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 This subchapter 1-9 applies only to the transfer of groundwater that is withdrawn under 1-10 a surface mining permit issued by the Railroad Commission of Texas. 1-11 Sec. 11.552.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1-13 permit issued by the Railroad Commission of Texas may not transport 1-14 out of the basin of origin groundwater withdrawn under that permit 1-15 for mining purposes or in excess of amounts required for mining 1-16 without first obtaining a permit from the commission under this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date of the 1-22 notice of the proposed transfer, detailed information regarding: 1-23 (A) the volume of groundwater withdrawn for 1-24 mining purposes each month; 2-1 (B) the volume of groundwater actually used in 2-2 mining activities each month; 2-3 (C) the volume of water used for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for groundwater to use in mining activities, and any 2-10 increase or decrease in the volume of groundwater withdrawn by the 2-11 permit holder in response to the change in practices or technology; 2-12 and 2-13 (F) the availability of other sources of water 2-14 for each use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.