Garwood Irrigation Company - Page 12

                                       - 12 -                                         
          petitioner’s water right.  At the beginning of 1997, it opposed             
          any transfer of petitioner’s water outside the Colorado River               
          Basin, including the proposed sale to Corpus Christi.                       
          3.   Events After the Valuation Date                                        
               A.   The 1997 Legislative Session                                      
               During the 1997 Texas legislative session, legislators and             
          interest groups with opposing interests rewrote the laws                    
          regulating water planning and usage in Texas.  The result of this           
          collaboration was Senate Bill 1 (SB1).  SB1 included an amendment           
          known as the Junior Water Rights Provision.  Under the amendment,           
          the water rights involved in any interbasin transfer approved               
          under the new law would lose their priority date and be assigned            
          the date of the transfer as a new priority date.  SB1 became                
          effective September 1, 1997.  All interbasin transfers for which            
          applications were made before March 1, 1997, including                      
          petitioner’s application for an interbasin transfer to Corpus               
          Christi, were exempted from the amendment.                                  
               A loss of priority date would be significant to petitioner             
          because of the nature of its water right.  Petitioner’s water               
          right was a run-of-the-river right.  A run-of-the-river right               
          entitles the holder to divert water only if the flow is available           
          on the day the holder needs to use it, and compels upstream                 
          holders of water rights with junior priority dates to allow                 
          available water to flow past them, without diverting or storing             

Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011