79R1664 SMH-D
By: Madla, et al. S.B. No. 352
A BILL TO BE ENTITLED
AN ACT
relating to the management of state-owned land, including the lease
of the right to produce groundwater from certain state-owned land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 11, Natural Resources
Code, is amended by adding Section 11.087 to read as follows:
Sec. 11.087. PROHIBITION ON EXPORTATION OF GROUNDWATER
PRODUCED FROM STATE-OWNED LAND. A person may not export from this
state to a foreign country groundwater produced from state-owned
land.
SECTION 2. Section 32.012, Natural Resources Code, is
amended by amending Subsection (a) and adding Subsection (d) to
read as follows:
(a) The board is composed of:
(1) the commissioner;
(2) a citizen of the state appointed by the governor
with the advice and consent of the senate; [and]
(3) a citizen of the state appointed by the attorney
general with the advice and consent of the senate;
(4) a citizen of the state appointed by the lieutenant
governor; and
(5) a citizen of the state appointed by the governor
with the advice and consent of the senate from a list of nominees
submitted by the speaker of the house of representatives.
(d) In making an appointment under Subsection (a)(5), the
governor may reject one or more of the nominees on a list submitted
by the speaker of the house of representatives and request a new
list of different nominees.
SECTION 3. Section 51.121, Natural Resources Code, is
amended by adding Subsections (f) and (g) to read as follows:
(f) Notwithstanding Subsection (a), the commissioner may
not lease unsold public school land under this subchapter for a term
of more than 10 years or for an indefinite term unless the board
approves the lease.
(g) Notwithstanding Subsection (a), the commissioner may
not lease the right to produce groundwater from unsold public
school land. A lease of the right to produce groundwater from
unsold public school land is governed by Section 51.132.
SECTION 4. Subchapter D, Chapter 51, Natural Resources
Code, is amended by adding Section 51.132 to read as follows:
Sec. 51.132. LEASE OF RIGHT TO PRODUCE GROUNDWATER. (a) The
board may lease the right to produce groundwater from unsold public
school land only as provided by this section. The other provisions
of this subchapter apply to leases entered into under this section
to the extent those provisions do not conflict with this section or
Section 51.121(g).
(b) The board shall adopt clear and detailed rules governing
the lease of the right to produce groundwater from unsold public
school land. The rules must require:
(1) each regional water planning group and groundwater
conservation district in whose jurisdiction the land is located to
be notified when the board receives a proposal to lease the right to
produce groundwater from the land;
(2) the lease contract to be negotiated by the board;
(3) the lessee to comply with:
(A) the rules and permitting requirements of any
groundwater conservation district in which the land is located; and
(B) all state and local laws and rules;
(4) the right to produce groundwater from land to be
leased separately from oil and gas rights; and
(5) a lease proposal submitted by a political
subdivision of this state to include a letter of interest, approved
by the governing body of the political subdivision, that includes:
(A) an estimated total daily and annual amount of
water to be produced under the lease;
(B) any requirements of the political
subdivision regarding water quality;
(C) a time frame for delivery of the water;
(D) an estimated delivered price for the water;
and
(E) a statement that the political subdivision
commits to act in compliance with all state and local laws and
rules.
(c) Before filing notice of the proposed rules with the
secretary of state for publication in the Texas Register, the board
must notify the attorney general, Parks and Wildlife Department,
Texas Commission on Environmental Quality, Texas Water Development
Board, and Department of Agriculture and each member of the
legislature that notice of the proposed rules will be published.
(d) A lease of the right to produce groundwater from unsold
public school land must be awarded through competitive bidding
unless:
(1) the lessee is a political subdivision of this
state or an end user of the water; or
(2) the lease entitles the lessee to produce less than
125,000 gallons of water per day.
SECTION 5. Subchapter C, Chapter 66, Education Code, is
amended by adding Section 66.46 to read as follows:
Sec. 66.46. LEASE OF RIGHT TO PRODUCE GROUNDWATER. A lease
of the right to produce groundwater from lands set aside and
appropriated to, or acquired by, the permanent university fund must
be awarded through competitive bidding unless:
(1) the lessee is a political subdivision of this
state or an end user of the water; or
(2) the lease entitles the lessee to produce less than
125,000 gallons of water per day.
SECTION 6. Sections 16.053(c) and (e), Water Code, are
amended to read as follows:
(c) No later than 60 days after the designation of the
regions under Subsection (b), the board shall designate
representatives within each regional water planning area to serve
as the initial coordinating body for planning. The initial
coordinating body may then designate additional representatives to
serve on the regional water planning group. The initial
coordinating body shall designate additional representatives if
necessary to ensure adequate representation from the interests
comprising that region, including the public, counties,
municipalities, industries, agricultural interests, environmental
interests, small businesses, electric generating utilities, river
authorities, water districts, and water utilities. The regional
water planning group shall maintain adequate representation from
those interests. In addition, representatives of the board, the
Parks and Wildlife Department, and the Department of Agriculture
shall serve as ex officio members of each regional water planning
group. If a regional water planning area includes land dedicated to
the permanent university fund, the executive director of University
Lands--West Texas Operations serves as a nonvoting member of the
regional water planning group for that area.
(e) Each regional water planning group shall submit to the
board a regional water plan that:
(1) is consistent with the guidance principles for the
state water plan adopted by the board under Section 16.051(d);
(2) provides information based on data provided or
approved by the board in a format consistent with the guidelines
provided by the board under Subsection (d);
(3) identifies:
(A) each source of water supply in the regional
water planning area in accordance with the guidelines provided by
the board under Subsections (d) and (f);
(B) factors specific to each source of water
supply to be considered in determining whether to initiate a
drought response; and
(C) actions to be taken as part of the response;
(4) has specific provisions for water management
strategies to be used during a drought of record;
(5) includes but is not limited to consideration of
the following:
(A) any existing water or drought planning
efforts addressing all or a portion of the region;
(B) certified groundwater conservation district
management plans and other plans submitted under Section 16.054;
(C) all potentially feasible water management
strategies, including but not limited to improved conservation,
reuse, and management of existing water supplies, acquisition of
available existing water supplies, and development of new water
supplies, including, if appropriate, groundwater produced from
land dedicated to the permanent school fund or permanent university
fund;
(D) protection of existing water rights in the
region;
(E) opportunities for and the benefits of
developing regional water supply facilities or providing regional
management of water supply facilities;
(F) appropriate provision for environmental
water needs and for the effect of upstream development on the bays,
estuaries, and arms of the Gulf of Mexico and the effect of plans on
navigation;
(G) provisions in Section 11.085(k)(1) if
interbasin transfers are contemplated;
(H) voluntary transfer of water within the region
using, but not limited to, regional water banks, sales, leases,
options, subordination agreements, and financing agreements; and
(I) emergency transfer of water under Section
11.139, including information on the part of each permit, certified
filing, or certificate of adjudication for nonmunicipal use in the
region that may be transferred without causing unreasonable damage
to the property of the nonmunicipal water rights holder;
(6) identifies river and stream segments of unique
ecological value and sites of unique value for the construction of
reservoirs that the regional water planning group recommends for
protection under Section 16.051;
(7) assesses the impact of the plan on unique river and
stream segments identified in Subdivision (6) if the regional water
planning group or the legislature determines that a site of unique
ecological value exists; and
(8) describes the impact of proposed water projects on
water quality.
SECTION 7. Section 36.101(a), Water Code, is amended to
read as follows:
(a) A district may make and enforce rules, including rules
limiting groundwater production based on tract size or the spacing
of wells, to provide for conserving, preserving, protecting, and
recharging of the groundwater or of a groundwater reservoir or its
subdivisions in order to control subsidence, prevent degradation of
water quality, or prevent waste of groundwater and to carry out the
powers and duties provided by this chapter. During the rulemaking
process the board shall consider all groundwater uses and needs and
shall develop rules which are fair and impartial. Rules adopted by
a district apply to wells located on land dedicated to the permanent
school fund or permanent university fund or located on land
formerly dedicated to the permanent school fund or permanent
university fund in which the state has reserved the right to produce
groundwater.
SECTION 8. The lieutenant governor and the governor shall
make appointments to the School Land Board under Section 32.012,
Natural Resources Code, as amended by this Act, as soon as possible
after the effective date of this Act. Each member's term expires
August 31, 2007.
SECTION 9. This Act takes effect September 1, 2005.