Part 1.
GENERAL LAND OFFICE
Chapter 13.
LAND RESOURCES
Subchapter C. GROUNDWATER LEASING
31 TAC §13.30, §13.31
The General Land Office (GLO) proposes a new Subchapter C,
relating to Groundwater Leasing, in Title 31, Part 1, Chapter 13 of the Texas
Administrative Code. The proposed new subchapter C will contain rules governing
the procedures for the leasing of groundwater resources on state lands. These
rules are proposed in accordance with Tex. Nat. Res. Code §31.051 and §51.121.
The GLO proposes new subchapter C, §13.30, relating to the GLO's Statement
of Policy and §13.31, relating to Leasing Procedures. The proposed new
sections are intended to provide guidance for interested parties as it relates
to the GLO's policy and procedures regarding the exploration and development
of groundwater resources on state lands.
These rules govern actions of the GLO and the commissioner in the exploration
and leasing process as it relates to state groundwater resources. Section
13.30, relating to Statement of Policy, describes the policies of the GLO
regarding the development of State groundwater resources; requires the submission
of any proposed leases involving groundwater resources on permanent school
fund lands to the School Land Board for review; and requires notification
of any regional water planning group and/or groundwater conservation district
in which lands proposed for such leases are located. Section 13.31, relating
to Leasing Procedures, sets out the procedures for leasing groundwater resources
either by sealed bid or direct negotiation.
Trace Finley, Associate Deputy Commissioner for the Texas General Land
Office Policy and Government Affairs Division, has determined that for each
year of the first five years the amended sections as proposed are in effect
there will be no fiscal implications for the state or units of local government
as a result of enforcing or administering the amended sections as the amendments
relate solely to administrative functions of the GLO.
Mr. Finley has also determined that there will be no economic cost to persons
required to comply with these regulations, as these amendments add no additional
restrictions or requirements. The public will benefit from the proposed rule
amendments because the new sections will set out both the policy and procedures
for the exploration and development of groundwater resources on State Lands.
There will be no effect on small businesses, and a local employment impact
statement on these proposed regulations is not required, because the proposed
rule will not have any identifiable material adverse affect on any local economy
in the first five years it will be in effect.
Pursuant to Texas Government Code §2001.0225, a regulatory analysis
is not required for the proposed rulemaking as a "major environmental rule."
Under the Government Code, a "major environmental rule" is a rule the specific
intent of which is to protect the environment or reduce risks to human health
from environmental exposure and that may adversely affect, in a material way,
the economy, a sector of the economy, productivity, competition, jobs, the
environment, or the public health and safety of the state or a sector of the
state. The proposed rulemaking does not exceed a standard set by federal law,
does not exceed an express requirement of state law, does not exceed a requirement
of a delegation agreement or contract between the state and an agency or representative
of the federal government to implement a state or federal program.
The commissioner of the GLO has evaluated the proposed amendment to determine
whether Texas Government Code, Chapter 2007, is applicable, and whether a
detailed takings impact assessment is required. The commissioner has determined
the proposed rules do not affect private real property in a manner that requires
real property owners to be compensated as provided by the Fifth and Fourteenth
Amendments to the United States Constitution or Article I, Sections 17 and
19, of the Texas Constitution. Furthermore, the commissioner has determined
that the proposed rules will not affect any private real property in a manner
that restricts or limits the owner's right to the property that would otherwise
exist in the absence of the new rule being proposed.
Comments may be submitted to Ms. Deborah Cantu, Texas Register Liaison,
Texas General Land Office, Legal Services Division, P.O. Box 12873, Austin,
TX 78711-2873; facsimile number (512) 463-6311; email address deborah.cantu@glo.state.tx.us.
Comments must be received no later than 5:00 p.m., 30 (thirty) days after
the proposed amendments are published.
These amendments are proposed under Texas Natural Resources Code,
Chapter 31, including §31.051, which authorizes the commissioner to make
and enforce suitable rules consistent with the law and Texas Natural Resources
Code, Chapter 51, including §51.121 which authorizes the commissioner
to lease unsold public school land for any purpose the commissioner determines
is in the best interest of the state under terms and conditions set by the
commissioner.
§13.30.Statement of Policy.
(a)
This subchapter applies to applications to lease public
lands dedicated to the permanent school fund for the purpose of exploring
for or developing groundwater resources located on or under such lands.
(b)
The provisions of this subchapter are intended to assure
that the groundwater resources of permanent school fund lands are developed
and produced in a manner that maximizes their potential while recognizing
and taking into account the public interest, sound water use and conservation
practices, and impacts on existing uses.
(c)
Projects undertaken by a lessee to develop groundwater
resources on permanent school fund lands will be subject to applicable local,
state, and federal law as well as any administrative rules of groundwater
conservation district(s) in which the lands may be located. Such projects
may not export groundwater produced from state-owned land to a foreign country.
(d)
Lessees will be authorized to develop groundwater resources
on permanent school fund lands only when sufficient scientific data and technical
information is available for an informed determination that the groundwater
resource can be produced in a manner that will support an economically viable
market with a sustained yield that does not significantly affect current uses
of adjoining users of water from the same source in an adverse manner.
(e)
The commissioner shall submit proposed leases of permanent
school fund lands that include authorization for the commercial development
of groundwater resources to the School Land Board for review and comment prior
to final approval and execution of any such leases. Additionally, any regional
water planning group and/or groundwater conservation district in which lands
proposed for such leases are located shall be notified prior to final approval
and execution of any such leases.
§13.31.Leasing Procedures.
(a)
Permanent school fund lands may be leased for the exploration
or development of groundwater resources through either a sealed bid procedure
or through direct negotiation, at the discretion of the commissioner. Municipalities
and quasi-municipal providers of public water supplies may be given a priority
preference to lease permanent school fund lands for development of a municipal
or domestic water supply.
(b)
A party interested in leasing permanent school fund lands
for the exploration or development of groundwater resources may submit a lease
application. Alternatively, the commissioner or GLO staff may nominate a tract
or tracts for inclusion in a sealed bid lease sale. A tract proposed for lease
or nominated shall be described in sufficient detail that it can be identified
and evaluated by interested parties. The commissioner will determine the lease
procedure to be followed after considering interest in a tract and the best
interest of the State.
(1)
Contents of Application. A party interested in leasing
permanent school fund lands for the exploration or development of groundwater
resources shall submit an application to the GLO on forms approved by the
commissioner. An acceptable application shall include the following information:
(A)
Name, address, and phone number of the person or entity
submitting the application. For applicants other than natural persons, an
organizational charter or certificate and related documentation of its current
authority to conduct business in Texas and the name and official capacity
of an authorized representative or agent shall also be provided.
(B)
A description of the permanent school fund lands sought
to be leased.
(C)
A description of the purpose of the lease and the activities
to be undertaken or conducted on the leased premises.
(D)
A map on a scale adequate to show the location of the proposed
lease. State tract numbers and names of rivers, streams, and lakes shall be
shown where applicable. Location of project features should be depicted to
the extent such information is available.
(E)
A business plan that describes the various phases of a
groundwater development project, including exploration and analysis, regulatory
compliance, project budget and financing alternatives, marketing, development
and production, right of way acquisition, and transportation and delivery.
The plan should also detail the expertise available to evaluate scientific
data and information and to assure that the permitted uses can be conducted
in a manner consistent with sound engineering and management principles.
(F)
Such other financial and background information about the
proposed lessee, related entities, principals, or guarantors as may be requested
by the commissioner to evaluate the application, the creditworthiness and
experience of the applicant, or the potential viability of the proposed project.
(2)
Nomination procedures. The commissioner or GLO staff may
nominate a tract for lease. In the event the commissioner determines that
a bid sale is in the best interest of the State, the commissioner will set
the terms and conditions upon which such nominated tracts will be offered
for lease. These terms will be advertised and bids taken. The commissioner
may accept the best bid meeting the minimum requirement set by the commissioner
or by law, or the commissioner may reject any or all bids.
(c)
Leases under this chapter may include provisions for bonuses
upon execution, delay rentals, shut-in royalties, production royalties, advance
royalties, in-kind royalties, or include the State or the permanent school
fund as a participating interest in the development or exploration.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on January 13, 2006.
TRD-200600222
Trace Finley
Policy Director
General Land Office
Earliest possible date of adoption: February 26, 2006
For further information, please call: (512) 305-8598
Chapter 151.
OPERATIONS OF THE SCHOOL LAND BOARD
Part 4.
SCHOOL LAND BOARD