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of hydrology, environmental factors, and water conservation. If
a change in use would cause harm to other in-basin users, the
requested amendment could be denied. A request for a transfer of
water to another basin, or an “interbasin transfer”, required
additional consideration of the benefits and detriments to each
basin. In addition, when an application was made, the TNRCC
would notify interested persons and give them an opportunity to
present evidence and be heard on the matter. If an interested
party objected to the TNRCC’s determination, it had the option of
filing suit in a district court of Travis County, Texas, for
review of the TNRCC’s determination. The district court’s
decision was appealable to the Texas Courts of Appeal and the
Texas Supreme Court. Around the valuation date, the TNRCC
generally granted or denied uncontested applications within 12 to
18 months of their filing. The amendment process for contested
applications generally took between 2 and 5 years at the TNRCC
level excluding any time spent in the Texas courts.
B. Corpus Christi Transaction
In 1992, petitioner granted the city of Corpus Christi an
option to purchase the right to a 35,000 acre-foot portion of
petitioner’s water right for $400 per acre foot. The agreement
was for 2 years and required Corpus Christi to pay petitioner
$20,000 per month to keep the option open. The monthly payments
would be credited to the purchase price if Corpus Christi
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Last modified: May 25, 2011