Texas Groundwater Lease

State:
Multi-State
Control #:
US-OG-1019
Format:
Word; 
Rich Text
Instant download

Description

This form may be used for a groundwater lease.
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FAQ

Wells may only be drilled and installed by licensed water well drillers and water well pump installers as provided by the Texas Department of Licensing and Regulation, as those rules and regulations exist and as they may be amended.

Surface water is publicly owned and governed by the State of Texas. Without a permit from the Texas Commission on Environmental Quality (TCEQ), landowners may only use surface water for domestic and livestock purposes.

In Texas, the landowner owns the groundwater, subject in many areas to rules created by Groundwater Conservation Districts. Landowners should determine whether they are in a GCD and, if so, review and understand the rules of that district.

In fact, municipal, industrial and irrigation permit holders must apply for a permit transfer any time groundwater rights are sold or leased. Permit holders are also required to notify the EAA of any other changes to a groundwater withdrawal permit through an amendment process.

Typically, Class A rights sell for $2,000 to $2,500 per acre. In the Valley, water rights are priced by the acre. An acre of water rights is equivalent to 2.5 acre-feet of water annually, or $800 to $1,000 per acre-foot of Class A water rights.

The value of the water right is determined based on the cost of its replacement with another source. The total cost of a project could include the costs associated with the development and implementation of conservation measures or the development of new infrastructure such as a dam or off-stream storage reservoir.

The State of Texas owns surface water, held in trust for the citizens. 11 The Texas Commission on Environmental Quality (TCEQ) manages it. In most cases, to use surface water, a landowner must obtain a permit from the TCEQ allowing them to use a designated amount of water for a designated purpose.

Groundwater in Texas is governed by the legal doctrine known as the Rule of Capture. The Rule of Capture essentially provides that because a landowner also owns the water beneath his property, the landowner has the right to pump as much water as he wishes even at the expense of his neighbor.

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Texas Groundwater Lease