CHAPTER 8502. BRAZOS RIVER AUTHORITY

TEXAS STATUTES AND CODES

CHAPTER 8502. BRAZOS RIVER AUTHORITY

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE G. RIVER AUTHORITIES

CHAPTER 8502. BRAZOS RIVER AUTHORITY

Sec. 8502.001. CREATION. (a) A conservation and reclamation

district to be known as the "Brazos River Authority" is created.

The authority is a river authority, a governmental agency, a

municipality, and a body politic and corporate.

(b) The authority is created under and is essential to

accomplish the purposes of Section 59, Article XVI, Texas

Constitution.

Section 59, Article XVI, Texas Constitution, to districts created

to conserve, control, and utilize to beneficial service the storm

waters and floodwaters of the rivers and streams of the state, as

well as those powers that may be contemplated and implied by the

purposes of that provision of the constitution and that are

conferred by general law and the provisions of this chapter. In

addition, the authority may discover, develop, and produce

groundwater in the Brazos River basin for the use of its

customers.

(d) The authority may exercise all the rights and powers of an

independent governmental agency, a municipality, and a body

politic and corporate to formulate plans deemed essential to its

operation and for its administration in the control, storing,

preservation, and distribution for all useful purposes of the

storm waters and floodwaters of the Brazos River and its

tributary streams.

(e) The authority may exercise the same authority and power of

control and regulation over the storm waters and floodwaters of

the Brazos River and its tributaries as may be exercised by the

state, subject to the provisions of the constitution and the acts

of the legislature.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.001 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.002. DEFINITIONS. In this chapter:

(1) "Authority" means the Brazos River Authority.

(2) "Board" means the board of directors of the authority.

(3) "Director" means a member of the board.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.002 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.003. TERRITORY. The territory of the authority

comprises the watershed of the Brazos River, as determined by

rule of the Texas Water Development Board, except the portions

lying within Freestone, Leon, and Madison counties.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.003 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.004. POWERS. (a) The authority may exercise, in

addition to all the general powers vested by the constitution and

statutes in a governmental agency and body politic and corporate

for the greatest practicable measure of conservation and

beneficial utilization of storm waters, floodwaters, and

unappropriated flow waters, the powers of control and employment

of the floodwaters, storm waters, unappropriated flow waters, and

groundwater of the authority in the manner and for the purposes

provided by this section.

(b) The authority may provide, through all practical and legal

means, for the control and the coordination of the regulation of

the waters of the watershed of the Brazos River and its tributary

streams as a unit.

administration, for the preservation of the equitable rights of

the people of the different sections of the watershed area in the

beneficial use of storm waters, floodwaters, and unappropriated

flow waters of the Brazos River and its tributary streams.

(d) The authority may provide for storing, controlling, and

conserving storm waters, floodwaters, and unappropriated flow

waters of the Brazos River and its tributaries, preventing the

escape of those waters without the maximum of public service,

preventing the devastation of lands by recurrent overflows, and

protecting life and property in the watershed area from

uncontrolled floodwaters.

(e) The authority may provide for the conservation of waters

essential for the domestic uses of the people of the watershed of

the Brazos River and its tributaries, including all necessary

water supplies for municipalities.

(f) The authority may provide for the irrigation of lands in the

watershed of the Brazos River and its tributary streams where

irrigation is required for agricultural purposes, or may be

considered helpful to more profitable agricultural production,

and provide for the equitable distribution of storm waters,

floodwaters, and unappropriated flow waters to the regional

potential requirements for all uses. Plans and works provided by

the authority, and works provided under the authorization of the

authority, should give primary consideration to the necessary and

potential needs for water by or within the areas constituting the

watershed of the Brazos River and its tributary streams.

(g) The authority may provide for the better encouragement and

development of drainage systems and provisions for drainage of

lands in the valleys of the Brazos River and its tributary

streams needing drainage for profitable agricultural production

and drainage for other lands in the watershed area of the

authority requiring drainage for the most advantageous use.

(h) The authority may provide for the conservation of all soils

against destructive erosion and for the prevention of increased

flood danger caused by destructive soil erosion.

(i) The authority may provide for controlling and making

available for employment floodwaters, storm waters, and

unappropriated flow waters in the development of commercial and

industrial enterprises in all sections of the watershed area of

the authority.

(j) The authority may provide for the control, storage, and

employment of floodwaters, storm waters, and unappropriated flow

waters in the development and distribution of hydroelectric

power, where this use may be economically coordinated with other

and superior uses and subordinated to the uses declared by law to

be superior.

(k) The authority may provide for each purpose for which

floodwaters, storm waters, and unappropriated flow waters, when

controlled and conserved, may be used in the performance of a

useful service as contemplated and authorized by the provisions

of the constitution and the public policy it declares.

(l) The authority may provide for the development of groundwater

and may make groundwater available for use for domestic,

municipal, irrigation, commercial, and industrial purposes.

(m) This chapter does not confer on the authority any power

under Chapter 36, Water Code, to regulate the groundwater of

other landowners.

(n) When producing groundwater, the authority is subject to all

laws, regulations, and rules relating to groundwater, including

the rules of a groundwater conservation district and the Central

Carrizo-Wilcox Coordinating Council.

(o) The authority may not transport or assist in the transport

of groundwater pumped in the basin outside the Brazos River

basin.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.004 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 13.006(c), eff. September 1, 2007.

Sec. 8502.005. LIMITATION OF AUTHORITY; STATE SUPERVISION. The

powers and duties granted to the authority by this chapter are

subject to all legislative declarations of public policy in the

maximum utilization of the storm waters, floodwaters, and

unappropriated flow waters of the Brazos River watershed and

developed groundwater of the Brazos River basin for the purposes

for which the authority is created, as expressed and indicated in

this chapter, and subject to the continuing rights of supervision

by the state.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.005 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.006. DAMS AND RESERVOIRS; WATER SUPPLY CONTRACTS. (a)

The authority may construct, acquire, equip, acquire storage

rights at, and operate dams and reservoirs that, in the opinion

of the board, are useful in carrying out the powers conferred on

the authority by this chapter, regardless of whether a dam is

designed to serve a single purpose or multiple purposes.

(b) The authority may provide water supply lines and water

purification and pumping facilities.

the state substantially in the manner prescribed by Section

552.020, Local Government Code, for districts organized or

created under Section 59, Article XVI, Texas Constitution, and

may execute water supply contracts with other users of water.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.77(33), eff. April 1, 2009.

Renumbered from Water Code, Section 221.006 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.007. PRIORITY OF RIGHTS. This chapter does not change

any existing priority of right under the laws of this state to

the use of waters of this state, including any rights of

municipalities that maintain and use storage structures in the

bed of the Brazos River or its tributaries.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.007 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.008. BOND PROVISIONS. (a) Bonds may be:

(1) sold for cash, at public or private sale, and at the price

the board determines;

(2) issued on the terms the board determines in exchange for

property of any kind, real, personal, or mixed, or any interest

in property, that the board determines necessary or convenient

for any corporate purpose; or

(3) issued to refund bonds issued at any time under authority of

this chapter.

(b) Bonds must be authorized by resolution of the board.

are part of the contract between the authority and the purchasers

and subsequent holders of the bonds:

(1) reserving the right to redeem the bonds at the time, in the

amount, and at the price provided;

(2) providing for the setting aside of sinking funds or reserve

funds and the regulation and disposition of those funds;

(3) pledging, to secure the payment of the principal of and

interest on the bonds and the sinking fund or reserve fund

payments agreed to be made with respect to the bonds, all or any

part of the gross or net revenues subsequently received by the

authority with respect to the property, real, personal, or mixed,

to be acquired or constructed with the bonds or with proceeds of

the bonds, or all or any part of the gross or net revenues

subsequently received by the authority from any source;

(4) prescribing the purposes to which the bonds or any bonds

later issued, or the proceeds of the bonds, may be applied;

(5) agreeing to set and collect rates and charges sufficient to

produce revenues that are adequate to pay the items specified in

any resolution or resolutions authorizing any bonds, and

prescribing the use and disposition of all revenues;

(6) prescribing limitations on the issuance of additional bonds

and on all agreements that may be made with the purchasers and

successive holders of the bonds;

(7) relating to the construction, extension, improvement,

operation, maintenance, depreciation, replacement, and repair of

the properties of the authority and the carrying of insurance on

all or any part of the property covering loss or damage or loss

of use and occupancy resulting from specified risks;

(8) establishing the procedure, if any, by which, if the

authority so desires, the terms of any contract with the

bondholders may be amended or abrogated, the amount of bonds the

holders of which must consent to such amendment or abrogation,

and the manner in which the consent is evidenced;

(9) providing for the execution and delivery by the authority to

a bank or trust company authorized by law to accept trusts, or to

the United States or any office or agency of the United States,

of indentures or agreements authorized to be made with or for the

benefit of the bondholders and any other provisions contained in

the indentures or agreements; and

(10) making other provisions, not inconsistent with this

chapter, that the board approves.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.008 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.009. BOARD OF DIRECTORS; BONDS; QUORUM; OFFICERS. (a)

The board consists of 21 members. Members of the board and their

successors serve staggered terms of six years and until their

successors are designated and have qualified. The terms of seven

members of the board expire on February 1 of each odd-numbered

year.

(b) The governor shall appoint the directors at large with the

advice and consent of the senate. Within 60 days after

appointment, each director shall take and subscribe an oath of

office similar to the oaths administered to county commissioners

and shall execute bond in the amount of $5,000, payable to the

authority. The premium on the bond shall be paid by the

authority. The bond, after being recorded in the official bond

records of the county in which the authority maintains its

office, shall be deposited with a depository selected and

approved for the deposit of the funds of the authority.

appointment of the governor with the advice and consent of the

senate.

(d) Eleven members of the board constitute a quorum to transact

business.

(e) The governor shall designate a director as the presiding

officer of the board to serve in that capacity at the pleasure of

the governor. The board shall elect from among its members an

assistant presiding officer and a secretary. The board shall

appoint a treasurer. The treasurer shall furnish a bond in an

amount equal to 75 percent of the amount of money estimated to be

on hand during the year, not to exceed $100,000.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.009 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.010. CREATION OF MASTER DISTRICT; WATER CONTROL AND

IMPROVEMENT DISTRICT. A master district is created having all

the powers, duties, and functions, and subject to applicable and

practicable procedures for those districts, to accomplish the

purposes of this chapter, as provided by Chapter 49, Water Code,

and the provisions of the Water Code applicable to water control

and improvement districts.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.010 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 13.006(d), eff. September 1, 2007.

Sec. 8502.011. BOND ELECTION REQUIRED. The authority may not

issue bonds or incur any form of continuing obligation or

indebtedness payable from ad valorem taxes for purposes of

effecting improvements comprehended in the plan of organization

and administration of the authority, or incur any indebtedness in

the form of a continuing charge on lands or other physical

properties within the authority, unless the proposition has been

submitted to the qualified voters of the authority, or in

appropriate cases the qualified voters of a defined area within

the authority, and is approved by a majority of the electors

voting on the proposition.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.011 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.012. ADDITIONAL POWERS AND DUTIES. (a) The authority

is a district and a river authority as defined by Chapter 30,

Water Code. All the provisions of Chapter 30, Water Code, are

applicable to the authority.

(b) As used in this section:

(1) "Person" means any individual, partnership, corporation,

public utility, or other private entity or any public agency.

(2) "Public agency" means an authority, district, municipality

or other political subdivision, joint board, or other public

agency created and operating under the laws of this state and any

entity created to operate or act on behalf of a public agency.

each other, in any manner and on terms to which the parties

agree, with respect to any power, function, facility, or service

that the authority is authorized by law to provide or finance.

Public agencies may use and pledge any available revenues for and

in the payment of amounts due under a contract as an additional

source of payment of the contract and may covenant with respect

to available revenues to assure the availability of the revenues

when required. In this subsection, "revenues" does not mean or

include revenues from ad valorem taxes levied and collected by a

public agency or the proceeds from the sale or refunding of bonds

of a public agency that are to be wholly or partially paid from

ad valorem taxes levied and collected by the public agency unless

the use or pledge of the tax revenues or bond proceeds is

approved by the qualified voters of the public agency at an

election called for the purpose of levying taxes or issuing or

refunding bonds, or both, for the purpose of using or pledging

their revenues or proceeds under contracts entered into under

this subsection.

(d) A public agency may set, charge, and collect fees, rates,

charges, rentals, and other amounts for a service or facility

provided by a utility operated by the public agency, or provided

under or in connection with a contract with the authority, from

the inhabitants of the authority or from any users or

beneficiaries of the utility, service, or facility, including:

(1) water charges;

(2) sewage charges;

(3) solid waste disposal system fees and charges, including

garbage collection or handling fees; and

(4) other fees or charges.

(e) A public agency may use and pledge the fees, rates, charges,

rentals, and other amounts authorized by Subsection (c) to make

payments to the authority required under a contract with the

authority and may covenant to do so in amounts sufficient to make

all or any part of the payments to the authority when due. If the

parties agree in the contract, the payments shall constitute an

expense of operation of any facility or utility operated by the

public agency.

(f) The authority, acting through the board, may carry out any

activities and acquire, purchase, construct, own, operate,

maintain, repair, improve, or extend and may lease or sell, on

terms and conditions, including rentals or sale prices, on which

the parties agree, all works, improvements, facilities, plants,

buildings, structures, equipment, and appliances, and all real

and personal property, or any interest in real or personal

property, related to the works, improvements, facilities, plants,

buildings, structures, equipment, and appliances, that are

incident to or necessary in carrying out or performing any power

or function of the authority under this section.

(g) The authority may issue bonds with respect to the

acquisition, purchase, construction, maintenance, repair,

improvement, and extension of works, improvements, facilities,

plants, buildings, structures, appliances, and property for the

purpose of exercising any of its powers and functions under this

section in the manner provided by this chapter or any other

applicable law.

(h) The authority may issue revenue bonds to pay for the costs

of feasibility studies for proposed projects of the authority,

including engineering, planning and design, and environmental

studies. The authority may include in any revenue bond issue the

funds to operate and maintain, for a period not to exceed two

years after completion, the facilities acquired or constructed

through the revenue bond issue.

(i) If bonds issued by the authority recite that they are

secured by a pledge of payments under a contract, a copy of the

contract and the proceedings relating to the contract may be

submitted to the attorney general along with the bonds. If the

attorney general finds that the bonds have been authorized and

the contract has been made and entered into in accordance with

law, the attorney general shall approve the bonds and the

contract, and after the approval, the bonds and the contract are

incontestable in any court or other forum for any reason and are

valid and binding in accordance with their terms and provisions

for all purposes.

(j) The provisions of Chapters 618, 1201, 1204, 1207, and 1371,

Government Code, are applicable to bonds issued by the authority.

(k) This section is wholly sufficient authority for the issuance

of bonds, the execution of contracts, and the performance of

other acts and procedures authorized by this section by the

authority and all persons, including public agencies, without

reference to any other provision of law or any restriction or

limitation contained in those provisions, except as specifically

provided by this section. To the extent of any conflict or

inconsistency between this section and any other law, including

any charter of a home-rule municipality, this section shall

prevail and control. The authority and all persons, including

public agencies, may use any law not in conflict with this

section to the extent convenient or necessary to carry out any

power or authority, expressed or implied, granted by this

section.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.012 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 13.006(e), eff. September 1, 2007.

Sec. 8502.013. DISPOSITION OF PROPERTY. (a) Nothing in this

chapter shall be construed as authorizing the authority, and it

is not authorized, to mortgage or otherwise encumber any of its

property of any kind, real, personal, or mixed, or any interest

in property, or to acquire any property or interest subject to a

mortgage or conditional sale; provided, however, that this

section shall not be construed as preventing the pledging of the

revenues of the authority as provided by this chapter.

(b) Nothing in this chapter shall be construed as authorizing

the sale, release, or other disposition of property of any kind,

real, personal, or mixed, or any interest in property, by the

authority or through any court proceedings or otherwise;

provided, however, that the authority may sell for cash any

property or interest if the board by affirmative vote of 11 of

its members determines that the property or interest is not

necessary to the business of the authority and approves the terms

of the sale. Except by sale as expressly authorized by this

section, authority property or interest may not come into the

ownership or control, directly or indirectly, of any person,

firm, or corporation other than a public authority created under

the laws of the state.

nothing in this chapter authorizes the sale of any of the

property of the authority under a judgment rendered in a suit,

and a sale of that kind is prohibited.

(d) Notwithstanding any restrictions or provisions in this

section or in this chapter, the authority, acting by a majority

vote of the board, may construct or purchase, from any person,

firm, or corporation (referred to in this subsection as

"customer") with which the authority has contracted to sell

hydroelectric power, transmission lines and other property used

or to be used by the customer for the transmission of or in

connection with power purchased or to be purchased from the

authority. The authority may lease all or any portion of that

property to the customer for all or a portion of the time during

the term of the hydroelectric power purchase contract. The lease

may contain provisions that are valid and enforceable giving the

lessee the right to purchase from the authority all or any

portion of the property at or within the time specified in the

lease and for a price and on terms and conditions specified in

the lease; provided, however, that the price may not be less than

the depreciated value, determined in the manner prescribed in the

lease, plus one percent of the original cost of the property.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.013 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.0132. SALE OF CAPTIVE PROPERTY AT POSSUM KINGDOM LAKE.

(a) In this section:

(1) "Adjacent Land" means the real property owned by the

applicable Offeree that is adjacent to the applicable Captive

Property To Be Sold.

(2) "Captive Property To Be Sold" means those portions of the

following tracts of real property owned by the Authority at the

Lake that are located above the 1000' contour line, but does not

include any portion of the following tracts that is part of

Project Land or property that is leased for single-family

residential purposes as of the effective date of the Act enacting

this section:

(A) two tracts of land totaling 2019.86 acres, more or less, in

Palo Pinto County, Texas, described in Brazos River Authority

Records as Tracts 8-1-93 and 9-3-9, as such Tracts are more

particularly described in an Award of Commissioners entered June

28, 1940, in the County Court of Palo Pinto County, Texas, in

Cause No. 2539, styled Brazos River Conservation and Reclamation

District versus Orland R. Seaman, Et Al., as the same appears on

file and of record in Volume 5, Pages 414 and 419, et seq., Civil

Minutes of the County Court of Palo Pinto County, Texas; and

(B) a 2278.3 acre tract of land, more or less, in Palo Pinto

County, Texas, described in Brazos River Authority records as

Tract 11-2-46, as such tract is more particularly described in

deeds recorded at Book 181, Page 325, Book 182, Page 339, Book

183, Page 12, and Book 183, Page 16, in Palo Pinto County

Records, Palo Pinto County, Texas.

(3) "FERC License" means the order of the Federal Energy

Regulatory Commission issuing a license to the Authority for

project number 1490-003-Texas on September 8, 1989, as such

license has been renewed, extended, or amended and may be further

renewed, extended, or amended at any time and from time to time,

and including the Amendment to the original FERC license that was

issued on May 15, 1980, to the extent incorporated or referenced

in the FERC License.

(4) "Lake" means Possum Kingdom Lake located in Young, Palo

Pinto, Stephens, and Jack Counties. The boundary of the Lake is

defined by the 1000' contour line, as that contour may meander

and change over time with natural forces, including erosion and

accretion. The "1000' contour line" means the line running along

the periphery of the Lake if the surface of the Lake is at an

elevation of 1000 feet above mean sea level, as measured from the

top of the spillway crest gates of the Morris Sheppard Dam, as

such line may move and shift from time to time due to natural

forces.

(5) "Offeree" means any person to whom an offer to sell Captive

Property To Be Sold is to be made under this section. To qualify

as an Offeree, a person must own in fee simple the real property

adjacent to the Captive Property To Be Sold, and be able to

provide an attorney's opinion or other satisfactory legal

documentation that such Offeree meets the qualifications of an

Offeree under this subdivision.

(6) "Project Land" means that portion of Authority property that

is subject to the FERC License, as identified and defined in the

FERC License, as may be amended at any time, and from time to

time, and which Project Land may move or change over time due to

natural forces.

(b) Notwithstanding any other provision of this chapter, the

Authority is directed to sell all Captive Property To Be Sold in

accordance with the directives of this section, including the

following:

(1) Within 90 days of the effective date of the Act enacting

this section, the Authority shall publish a list of the parcels

at the Lake that qualify as Captive Property To Be Sold and an

"Application Of Intent To Purchase" form for use by the Offerees

as provided by this section.

(2) Each listed parcel of Captive Property To Be Sold shall be

offered for sale at its fair market value to the Offeree who owns

any Adjacent Land that is adjacent to that specific parcel of

Captive Property To Be Sold, and each Adjacent Land owner has the

right (but not the obligation) to purchase the parcel in equal

proportion among those wishing to acquire same.

(3) Any Offeree who desires to purchase Captive Property To Be

Sold must, within 180 days of the inclusion of that property on

the published list of Captive Property To Be Sold under

Subdivision (1), submit a completed Application Of Intent To

Purchase form to the Authority.

(4) If the Authority does not receive an Application Of Intent

To Purchase from an Offeree within the required time, the Offeree

shall be deemed to have waived any right to purchase the subject

property under this section and the Authority shall have the

right to retain or sell such property as directed by the board.

(5) The Authority shall accept and process all Application Of

Intent To Purchase forms in the order in which they are received.

(6) Any sale of property under this section must be handled as

if it were a private sale for fair market value under Section

49.226(a), Water Code.

(7) The fair market value of the Captive Property To Be Sold

must be determined as follows:

(A) Within forty-five (45) days of the Authority's receipt of

the Offeree's completed Application Of Intent To Purchase and an

acceptable survey as provided by Subsection (d)(1), the Authority

shall provide the Offeree with an appraisal of the fair market

value of the Captive Property To Be Sold dated within one year of

the date of the Authority's receipt of the Application Of Intent

To Purchase (the "First Appraisal"). The Authority's appraiser

must be an appraiser certified under Chapter 1103, Occupations

Code. Within fifteen (15) days of receipt of the First

Appraisal, the Offeree shall notify the Authority in writing as

to whether the Offeree agrees with or disputes the fair market

value set forth in the First Appraisal. If the Offeree does not

dispute the fair market value as determined by the First

Appraisal within such 15-day time period, then the First

Appraisal shall be final and binding on all parties to establish

the fair market value for the Captive Property To Be Sold.

(B) If the Offeree disputes the fair market value determined by

the First Appraisal, the Offeree may withdraw its application to

purchase the Captive Property To Be Sold or employ a

disinterested appraiser certified under Chapter 1103, Occupations

Code, to conduct a second appraisal of the fair market value of

the Captive Property To Be Sold (the "Second Appraisal"). The

Second Appraisal must be completed and sent to the Authority not

later than the 45th day after the date the Offeree notifies the

Authority that the Offeree disputes the First Appraisal. If the

Authority does not receive the Second Appraisal within such

45-day time period, then the Offeree's Application Of Intent To

Purchase will be deemed withdrawn.

the Authority shall notify the Prospective Purchaser in writing

as to whether the Authority agrees with or disputes the fair

market value determined by the Second Appraisal. If the

Authority does not dispute the fair market value as determined by

the Second Appraisal within this 15-day time period, then the

Second Appraisal shall be final and binding on all parties to

establish the purchase price for the Captive Property To Be Sold.

If the Authority timely disputes the fair market value

determined by the Second Appraisal, the two appraisers (or their

designated agents) shall meet and attempt to reach an agreement

on the fair market value of the Captive Property To Be Sold, such

meeting to occur not later than the 30th day after the date the

Authority notifies the Offeree that the Authority disputes the

Second Appraisal.

(D) If the two appraisers reach agreement on the fair market

value, within 20 days after their meeting they shall issue a

report of the agreed fair market value to the Authority and to

the Offeree, and this agreed fair market value shall be final and

binding on all parties to establish the purchase price. If the

two appraisers fail to reach agreement on or before the 20th day

after the date of the meeting, then not later than the 30th day

after the date of the meeting the two appraisers shall appoint a

disinterested third appraiser certified under Chapter 1103,

Occupations Code, to reconcile the two previous appraisals (the

"Third Appraisal"). The Third Appraisal must be completed on or

before the 30th day after the date of the third appraiser's

appointment, and the fair market value determined by the Third

Appraisal is final and binding on all parties to establish the

purchase price; provided, however, the final purchase price may

not be more than the fair market value determined by the First

Appraisal or less than the fair market value determined by the

Second Appraisal.

(E) The appraisal costs must be paid by the person who requests

the appraisal, except that the Offeree and the Authority shall

each pay one-half of the cost of the Third Appraisal if a Third

Appraisal is necessary. If the Offeree fails to pay its share of

the Third Appraisal, then the Offeree's Application Of Intent To

Purchase will be deemed withdrawn.

(F) The timelines established in the appraisal process set forth

in this subdivision may be extended on joint agreement of

Authority and Offeree.

Sold from sale under this section as necessary for the continued

operation of services at the Lake by the Authority, the Authority

must designate as exempt each parcel it seeks to have exempted

and provide actual notice of the exemption to any Offeree who

otherwise would have been eligible to purchase that property.

Any such Offeree shall have the right, but not the obligation, to

challenge the exemption designation by the Authority in

accordance with Subsection (e).

(d) For each parcel that an Offeree elects to purchase pursuant

to this section, the Offeree shall:

(1) provide to the Authority a survey of the property that is:

(A) prepared by a licensed state land surveyor or a registered

professional land surveyor;

(B) dated not earlier than the date one year before the

effective date of the Act enacting this section; and

title insurance for the Offeree; and

(2) pay all reasonable, normal, customary, and documented

closing costs associated with the sale of the property.

(e) A person who disputes the Authority's decision to exempt a

specific parcel from sale under this section may file a

declaratory judgment action in the district court of Travis

County. If a person files such an action:

(1) any claim to governmental immunity is hereby waived for the

determination of the dispute;

(2) the court shall determine all issues presented by de novo

review; and

(3) the Authority shall bear the burden to establish by a

preponderance of the evidence that the parcel it seeks to have

exempted from sale is necessary for the specifically authorized

operation of services at the Lake.

(f) For any property sold under this section:

(1) the Authority shall provide a Special Warranty Deed that

encompasses and includes all interests in the property held by

the Authority, subject only to:

(A) those restrictions, covenants, and prohibitions contained in

the deed of conveyance under which the Authority originally

acquired title to the property, including without limitation any

releases of the Authority for the inundation, overflowing, or

flooding of the Lake;

(B) all encumbrances and other matters filed of record in the

public records of the county in which the property is located;

and

ground or that would be reasonably disclosed or discovered by an

inspection of the property; and

(2) the Offeree shall release and agree to hold the Authority

harmless from, and the Authority may not be held liable for

damages, claims, costs, injuries, or any other harm to any

Offeree or any other person or the Captive Property To Be Sold or

any improvements on the property, caused by or arising from any

temporary flooding of any portion of the Captive Property To Be

Sold.

(g) Any sale of Captive Property To Be Sold pursuant to this

section must allow the Authority the right to enter on the

Captive Property To Be Sold and the Lake and other bodies of

water, if any, located within the Captive Property To Be Sold and

to cross the Adjacent Land on roads with essential equipment for

all purposes reasonably necessary for the Authority to fulfill

its obligations as a river authority and any obligations set

forth in the FERC License, state water rights, or other

governmental regulations, or that the Authority considers

necessary for public safety, health, and welfare purposes. Any

exercise of those rights by the Authority may be conducted only

after written notice is given at least 48 hours in advance of

such entry to the Offeree (except in the event of an emergency,

in which case advance notice is not required, but the Authority

shall provide such written notice as soon as practicable

thereafter). The Authority shall use reasonable efforts to avoid

interfering with the Offeree's use of the Captive Property To Be

Sold and Adjacent Land and shall promptly repair any damage to

the Captive Property To Be Sold and Adjacent Land caused by the

Authority's entrance. Any claim to governmental immunity on

behalf of the Authority is hereby waived for the recovery of any

damage caused by the Authority's breach of this subsection.

(h) Any sale of a parcel of Captive Property To Be Sold pursuant

to this section the total size of which is greater than 100 acres

must include as a condition of sale an agreement that the

purchaser of such parcel will place a conservation easement that

complies with state and federal tax requirements on the property

conveyed within three (3) years of the closing date for the sale

of the property.

(i) Chapters 232 and 272, Local Government Code, do not apply to

a sale of property under this section.

(j) The Authority may use proceeds from the sale of property

under this section for any Authority purpose.

(k) The Authority shall reserve its interest in all oil, gas,

and other minerals in and under the Captive Property To Be Sold

(or any portion thereof) to the extent the Authority owns an

interest in those minerals.

(l) To the extent of any conflict with other laws of this state,

this section prevails.

Added by Acts 2009, 81st Leg., R.S., Ch.

193, Sec. 1, eff. May 27, 2009.

Sec. 8502.014. ACQUISITION OF PROPERTY; EMINENT DOMAIN. (a)

The authority may acquire by purchase, lease, or gift or in any

other manner and may maintain, use, and operate property of any

kind, real, personal, or mixed, or any interest in property,

within or outside the boundaries of the authority, necessary or

convenient to the exercise of the powers, rights, privileges, and

functions conferred on the authority by this chapter.

(b) The authority may acquire, by purchase, condemnation, or

otherwise, any property the board determines necessary to make

effectual and practicable the construction and operation of all

works, improvements, and services that are planned ultimately to

be provided by the authority to accomplish any of the purposes

for which the authority was created. The acquisition or

condemnation may be either of the fee simple title or of a lesser

title or an easement only, within the discretion of the board;

provided, however, that a person may not be deprived of any

defense available under the general law of eminent domain; and

provided, further, that the authority may not acquire or operate

a steam generating plant for the production and sale of electric

energy and, except for the purpose of acquiring the necessary

area below or above the anticipated high-water line of a

reservoir, may not condemn any property of a rural

electrification cooperative or other corporations engaged in the

generation or sale of electric energy to the public.

the purpose of acquiring by condemnation property of any kind,

real, personal, or mixed, or any interest in property, within or

outside the boundaries of the authority, other than property or

an interest in property outside the boundaries of the authority

owned by any body politic, that is necessary or convenient to the

exercise of the powers, rights, privileges, and functions

conferred on the authority by this chapter, in the manner

provided by general law with respect to condemnation or, at the

option of the authority, in the manner provided by statutes

relative to condemnation by districts organized under general law

under Section 59, Article XVI, Texas Constitution.

(d) In condemnation proceedings being prosecuted by the

authority, the authority is not required to give bond for appeal

or bond for cost.

(e) The authority may overflow and inundate any public lands and

public property and may require the relocation of roads and

highways in the manner and to the extent permitted to districts

organized under general law under Section 59, Article XVI, Texas

Constitution.

(f) If the authority, in the exercise of the power of eminent

domain or power of relocation or any other power granted under

this chapter, makes necessary the relocation, raising, rerouting,

changing the grade, or altering the construction of any highway,

railroad, electric transmission line, or pipeline, all necessary

relocation, raising, rerouting, changing of grade, or alteration

of construction shall be accomplished at the sole expense of the

authority.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.014 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.015. CONTRACTS, GRANTS, AND LOANS. (a) The board may

negotiate and contract with the federal government or with any of

its agencies for grants, loans, and advancements from the United

States for the furtherance of any purpose set forth in this

chapter.

(b) The authority may receive and accept grants, loans, or

allotments from the United States and others for furtherance of

any of the purposes set forth in this chapter.

loan, or allotment has been received by the authority from the

United States or others shall be authority for the action of any

person charged with any duty contingent on such grant, loan, or

allotment.

Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1, 2003.

Renumbered from Water Code, Section 221.015 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.016. RULES. The board may make all necessary rules

for the government and control of the authority not inconsistent

with the constitution and laws of the state.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.016 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.017. USE OF BRAZOS RIVER AND TRIBUTARIES. In the

prosecution of the plans for which the authority has been created

for the storing, controlling, conserving, and distributing for

useful purposes of the storm waters, floodwaters, and

unappropriated flow waters of the Brazos River watershed and

developed groundwater from the Brazos River basin for the use of

its customers, the authority may use the bed and banks of the

Brazos River and its tributary streams for any and all purposes

necessary to the accomplishment of the plans of the authority.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.017 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.018. DEFAULT PROCEDURES. (a) A resolution

authorizing the issuance of bonds and any indenture or agreement

entered into under the resolution may include provisions

regarding a default on the:

(1) payment of the interest on any bonds as the interest becomes

due and payable;

(2) payment of the principal of any bonds as they become due and

payable, whether at maturity, by call for redemption, or

otherwise; or

(3) performance of an agreement made with the purchasers or

successive holders of any bonds.

(b) If a default described by Subsection (a) has occurred and

has continued for a period, if any, prescribed by the resolution

authorizing the issuance of the bonds, the trustee under an

indenture entered into with respect to the bonds authorized by

the resolution, or, if there is no indenture, a trustee appointed

in the manner provided in the resolution by the holders of 25

percent in aggregate principal amount of the bonds authorized by

the resolution and then outstanding may, and on the written

request of the holders of 25 percent in aggregate principal

amount of the bonds authorized by the resolution and then

outstanding shall, in the trustee's own name but for the equal

and proportionate benefit of the holders of all the bonds, and

with or without having possession of the bonds:

(1) by mandamus or other suit, action, or proceeding at law or

in equity, enforce all rights of the bondholders;

(2) bring suit on the bonds or the appurtenant coupons;

(3) by action or suit in equity, require the board to act as if

it were the trustee of an express trust for the bondholders;

(4) by action or suit in equity, enjoin any acts or things that

may be unlawful or in violation of the rights of the bondholders;

(5) after such notice to the board as the resolution may

provide, declare the principal of all of the bonds due and

payable, and if all defaults have been made good, then with the

written consent of the holders of 25 percent in aggregate

principal amount of the bonds then outstanding, annul the

declaration and its consequences; provided, however, that the

holders of more than a majority in principal amount of the bonds

authorized by the resolution and then outstanding shall, by

written instrument delivered to the trustee, have the right to

direct and control any and all actions taken or to be taken by

the trustee under this section.

provide that in a suit, action, or proceeding under this section,

the trustee, whether or not all of the bonds have been declared

due and payable and with or without possession of any of the

bonds, is entitled as of right to the appointment of a receiver

who may enter and take possession of all or part of the

properties of the authority, operate and maintain the properties,

and set, collect, and receive rates and charges sufficient to

provide revenues adequate to pay the items specified in the

resolution authorizing bonds and the costs and disbursements of

the suit, action, or proceeding and apply that revenue in

conformity with this chapter and the resolution authorizing the

bonds.

(d) In a suit, action, or proceeding by a trustee or receiver,

if any, under this section, counsel fees and expenses of the

trustee and of the receiver, if any, constitute taxable

disbursements, and all costs and disbursements allowed by the

court shall be a first charge on any revenue pledged to secure

the payment of the bonds.

(e) Subject to the provisions of the constitution, the courts of

McLennan County have jurisdiction of a suit, action, or

proceeding under this section by a trustee on behalf of the

bondholders and of all proceedings involved in the suit, action,

or proceeding.

(f) In addition to the powers specifically provided by this

section, the trustee has all powers necessary or appropriate for

the exercise of the powers specifically provided or incident to

the general representation of the bondholders in the enforcement

of their rights.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.018 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.019. LIMITED LIABILITY FOR AQUATIC HERBICIDE

APPLICATION. (a) In this section, "commercially licensed

aquatic herbicide applicator" means a person who holds a

commercial applicator license issued by the Department of

Agriculture under Chapter 76, Agriculture Code, that authorizes

the application of aquatic herbicides.

(b) Except as provided by Chapter 12, Parks and Wildlife Code,

an authority employee holding a noncommercial aquatic herbicide

applicator license or a commercially licensed aquatic herbicide

applicator working under contract with the authority is not

liable for damages in excess of $2 million for personal injury,

property damage, or death resulting from the application by the

applicator of aquatic herbicide in compliance with applicable law

and the terms of the license or permit.

Added by Acts 2003, 78th Leg., ch. 996, Sec. 1, eff. Sept. 1,

2003.

Renumbered from Water Code, Section 221.019 by Acts 2007, 80th

Leg., R.S., Ch.

921, Sec. 13.006(a), eff. September 1, 2007.

Sec. 8502.020. SALE OF AUTHORITY PROPERTY. (a) Definitions.

In this section:

(1) "Authority Land" means the FERC Project Area and all other

real property owned by the Authority at the Lake as of the date

before Closing, save and except for the Leased Tract.

(2) "Buffer Zone" means that twenty-five or fifty foot strip of

land measured landward horizontally from the 1000' contour line

that is included in the FERC Project Area as defined in the FERC

License.

(3) "Close" or "Closing" means the date on which the Authority

transfers its interest in the Leased Tract, in whole or in part,

to a Purchaser. There may be multiple closing dates if the

Leased Tract is sold in portions.

(4) "Commercial Leased Land" means that portion of the Leased

Tract that is located wholly outside the FERC Project Area and

that is leased for commercial purposes as of the date the

Restrictions are placed of record.

(5) "Consumer Price Index" means the consumer price index for

Housing, Dallas-Fort Worth, TX area, Series Id: CUURA316SAH,

CUUSA316SAH, Base Period: 1982-84 = 100, as published by the

Bureau of Labor Statistics of the United States Department of

Labor, or its equivalent substitute should this series be

discontinued.

(6) "Contract" means the Authority entering into a purchase and

sale agreement with a Purchaser for the transfer of the

Authority's interest in the Leased Tract, in whole or in part.

(7) "Driveways" means those certain private gravel and/or paved

driveways that connect a Road or other street or thoroughfare to

an individual Leased Tract or any improvements thereon; Driveways

also includes those shared or common Driveways that serve more

than one Leaseholder or individual Leased Tract.

(8) "Environmental Laws" means the Comprehensive Environmental

Response, Compensation and Liability Act of 1980, the Toxic

Substances Control Act, the Clean Water Act, the Resource

Conservation and Recovery Act and any other similar federal,

state or local law, rule or regulation respecting the environment

or Hazardous Materials, together with all rules and regulations

promulgated thereunder and all present or future amendments

thereto.

(9) "FERC License" means the order of the Federal Energy

Regulatory Commission issuing a license to the Authority for

project number 1490-003-Texas on September 8, 1989, as such

license has been renewed, extended, or amended and may be further

renewed, extended, or amended at any time and from time to time,

and also including the Amendment to the original FERC License,

which amendment was issued on May 15, 1980, to the extent

incorporated or referenced in the FERC License.

(10) "FERC Project Area" means that portion of Authority

property that is subject to the FERC License, as identified and

defined in the FERC License, as may be amended at any time and

from time to time, and which FERC Project Area may move or change

over time due to natural forces.

(11) "Ground Lease" means each of those certain residential

and/or commercial ground leases between the Authority and a

Leaseholder, and the respective heirs, successors, and assigns.

(12) "Hazardous Materials" means underground storage tanks,

petroleum and petroleum products, asbestos, PCB's,

urea-formaldehyde and any hazardous or toxic substances,

pollutants, contaminants, wastes, or materials as defined under

any Environmental Laws.

(13) "Lake" means Possum Kingdom Lake located in Young, Palo