HBA-MSH, CBW H.B. 3587 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3587
By: Walker
Natural Resources
7/26/2001
Enrolled



BACKGROUND AND PURPOSE
 
Prior to the 77th Legislature, water wells that produce less than 25,000
gallons of water per day are exempt from the groundwater conservation
district (district) permitting process.  This broad exemption was
interfering with the ability of some districts to properly manage
groundwater resources.  House Bill 3587 reduces the scope of this
permitting process exemption to include only certain water wells capable of
producing less than 25,000 gallons of water per day. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3587 amends the Water Code to prohibit a groundwater
conservation district (district) from requiring any permit issued by the
district for the following: 

  _a well on a tract of land larger than 10 acres if the well is drilled,
completed, or equipped so that it is incapable of producing more than
25,000 gallons of groundwater a day and if the water produced or to be
produced from the well is used or to be used for domestic purposes or to
provide water for livestock or poultry; 

  _the drilling of a water well to supply water solely for a drilling rig
that is actively engaged in drilling or exploration operations permitted by
the Railroad Commission of Texas (commission) under certain conditions; 

  _the drilling of a well or to restrict the production of a well if the
water produced or to be produced is necessary or will be necessary for
mining purposes permitted by the commission under the Texas Surface Coal
Mining and Reclamation Act. 

The bill deletes language that prohibits a district from requiring a permit
for the drilling or alteration of the size of a well or that restricts the
production of a well if the water produced or to be produced from the well
is used or to be used to supply the domestic needs of 10 or fewer
households or for feeding livestock and poultry connected with farming,
ranching, or dairy enterprises. The bill deletes the provision prohibiting
a district from requiring a permit for water wells supplying water for
hydrocarbon production activities. The bill deletes language that requires
the Texas Water Development Board to adopt rules regarding facilities used
primarily for feeding livestock and deletes language that prohibits the
district from denying the owner or lessee of a tract of land that has no
well equipped to produce more than 25,000 gallons a day either a permit to
drill a well on the land or the privilege to produce groundwater from the
land, subject to the rules of the district. The bill prohibits a district
from restricting the production of certain wells that are incapable of
producing more than 25,000 gallons of groundwater a day. 

 The bill requires a person who is required to obtain a permit from the
commission under the Texas Surface Coal Mining and Reclamation Act to
report to the district on a monthly basis the total amount of water
withdrawn, the quantity necessary for mining purposes, and the quantity
withdrawn for other purposes. The bill prohibits a district from requiring
such a well to comply with the spacing requirements of the district. The
bill removes language that sets forth that nothing in the Act applies to
wells drilled for oil, gas, sulphur, uranium, or brine, or for core tests,
or for injection of gas, saltwater, or other fluid, or for any other
purpose. The bill deletes the provision that water wells drilled after
September 1, 1997, to supply water for hydrocarbon production activities
must meet the spacing requirements of the district unless no space is
available within 300 feet of the production well or the central injection
station. 

The bill prohibits the district from denying an application for a permit to
drill water well to supply water for carbon production activities if the
application is in compliance with the spacing, density, and production
rules applicable to all permitted water wells of the district. The bill
deletes the provision requiring exempted water wells to be equipped and
maintained so as to conform to the district's rules.  The bill modifies
provisions regarding the registration of exempt water wells and requires a
driller of an exempt well to file the well's drilling log with the
district.  The bill subjects groundwater withdrawn from a well exempt from
permitting or regulation and subsequently transported outside the
boundaries of the district to any applicable production and export fees.
The bill provides that provisions relating to groundwater conservation
districts, including water wells used to supply water for activities
related to the exploration or production of hydrocarbons or minerals, but
do not apply to production or injection wells drilled for oil, gas,
sulphur, uranium, or brine, or for core tests, or for injection of gas,
saltwater, or other fluids, under permits issued by the Railroad Commission
of Texas. 

EFFECTIVE DATE

September 1, 2001.