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Overview of Groundwater Regulation in Texas

Basic Oklahoma Water Law SeminarMoore-Norman Technology CenterSouth Penn Conference CenterJuly 28-29, 2008

presented byHunter Burkhalter

PartnerEnvironmental, Administrative and Public Law Department

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Hunter W. Hunter W. BurkhalterBurkhalterKEMP SMITH LLPKEMP SMITH LLP816 Congress, Suite 1150816 Congress, Suite 1150Austin, Texas 78701Austin, Texas 78701Home: (512) 899Home: (512) 899--1131 Mobile: (512) 9091131 Mobile: (512) 909--83608360hburkhalter@kempsmith.comhburkhalter@kempsmith.com

EDUCATIONEDUCATIONB.A. with Honors in Economics, University of Texas at Austin B.A. with Honors in Economics, University of Texas at Austin –– 19881988J.D., University of Texas at Austin J.D., University of Texas at Austin –– 19921992Admitted to the Texas Bar Admitted to the Texas Bar –– November 1992November 1992

EMPLOYMENTEMPLOYMENTKemp Smith LLP (September 1992 Kemp Smith LLP (September 1992 –– present)present)Partner in Kemp Smith’s Environmental, Administrative and PublicPartner in Kemp Smith’s Environmental, Administrative and Public Law Department. Law Department. Responsibilities include counseling and defending both public seResponsibilities include counseling and defending both public sector and private sector clients on ctor and private sector clients on a wide array of issues, including groundwater and surface water a wide array of issues, including groundwater and surface water regulation, solid waste, regulation, solid waste, permitting, open records and open meetings issues, governmentalpermitting, open records and open meetings issues, governmental contracting and procurement, contracting and procurement, legislative affairs, desalination, dam safety, utilization of relegislative affairs, desalination, dam safety, utilization of reclaimed water, Endangered Species claimed water, Endangered Species Act compliance and habitat conservation plan development, electiAct compliance and habitat conservation plan development, elections law, weather modification, ons law, weather modification, APA rulemaking, and state and federal hazardous substance regulaAPA rulemaking, and state and federal hazardous substance regulation.tion.

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THE RULE OF CAPTURETHE RULE OF CAPTUREPursuant to the rule of capture, a landowner:Pursuant to the rule of capture, a landowner:

need not obtain a permit or other permission to need not obtain a permit or other permission to drill and pump groundwater;drill and pump groundwater;may pump as much water as he can beneficially may pump as much water as he can beneficially use;use;may even pump so much water that it causes his may even pump so much water that it causes his neighbor’s wells to go dry;neighbor’s wells to go dry;may use or sell the water produced for use may use or sell the water produced for use anywhere feasible (transfers).anywhere feasible (transfers).Landowner “owns” the water beneath his land?Landowner “owns” the water beneath his land?

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GROUNDWATER GROUNDWATER CONSERVATION DISTRICTSCONSERVATION DISTRICTS

Tex. Water Code § 36.0015. Purpose:Tex. Water Code § 36.0015. Purpose:

“Groundwater conservation districts . . “Groundwater conservation districts . . . are the state’s preferred method . are the state’s preferred method of of groundwater management . . .”groundwater management . . .”

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Groundwater Districts are Groundwater Districts are empowered to:empowered to:

make and enforce rules to conserve, protect, make and enforce rules to conserve, protect, preserve and prevent the waste of preserve and prevent the waste of groundwater;groundwater;regulate the spacing of wells;regulate the spacing of wells;regulate the amount of production from regulate the amount of production from wells;wells;require permits for drilling, equipping or require permits for drilling, equipping or completing wells (certain wells are exempt); completing wells (certain wells are exempt); andandrequire permits for transferring (exporting) require permits for transferring (exporting) water out of the district.water out of the district.

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EAA Boundaries

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ESA LitigationESA LitigationSierra Club v. LujanSierra Club v. Lujan (1991)(1991)-- minimum minimum springflowsspringflows

Sierra Club v. GlickmanSierra Club v. Glickman (1995) (1995) –– USDA programsUSDA programs

Sierra Club v. BabbittSierra Club v. Babbitt (1996) (1996) –– fish hatcheryfish hatchery

Sierra Club v. San AntonioSierra Club v. San Antonio (1996) (1996) –– takings by pumperstakings by pumpers

Shields v. BabbittShields v. Babbitt (1998) (1998) –– Commerce Clause ESA challengeCommerce Clause ESA challenge

Center for Biological Diversity v. NortonCenter for Biological Diversity v. Norton (2003) (2003) –– critical habitatcritical habitat

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EAA Act Groundwater Rights

Pre-June 28, 1996 - Rule of Capture

Post-June 28, 1996 – Statutory-Based Permit System

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Major Objectives of the EAA ActTransition from the common law

Provide for regulation/management, incl. drought mgmt

Require groundwater rights to be “adjudicated”

Diversify water supplies; create a water market

Assign ESA compliance responsibility to the EAA

Result in a level of protection for surface water systems

Prohibit transfers (export) of Aquifer water

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EAA Act LitigationEAA Act Litigation

Medina Medina CtyCty UWCD v. UWCD v. BarshopBarshop (1995) (1995) –– facial challengefacial challenge

Wells v. EAAWells v. EAA (1997 ) (1997 ) -- APA rules challengeAPA rules challenge

Living Waters v. EAALiving Waters v. EAA (1998) (1998) -- APA rules challengeAPA rules challenge

Bragg v. EAABragg v. EAA (1998) (1998) –– property rights challengeproperty rights challenge

DorazioDorazio v. EAAv. EAA (1999) (1999) –– exempt well takings challengeexempt well takings challenge

Herrmann v. LindseyHerrmann v. Lindsey (1999) (1999) –– irrigation rights transferirrigation rights transfer

Chemical Lime v. EAAChemical Lime v. EAA (2002) (2002) –– late filer; takingslate filer; takings

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EAA Act LitigationEAA Act LitigationDay v. EAADay v. EAA (fed) (2003) (fed) (2003) –– kitchen sink; takingskitchen sink; takings

Day v. EAADay v. EAA (state) (2004) (state) (2004) –– kitchen sink; takingskitchen sink; takings

In re SCTWACIn re SCTWAC (TCEQ) (2004) (TCEQ) (2004) –– junior/senior rightsjunior/senior rights

Elm Creek Homeowners v. EAAElm Creek Homeowners v. EAA (2004) (2004) –– late filerlate filer

PeavyPeavy Ranch v. EAARanch v. EAA (2004) (2004) –– due process challengedue process challenge

777 Operating Co. v. EAA777 Operating Co. v. EAA (2005) (2005) –– no historical useno historical use

Sanchez v. BrownSanchez v. Brown (2005) (2005) –– transfertransfer

In re EAAIn re EAA (2006) (2006) –– standard of review on appealstandard of review on appeal

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Questions?

Basic Oklahoma Water Law SeminarMoore-Norman Technology CenterSouth Penn Conference CenterJuly 28-29, 2008

presented byHunter Burkhalter

PartnerEnvironmental, Administrative and Public Law Department