Tex. Water Code Section 36.122
Transfer of Groundwater out of District


(a)

If an application for a permit or an amendment to a permit under Section 36.113 (Permits for Wells; Permit Amendments) proposes the transfer of groundwater outside of a district’s boundaries, the district may also consider the provisions of this section in determining whether to grant or deny the permit or permit amendment.

(b)

A district may promulgate rules requiring a person to obtain a permit or an amendment to a permit under Section 36.113 (Permits for Wells; Permit Amendments) from the district for the transfer of groundwater out of the district to:

(1)

increase, on or after March 2, 1997, the amount of groundwater to be transferred under a continuing arrangement in effect before that date; or

(2)

transfer groundwater out of the district on or after March 2, 1997, under a new arrangement.

(c)

Except as provided in Section 36.113 (Permits for Wells; Permit Amendments)(e), the district may not impose more restrictive permit conditions on transporters than the district imposes on existing in-district users.

(d)

The district may impose a reasonable fee for processing an application under this section. The fee may not exceed fees that the district imposes for processing other applications under Section 36.113 (Permits for Wells; Permit Amendments). An application filed to comply with this section shall be considered and processed under the same procedures as other applications for permits under Section 36.113 (Permits for Wells; Permit Amendments) and shall be combined with applications filed to obtain a permit for in-district water use under Section 36.113 (Permits for Wells; Permit Amendments) from the same applicant.

(e)

Except as provided by Subsection (e-1), the district may impose an export fee or surcharge using one of the following methods:

(1)

a fee negotiated between the district and the exporter;

(2)

for a tax-based district, a rate not to exceed 20 cents for each thousand gallons of water exported from the district; or

(3)

for a fee-based district, a rate not to exceed the greater of 20 cents for each thousand gallons or a 50 percent surcharge, in addition to the district’s production fee, for water exported from the district.

(e-1)

Effective January 1, 2024, the maximum allowable rate a district may impose for an export fee or surcharge under Subsection (e)(2) or (e)(3) increases by three percent each calendar year.

(e-2)

A district governed by a special law in regard to an export fee or surcharge on water exported from the district may charge an export fee or surcharge in accordance with that special law or in accordance with Subsections (e) and (e-1).

(e-3)

An export fee or surcharge imposed under Subsection (e) or an increase in an imposed export fee or surcharge is not valid unless it is approved by the board after a public hearing.

(f)

In reviewing a proposed transfer of groundwater out of the district, the district shall consider:

(1)

the availability of water in the district and in the proposed receiving area during the period for which the water supply is requested;

(2)

the projected effect of the proposed transfer on aquifer conditions, depletion, subsidence, or effects on existing permit holders or other groundwater users within the district; and

(3)

the approved regional water plan and approved district management plan.

(g)

The district may not deny a permit based on the fact that the applicant seeks to transfer groundwater outside of the district but may limit a permit issued under this section if conditions in Subsection (f) warrant the limitation, subject to Subsection (c).

(h)

In addition to conditions provided by Section 36.1131 (Elements of Permit), the permit shall specify:

(1)

the amount of water that may be transferred out of the district; and

(2)

the period for which the water may be transferred.

(i)

The period specified by Subsection (h)(2) shall be:

(1)

at least three years if construction of a conveyance system has not been initiated prior to the issuance of the permit; or

(2)

at least 30 years if construction of a conveyance system has been initiated prior to the issuance of the permit.

(j)

A term under Subsection (i)(1) shall automatically be extended to the terms agreed to under Subsection (i)(2) if construction of a conveyance system is begun before the expiration of the initial term.

(j-1)

A district shall extend a term under Subsection (i)(2) or (j) on or before its expiration in the manner prescribed by Section 36.1145 (Operating Permit Renewal):

(1)

to a term that is not shorter than the term of an operating permit for the production of water to be transferred that is in effect at the time of the extension; and

(2)

for each additional term for which that operating permit for production is renewed under Section 36.1145 (Operating Permit Renewal) or remains in effect under Section 36.1146 (Change in Operating Permits).

(j-2)

A permit extended under Subsection (j-1) continues to be subject to conditions contained in the permit as issued before the extension.

(k)

Notwithstanding the period specified under Subsection (i), (j), or (j-1) during which water may be transferred under a permit, a district may periodically review the amount of water that may be transferred under the permit and may limit the amount if additional factors considered in Subsection (f) warrant the limitation, subject to Subsection (c). The review described by this subsection may take place not more frequently than the period provided for the review or renewal of regular permits issued by the district. In its determination of whether to renew a permit issued under this section, the district shall consider relevant and current data for the conservation of groundwater resources and shall consider the permit in the same manner it would consider any other permit in the district.

(l)

A district is prohibited from using revenues obtained under Subsection (e) to prohibit the transfer of groundwater outside of a district. A district is not prohibited from using revenues obtained under Subsection (e) for paying expenses related to enforcement of this chapter or district rules.

(m)

A district may not prohibit the export of groundwater if the purchase was in effect on or before June 1, 1997.

(n)

This section applies only to a transfer of water that is permitted after September 1, 1997.

(o)

A district shall adopt rules as necessary to implement this section but may not adopt rules expressly prohibiting the export of groundwater.

(p)

Subsections (e), (e-1), and (e-2) do not apply to a district that is collecting an export fee or surcharge on March 1, 2001.

(q)

In applying this section, a district must be fair, impartial, and nondiscriminatory.

(r)

The district may grant or deny an application to extend a term under Subsection (i)(2) or (j) submitted under this section only using rules that were in effect at the time the application was submitted.

(s)

An application to extend a term under Subsection (i)(2) or (j) is governed solely by district rules consistent with Subsection (j-1).
Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.33, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 966, Sec. 2.52, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 17 (S.B. 727), Sec. 6, eff. April 29, 2011.
Acts 2015, 84th Leg., R.S., Ch. 415 (H.B. 2767), Sec. 8, eff. June 10, 2015.
Acts 2019, 86th Leg., R.S., Ch. 96 (H.B. 1066), Sec. 1, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 773 (H.B. 3059), Sec. 1, eff. September 1, 2023.

Source: Section 36.122 — Transfer of Groundwater out of District, https://statutes.­capitol.­texas.­gov/Docs/WA/htm/WA.­36.­htm#36.­122 (accessed Apr. 20, 2024).

36.001
Definitions
36.002
Ownership of Groundwater
36.011
Method of Creating District
36.012
Composition of District
36.013
Petition to Create District
36.014
Notice and Public Meeting on District Creation
36.0015
Purpose
36.015
Commission Certification and Order
36.016
Appointment of Temporary Directors
36.017
Confirmation and Directors’ Election for District in a Management Area
36.018
Inclusion of Municipality
36.019
Confirmation Election in District Including Land in More than One County
36.020
Bond and Tax Proposal
36.021
Notification of County Clerk
36.051
Board of Directors
36.052
Other Laws Not Applicable
36.053
Quorum
36.054
Officers
36.055
Sworn Statement, Bond, and Oath of Office
36.056
General Manager
36.057
Management of District
36.058
Conflicts of Interest
36.059
General Elections
36.060
Fees of Office
36.061
Policies
36.062
Offices and Meeting Places
36.063
Notice of Meetings
36.064
Meetings
36.065
Records
36.066
Suits
36.067
Contracts
36.068
Employee Benefits
36.101
Rulemaking Power
36.102
Enforcement of Rules
36.103
Improvements and Facilities
36.104
Purchase, Sale, Transportation, and Distribution of Water
36.105
Eminent Domain
36.106
Surveys
36.107
Research
36.108
Joint Planning in Management Area
36.109
Collection of Information
36.110
Publication of Plans and Information
36.111
Records and Reports
36.112
Drillers’ Logs
36.113
Permits for Wells
36.114
Permit
36.115
Drilling or Altering Well Without Permit
36.116
Regulation of Spacing and Production
36.117
Exemptions
36.118
Open or Uncovered Wells
36.119
Illegal Drilling and Operation of Well
36.120
Information
36.121
Limitation on Rulemaking Power of Districts over Wells in Certain Counties
36.122
Transfer of Groundwater out of District
36.123
Right to Enter Land
36.124
District Act or Proceeding Presumed Valid
36.0151
Creation of District for Priority Groundwater Management Area
36.151
Expenditures
36.152
Fiscal Year
36.153
Annual Audit
36.154
Annual Budget
36.155
Depository
36.156
Investments
36.157
Repayment of Organizational Expenses
36.158
Grants
36.159
Groundwater Conservation District Management Plan Funds
36.160
Funds
36.0161
Method for Appointing Temporary Directors for District in Priority Groundwater Management Area
36.161
Eligibility for Funding
36.0171
Tax Authority and Directors’ Election for District in a Priority Groundwater Management Area
36.171
Issuance of Bonds and Notes
36.172
Manner of Repayment of Bonds and Notes
36.173
Additional Security for Bonds and Notes
36.174
Form of Bonds or Notes
36.175
Provisions of Bonds and Notes
36.176
Refunding Bonds
36.177
Bonds and Notes as Investments
36.178
Bonds and Notes as Security for Deposits
36.179
Tax Status of Bonds and Notes
36.180
Election
36.181
Approval by Attorney General
36.201
Levy of Taxes
36.202
Board Authority
36.203
Tax Rate
36.204
Tax Appraisal, Assessment and Collection
36.205
Authority to Set Fees
36.206
District Fees
36.207
Use of Fees
36.251
Suit Against District
36.252
Suit to Be Expedited
36.253
Trial of Suit
36.254
Subchapter Cumulative
36.301
Failure to Submit a Management Plan
36.302
Legislative Audit Review
36.303
Action by Commission
36.304
Dissolution of District
36.305
Notice of Hearing for Dissolution of Board or District
36.306
Investigation
36.307
Order of Dissolution of Board
36.308
Certified Copy of Order
36.309
Appeals
36.310
Assets Escheat
36.321
Adding Land by Petition of Landowner
36.322
Assumption of Bonds
36.323
Hearing and Determination of Petition
36.324
Recording Petition
36.325
Adding Certain Territory by Petition
36.326
Hearing on Petition
36.327
Resolution to Add Territory
36.328
Election to Ratify Annexation of Land
36.329
Notice and Procedure of Election
36.330
Liability of Added Territory
36.331
Annexation of Noncontiguous Territory
36.351
Consolidation of Districts
36.352
Terms and Conditions of Consolidation
36.353
Notice and Hearing on Consolidation
36.354
Elections to Approve Consolidation
36.355
Governing Consolidated Districts
36.356
Debts of Original Districts
36.357
Assessment and Collection of Taxes
36.358
Voted but Unissued Bonds
36.359
Filing of Order with County Clerk and Executive Director
36.371
Groundwater Conservation District Loan Assistance Fund
36.372
Financial Assistance
36.373
Application for Assistance
36.374
Approval of Application
36.401
Definition
36.402
Applicability
36.403
Scheduling of Public Hearing
36.404
Notice
36.405
Hearing Registration
36.406
Hearing Procedures
36.407
Evidence
36.408
Recording
36.409
Continuance
36.410
Proposal for Decision
36.411
Board Action
36.412
Request for Rehearing or Findings of Fact and Conclusions of Law
36.413
Decision
36.414
Consolidated Hearing on Applications
36.415
Rules
36.416
Hearings Conducted by State Office of Administrative Hearings
36.417
Rules
36.418
Rules
36.451
Definitions
36.452
Applicability to Recovery Wells that Also Function as Injection Wells
36.453
Registration and Reporting of Wells
36.454
Permitting, Spacing, and Production Requirements
36.455
Fees and Surcharges
36.456
Desired Future Conditions
36.457
Other Laws Not Affected
36.1011
Emergency Rules
36.1015
Rules for Permits in Brackish Groundwater Production Zones
36.1025
Petition to Change Rules
36.1071
Management Plan
36.1072
Texas Water Development Board Review and Approval of Management Plan
36.1073
Amendment to Management Plan
36.1081
Technical Staff and Subcommittees for Joint Planning
36.1083
Appeal of Desired Future Conditions
36.1084
Modeled Available Groundwater
36.1085
Management Plan Goals and Objectives
36.1086
Joint Efforts by Districts in a Management Area
36.1131
Elements of Permit
36.1132
Permits Based on Modeled Available Groundwater
36.1145
Operating Permit Renewal
36.1146
Change in Operating Permits
36.1561
Investment Officer
36.3011
Commission Inquiry and Action Regarding District Duties
36.3035
Appointment of a Receiver
36.3705
Definition
36.4051
Board Action
36.4165
Final Decision
36.10835
Judicial Appeal of Desired Future Conditions

Accessed:
Apr. 20, 2024

§ 36.122’s source at texas​.gov