By:  Ogden                                             S.B. No. 785
         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 the creation, administration, powers, duties,
 1-3     operation, and financing of the Walker 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 Walker Groundwater Conservation
 1-8     District, is created in Walker County subject to approval at a
 1-9     confirmation election under Section 14 of this Act.  The district
1-10     is a governmental agency and a body politic and corporate.
1-11           (b)  The district is created under and is essential to
1-12     accomplish the purposes of Section 59, Article XVI, Texas
1-13     Constitution; and
1-14           (c)  The purpose of this Act is to create a locally
1-15     controlled groundwater district in order to protect, recharge, and
1-16     prevent the waste of groundwater, and to control subsidence caused
1-17     by withdrawal of water from the groundwater reservoirs in the area,
1-18     and to regulate the transport of water out of the boundaries of the
1-19     district;
1-20           SECTION 2.  DEFINITION.  In this Act, "district" means the
1-21     Walker Groundwater Conservation District.
1-22           SECTION 3.  BOUNDARIES.  The boundaries of the district are
1-23     coextensive with the boundaries of Walker County.
 2-1           SECTION 4.  FINDING OF BENEFIT.  All of the land and other
 2-2     property included within the boundaries of the district will be
 2-3     benefitted by the works and projects that are to be accomplished by
 2-4     the district under powers conferred by Section 59, Article XVI,
 2-5     Texas Constitution.  The district is created to serve a public use
 2-6     and benefit.
 2-7           SECTION 5.  GENERAL POWERS.  (a)  Except as otherwise
 2-8     provided by this Act, the district has all the rights, powers,
 2-9     privileges, authority, functions, and duties provided by the
2-10     general law of this state, including Chapter 36, Water Code,
2-11     applicable to groundwater conservation districts created under
2-12     Section 59, Article XVI, Texas Constitution.  This Act prevails
2-13     over any provision of general law, including Chapter 36, Water
2-14     Code, that is in conflict or is inconsistent with this Act.
2-15           (b)  The district does not have the authority granted by the
2-16     following provisions of Chapter 36, Water Code:
2-17                 (1)  Section 36.105, relating to eminent domain; and
2-18                 (2)  Sections 36.020 and 36.201-36, 204, relating to
2-19     taxes.
2-20           SECTION 6.  FEES.  (a)  The board of directors of the
2-21     district by rule may impose reasonable fees on each well for which
2-22     a permit is issued by the district and that is not exempt from
2-23     regulation by the district.  A fee may be based on the size of
2-24     column pipe used by the well or on the actual, authorized, or
2-25     anticipated amount of water to be withdrawn from the well.
2-26           (b)  Fees shall not exceed:
 3-1                 (1)  one dollar per acre foot for water used for
 3-2     irrigating agricultural crops; 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 (b)
 3-6     of this section, the district may assess a fee on groundwater from
 3-7     a well that is produced for transport outside the district.  The
 3-8     combined fees may not exceed the limit on a fee amount set by
 3-9     Section 36.205(c), Water Code.
3-10           (d)  Fees authorized by this section may be assessed annually
3-11     and may be used to fund the cost of District operations and
3-12     expenses of the district's or council's operations.
3-13           SECTION 7.  EXEMPTIONS.
3-14           (a)  Pursuant to Section 36.117, Water Code, as amended, a
3-15     district may exempt wells from the requirements to obtain a
3-16     drilling permit, an operating permit, or any other permit required
3-17     by this chapter or the district's rules.  A district may not
3-18     require a permit for:
3-19                 (1)  drilling or producing from a well either drilled,
3-20     completed, or equipped so that it is incapable of producing more
3-21     than 25,000 gallons of groundwater a day;
3-22                 (2)  the drilling or alteration of the size of a well
3-23     or to restrict the production of a well if the water produced or to
3-24     be produced from the well is used or to be used to supply the
3-25     domestic needs of 10 or fewer households and a person who is a
3-26     member of each household is either the owner of the well, a person
 4-1     related to the owner or a member of the owner's household within
 4-2     the second degree by consanguinity, or an employee of the owner;
 4-3                 (3)  the drilling or alteration of the size of a well
 4-4     or to restrict the production from the well if the water produced
 4-5     or to be produced from the well is used or to be used to provide
 4-6     water for feeding livestock and poultry connected with farming,
 4-7     ranching, or dairy enterprises; or
 4-8                 (4)  water wells to supply water for hydrocarbon
 4-9     production activities, regardless of whether those wells are
4-10     producing, that are associated with any well permitted by the
4-11     Railroad Commission of Texas drilled before September 1, 1985.
4-12           (b)  The board shall adopt rules determining the
4-13     applicability of Subsection (a)(3) to facilities used primarily for
4-14     feeding livestock.
4-15           (c)  The district shall not deny the owner of a tract of
4-16     land, or his lessee, who has no well equipped to produce more than
4-17     25,000 gallons a day on the tract, either a permit to drill a well
4-18     on his land or the privilege to produce groundwater from his land,
4-19     subject to the rules of the district.
4-20           (d)  A district may not restrict the production of any well
4-21     equipped to produce 25,000 gallons or less a day.
4-22           (e)  Water wells exempted under this section shall be
4-23     equipped and maintained so as to conform to the district's rules
4-24     requiring installation of casing, pipe, and fittings to prevent the
4-25     escape of groundwater from a groundwater reservoir to any reservoir
4-26     not containing groundwater and to prevent the pollution or harmful
 5-1     alteration of the character of the water in any groundwater
 5-2     reservoir.
 5-3           (f)  A district shall require water wells exempted under this
 5-4     section to be registered with the district before drilling.  All
 5-5     exempt water wells shall be equipped and maintained so as to
 5-6     conform to the district's rules requiring installation of casing,
 5-7     pipe, and fittings to prevent the escape of groundwater from a
 5-8     groundwater reservoir to any reservoir not containing groundwater
 5-9     and to prevent the pollution or harmful alteration of the character
5-10     of the water in any groundwater reservoir.
5-11           (g)  A well to supply water for a subdivision of land for
5-12     which a plat approval is required by law is not exempted under this
5-13     section.
5-14           SECTION 8.  MINING EXEMPTION.  (a)  A groundwater well that
5-15     is used by a mining operation and permitted by the Railroad
5-16     Commission of Texas is exempt from permit requirements,
5-17     regulations, and fees imposed by the district if the amount of
5-18     water withdrawn from the well is not greater than the amount
5-19     required by the mining operation for mining purposes.  A mining
5-20     operation that withdraws the amount of water required for mining
5-21     purposes, uses that water for mining purposes, and then puts that
5-22     water to another use does not forfeit the exemption granted by this
5-23     section, but any production of water in addition to water withdrawn
5-24     for mining purposes is subject to district permitting and
5-25     regulation.
5-26           (b)  The district may require a well used for mining purposes
 6-1     and exempt under this section to comply with the spacing
 6-2     requirements of the district if any withdrawals from that well are
 6-3     in addition to withdrawals for mining purposes.
 6-4           (c)  A mining operation may voluntarily waive the exemption
 6-5     granted by this section.
 6-6           SECTION 9.  MANAGEMENT PLAN.  The district shall develop or
 6-7     contract to develop its own management plan under Section 36.1071,
 6-8     Water Code.
 6-9           SECTION 10.  PERMITTING.  (a)  The district shall issue
6-10     permits for wells based on the consideration of whether:
6-11                       (1)  the application conforms to the requirements
6-12     prescribed by Chapter 36, Water Code, and is accompanied by the
6-13     prescribed fees;
6-14                       (2)  the proposed use of water is consistent with
6-15     the district's certified water management plan;
6-16                       (3)  the proposed use of water is dedicated to
6-17     any beneficial use;
6-18                       (4)  the applicant has agreed to avoid waste and
6-19     achieve water conservation; and
6-20                       (5)  the applicant has agreed that reasonable
6-21     diligence will be used to protect groundwater quality and that the
6-22     applicant will follow well plugging guidelines at the time of well
6-23     closure.
6-24                       (6)  the proposed use would not present the
6-25     possibility of unreasonable interference with the production of
6-26     water from exempt, existing, or previously permitted wells;
 7-1                       (7)  the proposed use would not unreasonably
 7-2     interfere with an adjoining landowner's ability to produce water
 7-3     from his property.
 7-4           SECTION 11.  BOARD OF DIRECTORS.  (a)  The district is
 7-5     governed by a board of directors appointed as provided by Section
 7-6     12.
 7-7           (b)  Initial directors serve until permanent directors are
 7-8     appointed under Section 12 of this Act and qualified as required by
 7-9     Subsection (d) of this section.
7-10           (c)  Permanent directors serve four-year staggered terms.
7-11           (d)  Each director must qualify to serve as a director in the
7-12     manner provided by Section 36.055, Water Code.
7-13           (e)  A director serves until the director's successor has
7-14     qualified.
7-15           (f)  A director may serve consecutive terms.
7-16           (g)  If there is a vacancy on the board, the governing body
7-17     of the entity that appointed the director who vacated the office
7-18     shall appoint a director to serve the remainder of the term.
7-19           (h)  Directors are not entitled to receive compensation for
7-20     serving as a director but may be reimbursed for actual, reasonable
7-21     expenses incurred in the discharge of official duties.
7-22           (i)  A majority vote of a quorum is required for board
7-23     action.  If there is a tie vote, the proposed action fails.
7-24           SECTION 12.  APPOINTMENT OF DIRECTORS.  (a)  The Walker
7-25     County Commissioners Court shall appoint eight directors, of whom:
7-26                 (1)  two must represent municipal interests in the
 8-1     county;
 8-2                 (2)  two must represent agriculture interests in the
 8-3     county;
 8-4                 (3)  two must represent rural water suppliers' interest
 8-5     in the county; and
 8-6                 (4)  two must represent industrial interests in the
 8-7     county.
 8-8           (b)  The governing body authorized by this section to make an
 8-9     appointment shall appoint the appropriate number of initial
8-10     directors as soon as practicable following the effective date of
8-11     this Act, but not later than the 45th day after the effective date
8-12     of this Act.
8-13           (c)  The initial directors shall draw lots to determine their
8-14     terms.  Five initial directors from Walker County serve terms that
8-15     expire on January 1 of the second year following the confirmation
8-16     of the district at an election held under Section 14 of this
8-17     article.  The remaining five initial directors serve terms that
8-18     expire on January 1 of the fourth year following the confirmation
8-19     of the district.  On January 1 of the second year following
8-20     confirmation of the district and every two years after that date,
8-21     the commissioners court shall appoint the appropriate number of
8-22     permanent directors.
8-23           SECTION 13.  ORGANIZATION MEETING.  As soon as practicable
8-24     after all the initial directors have been appointed and have
8-25     qualified as provided in this Act, a majority of the directors
8-26     shall convene the organizational meeting of the district at a
 9-1     location within the district agreeable to a majority of the
 9-2     directors.  If no location can be agreed on, the organizational
 9-3     meeting of the directors shall be at the Walker County Courthouse.
 9-4           SECTION 14.  CONFIRMATION ELECTION.  (a)  The initial board
 9-5     of directors shall call and hold, on the same date in each county
 9-6     to be included in the district, an election to confirm the creation
 9-7     of the district.
 9-8           (b)  Except as provided by this section, a confirmation
 9-9     election must be conducted as provided by Sections 36.017, 36.018,
9-10     and 36.019, Water Code, and the Election Code.
9-11           (c)  If the majority of qualified voters in a county who vote
9-12     in the election to confirm the creation of the district, that
9-13     county is included in the district.  If the majority of qualified
9-14     voters in a county who vote in the election vote not to confirm the
9-15     creation of the district, that county is excluded from the
9-16     district.
9-17           (d)  If the creation of the district is not confirmed by an
9-18     election held under this section before the second anniversary of
9-19     the effective date of this Act, the district is dissolved and this
9-20     Act expires on that date.
9-21           SECTION 15.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
9-22           (a)  The proper and legal notice of the intention to
9-23     introduce this Act, setting forth the general substance of this
9-24     Act, has been published as provided by law, and the notice and a
9-25     copy of this Act have been furnished to all persons, agencies,
9-26     officials, or entities to which they are required to be furnished
 10-1    by the constitution and other laws of this state, including the
 10-2    governor, who has submitted the notice and Act to the Texas Natural
 10-3    Resource Conservation Commission.
 10-4          (b)  The Texas Natural Resource Conservation Commission has
 10-5    filed its recommendations relating to this Act with the governor
 10-6    and the speaker of the house of  representatives within the
 10-7    required time.
 10-8          (c)  All requirements of the constitution and laws of this
 10-9    state and the rules and procedures of the legislature with respect
10-10    to the notice, introduction, and passage of this Act are fulfilled
10-11    and accomplished.
10-12          SECTION 16.  EFFECTIVE DATE.  This Act takes effect September
10-13    1, 2001.