84R9367 SLB-D By: Keffer H.B. No. 1972 A BILL TO BE ENTITLED AN ACT relating to certain exemptions from the requirement to obtain a permit from a groundwater conservation district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 36.117, Water Code, is amended by amending Subsections (b) and (d) and adding Subsections (f-1) and (m) to read as follows: (b) Except as provided by this section, a district shall provide an exemption from the district requirement to obtain a permit for: (1) drilling or operating a well used solely for domestic use or for providing water for livestock or poultry if the well is: (A) located or to be located on a tract of land larger than 10 acres; and (B) drilled, completed, or equipped so that it is incapable of producing more than 25,000 gallons of groundwater a day; (2) drilling a water well used [solely] to supply water for [a rig that is actively engaged in] drilling or exploration operations, including completion operations, for an oil or gas well permitted by the Railroad Commission of Texas provided that the person holding the permit is responsible for drilling and operating the water well [and the water well is located on the same lease or field associated with the drilling rig]; or (3) drilling a water well authorized under a permit issued by the Railroad Commission of Texas under Chapter 134, Natural Resources Code, or for production from the well to the extent the withdrawals are required for mining activities regardless of any subsequent use of the water. (d) A district may cancel a previously granted exemption, and may require an operating permit for or restrict production from a well, if: (1) the well is located in the Hill Country Priority Groundwater Management Area and the groundwater withdrawals that were exempted under Subsection (b)(1) are no longer used solely for domestic use or to provide water for livestock or poultry; (2) the groundwater withdrawals that were exempted under Subsection (b)(2) are no longer used [solely] to supply water for [a rig that is actively engaged in] drilling or exploration operations, including completion operations, for an oil or gas well permitted by the Railroad Commission of Texas; or (3) the groundwater withdrawals that were exempted under Subsection (b)(3) are no longer necessary for mining activities or are greater than the amount necessary for mining activities specified in the permit issued by the Railroad Commission of Texas under Chapter 134, Natural Resources Code. (f-1) The owner or operator of a water well exempt under Subsection (b)(2) shall comply with rules adopted by the district with uniform application to all wells in the district, except wells described by Subsection (b)(1), including rules that govern: (1) registration of wells; (2) production and spacing requirements under Section 36.116; (3) payment of production fees assessed by the district based on the amount of water actually withdrawn from a well; and (4) recordkeeping and reporting related to groundwater withdrawals. (m) In this section, "completion operation" means the work conducted to establish the production of a well after the production-casing string has been set, cemented, and pressure-tested. SECTION 2. 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, 2015.