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Providing for the cancellation in whole or in part of certificates of adjudication by the Texas Water Rights Commission in the same manner as permits and certified filing; providing for the definition of "certificate of adjudication"; providing for the general principle of cancellation of certificates of adjudication, the initiation of proceedings, notice, and hearing thereof; providing for certain findings to be made by the commission and action to be taken; allowing a holder of a permit, certified filing, or certificate of adjudication to retain a reservoir for domestic, livestock, and recreational purposes to the extent that he has conservation storage; exempting those certified filings held by cities to the extent that such filing allows diversion for municipal purposes; declaring that the failure to initiate proceedings to cancel shall not validate or enhance a certified filing, permit, or certificate of adjudication and requiring a five-year lapse between cancellation proceedings against a particular water right; repealing all conflicting laws and providing a savings clause.