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of the water allotted by its certificate. In the several years
leading up to the valuation date, an average of 100,000 acre feet
per year were used for irrigation purposes. In each year, the
difference between the amount of water petitioner was entitled to
withdraw (168,000 acre feet) and the amount of water needed to
serve its irrigation customers (100,000 acre feet) was
approximately 68,000 acre feet. The 68,000 acre feet of extra
water flowed unused past petitioner’s diversion point and into
the Matagorda Bay every year.
2. Events Before the Valuation Date
A. Regulatory Climate
The TNRCC regulated the use, transfer, and management of
Texas water, and no transfer of water rights in Texas could occur
without the TNRCC’s approval. If a transfer would result in the
subject water being put to a different type of use than that
listed on its certificate, or the movement of the subject water
to a different area or basin, the seller was required to apply to
the TNRCC to amend its certificate to reflect the new use or
location. As of the valuation date, the TNRCC had broad
discretion to grant or deny amendments, and evaluated each
application based on six criteria: Availability of additional
requested water, environmental impacts, injury to existing
rights, beneficial use (including need), public welfare, and
water conservation. The TNRCC also conducted technical reviews
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Last modified: May 25, 2011