HBA-EDN H.B. 3588 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3588
By: Cook
Natural Resources
5/1/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, groundwater that is withdrawn under a surface mining permit
issued by the Railroad Commission of Texas is exempt from regulation by a
groundwater conservation district or any  other regulations in place for
surface water.  The permit process does not take into account what the
water will be used for after it has been used for surface mining or the
impact such withdrawals will have on the aquifer.  As the use of this water
becomes a more attractive alternative to basin to basin transfers,
consideration should be given to the end use of this water in the permit
process.  House Bill 3588 modifies provisions regarding permit requirements
for the transfer of certain groundwater out of the basin of origin.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Natural Resource Conservation
Commission in SECTION 1 (Sections 11.556 and 11.557, Water Code) of this
bill.  

ANALYSIS

House Bill 3588 amends the Water Code to prohibit a person who withdraws
groundwater for surface mining purposes under a surface mining permit
issued by the Railroad Commission of Texas (RRC) from transporting out of
the basin of origin groundwater withdrawn under that permit for mining
purposes or in excess of amounts required for mining without first
obtaining a permit from  the Texas Natural Resource Conservation Commission
(TNRCC).  The bill sets forth provisions regarding what information must be
included in an application for such a permit and the distribution of a
summary of such information  (Secs. 11.552 and 11.553). 

H.B. 3588 sets forth provisions regarding public and contested case
hearings to be held on determination that a permit application is complete.
The bill requires TNRCC to consider the effects of the proposed transfer on
both the basin of origin and the receiving basin and sets forth conditions
under which the transfer may be approved (Secs. 11.554 and 11.555).   

TNRCC, by rule, shall require the holder of a permit to establish not fewer
than four monitoring wells designed to measure the level of the water table
in the vicinity of a well from which groundwater is being withdrawn and
transported and not fewer than four additional monitoring wells with
testing equipment designed to measure contamination of the groundwater
source.  The bill requires a permit holder to present a weekly report to
TNRCC that shows the level of the water table as measured at each well from
which groundwater is being withdrawn and transported and the degree of
purity of the groundwater source at each well.  Such reports are public
information.  The bill sets forth provisions regarding financial assurance
for interbasin transfers and compensation to property owners for damages
and provides that TNRCC shall require the holder of a permit to provide
financial assurance in a form and amount approved by TNRCC. TNRCC is
required by rule to provide guidelines for the form and amount of financial
assistance required, including guidelines for acceptable forms of insurance
or for the deposit of cash or acceptable bonds or securities (Secs. 11.556
and 11.557). 

 These provisions apply only to the transfer of groundwater that is
withdrawn under a surface mining permit issued by RRC (Sec. 11.551). 
      
EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.