| 1 | 1 | | 86R3487 GRM-F |
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| 2 | 2 | | By: Harris H.B. No. 2122 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to regulation of the production of retail public utility |
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| 8 | 8 | | wells by a groundwater conservation district. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 36.002(d), Water Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (d) This section does not: |
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| 13 | 13 | | (1) prohibit a district from limiting or prohibiting |
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| 14 | 14 | | the drilling of a well by a landowner for failure or inability to |
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| 15 | 15 | | comply with minimum well spacing or tract size requirements adopted |
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| 16 | 16 | | by the district; |
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| 17 | 17 | | (2) affect the ability of a district to regulate |
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| 18 | 18 | | groundwater production as authorized under Section 36.113, 36.116, |
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| 19 | 19 | | 36.1161, or 36.122 or otherwise under this chapter or a special law |
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| 20 | 20 | | governing a district; or |
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| 21 | 21 | | (3) require that a rule adopted by a district allocate |
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| 22 | 22 | | to each landowner a proportionate share of available groundwater |
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| 23 | 23 | | for production from the aquifer based on the number of acres owned |
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| 24 | 24 | | by the landowner. |
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| 25 | 25 | | SECTION 2. Subchapter D, Chapter 36, Water Code, is amended |
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| 26 | 26 | | by adding Section 36.1161 to read as follows: |
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| 27 | 27 | | Sec. 36.1161. REGULATION OF PRODUCTION BY RETAIL PUBLIC |
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| 28 | 28 | | UTILITIES. (a) In this section, "retail public utility" has the |
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| 29 | 29 | | meaning assigned by Section 13.002. |
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| 30 | 30 | | (b) This section applies only to a district that regulates |
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| 31 | 31 | | production under Section 36.116 based on tract size or acreage. |
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| 32 | 32 | | (c) A retail public utility may petition a district to |
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| 33 | 33 | | authorize the retail public utility to produce groundwater based |
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| 34 | 34 | | on: |
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| 35 | 35 | | (1) the aggregate acreage owned or leased by the |
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| 36 | 36 | | retail public utility; and |
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| 37 | 37 | | (2) the acreage of the landowners served by the retail |
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| 38 | 38 | | public utility as provided by Subsection (d). |
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| 39 | 39 | | (d) A district may only base a retail public utility's |
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| 40 | 40 | | authorized production amount under this section in a manner |
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| 41 | 41 | | consistent with district rules and based on acreage of landowners |
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| 42 | 42 | | served by the retail public utility if: |
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| 43 | 43 | | (1) the utility has acquired from the landowner a real |
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| 44 | 44 | | property interest in the groundwater beneath the land; or |
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| 45 | 45 | | (2) the landowner has provided written permission for |
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| 46 | 46 | | the retail public utility to exercise the utility's real property |
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| 47 | 47 | | interest in the groundwater beneath the landowner's land until the |
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| 48 | 48 | | landowner: |
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| 49 | 49 | | (A) drills a well and produces water from the |
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| 50 | 50 | | land; or |
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| 51 | 51 | | (B) transfers title to the land or real property |
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| 52 | 52 | | interest in the groundwater to another person. |
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| 53 | 53 | | (e) The district shall hold a public hearing to consider |
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| 54 | 54 | | approval of a petition submitted under this section. The district |
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| 55 | 55 | | shall require the retail public utility submitting the petition to |
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| 56 | 56 | | provide written notice of the hearing not later than the 60th day |
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| 57 | 57 | | before the date of the hearing to: |
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| 58 | 58 | | (1) the landowners served by the retail public |
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| 59 | 59 | | utility; |
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| 60 | 60 | | (2) persons with permitted or registered wells in the |
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| 61 | 61 | | district; and |
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| 62 | 62 | | (3) persons not described by Subdivision (1) or (2) |
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| 63 | 63 | | who have a property interest in groundwater under land that is |
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| 64 | 64 | | within one mile of the utility's wells in the district. |
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| 65 | 65 | | (f) The district shall consider a petition at a hearing |
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| 66 | 66 | | under this section in the same manner as a rulemaking hearing under |
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| 67 | 67 | | Section 36.101. |
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| 68 | 68 | | SECTION 3. Section 36.414(a), Water Code, is amended to |
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| 69 | 69 | | read as follows: |
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| 70 | 70 | | (a) Except as provided by Subsection (b), a district shall |
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| 71 | 71 | | process applications from a single applicant under consolidated |
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| 72 | 72 | | notice and hearing procedures on written request by the applicant |
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| 73 | 73 | | if the district requires a separate permit or permit amendment |
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| 74 | 74 | | application for: |
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| 75 | 75 | | (1) drilling, equipping, operating, or completing a |
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| 76 | 76 | | well or substantially altering the size of a well or well pump under |
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| 77 | 77 | | Section 36.113; |
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| 78 | 78 | | (2) the spacing of water wells or the production of |
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| 79 | 79 | | groundwater under Section 36.116 or 36.1161; or |
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| 80 | 80 | | (3) transferring groundwater out of a district under |
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| 81 | 81 | | Section 36.122. |
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| 82 | 82 | | SECTION 4. Section 36.116(c), Water Code, is repealed. |
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| 83 | 83 | | SECTION 5. This Act takes effect September 1, 2019. |
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