1-1 AN ACT 1-2 relating to the creation, administration, powers, duties, 1-3 operation, and financing of the Bluebonnet Groundwater Conservation 1-4 District. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. CREATION. (a) A groundwater conservation 1-7 district, to be known as the Bluebonnet Groundwater Conservation 1-8 District, is created in Grimes, Washington, Waller, Austin, and 1-9 Walker counties, subject to approval at a confirmation election 1-10 under Section 15 of this Act. The district is a governmental 1-11 agency and a body politic and corporate. 1-12 (b) The district is created under and is essential to 1-13 accomplish the purposes of Section 59, Article XVI, Texas 1-14 Constitution. 1-15 (c) The purpose of this Act is to create a locally 1-16 controlled groundwater district in order to protect and recharge 1-17 groundwater, to prevent pollution or waste of groundwater, to 1-18 control subsidence caused by withdrawal of water from the 1-19 groundwater reservoirs in the area, and to regulate the transport 1-20 of water out of the boundaries of the district. 1-21 SECTION 2. DEFINITION. In this Act, "district" means the 1-22 Bluebonnet Groundwater Conservation District. 1-23 SECTION 3. BOUNDARIES. The boundaries of the district are 1-24 coextensive with the boundaries of Grimes, Washington, Waller, 2-1 Austin, and Walker counties. 2-2 SECTION 4. FINDING OF BENEFIT. All of the land and other 2-3 property included within the boundaries of the district will be 2-4 benefited by the works and projects that are to be accomplished by 2-5 the district under powers conferred by Section 59, Article XVI, 2-6 Texas Constitution. The district is created to serve a public use 2-7 and benefit. 2-8 SECTION 5. GENERAL POWERS. (a) Except as otherwise 2-9 provided by this Act, the district has all the rights, powers, 2-10 privileges, authority, functions, and duties provided by the 2-11 general law of this state, including Chapter 36, Water Code, 2-12 applicable to groundwater conservation districts created under 2-13 Section 59, Article XVI, Texas Constitution. This Act prevails 2-14 over any provision of general law, including Chapter 36, Water 2-15 Code, that is in conflict or is inconsistent with this Act. 2-16 (b) The district does not have the authority granted by the 2-17 following provisions of Chapter 36, Water Code: 2-18 (1) Section 36.105, relating to eminent domain; and 2-19 (2) Sections 36.020 and 36.201-36.204, relating to 2-20 taxes. 2-21 SECTION 6. FEES. (a) The board of directors of the 2-22 district by rule may impose reasonable fees on each well for which 2-23 a permit is issued by the district and which is not exempt from 2-24 regulation by the district. A fee may be based on the size of 2-25 column pipe used by the well or on the actual, authorized, or 2-26 anticipated amount of water to be withdrawn from the well. 2-27 (b) Fees may not exceed: 3-1 (1) $1 per acre-foot payable annually for water used 3-2 for agricultural use; or 3-3 (2) 17 cents per thousand gallons for water used for 3-4 any other purpose. 3-5 (c) In addition to the fee authorized under Subsection (a) 3-6 of this section, the district may impose a reasonable fee or 3-7 surcharge for an export fee using one of the following methods: 3-8 (1) a fee negotiated between the district and the 3-9 transporter; or 3-10 (2) a combined production and export fee not to exceed 3-11 17 cents per thousand gallons for water used. 3-12 (d) Fees authorized by this section may be assessed annually 3-13 and may be used to fund the cost of district operations. 3-14 SECTION 7. EXEMPTIONS. (a) The district may exempt wells 3-15 under Section 36.117, Water Code, from the requirements to obtain a 3-16 drilling permit, an operating permit, or any other permit required 3-17 by Chapter 36, Water Code, or the district's rules. 3-18 (b) The district may not require a permit for: 3-19 (1) a well used solely for domestic use or for 3-20 providing water for livestock or poultry on a tract of land larger 3-21 than 10 acres that is either drilled, completed, or equipped so 3-22 that it is incapable of producing more than 25,000 gallons of 3-23 groundwater a day; 3-24 (2) the drilling of a water well used solely to supply 3-25 water for a rig that is actively engaged in drilling or exploration 3-26 operations for an oil or gas well permitted by the Railroad 3-27 Commission of Texas, provided that the person holding the permit is 4-1 responsible for drilling and operating the water well and the well 4-2 is located on the same lease or field associated with the drilling 4-3 rig; or 4-4 (3) the drilling of a water well authorized under a 4-5 permit issued by the Railroad Commission of Texas under Chapter 4-6 134, Natural Resources Code, or for production from any such well 4-7 to the extent the withdrawals are required for mining activities 4-8 regardless of any subsequent use of the water. 4-9 (c) The district may not deny the owner of a tract of land, 4-10 or the owner's lessee, who does not have a well equipped to produce 4-11 more than 25,000 gallons a day on the tract, either a permit to 4-12 drill a well on the owner's land or the privilege to produce 4-13 groundwater from the owner's land, subject to the rules of the 4-14 district. 4-15 (d) The district may not restrict the production of any well 4-16 that is exempt from permitting under Subsection (b)(1) of this 4-17 section. 4-18 (e) Notwithstanding Subsection (b) of this section, the 4-19 district may require a well to be permitted by the district and to 4-20 comply with all district rules if: 4-21 (1) the purpose of a well exempted under Subsection 4-22 (b)(2) of this section is no longer solely to supply water for a 4-23 rig that is actively engaged in drilling or exploration operations 4-24 for an oil or gas well permitted by the Railroad Commission of 4-25 Texas; or 4-26 (2) the withdrawals from a well exempted under 4-27 Subsection (b)(3) of this section are no longer necessary for 5-1 mining activities or are greater than the amount necessary for 5-2 mining activities specified in the permit issued by the Railroad 5-3 Commission of Texas under Chapter 134, Natural Resources Code. 5-4 (f) An entity holding a permit issued by the Railroad 5-5 Commission of Texas under Chapter 134, Natural Resources Code, that 5-6 authorizes the drilling of a water well shall report monthly to the 5-7 district: 5-8 (1) the total amount of water withdrawn during the 5-9 month; 5-10 (2) the quantity of water necessary for mining 5-11 activities; and 5-12 (3) the quantity of water withdrawn for other 5-13 purposes. 5-14 (g) Notwithstanding Subsection (e) of this section, the 5-15 district may not require a well exempted under Subsection (b)(3) of 5-16 this section to comply with the spacing requirements of the 5-17 district. 5-18 (h) The district may not deny an application for a permit to 5-19 drill and produce water for hydrocarbon production activities if 5-20 the application meets the spacing, density, and production rules 5-21 applicable to all permitted water wells in the district. 5-22 (i) A water well exempted under Subsection (a) or (b) of 5-23 this section may: 5-24 (1) be registered in accordance with rules adopted by 5-25 the district; and 5-26 (2) be equipped and maintained so as to conform to the 5-27 district's rules requiring installation of casing, pipe, and 6-1 fittings to prevent the escape of groundwater from a groundwater 6-2 reservoir to any reservoir not containing groundwater and to 6-3 prevent the pollution or harmful alteration of the character of the 6-4 water in any groundwater reservoir. 6-5 (j) The district may require the driller of a well exempted 6-6 under Subsection (a) or (b) of this section to file the drilling 6-7 log with the district. 6-8 (k) A well to supply water for a subdivision of land for 6-9 which a plat approval is required by Chapter 232, Local Government 6-10 Code, is not exempted under Subsection (b) of this section. 6-11 (l) Groundwater withdrawn from a well exempt from permitting 6-12 or regulation under this section and subsequently transported 6-13 outside the boundaries of the district is subject to any applicable 6-14 production and export fees under Section 6 of this Act. 6-15 (m) This section applies to water wells, including water 6-16 wells used to supply water for activities related to the 6-17 exploration or production of hydrocarbons or minerals. This 6-18 section does not apply to production or injection wells drilled for 6-19 oil, gas, sulphur, uranium, or brine, for core tests, or for 6-20 injection of gas, saltwater, or other fluids, under permits issued 6-21 by the Railroad Commission of Texas. 6-22 SECTION 8. MITIGATION ASSISTANCE. In addition to the 6-23 authority granted under Chapter 36, Water Code, the district may 6-24 assist in the mediation between landowners regarding the mitigation 6-25 of the loss of existing groundwater supply of exempt domestic and 6-26 livestock users due to the groundwater pumping of others. 6-27 SECTION 9. MANAGEMENT PLAN. The district shall develop or 7-1 contract to develop its own management plan under Section 36.1071, 7-2 Water Code. 7-3 SECTION 10. PERMITTING. The district shall issue permits 7-4 for wells based on the consideration of whether: 7-5 (1) the application conforms to the requirements 7-6 prescribed by Chapter 36, Water Code, and is accompanied by the 7-7 prescribed fees; 7-8 (2) the proposed use of water unreasonably affects 7-9 existing groundwater and surface water resources or existing permit 7-10 holders; 7-11 (3) the proposed use of water is dedicated to any 7-12 beneficial use; 7-13 (4) the proposed use of water is consistent with the 7-14 district's certified water management plan; 7-15 (5) the applicant has agreed to avoid waste and 7-16 achieve water conservation; and 7-17 (6) the applicant has agreed that reasonable diligence 7-18 will be used to protect groundwater quality and that the applicant 7-19 will follow well plugging guidelines at the time of well closure. 7-20 SECTION 11. COORDINATION OF ACTIVITIES WITH OTHER ENTITIES. 7-21 (a) The district may coordinate activities with the Central 7-22 Carrizo-Wilcox Coordinating Council and may appoint a nonvoting 7-23 representative to the Central Carrizo-Wilcox Coordinating Council. 7-24 (b) The district may coordinate activities with the 7-25 Harris-Galveston Coastal Subsidence District or with other 7-26 groundwater conservation districts to manage portions of the Gulf 7-27 Coast Aquifer. 8-1 SECTION 12. BOARD OF DIRECTORS. (a) The district is 8-2 governed by a board of directors of not fewer than 8 or more than 8-3 20 directors, appointed as provided by Section 13 of this Act. 8-4 (b) Initial directors serve until permanent directors are 8-5 appointed under Section 13 of this Act and qualified as required by 8-6 Subsection (d) of this section. 8-7 (c) Permanent directors serve four-year staggered terms. 8-8 (d) Each director must qualify to serve as a director in the 8-9 manner provided by Section 36.055, Water Code. 8-10 (e) A director serves until the director's successor has 8-11 qualified. 8-12 (f) A director may serve consecutive terms. 8-13 (g) If there is a vacancy on the board, the governing body 8-14 of the entity that appointed the director who vacated the office 8-15 shall appoint a director to serve the remainder of the term. In 8-16 making this appointment, the governing body shall appoint a 8-17 director to represent the interest of the director who has vacated 8-18 the office. 8-19 (h) Directors are not entitled to receive compensation for 8-20 serving as a director but may be reimbursed for actual, reasonable 8-21 expenses incurred in the discharge of official duties. 8-22 (i) A majority vote of a quorum is required for board 8-23 action. If there is a tie vote, the proposed action fails. 8-24 SECTION 13. APPOINTMENT OF DIRECTORS. (a) The commissioners 8-25 courts of the counties within the district, if the district has two 8-26 to five counties, shall each appoint four directors, of whom: 8-27 (1) one must represent municipal interests; 9-1 (2) one must represent agricultural interests; 9-2 (3) one must represent industrial interests; and 9-3 (4) one must represent rural water suppliers' 9-4 interests. 9-5 (b) If the district consists of one county, the 9-6 commissioners court of that county shall appoint eight directors, 9-7 of whom: 9-8 (1) two must represent municipal interests; 9-9 (2) two must represent agricultural interests; 9-10 (3) two must represent industrial interests; and 9-11 (4) two must represent rural water suppliers' 9-12 interests. 9-13 (c) The commissioners courts of the counties within the 9-14 district shall each appoint the appropriate number of initial 9-15 directors as soon as practicable following the effective date of 9-16 this Act, but not later than the 90th day after the effective date 9-17 of this Act. 9-18 (d) The initial directors shall draw lots to determine their 9-19 terms. Half of the initial directors serve terms that expire on 9-20 the second anniversary of the date on which all initial directors 9-21 have qualified as required by Section 12 of this Act, and half of 9-22 the initial directors serve terms that expire on the fourth 9-23 anniversary of the date on which all initial directors have 9-24 qualified as required by Section 12 of this Act. On the second 9-25 anniversary of the date on which all initial directors have 9-26 qualified as required by Section 12 of this Act and every two years 9-27 after that date, the appropriate commissioners courts shall appoint 10-1 the appropriate number of permanent directors. 10-2 SECTION 14. ORGANIZATIONAL MEETING. As soon as practicable 10-3 after all the initial directors have been appointed and have 10-4 qualified as provided in this Act, a majority of the directors 10-5 shall convene the organizational meeting of the district at a 10-6 location within the district agreeable to a majority of the 10-7 directors. If no location can be agreed on, the organizational 10-8 meeting of the directors shall be at the Washington County 10-9 Courthouse. 10-10 SECTION 15. CONFIRMATION ELECTION. (a) The initial board 10-11 of directors shall call and hold, on the same date in each county 10-12 to be included in the district, an election to confirm the creation 10-13 of the district. 10-14 (b) Except as provided by this section, a confirmation 10-15 election must be conducted as provided by Sections 36.017, 36.018, 10-16 and 36.019, Water Code, and Section 41.001, Election Code. 10-17 (c) If the majority of qualified voters in a county who vote 10-18 in the election vote to confirm the creation of the district, that 10-19 county is included in the district. If the majority of qualified 10-20 voters in a county who vote in the election vote not to confirm the 10-21 creation of the district, that county is excluded from the 10-22 district. 10-23 (d) If the creation of the district is not confirmed by an 10-24 election held under this section before the second anniversary of 10-25 the effective date of this Act, the district is dissolved and this 10-26 Act expires on that date. 10-27 SECTION 16. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. 11-1 (a) The proper and legal notice of the intention to introduce this 11-2 Act, setting forth the general substance of this Act, has been 11-3 published as provided by law, and the notice and a copy of this Act 11-4 have been furnished to all persons, agencies, officials, or 11-5 entities to which they are required to be furnished by the 11-6 constitution and other laws of this state, including the governor, 11-7 who has submitted the notice and Act to the Texas Natural Resource 11-8 Conservation Commission. 11-9 (b) The Texas Natural Resource Conservation Commission has 11-10 filed its recommendations relating to this Act with the governor, 11-11 the lieutenant governor, and the speaker of the house of 11-12 representatives within the required time. 11-13 (c) All requirements of the constitution and laws of this 11-14 state and the rules and procedures of the legislature with respect 11-15 to the notice, introduction, and passage of this Act are fulfilled 11-16 and accomplished. 11-17 SECTION 17. EFFECTIVE DATE. This Act takes effect September 11-18 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3655 was passed by the House on April 27, 2001, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 3655 on May 25, 2001, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 3655 was passed by the Senate, with amendments, on May 22, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor