-19 (B) costs incurred for drilling operations and
7-20 equipment to deepen a well from which groundwater is being
7-21 withdrawn and transported that was functioning on the date the
7-22 transportation of water outside of the basin commenced, as made
7-23 necessary by a lowered water table level;
7-24 (3) any contamination of the groundwater source that
7-25 results from the withdrawal of groundwater for transport outside of
7-26 the basin, including consequential damages;
7-27 (4) any reduction in property value the proximate
8-1 cause of which is a result of the permit holder's withdrawal of
8-2 groundwater for transport outside of the basin; and
8-3 (5) compensation to taxing entities for taxes lost
8-4 because of any reduction in property values as described by
8-5 Subdivision (4).
8-6 (b) The commission by rule shall provide guidelines for the
8-7 form and amount of financial assurance required, including
8-8 guidelines for acceptable forms of insurance or for the deposit of
8-9 cash or acceptable bonds or securities.
8-10 (c) A property owner who sustains damages described by
8-11 Subsection (a) is entitled to compensation for those damages from
8-12 the financial assurance provided by the permit holder.
8-13 SECTION 2. This Act takes effect immediately if it receives
8-14 a vote of two-thirds of all the members elected to each house, as
8-15 provided by Section 39, Article III, Texas Constitution. If this
8-16 Act does not receive the vote necessary for immediate effect, this
8-17 Act takes effect September 1, 2001.