78R9984 SGA-F

By:  Madla                                                        S.B. No. 1886


A BILL TO BE ENTITLED
AN ACT
relating to the administration, powers, duties, taxing authority, and operation of the Kinney County Groundwater Conservation District and the development and management of groundwater resources in Kinney County. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2, Chapter 1344, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Subdivision (3) to read as follows: (3) "Historic use" means the withdrawal and beneficial use of groundwater for any purpose on or before September 1, 2001. SECTION 2. Chapter 1344, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Sections 5A, 5B, and 5C to read as follows: Sec. 5A. HISTORIC USE PERMITS. (a) In adopting rules limiting groundwater production, the district shall preserve historic use to the maximum extent practicable. (b) The owner of a well that has been put to historic use may apply for a historic use permit from the district on or before October 1, 2003. The application must be accompanied by: (1) an application fee in an amount set by the district; and (2) a declaration of historic use. (c) The district shall issue a historic use permit to a well owner for the annual production of groundwater in an amount equal to the maximum amount of groundwater produced from the well for beneficial use without waste during any one calendar year of historic use if the well owner: (1) complies with Subsection (b) of this section; and (2) establishes historic use by a preponderance of the evidence. (d) If the period of historic use of a well is less than one calendar year, the district shall issue a historic use permit to the well owner for the annual production of groundwater in an amount equal to the amount of groundwater that would normally be used beneficially for a calendar year without waste for each purpose for which the groundwater had actually been used during the period of historic use. (e) If the district issues a historic use permit, the district shall issue the permit without a term, and the permit remains in effect until the permit is abandoned, canceled, or retired. (f) On written notice to the district identifying each party or permit involved and without being required to obtain a permit amendment, the holder of a historic use permit may for any purpose: (1) lease groundwater rights recognized in the historic use permit; (2) transfer, assign, or convey the historic use permit; or (3) aggregate groundwater rights recognized in the historic use permit with groundwater rights recognized in other permits issued by the district, provided that each aggregated right involves the production of groundwater from the same aquifer formation and any separate and distinct hydrogeologic unit of the aquifer formation. Sec. 5B. NEW PERMITS. (a) The district may consider a new permit application after the district has: (1) acted on all applications for historic use permits filed under Section 5A of this Act; and (2) implemented a management plan certified under Section 36.1072, Water Code. (b) The district shall base a decision on a new permit application, including a decision regarding the imposition of spacing or production limitations, on specific hydrogeologic conditions occurring in any separate and distinct hydrogeologic units within aquifer formations in the district. The district may not base a decision on a new permit application on the contiguity of the applicant's surface acreage. (c) As part of its procedures for acting on new permit applications, the district shall develop a procedure for allowing an applicant to initiate district action to create a management zone for an area having hydrogeologic conditions that warrant special management considerations or a particularized management scheme. Sec. 5C. METERING AND MEASURING WELL PRODUCTION. (a) A well that produces 25,000 gallons or less of groundwater a day for domestic or livestock use is exempt from district rules concerning metering a well or measuring well production. (b) The district shall pay the costs of purchasing, installing, and maintaining any meter or measuring device that the district requires for a well. SECTION 3. Section 6, Chapter 1344, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Subsections (j) and (k) to read as follows: (j) Section 36.056(c), Water Code, does not apply to the district. (k) A person may not serve as a director or manager of the district or as an engineer, attorney, or other person providing professional services to the district if the person: (1) is related within the third degree of affinity or consanguinity to a person who serves or has served as a director or manager of the district or as an engineer, attorney, or other person providing professional services to the district; or (2) is a party to a contract with a person described by Subdivision (1) of this subsection. SECTION 4. Section 11, Chapter 1344, Acts of the 77th Legislature, Regular Session, 2001, is amended by amending Subsection (b) and adding Subsection (d) to read as follows: (b) The district may impose a fee on groundwater [water] exported out of the district. Revenue generated from fees under this subsection must be used solely for purposes of economic development and primary and secondary education in the district. To ensure the fulfillment of those purposes, the district shall transfer the revenue immediately after collection to the West Nueces-Las Moras Soil & Water Conservation District #236, which shall manage and dispense the revenue for the purposes stated. (d) Notwithstanding Subsection (c) of this section, the district may not assess a production fee for a well unless the district: (1) has issued a permit for the well; and (2) imposes property taxes to pay the maintenance and operating expenses of the district at the maximum rate permitted by Subsection (a) of this section, unless the fee is set at a nominal amount. SECTION 5. (a) Any rules of the Kinney County Groundwater Conservation District that are inconsistent with this Act are superseded by this Act. (b) This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.