CHAPTER 1. USE OF STATE WATER - Texas Statutes

AUXILIARY WATER LAWS

CHAPTER 1. USE OF STATE WATER

Art. 7621f. SALE OR DISPOSAL OF SALT WATER FOR POLLUTION CONTROL.

Contracts for pollution control; terms

Section 1. Any water power control district heretofore organized

or hereafter organized is authorized to enter into contracts with

any person, firm or corporation or one or more of either, for the

sale or disposal of salt water. Provided, no such contract shall

be entered into unless it is determined by the Board of Directors

of such District that such contract is needed for the purpose of

pollution control and unless any such contract in the opinion of

such Board of Directors is reasonably calculated to achieve such

purpose. If it is determined by the Board of Directors of any

such District that in order to effect the sale or disposal of

salt water that it is necessary to guarantee a constant flow of

water under any such contract, then fresh water may be included,

but only to the extent it is necessary in order to achieve

pollution control through disposing of salt water. Such contracts

may be for a period of time and on such terms as may be deemed

necessary by any such Board of Directors.

Revenue bonds; purposes; sale; form, conditions and details

Sec. 2. Any water power control district is authorized to issue

revenue bonds, without an election, for the purpose of the

construction and acquisition of pipe lines, pumps and all

facilities necessary for the sale or disposal of salt water for

pollution control. Any such bonds shall be authorized by such

Board of Directors, from time to time, and in such amounts as it

shall consider necessary. All such bonds shall be fully

negotiable and may be made redeemable before maturity, at the

option of the Board of Directors of any such District, at such

price or prices and under such terms and conditions as may be

fixed by such Board of Directors prior to the issuance of such

bonds. Such Board of Directors may sell such bonds in such

manner, either at public or at private sale, and for such price

as it may determine to be for the best interest of the District,

but no such sale shall be made at a price so low as to require

the payment of interest on the money received therefor at more

than six (6%) per cent per annum, computed with relation to the

absolute maturity of the bonds in accordance with standard tables

of bond values, excluding however, from such computation the

amount of any premium to be paid on redemption of any bonds prior

to maturity. Subject to the restrictions contained in this Act

each such Board of Directors is given complete discretion in

fixing the form, conditions and details of such bonds, and such

bonds may be refunded or otherwise refinanced whenever said Board

of Directors deems such action to be appropriate or necessary.

Any such bonds may be secured by a pledge of the revenues to be

received by the District from one or more contracts entered into

between the District and any person, firm or corporation, in the

manner and to the extent provided in the order of the Board of

Directors authorizing such bonds. Any such bonds shall be special

obligations of the District issuing same, payable solely from the

revenues pledged to their payment. Any such bonds shall contain

the following statement:

"The holder hereof shall never have the right to demand payment

hereof from funds raised or to be raised by taxation."

Contracts with non-profit corporations; acceptance of works or

facilities

Sec. 3. If any water power control district enters into a

contract with a non-profit corporation whereby such non-profit

corporation obligates itself to provide works or facilities to

accomplish pollution control and issues its bonds to secure funds

to accomplish same, the District is hereby authorized to accept

all such works or facilities from such non-profit corporation at

the time and in the manner provided in the contract and in the

indenture securing such non-profit corporation's obligations.

Bond issues involving federal funds; approval

Sec. 3-a. Approval must be acquired from the Texas Water

Commission pursuant to Article 7880-139, Vernon's Civil Statutes,

as amended, when issuing bonds involving Federal funds.

Examination, approval and registration of bonds

Sec. 4. Prior to delivery thereof, all bonds authorized to be

issued hereunder and the record relating to their issuance shall

be submitted to the Attorney General of Texas for examination;

and if he finds that they have been issued in accordance with the

Constitution and this Act, and that they will be binding special

obligations of the District authorizing their issuance, he shall

approve them, and thereupon they shall be registered by the

Comptroller of Public Accounts of the State of Texas, and after

such approval and registration they shall be incontestable.

Acts 1965, 59th Leg., p. 1509, ch. 655, eff. Aug. 30, 1965.