Water Code

                TITLE 5.  SPECIAL LAW DISTRICTS
   CHAPTER 151.  HARRIS-GALVESTON COASTAL SUBSIDENCE DISTRICT
               SUBCHAPTER A.  GENERAL PROVISIONS
                                
                    Sec. 151.001.  Creation.
                                
   (a) The Harris-Galveston Coastal Subsidence District is an
   underground water conservation district created under and
essential to accomplish the purposes of Article XVI, Section 59,
                   of the Texas Constitution.
                                
 (b) The district is a governmental agency and body politic and
                           corporate.
                                
Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.002.  Definitions.

         In this chapter:

                       (1) "Board" means the board of directors of the district.

                       (2) "Commission" means the Texas Natural Resource
         Conservation Commission.

                       (3) "District" means the Harris-Galveston Coastal Subsidence
         District.

                       (4) "Drill" means drilling, equipping, or completing wells
         or substantially altering the size of wells or well pumps.

                       (5) "Groundwater" means water located beneath the earth's
         surface, but does not include water produced with oil in the
         production of oil and gas.

                       (6) "Groundwater-withdrawal year" means the period beginning
         January 1 of one year and ending December 31 of that same year.

                       (7) "Subsidence" means the lowering in elevation of the
         surface of land by the withdrawal of groundwater.

                       (8) "Water conservation" means any measure that seeks to
         make a water supply available for alternative or future uses,
         including best management practices, reduction in consumption,
         reduction in loss or waste, improved efficiency or
         accountability, recycling, reuse, or pollution prevention.

                       (9) "Well" means a facility, device, or method used to
         withdraw groundwater from the groundwater supply within the
         district.

                       (10) "Well owner" means a person who has an ownership
         interest in a well, owns land on which a well is located, owns
         the water withdrawn or to be withdrawn from a well, or operates
         a well.

                       (11) "Withdraw" means the act of extracting groundwater by
         pumping or some other method.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.003.  Boundaries.

         (a) The district includes all of the area located within the
boundaries of Harris County and Galveston County.

         (b) Except as provided in this subsection, an adjoining county
may be added to the district on application of the commissioners
court of the adjoining county and by complying with the
procedures provided in Subchapter K, Chapter 36.  Any county
added to the district under this subsection is subject to the
jurisdiction of the board and this chapter, and two members shall
be added to the board.  One shall be chosen by the commissioners
court of the county added to the district and one shall be chosen
by the mayor of the city that has the largest population in the
county that is added.  The two new members shall draw lots to
establish staggered terms of office.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.  Amended by Acts 1995, 74th Leg., ch. 933, Sec. 3, eff.
Sept. 1, 1995.

Sec. 151.004.  Purpose and Intent; Finding of Benefit.

         (a) The purpose of this chapter is to provide for the
regulation of the withdrawal of groundwater within the boundaries
of the district for the purpose of ending subsidence, which
contributes to or precipitates flooding, inundation, or overflow
of the district, including without limitation rising waters
resulting from storms or hurricanes.

         (b) The legislature intends that the district shall administer
and enforce this chapter and shall exercise the district's
rights, powers, and duties in a manner that will effectively and
expeditiously accomplish the purposes of this chapter.

         (c) All of the land and other property included within the
boundaries of the district will be benefited by the works and
projects that are to be accomplished by the district under powers
conferred by Article XVI, Section 59, of the Texas Constitution. 
The district is created to serve a public use and benefit.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.005.  Powers and Duties in General.

         (a) The district has all of the rights, powers, privileges,
authority, functions, and duties provided by the general law of
this state, including Chapter 36, applicable to groundwater
conservation districts created under Article XVI, Section 59, of
the Texas Constitution.

         (b) Withdrawals of groundwater covered by this chapter are
subject to reasonable rules and orders adopted by the board,
taking into account all factors including availability of surface
water, economic impact on persons and the community, degree and
effect of subsidence on the surface of land, and differing
topographical and geophysical characteristics of land areas in
the district.  The board has the powers and duties specifically
described in this chapter and all other powers necessary or
convenient to carry out its responsibilities and achieve the
purpose of this chapter.

         (c) Sections 36.104, 36.114, 36.117, 36.201, 36.202, 36.203,
and 36.204 and Subchapter I, Chapter 36, do not apply to the
district.

         (d) The district may not sell or distribute surface water or
groundwater for any purpose.

         (e) This chapter prevails over any other law in conflict or
inconsistent with this chapter.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.  Amended by Acts 1995, 74th Leg., ch. 933, Secs. 4, 5, eff.
Sept. 1, 1995.
            SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
                                
               Sec. 151.031.  Board of Directors.
                                
(a) The district is governed by a board of directors composed of
      19 members who serve for two-year, staggered terms.
                                
                   (b) The board consists of:
                                
(1) six members from the city in the district having the largest
 population of any city in the district, to be appointed by the
mayor of that city, one of these members to be a representative
                          of industry;
                                
  (2) one member from the city in the district having the next
largest population of any city in the district, to be appointed
                   by the mayor of that city;
                                
(3) two members from all incorporated cities in Galveston County,
            appointed by the mayors of those cities;
                                
(4) one member from the city of Baytown, appointed by the mayor
                         of that city;
                                
(5) three members appointed by the commissioners court of Harris
 County, one to be a representative of agriculture, one to be a
 representative of industry, and one to be a representative of
municipal utility districts, provided that none of these members
  is a resident of the city in the district having the largest
 population, and provided that the representative of municipal
utility districts is a resident of a municipal utility district
                        in the district;
                                
   (6) three members appointed by the commissioners court of
Galveston County, one to be a representative of municipal utility
districts, provided that the representative of municipal utility
 districts is a resident of a municipal utility district in the
                           district;
                                
 (7) one member from Harris County chosen by the mayors of the
  cities of Deer Park, Galena Park, La Porte, Nassau Bay, and
    Seabrook and the president of the Clear Lake City Water
                           Authority;
                                
 (8) one member from Harris County chosen by the mayors of the
cities of West University Place, Southside Place, Bellaire, and
                       Jacinto City; and
                                
 (9) one member from Harris County chosen by the mayors of the
 cities of Humble, Piney Point Village, Hedwig Village, Bunker
 Hill Village, Hunters Creek Village, Hilshire Village, and the
                   village of Spring Valley.
                                
(c) A member of the board must be a resident of and a qualified
                     voter in the district.
                                
Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.  Amended by Acts 1995, 74th Leg., ch. 964, Sec. 1, eff.
Aug. 28, 1995.

Sec. 151.032.  Officers.

         (a) Each year at the first meeting after the new directors take
office, the members shall select one of their number to serve as
chairman, one to serve as vice-chairman, and one to serve as
secretary.

         (b) The chairman shall preside over meetings of the board, and
in the chairman's absence the vice-chairman shall preside.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.033.  Vacancies.

         If a vacancy occurs on the board, a person representing the
same area from which the person who vacates the position is
appointed shall be chosen by the person or persons designated in
Section 151.031(b) to serve the unexpired term.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.034.  Meetings.

         The board shall meet for a regular meeting once each month at a
time set by the board and may hold special meetings at the call
of the chairman or on the written request of at least three
members of the board.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.035.  General Manager.

         (a) The board shall employ a general manager as the chief
administrative officer of the district.  The board may delegate
to the general manager full authority to manage and operate the
affairs of the district subject only to orders of the board.

         (b) The duties of the general manager include:

                       (1) administering the orders of the board;

                       (2) coordination with state, federal, and local agencies;

                       (3) overseeing development of district plans and programs;
         and

                       (4) other duties assigned by the board.

         (c) The board shall determine the terms of office and
employment and the compensation to be paid the general manager,
and the general manager may be discharged by a majority vote of
the board.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.036.  Employees; Bond.

         (a) The general manager shall employ all persons necessary for
the proper handling of the business and operation of the district
and may employ attorneys, bookkeepers, engineers, and other
expert and specialized personnel considered necessary.  The
general manager shall determine compensation to be paid by the
district.

         (b) The general manager may discharge employees of the
district.

         (c) The board shall require an employee who collects, pays, or
handles funds of the district to furnish good and sufficient
bond, payable to the district, for a sufficient amount to
safeguard the district.  The bond shall be conditioned on the
faithful performance of the employee's duties and on accounting
for all funds and property of the district in the employee's
hands.  The district shall pay for the bond.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.037.  Suits.

         (a) The district may sue and be sued in the courts of this
state in the name of the district by and through the board.

         (b) The attorney general shall defend the district in suits
brought against the district in all district and appellate courts
of this state and in the courts of the United States.

         (c) All courts shall take judicial notice of the creation of
the district and of its boundaries.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.038.  Access to Property.

         (a) To carry out technical and other investigations necessary
to the implementation of this chapter, the board and its agents
and employees are entitled to access to all property within the
district.

         (b) Before entering property for the purposes of this section,
the person seeking access shall give notice to the owner of the
property as provided by district rules and shall present proper
credentials.

         (c) The board and its agents and employees who enter private
property shall observe the establishment's rules concerning
safety, internal security, and fire protection.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.
                SUBCHAPTER C.  POWERS AND DUTIES
                                
                     Sec. 151.071.  Rules.
                                
(a) After notice and hearing, the board shall adopt and enforce
 rules designed to expeditiously and effectively implement this
 chapter and accomplish its purposes, including rules governing
                  procedure before the board.
                                
 (b) The board shall compile its rules in a book and make them
  available for use and inspection at the district's principal
                            office.
                                
Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.072.  Hearings.

         (a) Board hearings shall be conducted as provided by this
section.  Hearings are governed by Chapter 551, Government Code. 
Except as provided by this section, notice of hearings shall be
provided according to that law.

         (b) At a regular meeting of the board, the board shall set the
dates, times, and locations for any hearings to be held under
this chapter and shall direct the general manager of the district
to give notice.

         (c) Written notice of a hearing shall be given to each county
and municipal government in the district and to each person that
the board believes has an interest in the subject matter to be
dealt with at the hearing.

         (d) Notice of a hearing shall be published at least once in a
newspaper of general circulation in each county in the district.

         (e) A copy of the notice shall be posted at the county
courthouse of each county in the district in the place where
notices are usually posted.

         (f) A person who desires to appear at a hearing and present
testimony, evidence, exhibits, or other information may do so in
person, by counsel, or both.

         (g) The board may hold hearings at any location in the
district.

         (h) The board may recess a hearing from day to day.

         (i) The board may use hearing examiners to hear any subject set
for the hearing so long as the decision on that subject is the
decision of the board.  Procedures for use of hearing examiners
shall be provided by rule.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.  Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(82),
eff. Sept. 1, 1995.

Sec. 151.073.  Compelling Testimony, Swearing Witnesses, and Subpoenas.

         (a) The board may compel the testimony of any person necessary
to carry out its powers, duties, and functions under this chapter
and may administer oaths to persons compelled to testify before
the board or any person designated by the board.

         (b) The board may issue subpoenas to compel the testimony of
any person and the production of any document necessary to carry
out the powers, duties, and functions under this chapter.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.074.  District Plan.

         (a) The board shall formulate a plan to control and prevent
subsidence in the district.  The plan shall accomplish that
purpose by reducing groundwater withdrawals to amounts that will
restore and maintain sufficient artesian pressure to control and
prevent subsidence.

         (b) The plan shall specify in as much detail as practicable the
acts, procedures, performance, and avoidance that are necessary
to carry out the purposes of this chapter.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.075.  Planning Procedures.

         (a) Included in the information to be gathered for formulation
of the plan shall be:

                       (1) a list of all wells in the district that are subject to
         regulation under this chapter;

                       (2) an accurate estimate of groundwater production from all
         wells or proposed wells in the district;

                       (3) an accurate estimate of the amount of groundwater that
         may be produced from each area in the district without causing
         reduction of artesian pressure that will lead to subsidence in
         the district;

                       (4) an accurate estimate of the current and future water
         needs in the district;

                       (5) a list of all available sources of water, other than
         groundwater, in the area of the district;

                       (6) the purposes for which the water is currently used and
         for which it is proposed to be used in the future;

                       (7) information relating to formulation of a permit system;
         and

                       (8) other necessary information and material to carry out
         the management of groundwater in the district and to
         effectively and expeditiously accomplish the purposes of this
         chapter.

         (b) Before the plan is adopted, the board shall hold a hearing
to consider the proposed plan.

         (c) After the hearing, the board shall make any changes it
considers necessary according to evidence and material presented
at the hearing and shall adopt the plan.

         (d) The plan adopted under this section may be amended or
repealed and a new plan adopted as provided in this section for
the adoption of the original plan.  A plan, once adopted, remains
in effect until the adoption of a new plan.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.076.  Board Investigations.

         At least once each year and at any other time that the board
considers necessary, the board shall have its staff and the staff
of the Texas Water Development Board, if necessary, make a
complete study of the groundwater situation in the district and
determine the water level, rates of withdrawal, amounts of
withdrawal, and other information relating to the withdrawal of
groundwater that may effect the subsidence of land in the
district.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.077.  Annual Groundwater-Withdrawal Determination.

         (a) On or before March 31 of each year, the board shall hold a
hearing to determine the effects of groundwater withdrawal during
the preceding groundwater-withdrawal year on the subsidence of
land within the district.

         (b) At the hearing, the board shall consider information
developed under Sections 151.127 and 151.076 of this code in
addition to information represented by persons appearing before
the board.

         (c) After the hearing, the board shall consider all information
presented to it, shall make determinations of groundwater
withdrawal in the district during the immediately preceding
groundwater-withdrawal year, and shall make findings of the
effects of groundwater withdrawal during that
groundwater-withdrawal year on the subsidence of land in the
district.  Those findings and determinations shall be included in
a report adopted by the board and shall be made available for
examination by any interested persons.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.078.  Regulation of Spacing and Production.

         (a) To minimize as far as practicable the drawdown of the water
table and the reduction of artesian pressure and to control and
prevent subsidence, the board may provide for the spacing of
wells and may regulate the production of groundwater from the
wells, taking into consideration, among other relevant factors,
the economic impact on well owners and the resulting effect on
subsidence.

         (b) Before issuing an order or rule under this section, the
board shall set a hearing on the proposed order or rule and shall
issue notice of the hearing.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.079.  Water Conservation Measures.

         The board may adopt rules requiring the use of water
conservation measures as a means to reduce groundwater
withdrawals.  The district may also cooperate with the commission
and any local government to establish water conservation goals,
guidelines, and plans to be used within the district.  The
district may contract with any local government in the district
to provide services necessary to meet water conservation
requirements established by the commission.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.080.  Requiring Water-Metering Devices.

         The board may require water-metering devices to be placed on
wells.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.081.  Monitoring and Supervision by District.

         The district may use subsidence compaction monitors,
water-level observation wells, and other materials and equipment
to determine the amount of groundwater that may be produced while
at the same time allowing the rebound and stabilization of
groundwater to a level that will halt subsidence.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.082.  Research and Studies.

         The district may conduct any studies and research that the
board considers necessary to implement this chapter.  The
district may use the services of geologists, hydrologists,
registered professional engineers, or other expert personnel to
accomplish the purposes of this section.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.083.  Cooperation With and Assistance of Other Governmental
Entities; Grants.

         (a) The board may cooperate with and request the assistance of
local governments and any agency of the state or of the United
States in implementing this chapter.

         (b) The district may make or accept grants, gratuities,
advances, or loans in any form to or from any public source
approved by the board, including any governmental entity, and may
enter into contracts, agreements, and covenants that the board
considers appropriate in connection with grants, gratuities,
advances, or loans.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.084.  Exclusions.

         (a) The regulatory provisions of this chapter do not apply to:

                       (1) wells regulated under Chapter 27 of this code;

                       (2) other wells as provided in the rules of the district;
         and

                       (3) wells with a casing diameter of less than five inches
         that serve a single-family dwelling.

         (b) The board by rule may require the registration of any well
in the district.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.
                     SUBCHAPTER D.  PERMITS
                                
               Sec. 151.121.  Permit Requirement.
                                
Before a well may be drilled or operated within the boundaries of
  the district the owner or operator of the well must obtain a
                     permit from the board.
                                
Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993

Sec. 151.122.  Term of Permit.

         (a) A permit issued under this chapter may be for a term of up
to five years as set by the board.

         (b) A permit does not become a vested right in the holder.  A
permit may be revoked or suspended or its terms may be modified
or amended after notice and hearing whenever reasonably necessary
to accomplish the purposes of this chapter.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.123.  Renewal of Permit.

         A permit for a well may be renewed by the board in the manner
provided for obtaining the original permit.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.124.  Application for Permit.

         (a) A person who desires to obtain a permit under this chapter
shall submit to the board an application.

         (b) The application must state:

                       (1) the name of the person requesting the permit;

                       (2) the address of the person requesting the permit;

                       (3) the location and wellhead elevation of the well or
         proposed well;

                       (4) the amount of water being produced or proposed to be
         produced; and

                       (5) any other information necessary for the board to control
         and prevent subsidence in the district.

         (c) The application shall be accompanied by a reasonable
application fee to be used for processing the application, the
amount of which shall be set by the board.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.125.  Notice and Hearing on Permit.

         (a) On receiving an application for a permit, the board shall
issue notice and set a time for a hearing on the application.

         (b) Notice of the date, time, and location of the hearing shall
be given by the board to the applicant by certified mail, return
receipt requested, and in accordance with Chapter 551, Government
Code.

         (c) The board may consider as many applications for permits as
it thinks necessary at any one hearing.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.  Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(82),
eff. Sept. 1, 1995.

Sec. 151.126.  Decision and Issuance of a Permit.

         (a) Within a reasonable period after the hearing, but not later
than the 60th day after the date of the hearing, the board shall
decide whether or not to issue a permit and, if the decision is
to issue the permit, shall formulate the terms of the permit.

         (b) In deciding whether or not to issue a permit and in setting
the terms of the permit, the board shall consider, along with the
purpose of this chapter and all other relevant factors:

                       (1) the district plan;

                       (2) the quality, quantity, and availability of surface water
         at prices competitive with those charged by suppliers of
         surface water in the district;

                       (3) the economic impact on the applicant from grant or
         denial of the permit, or the terms prescribed by a permit, in
         relation to the effect on subsidence that would result; and

                       (4) the applicant's use of water conservation measures.

         (c) The board shall grant a permit to an applicant if the board
finds, on presentation of adequate proof, that there is no other
adequate and available substitute or supplemental source of
surface waters at prices competitive with those charged by
suppliers of surface water in the district and that compliance
with any provision of this chapter or any district rule will
result in an arbitrary taking of property or in the practical
closing and elimination of any lawful business, occupation, or
activity without sufficient corresponding benefit or advantage to
the people.

         (d) If the board decides to issue the permit, the permit shall
be issued to the applicant stating the terms prescribed by the
board.

         (e) The permit shall include:

                       (1) the name and address of the person to whom the permit is
         issued;

                       (2) the location of the well;

                       (3) the date the permit is to expire;

                       (4) conditions and restrictions placed on the withdrawal of
         groundwater; and

                       (5) other terms and conditions necessary to control and
         prevent subsidence.

         (f) The board may not require a city with a population of less
than 100,000 to reduce its groundwater withdrawal by more than 50
percent in any three-year period if the city or its residents
would face a hardship by that reduction.  The board shall
determine in public hearing whether or not the reduction would
constitute a hardship to the city or its residents.  In this
subsection, "hardship" means any reduction in groundwater
withdrawal that would:

                       (1) cause the city to have an inadequate supply of water for
         its residents; or

                       (2) cause an increase of 50 percent or more in water rates
         for the city or its residents.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.127.  Annual Reports.

         Before January 31 of each year, each owner of a well who holds
a permit under this chapter shall submit to the board a report
stating:

                       (1) the name of the owner of the well;

                       (2) the total amount of groundwater produced by the well
         during the immediately preceding 12-month period;

                       (3) the total amount of groundwater produced by the well
         during each separate month of the immediately preceding
         12-month period;

                       (4) the purpose for which the groundwater was used; and

                       (5) any other information considered necessary by the board.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.128.  Permit Fee.

         (a) At the time of issuance or renewal of a permit, the board
shall collect from the applicant a permit fee, established by a
schedule based on the term of the permit and the maximum annual
amount of groundwater authorized by the board to be withdrawn
from the well.

         (b) The rate of the fee to be collected by the board under this
section shall be determined by the board after a hearing.  The
rate of the fee may not exceed 110 percent of the highest rate
charged by the city of Houston for surface water supplied to its
customers in the district.

         (c) The rate of the permit fee applicable to any well used for
the irrigation of agricultural crops shall be the lowest of:

                       (1) 70 percent of the lowest rate established under
         Subsection (b) of this section;

                       (2) 70 percent of one cent for each thousand gallons
         authorized to be withdrawn, provided that the board may adjust
         the one cent for each thousand gallons each year after 1992 to
         account for increases, if any, in the most recently published
         Consumer Price Index for All Urban Consumers (Houston, Texas,
         Average), as determined by the United States Department of
         Labor, Bureau of Labor Statistics, for All Items; or

                       (3) the rate established in accordance with Subsection (d)
         of this section.

         (d) Using information prepared by the United States Geological
Survey, which shall be presumed correct, the board, at a hearing
held in accordance with Section 151.072 of this code, shall
calculate and determine the difference between water wells pumped
for irrigation of agricultural crops and water wells pumped for
other purposes in terms of their relative contribution to
subsidence, expressed as a percentage.  The rate of the fee for
wells used for irrigation of agricultural crops shall be
sufficient for the total of those fees to contribute to the fee
revenue of the district the same percentage as the agricultural
use contributes to subsidence.

         (e) The funds obtained from the permit fees collected under
this section shall be used to cover the costs of the board in
issuing permits and performing other regulatory functions of the
district.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.129.  Limitations on Conversion to Surface Water.

         (a) The board may not issue an order requiring a person to
completely or partially discontinue the use of groundwater unless
the person is able to acquire a water supply that is composed of
surface water needed to replace the water supply covered by the
order.  This section does not limit the board's authority to
issue orders and rules requiring a person to reduce groundwater
use by eliminating waste or implementing water conservation.

         (b) If the person covered by an order under this section
acquires an alternative water supply to fulfill the needs created
by the board's order under this section and files with the
commission a written request for monitoring of the alternative
supply, the commission shall monitor annually from the date of
request to the expiration of the annual permit the water
delivered to the person covered by the order to determine the
percentage of that water that is surface water and the percentage
of that water that is groundwater.

         (c) The water deliveries must be monitored at random times at
all points of connection between the purchaser's and seller's
water systems.  Samples taken through monitoring must be analyzed
by water chemists employed by or contracting with the commission. 
The water chemist making each analysis shall issue a certified
written analysis of the percentages of surface water and
groundwater included in the sample.

         (d) Not later than the 15th day after the last day of each
permit year, the commission shall issue an annual certified
written analysis based on all of the samples collected that will
state the annual average percentage of surface water and the
annual average percentage of groundwater provided to the
purchaser by the seller for that permit year.  In addition to the
percentage of groundwater authorized to be used by the board's
order, the person may use in the current permit year an
additional percentage of groundwater that is equal to a
percentage derived by multiplying the annual average percentage
of groundwater delivered to that person during the preceding
permit year by the total percentage of alternative water supply
mandated by the board's order for the current year.

         (e) The commission shall assess reasonable fees to cover the
costs of the water sampling and analysis, one-half to the water
purchaser and one-half to the water seller.  On request, the
commission shall make results of the analysis available to the
purchaser, the seller, or the board.

         (f) In this section, "alternative water supply" means a water
supply that it is necessary for the person to acquire from
sources other than the person's own groundwater supply to comply
with the board's order.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.
               SUBCHAPTER E.  APPEALS; PENALTIES
                                
         Sec. 151.161.  Appeal of Surface Water Rates.
                                
If a person required to convert to surface water purchases that
water supply wholesale from a political subdivision as defined by
    Section 12.013(b) of this code, the rates charged by the
  political subdivision to that person may be appealed to the
commission under Chapter 12 of this code, and the rules adopted
  under that chapter apply to appeals under this section.  The
commission shall convene the hearing on the appeal not later than
 the 180th day after the date on which the appeal is filed with
 the commission and shall render a final decision on the appeal
  not later than the 60th day following the date on which the
                         hearing ends.
                                
Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.

Sec. 151.162.  Appeal of District Actions.

         (a) A rule, order, or other official action of the district
under this chapter may be appealed to a district court in any
county in the district by a person who is adversely affected.  An
appeal under this section must be filed within 45 days after the
rule, order, or other official action appealed from is adopted or
taken.

         (b) On written request of a person residing in or owning real
property in the district, the board shall make written findings
and conclusions with respect to a rule, order, or other official
action of the district and provide certified copies of those
findings and conclusions to the requesting person not later than
the 35th day after the date on which the board received the
written request.

         (c) The review on appeal under this section is governed by the
substantial evidence rule as defined by Subchapter G, Chapter
2001, Government Code.

         (d) For purposes of this section, "a person who is adversely
affected" includes a person residing in or owning real property
in the district whose residence or real property is subsiding.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.  Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(75),
eff. Sept. 1, 1995.

Sec. 151.163.  Appeal of Certain District Actions to the Commission.

         (a) As an alternative to the appeal provided in Section 151.162
of this code, a person who is granted a permit authorizing
withdrawal of groundwater in an amount less than requested by
that person may appeal the board's final decision to the
commission.  The appeal shall be filed not later than the 60th
day after the date on which the board issues its final order.  A
person shall be informed in the notice of public hearing when an
order to convert to surface water is to be considered.

         (b) On written request of the person proposing to appeal an
order under this section, the board shall make written findings
and conclusions with respect to the order and shall provide
certified copies of the findings and conclusions to the
requesting person not later than the 35th day after the date on
which the board received the written request.

         (c) The effect of a board order is stayed until the decision of
the commission in an appeal under this section is final.

         (d) The review on appeal by the commission under this section
is governed by the substantial evidence rule as defined by
Subchapter G, Chapter 2001, Government Code.

         (e) The commission may adopt necessary rules to carry out this
section.

         (f) An appeal from a final decision of the commission is to a
district court in Travis County.  Any party to the proceedings
before the commission may appeal a decision of the district court
in the manner provided for other civil actions, but a party
appealing a decision of a district court is not required to
provide an appeal bond.

         (g) The review of a commission order on appeal shall be under
the substantial evidence rule.

         (h) Under this section, the commission may adopt and assess
reasonable and necessary fees adequate to recover the costs of
the commission in administering this section.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.  Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(75),
eff. Sept. 1, 1995.

Sec. 151.164.  Penalties.

         (a) If it appears that a person has violated or is violating or
threatening to violate this chapter, or any rule, permit, or
other order of the district issued or adopted under this chapter,
the district may file a civil suit in a district court in the
district for:

                       (1) injunctive relief to restrain the person from continuing
         the violation or threat of violation;

                       (2) the assessment and recovery of a civil penalty of not
         less than $50 nor more than $5,000 for each violation and for
         each day of violation; or

                       (3) both injunctive relief and civil penalties.

         (b) On application for injunctive relief and a finding that a
person is violating or threatening to violate a provision of this
chapter or a rule, permit, or other order of the district under
this chapter, the district court shall grant any injunctive
relief the facts may warrant.

         (c) At the request of the board, or the general manager if
authorized by the board, the attorney general shall institute and
conduct a suit in the name of the district for injunctive relief
or to recover a civil penalty or for both injunctive relief and
penalty as authorized by this section.

         (d) The district is not required to post bond or other security
with the court.

Added by Acts 1993, 73rd Leg., ch. 369, Sec. 1, eff. Sept. 1,
1993.
                  ACTS 1971, 62ND LEGISLATURE,
                           CHAPTER 58