Bradley B. Ware v. Texas Commission on Environmental Quality ( 2015 )


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  •                                                                              ACCEPTED
    03-14-00416-CV
    3781001
    THIRD COURT OF APPEALS
    AUSTIN, TEXAS
    1/15/2015 12:12:27 PM
    JEFFREY D. KYLE
    CLERK
    Case No. 03-14-00416-CV
    IN THE                        FILED IN
    3rd COURT OF APPEALS
    THIRD COURT OF APPEALS               AUSTIN, TEXAS
    AT AUSTIN, TEXAS            1/15/2015 12:12:27 PM
    JEFFREY D. KYLE
    Clerk
    BRADLEY B. WARE,
    Appel/ant,
    v.
    TEXAS COMMISSION ON ENVIROMENTAL QUALITY,
    Appellee.
    ON APPEAL FROM THE 53RD JUDICIAL DISTRICT COURT OF TRAVIS
    COUNTY, TEXAS
    APPELLANT'S BRIEF
    Stephen P. Webb
    BarNo. 21033800
    s.p.webb@webbwebblaw.com
    Gwendolyn Hill Webb
    Bar No. 21026300
    g.hill.webb@webbwebblaw.com
    Attorneys for Appellant
    Webb & Webb, Attorneys at Law
    211 East Seventh Street
    Austin, Texas 78701
    Phone: 512-472-9990
    APPELLANT REQUESTS ORAL ARGUMENT
    Case No. 03-14-00416-CV
    BRADLEY B. WARE,
    Appellant,
    v.
    TEXAS COMMISSION ON ENVIRONMENTAL QUALITY,
    Appellee.
    IDENTITY OF PARTIES AND COUNSEL
    Stephen P. Webb                      Linda Secord, Asst. Attorney General
    BarNo. 21033800                      Bar No. 1797400
    s.p.webb@webbwebblaw.com             Office of the Attorney General
    Gwendolyn Hill Webb                  P.O. Box 12548-MC066
    State Bar No. 21026300               Austin, Texas 78711-2548
    g. hill.webb@webbwebblaw.com         Phone: 512-475-4002
    Webb & Webb, Attorneys at Law        Fax: 512-320-0911
    211 East Seventh Street, Suite 712   Linda.secord@texasattorneygenel'al.gov
    Austin, Texas 78701                  ATTORNEY FOR APPELLEE,
    Phone: 512-472-9990                  TEXAS COMISSION ON
    Fax: 512-472-3183                    ENVIROMENTAL QUALITY
    ATTORNEY FOR APPELLANT,
    BRADLEY B. WARE
    Case No. 03-14-00416-CV
    BRADLEY B. WARE,
    Appellant,
    v.
    TEXAS COMMISSION ON ENVIRONMENTAL QUALITY,
    Appellee.
    REQUEST FOR ORAL ARGUMENT
    Appellant, Bradley B. Ware, requests an oral argument in this case.
    ii
    TABLE OF CONTENTS
    Identify of Parties and Counsel .................................................................................. i
    Request for Oral Argument ....................................................................................... ii
    Index of Authorities ................................................................................................. vi
    Appellant's Brief ........................................................................................................ 1
    Statement of the Case ................................................................................................. 2
    Statement of Oral Argument ..................................................................................... .4
    Points of Error Presented for Review ........................................................................ 4
    Statelnent of the Facts ................................................................................................ 5
    Background Legal and Factual Framework of Application No. 5594A .................... 7
    Points of Error and Brief of Argument ................................................................... 13
    Point of Error Number One:
    The District Court erred in failing to find that the Commission's April 20, 2010
    Order unlawfully ignores the evidence of record regarding the water available for
    appropriation by Plaintiff; therefore, the Commission's action in adopting the April
    20,2010 Order was arbitrary and capricious, and was characterized by an abuse of
    discretion ................................................................................................................ 13
    Sumlnary of the ArgUlnent ............................................................................ 13
    ArgUlnent.. ..................................................................................................... 13
    Point of Error Number Two:
    The Commission's April 20, 2010 Order violates the directives and requirement of
    Texas Water Code, §11.134 (b), regarding Commission action on water rights
    applications .............................................................................................................. 18
    Sumlnary of the Argument.. .......................................................................... 18
    Argument. ...................................................................................................... 19
    iii
    Point of Error Number Three:
    The District Court erred in failing to find that the Commission's April 20, 2010
    Order is in violation of the requirements of Texas Water Code, §11.1381,
    regarding the consideration and granting of water rights permits for a term of
    years ........................................................................................................................ 21
    Summary of the Argument ............................................................................ 21
    Argument. ................................ :..................................................................... 21
    Point of Error Number Four:
    The District Court in failing to find that the Commission's April 20, 2010 Order
    violates the fundamental doctrine of water rights law of "first in time, first in
    right," as set forth in the Texas Water Code, Section 11.027 ................................. 25
    Sumtnary of the Argmnent ................................................................................... 26
    Argument. ...................................................................................................... 26
    Point of Error Number Five:
    The District Court erred in failing to find that the Commission acted arbitrarily and
    capriciously to deprive Plaintiff of any continued right to diveti and use any water
    at any time for Ware Farm under Permit No. 5594, an authorized appropriation, on
    the stated basis of no water available for appropriation, while at the same time
    granting water rights for new appropriations and issuing statements of water
    availability for other Plaintiffs, new permittees, and other water rights holders .... 32
    Summary of the Argmnent ............................................................................ 32
    Argmnent ....................................................................................................... 33
    Point of Error Number Six:
    The District Comi erred in failing to find that the Commission's April 20, 2010
    Order adopted Findings of Fact pertaining to a pending non-party applicant;
    moreover, the details of said Plaintiff's pending application and proposed
    iv
    appropriation were unlawfully used as a basis to deny Plaintiffs water right
    application ............................................................................................................... 38
    SUmtllary of the Argument. ........................................................................... 38
    Argument ....................................................................................................... 38
    SUtlltllary ................................................................................................................. 42
    Prayer for Relief...................................................................................................... 42
    Cetiificate of Compliance ....................................................................................... 44
    Certificate of Service ............................................................................................... 45
    Glossary of Technical Terms .................................................................................. 45
    Appendix ................................................................................................................. 46
    v
    INDEX OF AUTHORITIES
    CASES
    Balla v. Texas State Board of Medical Examiners, 
    693 S.W.2d 715-717
    (Tex.
    App. - Dallas 1985, ref.n.v.e) ...................................................................... 41
    Berkley v. Railroad Commission of Texas, 
    282 S.W.3d 240
    , 242-244 (Tex. App-
    Amarillo 2009, no pet.h.) .............................................................................. 35
    Chocolate Bayou Water Company and Sand Supply v. Texas Natural Resource
    Conservation Commission, et al., 
    124 S.W.3d 844
    , 853 (Tex. App-Austin
    2003, pet. denied) .......................................................................................... 29
    City of Waco v. Texas Comm'n on Envtl. Quality, 
    346 S.W.3d 781
    , 819 - 20
    (Tex.App - Austin, pet. denied)] .................................................................. 31
    City of El Paso v. Public Utility Com'n. of Texas, 
    883 S.W.2d 179
    , 184 (Tex.
    1994) ........................................................................................................................ 35
    Dodd v. Meno, 
    857 S.W.2d 575
    , 576 (Tex. App. - Austin 1993), aff'd on other
    grounds, 
    870 S.W.2d 4
    (Tex. 1994) .................................................................. 34, 36
    Entex v. Railroad Comm., Texas, 
    18 S.W.3d 858
    , 862 (Tex. App. - Austin 2000,
    pet. denied) ...................................................................................... 34, 36, 37
    Heritage on San Gabriel Homeowners v. TCEQ, 
    393 S.W.3d 417
    , 423 (Tex.App.-
    Austin 20 12) ................................................................................................. 31
    Hernandez v. Meno, 
    828 S.W.2d 491
    , 493-495 (Tex. App. - Austin 1992, den.). 40
    House of Tobacco, Inc. v. Calvert, 
    394 S.W.2d 654
    , 656 - 657 (Tex. 1965) ........ 29
    Langford v. Employees Retirement System of Texas, 
    73 S.W.3d 560
    , 564-565 (Tex.
    App. - Austin 2002, pet. denied) .................................................................. 35
    Lower Colorado River Authority, et aI, v. Texas Department of Water Resources,
    
    689 S.W.2d 873
    (Tex. 1984) ...................................................................... 24
    Railroad Commission of Texas v. Home Transportation Company, 670 S.W.2d
    319,325 (Tex. App-Austin 1984, no writ) ................................................... 29
    vi
    Texas Citizens for a Safe Future and Clean Water v. Railroad Commission of
    Texas, 
    254 S.W.3d 492
    , 496-497 (Tex. App. - Austin 2007, pet. filed) ...... 40
    Texas Department ofPublic Safety v. Chad Michael Henson (14-09-0001 O-CV) ... 2
    Texas Department of Public Safety v. Guajardo, 
    970 S.W.2d 602
    (Tex. App.-
    Hous. [14 th Dist.] 1998) ................................................................................... 2
    Texas Farm Bureau, et al v. Texas Commission on Environmental Quality, Cause
    No. D-I-GN-12-003937 .......................................................................................... 31
    Texas Water Com 'n v. Dellana, 
    849 S.W.2d 808
    , 810 (Tex. 1993) ....................... 29
    TGS - NOPEC Geophysical Company v. Combs, 
    268 S.W.3d 637
    , 651-652 (Tex.
    App. - Austin 2008, pet. filed) ..................................................................... 35
    TEXAS WATER CODE
    §11.021 .................................................................................................................... 11
    §11.022 .................................................................................................................... 11
    §11.025 ................................................................................................................... 11
    § 11.026 .................................................................................................................... 11
    §11.027 .................................................................................................... 4, 25, 26, 27
    § 11.046 .................................................................................................................... 11
    §11.046(c) ......................................................................................................... 18,33
    §11.121 .................................................................................................................... 11
    §11.134 ................................................................................................................. 8,11
    §11.134(b) ..................................................................................................... 4,18,19
    §11.1381 .................................................................................................. 4,11,21,23
    §11.141 ............................................................................................ 11, 26, 27, 28, 41
    § 11.172 .................................................................................................................... 23
    TEXAS GOVERNMENT CODE
    §2001.005(a) ........................................................................................................... 39
    §2001.081 ................................................................................................................ 39
    §2001.087 ................................................................................................................ 40
    §2001.174(2) ................................................................................................... 39,41
    §2001.174(2)(a) ..................................................................................................... 28
    §2001.174(2)(c) ..................................................................................................... 39
    vii
    §2001.174(2)(e) ............................................................................................... 18,39
    §2001.174(2)(f) ............................................................................................... 35,39
    §2001.175 ............................................................................................................... 29
    §2003.047(l)(ln) ...................................................................................................... 15
    viii
    Case No. 03-14-00416-CV
    BRADLEY B. WARE,
    Appellant,
    v.
    TEXAS COMMISSION ON ENVIRONMENTAL QUALITY,
    Appellee.
    APPELLANT'S BRIEF
    TO THE COURT OF APPEALS:
    Appellant, Bradley B. Ware, submits this Brief in appeal of the Order on
    administrative appeal affirming the decision of the Texas Quality on
    Environmental Quality ("TCEQ", "Commission" or "Agency"). This Appeal is
    from the District Court of Travis County, Texas, 53 rd Judicial District, the
    Honorable John Dietz presiding in which Appellant was the Plaintiff and Appellee
    was the Defendant. For clarity, Bradley B. Ware will be referred to as "Plaintiff'
    and the Texas Quality on Environmental Quality will be referred to as
    "Defendant."
    I.     STATEMENT OF THE CASE
    Plaintiff, Bradley B. Ware appeals from the 53 rd Judicial District Court of
    Travis County, Texas in its failure to overturn the final order of the TCEQ which
    denied Plaintiff the right to divert and use water under Permit to Appropriate State
    Water No. 5594 ("Permit No. 5594"). Plaintiff asselis that the Commission's April
    20, 2010 Final Order of the TCEQ ("Order") violates extant provisions of the
    Texas Water Code ("TWC"), and contains obviously reversible legal error. A May
    11,2010 decision ofthe Texas Court of Appeals, FOUlieenth District, Houston, in
    Texas Department of Public Safety v. Chad Michael Henson (14-09-00010-CV)
    sets forth the standards of judicial review of decisions by an administrative agency.
    The text of the discussion is set forth in full below:
    When reviewing an administrative decision under the
    substantial evidence rule, the review court may affirm the
    decision in whole or in part. Tex. Gov't, Code Ann. §2001.174
    (Vernon 2008). It [the reviewing cOUli] must reverse or remand
    the case if the Appellant's substantial rights have been
    prejudiced because the administrative findings, inferences,
    conclusions, or decision are:
    (1) in violation of a constitutional or statutory provision;
    (2) in excess of the agency's statutory authority;
    (3) made through an unlawful procedure;
    (4) affected by other error oflaw;
    (5) not reasonably suppOlied by substantial evidence when
    considering the record as a whole; or
    (6) arbitrary or capricious or characterized by abuse of
    discretion or clearly unwarranted exercise of discretion.
    APPELLANT'S BRIEF                                                              PAGE 2
    [Citing and paraphrasing Tex. Gov't. Code §2001.l74 (Vernon
    2008), and Texas Department ofPublic Safety v. Guajardo, 
    970 S.W.2d 602
    (Tex.App-Hous. [14 th Dist.] 1998)]
    Generally, as shown below, the Commission's order is in violation of the
    fundamental precepts of the Constitution of the United States (5 th and 14th
    Amendments) and the Texas Constitution (Art. 1, Bill of Rights, Sections 3 and
    19), the Texas Water Code and the Texas Government Code; is in excess of the
    Commission's statutory authority; is made through unlawful procedure; is affected
    by numerous other errors of law; is not reasonably supported by substantial
    evidence when considering the record as a whole; and is on its face arbitrary,
    capricious, and characterized by abuse of discretion, or clearly unwarranted
    exercise of discretion. The Commission's final order is not entitled to the deference
    that agency decisions are typically afforded in a simple substantial evidence
    revIew.
    Put simply, the Commission's April 20, 2010 Order is subject to reversal
    because it finds and concludes that there is water available for appropriation in the
    Brazos River Basin in the form of return flows, but reserves the available water to
    a pending Applicant-- not an existing appropriator-- and denies water availability
    in the current proceeding, against the substantial evidence of record.   Th~   trial court
    el'l'ed in failing to recognize these deficiencies in the Commission's April 20, 2010
    APPELLANT'S BRIEF                                                                  PAGE 3
    Order and erred in rendering its June 11, 2014 order which denied Plaintiffs
    appeal.
    II.   STATEMENT OF ORAL ARGUEMENT
    Plaintiff requests oral argument due to the size and complexity of the record
    and the numerous factual and legal issues. Plaintiff requests oral arguments to
    property address the points of error.
    III.    POINTS OF ERROR PRESENTED FOR REVIEW
    Point of Error One:
    The District Court erred in failing to find that the Commission's April 20, 2010
    Order unlawfully ignores the evidence of record regarding the water available for
    appropriation by Plaintiff; therefore, the Commission's action in adopting the April
    20,2010 Order was arbitrary and capricious, and was characterized by an abuse of
    discretion.
    Point of Error Two:
    The Commission's April 20, 2010 Order violates the directives and requirements
    of Texas Water Code, §11.l34(b), regarding Commission action on water rights
    applications.
    Point of Error Three:
    The District COUlt erred in failing to find that the Commission's April 20, 2010
    Order is in violation of the requirements of Texas Water Code, §11.l381,
    regarding the consideration and granting of water rights permits for a term of
    years.
    Point of Error Four:
    The District COUlt in failing to find that the Commission's April 20, 2010 Order
    violates the fundamental doctrine of water rights law of "first in time, first in
    right," as set forth in the Texas Water Code, Section 11.027.
    APPELLANT'S BRIEF                                                             PAGE 4
    Point of Error Five:
    The District Court erred in failing to find that the Commission acted arbitrarily and
    capriciously to deprive Plaintiff of any continued right to divelt and use any water
    at any time for Ware Farm under Permit No. 5594, an authorized appropriation, on
    the stated basis of no water available for appropriation, while at the same time
    granting water rights for new appropriations and issuing statements of water
    availability for other Plaintiffs, new permittees, and other water rights holders.
    Point of Error Six:
    The District Court erred in failing to find that the Commission's April 20, 2010
    Order adopted Findings of Fact pertaining to a pending non-patty applicant;
    Moreover, the details of said Plaintiff's pending application and proposed
    appropriation were unlawfully used as a basis to deny Plaintiff's water right
    application.
    IV. STATEMENT OF FACTS
    1.    On November 15, 2005, Plaintiff filed Application for Amendment to a
    Water Right No. 5594A ("Application No. 5594A") with the Agency for
    authority to delete or extend the term of his current water rights Permit No.
    5594, which authorized the appropriation of 130 acre-feet of water for
    agricultural purposes from the Lampasas River, so that Plaintiff could
    continue to operate a family farm that has been owned and operated by the
    Ware family in excess of 100 years. Mr. Ware's timely applications was to:
    (1) either extend his Permit for another 10-year period or convelt his Permit
    to a perpetual right, (2) withdraw 20 more acre-feet of water annually and
    (3) irrigate 31 more acres of his farm. Therefore, Plaintiff applied for a
    perpetual water right, and if that was not possible, the renewal of his term
    permit. A true copy of the Plaintiff's application is attached as Exhibit A
    and is fully incorporated into this brief by reference; Clerk's Record p. 63-
    75.
    2.     On October 28 and 29, 2009, an adjudicative hearing was held on the
    Agency's case number 2008-0181-WR (SOAR Docket No. XXX-XX-XXXX),
    before the State Office of Administrative Hearings ("SOAH") on the
    Plaintiff's application. The Executive Director ("ED") of the TCEQ
    appeared in Application No. 5594A as a patty to the hearing, opposing the
    relief sought by the Plaintiff. In connection with the adjudicative hearing, a
    record was made consisting of all pleadings and evidence introduced before
    APPELLANT'S BRIEF                                                              PAGES
    SOAR. Thereafter, the TCEQ considered the Proposal for Decision of
    Administrative Law Judge ("ALJ") Paul Keeper on April 14, 2010.
    Subsequently, the Agency prepared a final decision, represented by its Final
    Order including its Findings of Fact and Conclusions of Law.
    3.   On April 20, 2010, the Agency rendered its decision in the form of AN
    ORDER Concerning the Application of Bradley B. Ware to amend water use
    Permit No. 5594: TCEQ Docket No. 2008-0181-WR; SOAH Docket No. 582-
    08-1698 and denied Plaintiffs Application No. 5594A to delete or extend
    the term of the current permit and also to authorize the appropriation of an
    additional 20 acre-feet of water per annum.
    4.   The Plaintiff timely filed a Motion for Rehearing ("Motion") to the
    Agency's April 20, 2010 Order, and the Motion was overruled by operation
    of law by the Agency when the TCEQ failed to act on Plaintiffs Motion
    (See Exhibit B, Applicant Bradley B Ware's Motion for Rehearing, exhibits
    not attached; Clerk's Record p. 76-98). Notice of the Agency's inaction was
    provided to the Plaintiff on June 17, 2010.
    5.   The Plaintifftimely filed his appeal to the Travis County District Court on
    July 8, 2010.
    6.   All conditions precedent having been performed 01' having occurred, the
    Plaintiff was entitled to judicial review of the Agency's decision in
    accordance with Texas Water Code §11.134 and the Texas Government
    Code, §§2001.175 and 2001.176.
    7.   On June 11,2014, the District Court issued its order which denied Plaintiffs
    appeal ofthe Commission Order.
    8.   On June 30, 2014, Plaintiff filed his Notice of Appeal.
    APPELLANT'S BRIEF                                                          PAGE 6
    V.   BACKGROUND LEGAL AND FACTUAL FRAMEWORK OF
    APPLICATION NO. 5594A
    1.    Application No. 5594A
    This application, designated Application No. 5594A by the ED of the TCEQ
    and a party to the administrative hearing, is a water rights application by Plaintiff
    Bradley B. Ware on behalf of Ware Farms, seeking to renew       01'   delete the 10 year
    term of his water rights Permit No. 5594. Plaintiff's existing water rights Permit
    No. 5594 was granted November 7, 1997 after no person protested the granting the
    of application (See, Exhibit A's attachment, Permit No. 5594; Clerk's Record p.
    65-66), and authorizes the diversion and use of 130 acre-feet of water for
    agricultural purposes for the irrigation of 100 acres of farmland. Permit No. 5594
    also contains the following SPECIAL CONDITIONS:
    b.    The authorization to divert and use 130 acre-feet of water
    per year shall expire and become null and void on November 7,
    2007 unless prior to such date permittee applies for an
    extension hereof and such application is subsequently granted
    for an additional term 01' in perpetuity. The priority date of this
    permit and all extensions hereof shall be July 1, 1997.
    Plaintiff filed Application No. 5594A on November 17, 2005, and the application
    was declared administratively complete on March 20, 2006. In Application No.
    5594A, Plaintiff sought to add an additional 20 acre-feet of water per annum, and
    APPELLANT'S BRIEF                                                                  PAGE 7
    to extend the term of the permit. Notice of Application No. 5594A advised Brazos
    River Basin water rights holders:
    "Applicant seeks to amend Water Use Permit No. 5594', to
    extend or delete the expiration date of November 7, 2007; add
    an additional 31 acres for irrigation in Bell County, and to
    divert and use an additional 20 acre-feet of water."
    In reviewing the application, the Agency Executive Director's Water Availability
    staff informed Plaintiff repeatedly that the results from the Brazos River Basin
    Water Availability Model ("Brazos WAM" or "WAM") showed that water was not
    available for the proposed application at Plaintiffs diversion point on the
    Lampasas River in the Brazos River Basin. Plaintiff elected to go forward with a
    contested case hearing.
    2.     Background ofthe Water Availability Question
    Plaintiffs water rights application began as a simple question of water
    availability and protection of senior and superior water rights in the Brazos River
    Basin under Texas Water Code, §11.1342 . Plaintiff was the owner of a term pennit
    and applied for a renewal. The Executive Director used the Brazos WAM and
    determined that water was not available in sufficient quantities and with sufficient
    , Although the Notice prepared by the Executive Director and issued by the Chief Clerk refers to
    Plaintiffs water rights permit as a "Water Use Permit," Permit No. 5594, issued by the
    Commission is entitled, "PERMIT TO APPROPRIATE AND USE STATE WATER."
    2 All section references in this brief are to the Texas Water Code, unless otherwise noted.
    APPELLANT'S BRIEF                                                                        PAGES
    frequency to justify granting the application for an additional term. Brazos River
    Authority ("BRA"), holder of senior water rights in the Brazos River Basin
    protested the application at first, stating that it did not object to the issuance of the
    permit for an additional term and with an additional 20 acre-feet. BRA later
    withdrew its protest of the application, before the contested case hearing, See
    correspondence attached as Exhibit C; Clerk's Record p. 100.
    3.    The Doctrine of Prior Appropriation as the Cornerstone of Texas Water
    Code, Chapter 11
    Texas water rights are issued pursuant to the principles of Western water
    law, including the doctrine of prior appropriation, which is codified in Texas Water
    Code, Chapter 11. The legal principles of Western water law, which grew out of
    the experience of the development of the American West, where water was a
    scarce and valuable resource. The doctrine of prior appropriation suppOlis the
    concepts of govermnent oversight of water resources, deemed essential to
    promoting the beneficial use of available water in accordance with the public
    welfare. Originally, water rights were given not only based on application to the
    State in the form of a certified filing, but also based on proximity of land to a
    watercourse. Unfortunately, this dual system was deemed to preclude efficient
    government regulation, and the existing riparian rights, certified filings and water
    rights permits were unified during the water rights adjudication. Claims under
    APPELLANT'S BRIEF                                                                  PAGE 9
    riparian rights, certified filings, and permits were replaced by certificates of
    adjudication, and subsequent water rights issued under the permitting system set
    forth in Chapter 11. Plaintiff testified at his hearing that, although water was used
    on his farm by his great grandfather since 1874 (See Exhibit D, Tr. Vol. 13, p. 19,
    line 6 through p. 20, line 4; Clerk's Record p. 102-103 and Tr. Vol. 1, p. 22, line
    18 through p. 23, line 3; Clerk's Record p. 105-106.), his parents were involved in
    a bitter divorce which diverted their attention from paliicipation in water rights
    adjudication (See Exhibit D, Tl'. Vol. 14, p. 21, line 14 through p.22, line 17;
    Clerk's Record p. 104-105). After the completion of the Adjudication of Water
    Rights in all segments of the Brazos River Basin, Ware Farm was left without any
    adjudicated right to appropriate State water. Consequently, after Plaintiff became
    owner of Ware Farm, he sought the means to keep the farm operating as a going
    concern, including farming crops such as pumpkins and hay for grazing and raising
    cattle. In 1997, Plaintiff obtained a water right, Permit No. 5594, which authorized
    water use for a term often (10) years (See Exhibit D, Vol. 1, p. 45, line 3 through
    p. 47, line 8; Clerk's Record p. 107-109).
    Although Texas water rights permitting has evolved from a regulatory
    standpoint in the time period following Water Rights Adjudication, the
    3In this brief, references to the transcript are designated: Tr. Vol. _, p. _, line _; and followed
    by the Clerk's Record page reference.
    APPELLANT'S BRIEF                                                                          PAGE 10
    fundamental doctrine of the prior appropriation system remains embedded in Texas
    water rights. Those principles are enunciated specifically in the following sections
    of Texas Water Code, Chapter 11:
    § 11.021, State Water - Asserts State sovereignty over the surface
    waters ofthe State in watercourses
    § 11.022, Acquisition of Right to Use State Water - Provides for the
    use of State water by authorized appropriators;
    § 11.025, Scope of Appropriative Right - Sets forth the limitations of
    the appropriative rights;
    § 11.026, Perfection of an Appropriation - Provides for perfection of
    an appropriation by beneficial use in accordance with the permit;
    § 11.027, Rights Between Appropriators - Provides for resolution of
    conflict between appropriators on the basis of "first in time is first in
    right;"
    § 11.046, Return Surplus Water - Provides that water authorized to
    be appropriated but not needed for the authorized use be returned to
    the watercourse for further appropriation and for other uses;
    § 11.121, Pennit Required - Requires the issuance of water rights
    permits to authorize appropriation
    § 11.134, Action on Application - Specifies the conditions under
    which the Commission may grant a water rights permit;
    § 11.1381, Term Permits - Establishes a means for issuance of term
    permits; and
    § 11.141, Date of Priority - Establishes the priority date for water
    rights permits as the date the application was filed.
    APPELLANT'S BRIEF                                                                 PAGE 11
    Taken as whole, the provisions of the Texas Water Code establish the regulatory
    framework for the administration of Texas water rights.
    4.    Permit No. 5594 Implements Prior Appropriation Doctrine
    Plaintiff's Permit No. 5594 embodies the principles of prior appropriation
    set forth in the Texas Water Code. Permit No. 5594 specifies the purpose of use
    (irrigation); the location ofland to be irrigated [100 acres ofland out of261 acres
    in the W. Brown Survey, Abstract No. 67, the D.G. Vicheton (Vecheton) Survey
    Abstract No. 851, and the C. Edwards Survey, Abstract 291 in Bell County, Texas;
    the water course which is the source of water (Lampasas River, tributary of the
    Little River, tributary of the Brazos River); the amount of water authorized to be
    used (130 acre-feet); and the diversion point and diversion rate (2.67 cubic feet per
    second ("cfs") or 1200 gallons per minute ("gpm")) from any point on the left or
    east bank of the Lampasas River]. And, the permit was issued in accordance with
    the provisions of § 11.1381 to allow Ware Farm to make beneficial use of State
    water in the Brazos River Basin which was stated to be present in the stream but
    appropriated to others and which would otherwise go unused until senior water
    rights are perfected 5• The priority date is specified as the date the application was
    5 The Executive Director's August 28, 1997 Water Availability Analysis (Exhibit F; Clerk's
    Record p. 164-178), stated that downstream water rights in the vicinity of Ware Farm on the
    Lampasas River, the Little River, and the Brazos River had not been perfected, or "fully
    developed," and that, "Therefore, the hydrological analysis only suPPOtt issuance of a ten year
    term permit for the Plaintiff." (Exhibit F, more specifically Clerk's Record p. 165)
    APPELLANT'S BRIEF                                                                      PAGE 12
    accepted for filing. Finally, under the doctrine of "First in time is first in right,"
    the Plaintiff's term permit states unequivocally that the priority date for the permit
    "and all extensions hereof shall be July 1,1997."
    VI.     POINTS OF ERROR AND BRIEF OF ARGUMENT
    1.    POINT OF ERROR NUMBER ONE.
    THE DISTRlCT COURT ERRED IN FAILING TO FIND THAT THE
    COMMISSION'S APRlL 20, 2010 ORDER UNLAWFULLY IGNORES THE
    EVIDENCE OF RECORD REGARDING THE WATER AVAILABLE FOR
    APPROPRlATION BY PLAINTIFF; THEREFORE, THE COMMISSION'S
    ACTION IN ADOPTING THE APRlL 20, 2010 ORDER WAS ARBITRARY
    AND CAPRlCIOUS, AND WAS CHARACTERlZED BY AN ABUSE OF
    DISCRETION.
    Summmy ofArgument
    The Commission's Order of April 20, 2010 was based upon its staff's refusal
    to consider record evidence that completely contradicted the evidence upon which
    the staff and the agency relied to make its primary determination. The primary
    issue in Plaintiff's application for a perpetual right was whether there was state
    water available for appropriation in Plaintiff's section of the Brazos River Basin.
    The agency's Executive Director performed a November 14, 2006 analysis that
    concluded there was no water available. The record shows that the same Executive
    Director performed a 2008 updated analysis on the entire Brazos River basin and
    found on an additional 74, 387 acre-feet per year available for appropriation. The
    Commission never resolved, on the record, the contradiction between these factual
    determinations.
    APPELLANT'S BRIEF                                                               PAGE 13
    Argument
    The adopted Findings of Fact regarding water availability and "The
    reliability of the Model" in the Commission's April 20, 2010 Order, attached as
    Exhibit E (Clerk's Record p. 146-463) are, on their face, inconsistent with each
    other, directly contrary to the evidence of record, and founded upon unlawful
    procedure. While the Commission is entitled to draw an appropriate inference
    from the substantial evidence of record regarding water availability in the Brazos
    River Basin, the Commission is not entitled to abuse its discretion by disregarding
    the existing evidence of record concerning water availability in favor of outdated
    evidence known to be inaccurate.
    On November 14, 2006, the Executive Director performed a water
    availability review of Mr. Ware's amendment application using the Commission's
    Brazos WAM which was current and accurate at the time it was performed. See,
    Exhibit G (Clerk's Record p. 179-181), attached hereto. Two years later, however,
    the Executive Director preformed another water availability review of the Brazos
    River Basin using updated information which was not available at the time Mr.
    Ware's application was reviewed. The Executive Director updated the Brazos
    WAM's Current Conditions data set and found that there was an additional 74,387
    acre-feet per year available for appropriation in the Brazos River Basin. See,
    Exhibit H (Clerk's Record p. 182-196), also attached hereto.
    APPELLANT'S BRIEF                                                            PAGE 14
    It is undisputed in the record that Mr. Ware's amendment application did not
    benefit from the Executive Director's 2008 update of the Brazos WAM, which
    occurred well before the contested case hearing on Plaintiff's Application No.
    5594A. The Executive Director's staff hydrologist, Jeffrey Charles Thomas,
    testified at the hearing that neither he nor anyone else in the Executive Director's
    office performed a water availability review of Mr. Ware's application, other than
    the one completed on November 14, 2006 and included in Exhibit H (Clerk's
    Record p. 182-196). The same witness also testified that no portion of the 74,387
    acre-feet found to be available in the Brazos River Basin in 2008 and set fOlih in
    Exhibit H (Clerk's Record p. 182-196) was ever applied to Mr. Ware's application
    or the Executive Director's analysis of water availability for the Ware application6 .
    In considering the Plaintiff's argument regarding water availability based on
    return flows and updated information, the Commissioners appeared to believe that
    their questioning of Commission staff during the April 14, 2010 Commission
    Agenda meeting on the Proposal for Decision on Application No. 5594A regarding
    consideration of return flows and water availability was a lawful substitute for the
    evidence of record. This procedure is not lawful. The Commission's decision
    must be based on the evidence of record, not the earnest responses of Commission
    staff at Agenda, which responses are not contained in the administrative record
    6(Attached as Exhibit D, Tr. Vol. 1 p. 109 line 6 - 110 line 8; Clerk's Record 112-113; and pp.
    134 line 9 -154 line 24; Clerk's Record p. 125-145)
    APPELLANT'S BRIEF                                                                      PAGE 15
    upon which the decision must be based? TCEQ staff hydrologist Kathy Alexander,
    (now Ph.D.) responded to Commission inquiries stating that the Executive Director
    had included the return flows shown on Exhibit H, attached hereto, in its
    consideration of water available for Plaintiff's proposed appropriation.          .This
    statement is directly contr(lry to the testimony of TCEQ staff during the hearing,
    including Dr. Alexander, regarding the consideration of 74,384 acre-feet of water
    shown to be available in the updated Current Conditions data set of the Brazos
    WAM. The evidence of record, as shown in an excerpt of the official transcript, is
    set fOlih below.
    CROSS EXAMINATION OF JEFFREY CHARLES THOMAS, TCEQ
    HYDROLOGIST ON
    THE BRADLEY B. WARE APPLICATION
    Transcript, Bradley B. Ware SOAH Contested Case Hearing October 28, 2009,
    Page 149, line 24 to Page 150, line 2:
    Q.       Okay, the point is you didn't use any portion of that additional
    water in the basin in your model?
    A.       That's correct.
    Transcript, Bradley B. Ware SOAH Contested Case Hearing October 28, 2009,
    Page 150, lines 10 through 19:
    Q.      Additional unappropriated water would benefit the entire basin,
    wouldn't it?
    A.      Yes.
    Q.      And so it doesn't matter whether it's above Stillhouse Hollow Lake,
    below it? It would benefit everyone, wouldn't it?
    7 Texas   Gov. Code §2003.047(l)(m)
    APPELLANT'S BRIEF                                                                 PAGE 
    16 A. I
    t would benefit everyone downstream of it and potentially that-yes,
    I can-say that it would benefit everyone in the basin, yes.
    CROSS EXAMINATION OF KATHY ALEXANDER, TCEQ HYDROLOGIST
    EXECUTIVE DIRECTOR'S REBUTTAL WITNESS ON THE BRADLEY B.
    WARE APPLICATION
    Transcript, Bradley B. Ware SOAH Contested Case Hearing October 29, 2009,
    Page 378, line 15 to Page 379, line 8:
    Q.    Okay. And so there were return flows available and you gave them a
    priority date of October 15, 2004?
    A.    Yes.
    Q.    Okay. You mentioned that there were 74,387 acre-feet of return flows
    resulting from different discharges up and down the Brazos River
    Basin determined to be available by TCEQ hydrology?
    A.    Yes.
    Q.    And those are the return flows that were given the October 15, 2004,
    priority date?
    A.    Yes.
    Q.    Okay. And that-and none of those return flows, not any portion of
    them were allocated for use by Mr. Ware under either a 1997 priority
    date or any other priority date?
    A.    The return flows were considered and -
    Q.    Yes or no, Ms. Alexander.
    A.    No.
    Therefore, to the extent that the Commission's April 20, 2010 Order contains
    Findings of Fact which state that water is not available for continued appropriation
    in the Brazos River Basin, under the Brazos WAM, such Findings of Fact are not
    reasonably supported by substantial evidence when considering the record as a
    whole. Exhibit H (Clerk's Record p. 182-196) shows that 74,387 acre-feet of water
    APPELLANT'S BRIEF                                                            PAGE 17
    per year are available in the Brazos River Basin in the latest version of the Brazos
    WAM. 8
    Texas law does not confer upon the Commission discretion to disregard the
    evidence ofrecord. Tex. Gov't Code, §2001.174(2)(E) requires a reviewing court
    to reverse an order of the Commission that is not reasonably supported by
    substantial evidence considering the reliable probative evidence in the record as a
    whole. The only reliable evidence is that Mr. Ware's application never received a
    water availability review which referenced the amount of water now known to be
    available for appropriation in the Brazos River Basin. The Commission's reliance
    on the outdated water availability information included in Exhibit H (Clerk's
    Record p. 182-196), known to be superseded by more reliable and updated
    information in Exhibit H (Clerk's Record p. 182-196) deprives the Commission's
    April 20, 2010 Order of any legitimacy under the law and constitutes an obvious
    abuse of the Commission's discretion.
    2.    POINT OF ERROR NUMBER TWO.
    THE COMMISSION'S APRIL 20, 2010 ORDER VIOLATES THE DIRECTIVES
    AND REQUIREMENTS OF TEXAS WATER CODE, § 11.134(B), REGARDING
    COMMISSION ACTION ON WATER RIGHTS APPLICATIONS.
    8The Commission was only willing to use the evidence of water availability under the Brazos
    WAM in favor of an application filed by Brazos River Authority, as shown in its adoption of
    Findings of Fact Nos. 42-52.
    APPELLANT'S BRIEF                                                                  PAGE 18
    Summmy ofArgument
    The Commission's April 20, 2012 Order fails to comply with Texas Water
    Code § 11.134(b). Under the agency's erroneous construction of Texas Water Code
    § 11.046(c), the Commission specifically and erroneously "reserves" state water
    that was available for appropriation for a subsequent pending applicant, rather than
    a senior water right holder.
    Argument
    Pertinent requirements of Texas Water Code, § 11.134(b) is:
    (b) The Commission shall grant the application only if:
    (1) the application conforms to the requirements
    prescribed by this chapter and is accompanied by the
    prescribed fee;
    (2) unappropriated water is available in the source of
    supply;
    (3) the proposed appropriation:
    (A) is intended for a beneficial use;
    (B) does not impair existing water rights or vested
    riparian rights;
    (C) is not detrimental to the public welfare;
    (D) considers any applicable environmental flow
    standards established under Section 11.1471 and, if
    applicable, the assessments performed under
    Sections 11.147(d) and (e) and Sections 11.150,
    11.151, and 11.152; and
    (E) addresses a water supply need in a manner that
    is consistent with the state water plan and the
    relevant approved regional water plan for any area
    in which the proposed appropriation is located,
    unless the commission determines that conditions
    warrant waiver of this requirement; and
    APPELLANT'S BRIEF                                                               PAGE 19
    (4) The Applicant has provided evidence that reasonable
    diligence will be used to avoid waste and achieve water
    conservation as defined by Section 11.002(8) (B).
    The Findings of Fact and Conclusions of Law in the Commission's April 20, 2010
    Order do not address the requirements of Texas Water Code, §11.134(b). To the
    extent that the Conclusions of Law ultimately denying Application No. 5594A
    flow from the Findings of Fact regarding water available for appropriation in the
    Brazos River Basin, they are not reasonably supported by substantial evidence
    when considering the record as a whole; are arbitrary or capricious or characterized
    by abuse of discretion or clearly unwarranted exercise of discretion. Moreover, the
    Commission's Apri120, 2010 Order also violates Texas Water Code, §11.134(b) as
    well. The Commission's Order states:
    44.    The addition of "new water," [return flows] if it were proved to
    exist, would be subject to all prior appropriation rights of senior
    water rights holder and could not be treated as available for new
    allocation.
    Finding of Fact No. 44 clearly fails to incorporate the most recent amendments to
    §11.046(c) as discussed herein below. Finding of Fact No. 44 presents an unlawful
    interpretation of Commission requirements under Texas Water Code, §11.134(b),
    which is only highlighted by the subsequent contradictory finding that: .
    45.    The full amount [described in Finding of Fact No. 49 as
    421,449 acre-feet of water pel' year] of the Brazos River
    Authority's requested return flows become available only at the
    furthest downstream point m the basin; diversions at other
    APPELLANT'S BRIEF                                                                  PAGE 20
    points are possible due to specific facts and circumstances of
    that application.
    The Commission is charged with granting water rights applications when it finds
    that water is available for appropriation.   Instead of discharging its statutory
    responsibilities in accordance with Texas Water Code, § 11. 134(b), and granting
    Plaintiff a continued right to appropriate 150 Acre-feet of water dating from his
    July 1, 1997 priority date, the Commission's April 20, 2010 Order "allocated" the
    water available for appropriation in the Brazos River Basin to a subsequent
    applicant, BRA, in an application yet to be completed at SOAR, even as of the date
    of this appeal to the Court of Appeals.
    3.    POINT OF ERROR NUMBER THREE.
    THE DISTRlCT COURT ERRED IN FAILING TO FIND THAT THE
    COMMISSION'S APRIL 20, 2010 ORDER IS IN VIOLATION OF THE
    REQUIREMENTS OF TEXAS WATER CODE, §11.138l, REGARDING THE
    CONSIDERATION AND GRANTING OF WATER RIGHTS PERMITS FOR A
    TERM OF YEARS.
    SUlnmmy ofArgument
    The Commission's April 20, 2010 Order fails to comply with Texas Water
    Code § 11.1381, regarding an appropriation of state water for a term of years. The
    Commission inappropriately evaluated Plaintiff's application, that included a
    APPELLANT'S BRIEF                                                            PAGE2!
    request to renew his term permit, in consideration of its impact on a pending
    applicant, rather than a senior water right holder.
    Argument
    Texas Water Code §11.1381 states:
    Sec. 11.1381. TERM PERMITS. (a) Until a water right is
    perfected to the full extent provided by Section 11.026 of this
    code, the commission may issue permits for a term of years for
    use of state water to which a senior water right has not been
    perfected.
    (b) The commission shall refuse to grant an application
    for a permit under this section ifthe commission finds that there
    is a substantial likelihood that the issuance of the permit will
    jeopardize financial commitments made for water projects that
    have been built or that are being built to optimally develop the
    water resources of the area.
    (c) The commission shall refuse to grant an application
    for a term permit if the holder of the senior appropriative water
    right can demonstrate that the issuance of the term permit
    would prohibit the senior appropriative water right holder from
    beneficially using the senior rights during the term of the term
    permit. Such demonstration will be made using reasonable
    projections based on accepted methods.
    (d) A permit issued under this section is subordinate to
    any senior appropriative water rights.
    Accordingly, even the Commission's unlawful recognition of the availability
    of return flows in the Brazos River Basin, albeit solely for use under BRA's
    pending water rights application, is unspoken Commission recognition that the
    APPELLANT'S BRIEF                                                                PAGE 22
    evidence of record shows there is water available for appropriation for Plaintiffs
    diversion and use, at least for a term of years. BRA still has only a pending
    application for a proposed appropriation. The water that the Commission's April
    20, 2010 Order finds available for that proposed appropriation by BRA is, by
    definition, available to Plaintiff under his 1997 priority date before any new
    appropriation by BRA with a 2004 priority date is authorized by the Commission.
    Additionally, the evidence of record is that BRA is using only 20% of its existing
    Stillhouse Hollow Lake water right, the closest and most pertinent water right to
    Plaintiff. Tex. Water Code §11.1381 requires the holder of a senior
    appropriative water right to "demonstrate that the issuance of a term permit
    would prohibit the senior appropriative water right holder from beneficially using
    the senior right during the term of the term permit." In this case, there was no
    senior apptopriator party-- BRA withdrew; And, there could have been no
    demonstration of harm to BRA because it only has a pending application, not any
    right to appropriate the 421,449 acre-feet per year of return flows found to be
    available for appropriation in the Brazos River Basin under the Commission's
    April 20, 2010 Order. There was no demonstration ofhann to any other existing
    water rights holder in the Brazos River Basin, on the facts of record in this
    contested case hearing.
    APPELLANT'S BRIEF                                                           PAGE 23
    In this case, the TCEQ is essentially implementing a cancellation program
    for term permits. The problem with the TCEQ's program is that through the Texas
    Water Code, the Texas Legislature has authorized the Commission to cancel
    permits for failure to put all or a part of the water to beneficial use for ten (10)
    years or more. (See, Texas Water Code, § 11.1729) This is the same directive
    given by the Texas Supreme Court in reviewing actions of the predecessor agency
    to the TCEQ in the "Stacy Dam case," Lower Colorado River Authority, et aI, v.
    Texas Department of Water Resources, 
    689 S.W.2d 873
    (Tex. 1984), the most
    recent comprehensive review on water law in this State. In that case, just as in the
    case at bar, we are all called to consider the issue of how to make the best use of
    the state's resources during times of water shortage, when questions of water
    availability become most pronounced.
    The problem with the Commission's actions in this case, is that TCEQ
    attempts to effect a cancellation of a water right by a party who the evidence of
    record shows has put the water to beneficial use in the last ten years. In the "Stacy
    Dam case," the Texas Supreme Court told the TCEQ that it had to honor
    appropriations in accordance with the prior appropriation system of the Texas
    Water Code. Specifically, the Texas Supreme Court stated:
    9 Sec. 11.172.' GENERAL PRINCIPLE. A permit, certified filing, or certificate of adjudication
    is subject to cancellation in whole or part for 10 years nonuse as provided by this subchapter.
    APPELLANT'S BRIEF                                                                      PAGE 24
    Section 11.146(e), by providing that water granted under any
    permit is not again subject to a new permit to appropriate until
    the permit has been cancelled in whole or in part, is consistent
    with the overall legislative purpose [of providing security for
    investors that water needed for a project will be there when the
    proj ect is built].
    Id, at p. 877.
    In other words, under extant provisions of the Texas Water Code, the TCEQ has
    two avenues to provide for water for additional appropriation:
    (1)   It can make use of surplus water returned to the stream in the form of
    return flows after use by authorized appropriators under Texas; or
    (2)   It can undertake a cancellation program as specified in Texas Water
    Code, Chapter 11, Subchapter E. Cancellation of Permits, Certified
    Filings, and Certificates of Adjudication for Nonuse.
    In order to grant new water rights and provide for a growing Texas economy, the
    TCEQ must cancel water rights-that is, de-appropriate the water-ii'om people
    who are not using the water. The problem, with the current TCEQ practice of
    changing priority dates and cancelling term permits is that the Agency seeks to
    cancel water rights of people who are using their water, in favor of those who have
    yet to be authorized to use the return flows made available under Texas Water
    Code, § 11.046. In other words, instead of following the Stacy Dam case directive
    to consider only water not subject to a duly issued Permit to Appropriate State
    Water, the TCEQ seeks to impose an unofficial "back door" cancellation program
    APPELLANT'S BRIEF                                                                PAGE2S
    of water rights which were issued for a term of years, even where the permittees
    are seeking to continue to use the water as originally authorized, and even though
    additional water in the form of return flows has become available legally to satisfy
    that continued use.
    4.    POINT OF ERROR NUMBER FOUR.
    THE DISTRICT COURT IN FAILING TO FIND THAT THE COMMISSION'S
    APRIL 20, 2010 ORDER VIOLATES THE FUNDAMENTAL DOCTRINE OF
    WATER RIGHTS LAW OF "FIRST IN TIME, FIRST IN RIGHT," AS SET
    FORTH IN THE TEXAS WATER CODE, SECTION 11.027.
    Summmy ofArgument
    The Commission's April 20, 2012 Order violates the doctrine of prior
    appropriation and is based upon an unlawful procedure that was prejudicial to the
    Plaintiff. Under Texas Water Code § 11.141, the Commission is obligated to use
    the priority date of the applicant to determine the availability of state water for
    appropriation. Plaintiff filed an application that should have been given a July 1,
    1997, based on a previous order of the Commission. The agency order which set
    Plaintiff's priority date was final order over which the Commission had lost
    jurisdiction. Without notice to the Plaintiff or opportunity for him to protest, the
    Commission's staff changed the priority date of Plaintiff's application to Janumy
    5, 2006. Then, the agency compared this "new" priority date unfavorably to the
    APPELLANT'S BRIEF                                                            PAGE 26
    2004 priority rate of a pending applicant. The Commission's order is unlawful and
    is based on unlawful procedure.
    Argument
    Texas water law established long ago the prior appropriation doctrine of
    "first in time, first in right" to resolve disputes between appropriators and potential
    appropriators of State water. The Texas Legislature codified the doctrine in the
    Texas Water Code, § 11.027 and fUliher defined the priority of an appropriation at
    Texas Water Code, §I1.I41. When the Commission issued Mr. Ware's original
    Permit No. 5594 to "Appropriate and Use State Water" in 1997, the Commission's
    inclusion of Special Condition 3(b) merely memorializes the "first in time first in
    right" doctrine in Texas Water Code, §I1.027 and § 11.141. Special Condition 3(b)
    states, unequivocally:
    "The priority date of this permit and all extensions hereof shall be July 1,
    1997."
    Sections 11.027 and 11.141 protect the appropriation of State water, not an
    application for an appropriation, or for a proposed appropriation of State water.
    The intent of the Texas Water Code is obvious, on this point. The priority date of
    July 1, 1997 included in Permit No. 5594 establishes the priority of Plaintiff's
    appropriation; Tex. Water Code, §I1.14I states:
    Sec. 11.141. DATE OF PRIORITY. When the commIssIon
    issues a permit, the priority of the appropriation of water and
    the claimant's right to use the water date from the date of filing
    of the application.
    APPELLANT'S BRIEF                                                                  PAGE 27
    The priority date applies to the original appropriation, regardless of whether the
    appropriation is authorized for a term of years or in perpetuity.lO Where the
    appropriation is perpetual, the date of the original application, and the priority date
    would not change. When the appropriation is for a term of years, necessitating re-
    application if the appropriator wished to retain the water right, there could be
    confusion about which "application" date controlled. Logically, on a renewal of an
    existing appropriation it would remain the date of the original application.
    However, the Commission in 1997 eliminated all confusion and ambiguity by
    expressly and correctly interpreting Texas Water Law and including Special
    Condition 3(b) ofpermit No. 5594.
    When the Executive Director and, ultimately, the Commission, changed Mr.
    Ware's priority date to January 5, 2006 (Finding of Fact 48) the action violated
    §11.141 of the Water Code and §2001.174(2)(A) of the Government Code. The
    exact process of "changing" a final order of a state agency where the agency had
    lost jurisdiction over the contested case years before, was never explained during
    the hearing. The record shows that the Commission's Executive Director's Staff
    never notified Plaintiff that is had changed his 1997 priority date when it did so
    "administratively." When the Executive Director's representative was pressed
    to In water rights, this is known as the "doctrine of relation back," meaning the right to
    appropriate relates to the first point in time (as ofthe date of the completed application) that the
    state could have authorized the appropriation.
    APPELLANT'S BRIEF                                                                           PAGE2S
    about the procedure, or the exact nature of the "policy" that was used to change
    Plaintiff s priority date, the witness could not answer the questioning". In fact, the
    presiding SOAH ALJ prevented fUliher questioning about this important factor in
    the Agency's pre-hearing consideration of Plaintiffs application l2 • Because the
    record could not be completed, whether it was because of the limitations of the
    Executive Director's representative, or the failure of the witness to know the policy
    used to change Mr. Ware's permit, the Court is allowed to examine the TCEQ
    procedural irregularities that occurred within the Executive Director's Office. [Tex.
    Gov't Code §2001.175; See Tex. Water Com 'n v. Del/ana, 
    849 S.W.2d 808
    ,810
    (Tex. 1993)]
    The record is clear that the Commission's Executive Director's staff did not
    model 13 or determine water availability to meet the requests in Mr. Ware's
    amendment application with a 1997 priority date. Therefore, the Commission's
    administrative record lacks competent evidentiary support for a determination of
    available water in the Brazos River Basin if the staff had modeled Plaintiffs
    application correctly.
    11 (Attached as Exhibit D, Tr. Vol. 1, p. 116 line 8 - 124 line 25; Clerk's Record p. 114-122)
    12 (Attached as Exhibit D, Tr. Vol. 1, p. 125 line 1 -126 line 7; Clerk's Record p. 123-124)
    13 By "model" we mean use the agency's Brazos River Basin Water Availability Model
    computer based simulation of available water within the basin that takes into account inflows,
    evaporation and channel losses, and the rights granted to senior water rights holders within the
    basin.
    APPELLANT'S BRIEF                                                                       PAGE 29
    Of course, Texas law prohibits the collateral attack of an order derived from
    a closed contested case. Chocolate Bayou Water Company and Sand Supply v.
    Texas Natural Resource Conservation Commission, et al., 
    124 S.W.3d 844
    , 853
    (Tex. App - Austin 2003, pet. denied) This prohibition extends to the agency itself.
    In Railroad Commission of Texas v. Home Transportation Company, 670 S.W.2d
    319,325 (Tex. App - Austin 1984, no writ) the Court held; "Agencies are entitled
    to interpret their own orders, for administrative purposes, so long as the agency
    does not use the occasion to interpret as a means to amend the prior order."
    Even if the Executive Director sought to "change" or otherwise "interpret" the
    plain, unambiguous priority date listed in Plaintiffs permit during the hearing, the
    cited case law would prevent such a collateral attack of a determination and grant
    of a water right that has been made by a previous Agency decision. What is more
    egregious to Mr. Ware's due process rights is that Mr. Ware's permit was amended
    by a unilateral staff action, without notice and oppOliunity for Mr. Ware to
    adjudicate the change or even comment on the change.
    The effect of the action was that Mr. Ware was deprived of a right (a water
    right with a 1997 priority date) conferred by the original Commission order issuing
    Permit No. 5594 without any notice and opportunity to respond to the removal of
    the right. A new, far less senior priority date was used, improperly, in the
    Executive Director's November 14, 2006 Water Availability Review of Mr.
    APPELLANT'S BRIEF                                                             PAGE 30
    Ware's application and formed the basis for the denial of Mr. Ware's application.
    Therefore, the Commission's order denying Mr. Ware's application on the basis of
    the change in priority date, also violated Tex. Gov't. Code §2001.174(2)(C).
    Moreover, in House of Tobacco, Inc. v. Calvert, 
    394 S.W.2d 654
    , 656 - 657
    (Tex. 1965), the Texas Supreme Court held that even a person who is granted a
    privilege under the state's police power such as a licensee, is entitled to procedural
    due process when that license is taken away. Mr. Ware was granted an important
    and valuable priority date of July 1, 1997. He was entitled to procedural due
    process when it was taken away by the Executive Director's staff without notice
    and the opportunity for a hearing on the removal of the priority date. The agency
    compounded the error when it ratified the Executive Director staffs action by
    issuing a final order.
    The TCEQ's Final Order itself indicates that the priority date ofMr. Ware's
    application is relevant. The Final Order includes findings 49, 50, and 51, peliaining
    to BRA's application for a system water right. Assuming that all findings of fact
    are necessary and relevant to the TCEQ's Conclusion of Law and ultimate decision
    [See Heritage on San Gabriel Homeowners v. TCEQ, 
    393 S.W.3d 417
    , 423
    (Tex.App. - Austin 2012); citing City of Waco v. Texas C0111111 'n on Envtl. Quality,
    
    346 S.W.3d 781
    , 819 - 20 (Tex.App - Austin, pet. denied)], we can only assume
    that BRA's October 15,2004 priority date (Finding 50) as a competing applicant is
    APPELLANT'S BRIEF                                                              PAGE 31
    part of the reason why Mr. Ware's application, using a January 5, 2006 priority
    date (Finding 48) was denied. (Finding 51).
    The Texas State District Court in Travis County has already considered the
    importance of recognizing the priority of water rights for agricultural use in Texas
    Farm Bureau, et al v. Texas Commission on Environmental Quality, Cause No. D-
    I-GN-12-003937, and found the TCEQ Drought Curtailment Rules, 30 Texas
    Administrative Code §§ 36.1-36.8, are invalid because:
    1.    The rules exceed TCEQ's statutory authority because
    they allow exemption of preferred uses from a curtailment or
    suspension order, and such exemptions are not in accordance
    with the priority of water rights established by Texas Water
    Code § 11.027; and
    2.     Exemption of junior water rights from a priority call and
    curtailment or suspension order [meaning administering water
    rights during a time of shortage by putting later water users in
    front of earlier priority water users] is not authorized by
    TCEQ's police power or any general authority to protect the
    public health; safety, or welfare.
    [Parenthetical explanatory comments supplied. June 6, 2013,
    Order on Cross Motions for Summary Judgment, the Honorable
    Scott H. Jenkins]
    5.    POINT OF ERROR NUMBER FIVE.
    THE DISTRICT COURT ERRED IN FAILING TO FIND THAT THE
    COMMISSION ACTED ARBITRARILY AND CAPRICIOUSLY TO DEPRIVE
    PLAINTIFF OF ANY CONTINUED RIGHT TO DIVERT AND USE ANY
    APPELLANT'S BRIEF                                                               PAGE 32
    WATER AT ANY TIME FOR WARE FARM UNDER PERMIT NO. 5594, AN
    AUTHORIZED APPROPRIATION, ON THE STATED BASIS OF NO WATER
    AVAILABLE FOR APPROPRIATION, WHILE AT THE SAME TIME
    GRANTING WATER RIGHTS FOR NEW APPROPRIATIONS AND ISSUING
    STATEMENTS OF WATER AVAILABILITY FOR OTHER PLAINTIFFS,
    NEW PERMITTEES, AND OTHER WATER RIGHTS HOLDERS.
    SUn1n1my ofArgument
    The Commission's April 20, 2010 Order            IS   based on an erroneous
    construction of Texas Water Code § 11.046(c) peliaining to the availability of
    return flows for re-appropriation; and is based on an unlawful procedure. The
    Commission's construction of Texas Water Code §11.046(c) is erroneously in that
    it included a limitation on the availability of return flows for reappropriation that
    was not imposed on return flows by the Texas Legislature. This erroneous agency
    construction ofthe applicable law is not entitled to deference by this court. Further,
    the Commission's Order then unlawfully reserves these return flows that should
    have been available to the Plaintiff, for the benefit of a subsequent, pending
    applicant.
    Argument
    The Commission's April 20, 2010 Order denying Plaintiffs amendment
    application is made through the unfair and unlawful procedure of denying some
    Plaintiffs Brazos River Basin access to water available for appropriation in the
    APPELLANT'S BRIEF                                                              PAGE 33
    form of return flows or updated information on water availability. Texas Water
    Code § 11.046(c) states:
    § 11.046(c). Except as specifically provided otherwise in the water
    right, water appropriated under a permit, certified filing, or certificate
    of adjudication may, prior to its release into a watercourse or stream,
    be beneficially used and reused by the holder of a permit, certified
    filing, or certificate of adjudication for the purposes and locations of
    use provided in the permit, certified filing, or certificate of
    adjudication. Once water has been diverted under a permit,
    certified filing, or certificate of adjudication and then returned to
    a watercourse or stream, however, it is considered surplus water
    and therefore subject to reservation for instream uses or
    beneficial inflows or to appropriation by others unless expressly
    provided otherwise in the permit, certified filing, or certificate of
    adjudication.
    (Emphasis supplied)
    The Commission's order, which recogmzes the presence of "the full amount
    [421,449 acre-feet of water per year] of BRA's requested return flows," but also
    denies that 150 acre-feet of water is available for Plaintiff's continued
    appropriation, is founded upon unlawful procedure. Plaintiff asserts that the
    Executive Director's and TCEQ's erroneous interpretation of §11.046(c) is not
    subject to the usual substantial evidence review by this court because it is clearly a
    question of law and the TCEQ's interpretation is not entitled to a presumption of
    validity [Entex v. Railroad COl11m., Texas, 
    18 S.W.3d 858
    , 862 (Tex. App. - Austin
    2000, pet.denied); Dodd v. Meno, 
    857 S.W.2d 575
    , 576 (Tex.App. - Austin 1993),
    APPELLANT'S BRIEF                                                                  PAGE 34
    affd on other grounds, 
    870 S.W.2d 4
    (Tex. 1994)] The Texas Water Code and
    Commission rules do not provide for reservation of state water available for
    appropriation to ji/ture Plaintifft. There is no law or rule, and consequently no
    legal justification for the Commission's actions denying a requested appropriation
    for Ware Farm while granting or providing documentation to support granting,
    perpetual or long term permits for other later applicants and future appropriators.
    Moreover, the arbitrary limitations that the Executive Director placed on the
    availability of retulU flows for re-appropriation is not supported by the law or even
    the potentially changing position of the TCEQ on the proper appropriation of
    retulU flows. The Executive Director's witnesses testified that Plaintiffs
    application was not reviewed assuming that retulU flows upstream of Mr. Ware's
    diversion point were available for re-appropriation 14 • Dr. Alexander testified that
    the Executive Director asselis that retulU flows are available for re-appropriation
    only to the entity that discharged such retulU flOWS 15 • Plainly, this qualification on
    the availability of retulU flow for re-appropriation is not contained in §11.046(c),
    cited herein. The consideration of a pending application of a non-patiy applicant
    and use of such legally irrelevant factors is evidence that the TCEQ's Denial of
    Plaintiffs application was arbitrary and capricious. [See City of El Paso v. Public
    14 (See Exhibit D, Tr. Vol. 1 p. 109 line 6 - 110 line 8; Clerk's Record p. 112-133 and pp. 134
    line 9 -154 line 24; Clerk's Record p. 125-145)
    15 (See Exhibit J, Tr. Vol. 2 p. 377 line 10 - 379 line 8; Clerk's Record p. 224-226)
    APPELLANT'S BRIEF                                                                      PAGE 35
    Utility Com'n. of Texas, 
    883 S.W.2d 179
    , 184 (Tex. 1994)] Further, it is evidence
    that the agency's final order is characterized by an abuse of discretion or a clearly
    unwarranted exercise of discretion [Tex. Gov't Code §2001.174(2)(F); Berkley v.
    Railroad Commission of Texas, 
    282 S.W.3d 240
    , 242-244 (Tex.App - Amarillo
    2009, no pet.h.); Langford v. Employees Retirement System of Texas, 
    73 S.W.3d 560
    , 564-565 (Tex. App. - Austin 2002, pet. denied); TGS - NOPEC Geophysical
    Company v. Combs, 
    268 S.W.3d 637
    , 651-652 (Tex. App. - Austin 2008, pet.
    filed)] In addition the Executive Director's erroneous interpretation of §11.046(c)
    is at odds with BRA's position in the pending application that the TCEQ references
    in its Final Order. BRA seeks all available return flows in its pending application.
    Since the issuance of the TCEQ's Final Order in Mr. Ware's case, BRA's
    application has been heard, considered by the Commission, and remanded to the
    ALJ's for further hearing. The Administrative Law Judges who heard BRA's
    application in Brazos River Authority's System Operation Permit Application No.
    5851 ("BRA Application No. 5851") issued a proposal for decision with a
    construction of §11.046(c) consistent with BRA's and Plaintiff's interpretation of
    § 11.046(c). The ALJs concluded that the Executive Director's interpretation was
    erroneous and in conflict with the plain language of the statute. See excerpts of the
    Proposal for Decision, BRA Application No. 5851, attached as Exhibit I; Clerk's
    Record p. 197-222.
    APPELLANT'S BRIEF                                                              PAGE 36
    The real reason the TCEQ determined that there is no water available for
    Mr. Ware is because the TCEQ Staff has construed the law to exclude return flows
    as a basis for a new appropriation under certain unspecified and uncodified
    conditions. The TCEQ may wish to invoke the protections of "substantial evidence
    review" and point to the "more than substantial evidence" to support its order; but
    the lynch-pin of the TCEQ's argument is its construction of the controlling
    statutOlY authority: § 11.134(b) and, consequently § 11.046 of the Texas Water
    Code. Therefore, the TCEQ's Final Order in Mr. Ware's application is not entitled
    to the deference ofthis Court. [Entex v. Railroad Comm., Texas, 
    183 S.W.3d 858
    ,
    862 (Tex. App. - Austin 2000, pet. denied); Dodd v. Meno,
    857 S.W.2d 575
    , 576
    (Tex. App. - Austin 1993, affd on other grounds, 
    870 S.W.2d 4
    (Tex. 1994)] The
    case-law is clear: a court reviewing a state agency's construction of controlling
    statutory authority is entitled to substitute its interpretation of the law for that used
    by the state agency. 
    (Entex, supra
    ) Moreover, it is important that this court provide
    its construction is a matter of first impression. As noted in the proposal for decision
    in BRA's actual pending application [SOAR Docket No. XXX-XX-XXXX; TCEQ
    Docket No. 2005-1490-WR; On Re: Concerning the Application by the Brazos
    River Authority for Water Use Permit No. 5851 and Related Filings] (A relevant
    excerpt was attached as Exhibit I to Plaintiffs Initial Brief), the issue of the
    appropriate use of return flows is a matter "in play" still under consideration and
    APPELLANT'S BRIEF                                                                 PAGE 37
    subject to interpretation at the TCEQ. The legal construction of Texas Water Code,
    § 11.046(c) is crucial to Mr. Ware in his application and this appeal.
    The importance of fair and accurate water availability analysis by the
    Commission, has its basis, not only in the Texas Water Code, but also in principles
    of fundamental fairness, and prohibition against property deprivation without
    compensation or due process, under the Constitution of the United States of
    America and the Texas Constitution. Water rights are propeliy rights, and the
    termination or denial of those rights without just cause or fair compensation
    amounts to an unauthorized use of the State's police powers. The Commission, in
    every water rights case, must act in a just and reasonable way. Reliance on
    erroneous or outdated data, refusal to apply facts as dictated by statute, operating in
    accordance with non-existent rules and procedures unlawfully compromise the
    Commission's water rights regulation. Above everything, Plaintiff should not be
    denied under Commission procedures which determine water availability based on
    unspecified procedures and non-public rules which favor some Plaintiffs over
    others without regard to the statutory mandate, "As between appropriators, the
    first in time in the first in right.
    6.     POINT OF ERROR NUMBER SIX.
    THE DISTRICT COURT ERRED IN FAILING TO FIND THAT THE
    COMMISSION'S APRIL 20, 2010 ORDER ADOPTED FINDINGS OF FACT
    APPELLANT'S BRIEF                                                               PAGE 38
    PERTAINING TO A PENDING NON-PARTY APPLICANT; MOREOVER,
    THE DETAILS OF SAID PLAINTIFF'S PENDING APPLICATION AND
    PROPOSED APPROPRIATION WERE UNLAWFULLY USED AS A BASIS
    TO DENY PLAINTIFF'S WATER RIGHT APPLICATION.
    Summmy ofArgument
    The Commission's April 20, 2010 Order is unlawful and voidable on its face
    because is it based upon consideration given to a non-patty, pending applicant, to
    the detriment of the Plaintiff.
    Argument
    The Commission's April 23, 2010 Order contains Findings of Fact 45, 49,
    50 and 51; which refer to the unidentified application of Brazos River Authority, a
    non-patty. These findings of fact regarding the ongoing contested application of a
    non-patty were used as a basis to deny Mr. Ware's application. Therefore, the
    Commission order violated Tex. Gov't. Code §2001.174(2) because the decision
    was made through unlawful procedure [§2001.174(2)(C)]; it was not reasonably
    supported by substantial evidence considering the reliable and probative evidence
    in the record as a whole [§2001.174(2)(E)]; and was arbitrary and capricious and
    was characterized by an abuse of discretion [§2001.174(2)(F)]. The referenced
    Findings of Fact Nos. 45, 49, 50 and 51 appear to refer to pending water rights
    BRA Application No. 585l. However, as of its April 14, 2010 consideration of the
    Proposal for Decision in Plaintiff's case, the Commission had yet to even consider
    that pending application in an open meeting lawfully convened pursuant to the
    APPELLANT'S BRIEF                                                           PAGE 39
    Texas Open Meeting Act, Tex. Gov't. Code Chapter 551 et. seq. and, of course,
    had not rendered any final order granting all or any portion of BRA's proposed
    appropriation. [See Tex. Gov't. Code §2001.005(a)]
    On April 28, 2010, the Commission referred BRA's Application No. 5851 to
    SOAR granting the requests for a contested case hearing of several protestants.
    The hearing before SOAR is subject to the Texas Rules of Evidence in a non-jury
    civil trial. (See Tex. Gov't. Code §2001.081) BRA was not a party to Mr. Ware's
    application, and no witness on behalf of BRA was sponsored to verify any pOliion
    of Application 5851 or any other application filed by BRA. Even more
    impOliantly, Plaintiff was provided no oppOliunity to cross examine or otherwise
    determine the validity of any evidence associated with BRA's application or the
    supposed evidence which mayor may not support the Findings of Fact Nos. 45, 49,
    50 or 51 in the Commission's April 20, 2010 Order. (See Tex. Gov't. Code
    §2001.087) Therefore, in denying Mr. Ware's application based on unsupported
    evidence from a pending application of a non-party, the Commission's April 20,
    2010 Order amounts to a taking of Mr. Ware's property without the benefit of any
    procedural due process, in direct contravention of the Article XIV of the U.S.
    Constitution. In that regard, the Commission's order also violated the Texas
    Constitution, Art. 1, Sections 3 and 19, and Tex. Gov't. Code §2001.174(A). [See
    also Texas Citizens for a Safe Future and Clean Water v. Railroad Commission of
    APPELLANT'S BRIEF                                                         PAGE 40
    Texas, 
    254 S.W.3d 492
    , 496-497 (Tex. App. - Austin 2007, pet. filed); Hernandez
    v. Meno, 
    828 S.W.2d 491
    ,493-495 (Tex. App. - Austin 1992, writ den.)]
    There is little doubt about the damaging impact of the referenced findings on
    Mr. Ware's application. The most significant Findings of Fact Nos. 49, 50 and 51
    were included in a section of the Commission's order labeled "Priority dates." In
    Findings of Facts 40 and 41 (which directly contradict the Commission Finding of
    Fact 47) the Commission established the importance of an Plaintiffs priority date
    in the Commission's determination of water availability. Then, the Commission
    directly compares BRA's alleged priority date to a less senior priority assigned to
    Mr. Ware's application (Finding of Fact 48) rather than the date included in his
    permit (Finding of Fact 46). In so doing, the effect of the Commission's order was
    to deny Mr. Ware's application in favor of another pending and undecided
    application. Moreover, the Commission's Finding of Fact 51 violates Tex. Water
    Code § 11.141 by implying that the pending BRA application had already resulted
    in a valid appropriation of water. That section ofthe Water Code provides:
    "DATE OF PRIORITY. When the Commission issues a permit,
    the priority of the appropriation of water and the claimant's
    right to use the water date from the date of filing of the
    application."
    (Emphasis supplied)
    Texas Water Code, §11.141
    The agency's actions in adopting Findings of Fact 40,41,45,47,49,50 and
    51 substantially prejudiced Plaintiff s substantial rights discussed herein, including
    APPELLANT'S BRIEF                                                              PAGE 41
    his right to due process, and therefore Plaintiff is entitled to the reversal and
    remand of the TCEQ's decision [Tex. Gov't. Code §2001.174(2); Balla v. Texas
    State Board ofMedical Examiners, 
    693 S.W.2d 715-717
    (Tex. App. - Dallas 1985,
    ref.n.v.e)]
    Plaintiff did not agree to use information about BRA's pending application
    or waive his objection to receipt of information about BRA's application into his
    hearing record. Plaintiff offered the Executive Director's 2008 Water Availability
    Review to the ALI for the limited purpose of establishing that it was the most
    current water available analysis performed by the Executive Director regarding the
    Brazos River Basin. In that review (Exhibit H; Clerk's Record p. 183-196) the
    Executive Director updated the Brazos WAM that had been used two years before
    in its review of Mr. Ware's application. The fact that the Executive Director found
    that 74,387 additional acre-feet of water per year was available in the Brazos River
    Basin using the same period of record as was used in Mr. Ware's Water
    Availability Review was relevant and probative information for the Commission's
    consideration of Mr. Ware's application. The fact that another applicant (or any
    other applicant) may have also applied for the water available for appropriation is
    irrelevant to any issue in this case. Plaintiff strenuously objected to the admission
    of any evidence about BRA's application during Mr. Ware's hearing for the
    reasons discussed herein. The Commission's inclusion of any information about
    APPELLANT'S BRIEF                                                             PAGE 42
    BRA or its pending application is objectionable and unlawful and has no bearing
    on the question of water availability for Mr. Ware.
    VII. SUMMARY
    The Commission's April 20, 2010 Order denying Mr. Ware's application to
    appropriate 150 acre-feet of water per year from the Lampasas River, Brazos River
    Basin, violates the Texas Water Code, the Texas Constitution, and the Constitution
    of the United States and is voidable and reversible. Apart from being unlawful, the
    Commission's role in administering water rights is called into question when it
    denies a family farmer access to water available for appropriation in the Brazos
    River Basin for any term at all on the one hand, and supports contractual water
    rights, and issues perpetual permits for use of State water associated with return
    flows and updated streamflow conditions and data sets on the other hand.
    VIII. PRAYER FOR RELIEF
    WHEREFORE, CONSIDERING THE FOREGOING, Plaintiff asks the
    court to vacate the Texas Commission on Environmental Quality's unlawful April
    20,2010 Order denying the Application of Bradley B. Ware to Amend his Permit
    to Appropriate State Water No. 5594, and remand the case to the TCEQ for further
    consideration of Plaintiff's application based on the evidence of record and the
    Texas Water Code and all applicable law; and for such other and further relief that
    Plaintiff may show himself to be entitled.
    APPELLANT'S BRIEF                                                            PAGE 43
    Respectfully Submitted,
    WEBB   & WEBB
    Attorneys at Law
    712 Southwest Towers
    211 East i h Street
    Austin, Texas 78701
    (512) 472-9990 Telephone
    (512) 472-3183 Facsimile
    , bbwebblaw.com
    0.21033800
    GWENDOLYN HILL WEBB
    g.hill.webb@webbwebblaw.com
    State Bar No. 21026300
    ATTORNEY FOR APPELLANT,
    BRADLEY B. WARE
    CERTIFICATE OF COMPLIANCE
    Pursuant to Texas Rule of Appellate Procedure 9.4(i)(3), I hereby certify that
    this brief contains 10,260 words (excluding the caption, table of contents, table of
    authorities, signature, proof of service, certification, and certificate of compliance).
    This is a computer generated document created in Microsoft Word, using 14-point
    typeface for all text, except for footnotes which are 12-point typeface. In making
    this certificate of compliance, I am relying on the word count provided by the
    software used to prepare the document.
    APPELLANT'S BRIEF                                                                PAGE 44
    CERTIFICATE OF SERVICE
    I   hereby   celiify   that   I   have   this    I--~
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    TEXAS COMMISSION ON ENVIRONMENTAL'QUAiXllijl
    .                              P,O, BOX 13088, MC-160 .
    Austin, Texas 78711-3088· '"
    Telephoue No, (512) 239-4691 FAX (512) 239:4770
    APPLICATION FOR AMENDMENT TO AWATER RIGHT
    REQUIRING MAILED AND PUBLISHED NOTICE; or
    NOT REQUlRlNG MAILED lIND PUBLISHED NOTICE
    ReferenC§ AIDl.JJllJID(lftO'&''JI'll®m tOlHIllll,'Il'. N®.
    §'lrllKlf!lA:mI ~A\§A\@ l!!'.ILiYJ1lllllt
    'lHtmll!Jlffi\V®lIJllt (lP'lffilE§Jl!lMlr WDlI'Jl'l[®:ru~,JI]j'' ' ' ,'®mlI!llEl1.(]@'lr§):
    ,1D®llJml'JY: -..-lJJ)lElljllJ              (fJ1l!fl~
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    Form TCEQ-10201(revis~d 8/02)
    ,.
    I      ..
    . .'
    If   lIJ'ffiID1IillI.It§'.l1.'A\lml 'll'~'ll' WIlDE .A\.G.lElNfIDW NlIA\.W JmIEl(U\IDmm .A\JIDlIlJ11'll'11fIDNI.&JL
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    ~§§                          (Yl   y                                                                             JIIlA\.:&IDJ .A\.'ll'
    • (JIDY I ®lUJffi)
    'll'EH§ _is_lIlJAW ®1F                              J(
    (.iIDUBII!'lLE, -=-J!--lfAc..\-\GD pJ'.>.6,5 Foe TInS CMRT--=t'
    I.                        Type of crop:                  Growing season (months):        Acres irrigated/year:
    1.
    2.
    3.
    4.
    Total number of acres:           \'52.
    Include hybrid crop names: for example, which type of coastal Bermuda?
    II         On average, how much water in acre-feet will be diverted montllly for irrigation?
    January                    G        May             '21      September        20
    TOTAL
    February                  4        June            Irl      October          'I             for all _
    months
    March                     "3       July           25        November         5
    April                     F")       August        30        December         5
    MONTHL
    y
    TOTALS                    ~o                     q3                         31             150
    m.          Do YOIl seasonally or annually rotale crops?                                NO       (circle one)
    If yes, please describe: WI-IE/.\\i Fo\,\JJFDRD CI..A'/- wELl DRAll0eD PRESEJV'
    e.oIVTOUR ThRRACE.D .AlJ:',D REfER Ttl 'TG'#S eooPE:RAI1\JE EXTE.I0SIO/J
    PU,6uCATlO/J      B- \0'70 p.B.
    V.    Describe the existing/proposed irrigation system including plans, designs and/or sketches
    of the system layout, pump location, slope of the land to be irrigated, and specifics about
    the delivery method. (For example: Single pivot with big gun sprinkler)
    SloPE; D tc:> 3 PERCE.Wr /OCUIJE1?Y UWDSR6RCU~D PVC PUMP
    c.APW1V 500 6.PM./pDJJ[.R UkllT 25 H. Po ELEcTRlC C6J'TER PI\JDr-
    L.ePA DSSISIJ (lOUJ El0E:.R6Y PREUSS ADPUCAllDIJ)                   w11!i A         /xS161J
    E.FFE.C.IE.IS:.'f t>-'ilO\lE CJ5% DRA\\J/\J6 (;)(1-\1611-5 A)6,C,'l-D. TExf'S
    CODPERI\\l\lE EXTEI0S ID/V PuBUc'ATloJJ B -\loll / L-22 1,)7, l-5D~,
    B-loc;A"'1 tHo llo2.
    VI.   Describe the methods and/or device which wllI be used to measure and account for the
    amount of water diverted for irrigation.
    CEhlTE.Q PIVDT J.JD2.ZlE C'.HART AfJD PLlMP ~ \C~~y CUR\Je
    G\IB rr B At-JI) Co        1
    ,
    Lo6 DF DPE.MlI0f.) HOu'Rs ~Hl3lT -1-1,
    VIr. If there's is an existing irrigation   systcm~ any    system evaluations been performed
    regarding the efficiency of the system? ~           NO     (circle one)
    If YES. please indicate:                                 .                 \
    When: sEE AlTN:I:1ED TEXAS .A·t-M PLt5UCAllD\.) B-lfolO                        "I   B(;'OI'j
    Who performed the evaluation:   DR. !DIll LYLE -n;XM           A'l- M    E.iClill3li5 F'IG,/C.rtD05l~ AC81J1E:R PIVOT By
    GUY flPRS
    VIII. Describe any water conserving equipment used In the irrigation system. (I.e. closed pipes,
    leak detection, pressure loss cut-off valve, etc.)
    \11611-\ EF=FECIEf0CY, E.J£c:..-IRIC celJrRlFlcAl PU/JI.P,SEAlED AIJD
    -                           r           (FRIC:nOJ-) ')
    PR-ESSuRE lEST€:D lOW ffiU<,(\,lloJJ, P\lc..             UND6RQi/;,) CE:I0TER PI\laf: USIIJ::3 LOID DRIFT NOZZLES AND DRA<:i
    I-\OS£S I WA1E..R P-El.EkSE: WILL BE. AT t\lD (\./.-oRE lltAk'l ! g 1/
    AB0Jt: SDIL SURFA.CE: ,Tf.'lilc>Z, B-bI50, B-focRb
    IX,   Describe any methods which will be used for water loss control and leal, detection and
    repair.
    REbULA'R PRfSSLtRE TE..ST,, 'R£'PAI f2S MAC£. (,\SI/J(,;, AWROOCD
    X.       Describe any water saving scheduling or measurement practices to be utilized in the
    application of water, for example: irrigation only early in the morning, late evening or
    night hours, when the wind is cairn and temperatures lower, and also the utilization of soil
    moisture monitoring·,
    Page 4
    72
    t··   ,   '
    So N> MOIS1VR€          L8JELs     ARE: MAI}JT.AII>'::£D       FeR goP OCIJE.lCPM6'JI
    BUT NDT TD 111E PC>JlJf of Rv,wofFAUSt>
    ,     REFE.R 1P TEXAS
    CCOPEI<.A.TIUE. EX:TEhl510W P(1Bl1~llol0 L-5o(>'j,J B-lbIO.                    :;>
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    'TE.Y:As cooFERA'TI \.lEO E><-/EOf.-lSID/j .VJA'{C\< 'R ~"'bLI Kes LDe86 111:.:
    li'ifPi / W[.tllV:teyc\s e.-\ ,-tat)'\..l,eaCl .
    XL   Describe any water saving land improvements whlch the applicant plans to incorporate
    into the irrigation practices, such as conservation tillage ~nd other organic methods).
    knifing. furrow diking, weed control, etc.
    t:'18J)S ARE: CDI01DUl< IERRACE:D ,SOME: 6e.Er:ED 1b ~ll'JC
    GR.A.SS SFEOES. IllLA6f' vJILL BE: MAlJMf£> 10 MAI/..)TAIN
    f!...T   LEAST   '30% G,ROfllJD COIlE.R 00 SOIL SUR.FACE:.1
    XII. Describe any recovery and reuse of taUwater runoff.
    lRRI6ATlD0 vJlLl B( MDf\jffDREb 'SOTMf'\! SoiL WILL
    COfSlp..\10 SUFFtiTf::i..)T MDlS1DRE: FOR                PRoPER CROP
    DE\lQoPMEi0f         BUT    1'001 _IRRlt:iA.TC£) TO lliE.     POIDT DF
    RU'i..iOFF, REFER -10 TEXI'S CroPE:RA1l1JE ~1D0 PLIBUcAl700
    1.-:- 5D3Q.
    XIII. Describe, where appiicable, any xeriscape practices utilized (usually associated with
    landscaping) .
    Page 5
    73
    ,   ,
    XIV. Indicate (in gallons-per-minute or cubic-feet-per-second) tl!e rate that water is diverted
    from the source:           SOD G.'PM DR \.2. c.-Fs
    C:\FORM.S\10211l\1jXf (rcvisffl W5)          Page 6
    74
    .~.
    75
    Exhibit B
    Applicant Bradley B. Ware's Motion for
    Rehearing
    SOAlI DOCKET NO. 582·08·1698
    TCEQ DOCKET NO. 2008·0181·WR                              \ n>j II' \ 6
    .                   '''~\I'"\l
    i _ IJ \ 1< 1      n .
    Al'PLICATION OF BRADLEY B. WARE                         §        BEFORil!j'i!1iE~§6g[~SION
    §
    TO AMEND WATER USE                                      §                       ON
    §
    PERMTI' NO. 5594                                        §        ENVIRONMENTAL QUALITY
    .APPLICANT BRADLEY n. WARE'S MOTION FOR REHEARING
    TO 11m HONORABLE TEXAS COMt\1ISSION ON ENVlRONMENTAL QUALITY:
    NOW COMES, Bradley 13. Ware ("Mr. Ware," or "Applicant"), Applicant in the above
    styled and docketed water rights permit amendment application, by and tlrrough his attorneys of
    record, Stephen P. Webb and Gwendolyn Hill Webb, of Webb & Webb, Altomeys at Law, 211
    Seventh Street, Suite 712, Austin, Texas, 78701, and        mes this, Applicant's Motion for Rehearing
    regarding the Aplil 20, 2010 Order of the Texas Commission on Environmental Quality
    ("TCEQ" or "Commission") "Concerning the Application of Bradley B. Ware to amend water
    use Permit No. 5594; TCEQ Docket No. 200S·0181-WR; SOAH Docket No. XXX-XX-XXXX,"
    ("the Conunlssion's April 20, 2010 Order") and respectfully states as follows:
    I.      INTRODUCTION
    Apart from the grievous it1justice perpetrated by the Commission           Oll   Applicant, Bradley
    B. Ware, in denying him allY continuing right to divert and use water under Water Use Permit
    No. 5594 for Ware Farm after over 100 years of waler use, Applicant asserts that the
    Commission's April 20, 2010 Order violates extant provisions of tbe Texas Water Code, and
    COlltains obviously reversible legal error. A May 11, 2010 decision of the Texas Court of
    Appeals, Fomteenth District, Houston, in Texas Department of Public Safety v. Chad Michael
    Henson (14-09-0010-CV) sets forth the standards of judicial review of decisions by an
    administrative agency. TIle text of tile discussion is set forth in full below:
    When reviewing ffil administTative decision under the substantial evidence rule,
    the review court may affIrm the decision in whole or in part. Tex. Gov'!. Code
    Ann. §2001.174 (Vernon 2008). It [the reviewing cawt] must reverse or remand
    the case if the Appellant's substantial rights have been prejudiced because the
    administrative findings, inferences, conclusions, or decision are:
    (1)       in violation of a constitutional Or ,iatutory provisioll;
    (2)       in excess of the agency's slatutory authority;
    (3)       made through ffil unlawful procedure;
    (4)       affected by other error of law;
    (5)       not reasonably supported by subslffiltial evidence when considering
    the record as a whole; or
    (6)       arbitrary or capricious or characterized by abuse of discretion or clearly
    \lUwarrauted exercise of discretion.
    [Citing ffild paraphrasing Tex. Gov't. Code §2001.174 (Vernon 2008), ffild Tex.
    Dept. o/Publlc Safoty v. Guajardo, 
    970 S.W.2d 602
    .J
    Generally, as shown below, the Commission's order is in violation of the fundamental precepts
    of the Constitution of the United States (5th and 14th Amendments) ffild the Texas Constitution
    (ArLl, Bill of Rights, Sections 3 and 19), Texas Water Code and the Texas Govermnent Code;
    is in excess of the Com.mission's statutory authority; is made through unlawful procedure; is
    affected by nllmerOllS other errors of law; is not reasonably supported by snbstantial evidence
    when considering the record as a whole; and is on its face arbitrary, capriciolls, and characterized
    by abuse of discretion, or clearly unwarranted exercise of discretion.
    Put simply, the Commission's Apri120, 20 I0 Order is subject to reversal because it finds
    and concludes that there is water available for appropriation in the Brazos River Basin in the
    form of return flows, but reserves the available water to a pending applicant.- not appropriator--
    and yet denies water availability .in the current proceeding, against the substantial evidence of
    record.
    Al'PLICI>Nf'S MonON FOR REHEARING
    MAy 14, 20)0                                                                                PAGE 2
    77
    n.      STATEl\fENT OF POINTS OF ERROR
    POINT OF ERROR NUMB:ER ONE
    The Commission's April 20, 2010 Order unlawfully ignores the evidence of record
    regarding the water available fol' appropriation by Applicant; therefore, the Commission's action
    in adopting the April 20, 2010 Order was arbitrary and capricious, and was characterized by an
    abuse of discretion.
    Po~rOFERRORNUMBERTWO
    The Commission's April 20, 2010 Order violates the directives and requirements of
    Texas Water Code, §11.1 34 (b), regarding Commission action on water rights applications.
    POINT OF ERROR NUMBER THREE
    The Commission's April 20, 2010 Order is in violation of the requirements of Texas
    Water Code, §11.l381, regarding the consideration and granting of water rights permits for a
    tenn of years.
    POINT OF ERROR NUMBER FOUR
    The Commission's April 20, 2010 Order violates the fundamental doctrine of water right~
    law of "first in time, first in right," as set forth in the Texas Water Code, Chapter 11.
    POINT OF ERROR NUMBER FIVE
    The Commission acted arbitrarily and capriciously to deprive Applicant of any continued
    right to divert and use any water at any time for Ware Farm under Pennit No. 5594, an
    authorized appropriator, on the stated basis of no water available for appropriation, while at the
    Al'PLlCAN1"S MOTION FORJ1EBl;ARlNG
    MAY 14,2010
    78
    same tUne granting water rights for new appri>Priations and issuing statements of water
    availability fur other applicants, new pennittees, and other water rights holders.
    POINT OF ERROR NUMBER SIX
    The Commission's April 20, 2010 Order adopted of Findings of Fact pertaining to a
    pending .non-party applicant; Moreover, the details of said applicant's pending application and
    proposed appropriation were unlawfully used as a basis to dellY Applicant's water right
    application.
    APrLlCANr'S MOTION FOR REJlEARJNG
    MAv14,2010                                                                            PAG~4
    79
    m.      POINT OF ERROR NUMBER ONE
    The Commission's April 20, 2010 Order unlawfully ignores the evidence of record
    regarding the water available for appropriation by Applicant; therefore, the Conunission's action
    in adopting the April 20, 2010 Order was arbitrary and capricious, and was characteriwl by an
    abuse of discretion.
    DISCUSSION
    The adopted Findings of Fact regarding water availability and "The reliability of the
    Model" in the Corrunission's April 20, 2010 Order are, on their face, inconsistent with each
    other, directly contrary to the evidence of record, and founded upon unlawful procedure. While
    the Commission is entitled to dmw an appropriate inference from tlle substantial evidence of
    record regarding water availability in the Brazos River Basin, the Commission is not entitled to
    abuse its discretiou by disregarding the existing evidence of record concerning :water availability
    in favor of outdated ovidence known to be inaccurate. There was much hand wringing during
    the Commission's consideration of Applicant's amendment application on April 14, 2010, and
    the Administrative Law Judge and the Connnissioners all Opilled that it was a sad and difficult
    decision that bad to be made to protect the water resources of the state.            In fact, the
    Connnission's decision to deny Mr. Ware's applicalion to amend. Pennit to Appropriate State
    Water No. 5594 and terminate all water use thereunder should not have been made at all.
    On November 14, 2006, the Executive Director perfonned a water availability review of
    MI'. Ware's amendment application using the COllnllission's Brazos River Basin Water
    Avaiiability Model ("the· Brazos WAM') which was current and accurate at the tinle it was
    performed. See, Applicant's Exhibit No. 47, attached hereto. Two years later, however, the
    Executive Director preformw another water availability review of the Brazos River Basin using
    updated information which was not (Nailable at the time Mr. Ware's application was revieww.
    TIle Executive Director updatM the Brazos WAM's Current Conditions data set and found tl,at
    APPLICANT'S MonON FOR REHEARING
    MAy 14,:UllO                                                                             PAGES
    80
    there was an additional 74,387 acre-feet per year available for appropriation in the BlazOS Rivet
    Basin. See, Applicant's Exhibit 50, also attached hereto.
    It is lmdisputed in the record thai Mr. Ware's amendment application did not benefit from
    the Executive Director's 2008 update of the Brazos WAM. The Executive Director's staff
    hydrologist, Jeffrey Charles Thomas, testified at the hearing that neither he nor anyone else in
    the Executive Director's office perfonned a water availability review of Mr. Ware's application,
    other than the One completed on November 14, 2006 and included in Applicant's Exhibit No. 47.
    TIle same witness also testified that   no portion of the 74,387 acre-feet found to be available in
    the Brazos River Basin in 2008 and set forth in Applicant's Exhibit No. 50 was ever applied to
    Mr. Ware's application or the Executive Director's analysis of water availability for the Ware
    application.
    In considering the Applicant's arglUllent regarding water availability based on rctnrn
    flows and \lpdated infonnaiion, the Commissioners appeared to believe that their questioning of
    ColUlllission staff during the April 14, 2010 Connnission Agenda meeting regarding
    consideration of retnrn flows and water availability was a lawful substitute for the evidence of
    record. TIlis procedure is not lawful. The Commission's decision must be based on the evidence
    of record, not the earnest responses of Couunission staff at Agenda, which responses are not
    contained in the udministmtive record upon which the decision must be based. TCEQ staff
    hydrologist Kathy Alexander responded to Commission inquiries stating that the Executive
    Director had included the retnrn flows ShOWll Oll Applicant's Exhibit 50, attached hereto, in its
    consideration of water available for Applicant's proposed appropriation. 1bis statement is
    directly contl'ary to the testimony of TCEQ staff during the hearing, including Ms. Alexander,
    regardu;g the consideration of 74,384 acre..feet of water shown to be available in the updated
    Current Conditions data set of the Brazos River Basin Water Availability Model. The evidenoe
    of record, as shoWn in an excerpt of the official transcript, is set forth below.
    MrLlCANl"S MOTION FORRllHEAlUNG
    MAY 14,2010                                                                               'fAGE6
    81
    CROSS EXAMINATION OF JEFFREY CHARLES THOMAS, TCEQ HYDROLOGIST ON
    THEBRADLEYB. WAREAPPLlCATION
    Transcript, Bradley B. Ware SOAH Colllesied Case Hearing Ootober 28, 2009, Pages 149, 150:
    Q.       Okay, the point is you didn't use \lllY portion ofthat additional water in
    the basin in your model?
    A.      That's correct.
    Trans(:ript, Bradley B. Ware SOAH Contested Case Hearing October 28,2009, Page 149, 150:
    Q.      Additional unappropriated water would benefit the entire basin, wouldn't it?
    A.      Yes.
    Q.      And so it doesn't matter whether it's above Stillhouse Hollow Lake, below it? It
    would benefit everyone, wouldn't it?
    A.      It would benefit everyone downstream ofit and potentially thiit--yes, I can-say
    that it would benefit everyone in the basin, yes.
    CROSS EXAMINATION OF KATHY ALEXANDER, TCEQHYDROLOGIST
    EXECUm'E DIRECTOR'S REBUTTAL WITNESS ON THE BRADLEY B. WARE
    APPLICATION
    Transoript, Bradley B. Ware SOAH Contested Case Hearing October 29, 2009, Pages 378, 379:
    Q.     . Okay. And so there were return flows available and you gave them a priority date
    of October 15,20047
    A.      Yes.
    Q.      Okay. You meniioned that there were 74,387 acre-feet ofreturn flows resulting
    from different discharges up and down the Brazos River Basin determined to be
    available by TCEQ hydrology?
    A.      Yes.
    Q.      And those are the return flows that were given the October 15, 2004, priority
    date?
    A.       Yes.
    APPLICANT'S MOTION FOR REIDlAR1NG
    MAy14,:20W
    82
    Q.        Okay. And that-and none of those retUln flows, not any portion of them were
    allocated for use by Mr. Ware under either a 1997 priority date or any other
    priority date?
    A.        The retum flows were considered and -
    Q.        Yes or no, Ms. Alexander.
    A.       No.
    Therefore, to the extent that the Commission's April 20, 2010 Order contains Findings of Fact
    whlch state that water is not available for continued appropriation in the Brazos River Basin,
    under the Brazos WAM, they are not reasonably supPOlied by substantial evidence when
    considering the record as a whole. Applicant's Exhibit No. 50 shows that 74,387 acre-feet of
    water per year are available in the Brazos River Basin in the latest version of the Brazos River
    Basin Water Availability Mode!.'
    Texas law does not confer upon the Commission discretion to disregard the evidence of
    record. Tex. Gov't Code, §2001.l74(Z)(E) requires a reviewing court to reverse an order of the .
    Commission that is not reasonably supported by substantial evidence considering the reliable
    probative evidence in the record as a whole. The only reliable evidence is that Mr. WffrC'S
    application never received a water availability review which referenced the amount of water now
    known to be available for appwpriation in the Brazos River Basin. The Commission's reliance
    on the outdated water availability infonnation included in Applicant's Exhibit No. 47, lmown to
    be superseded by more reliable ruld updated information in Applicant's Exhibit No. SO deprives
    the Commission's April 20, 2010 Order of any legitimacy under the law and constitutes an
    obvious abuse of the Commission's discretion.
    I The Commission was only willing to lIse the evidence of water availability tlllder the Brazos WAM In favor of an appHcation
    filed by Brazos River Au!horlty, as shown in its adoption ofFlndfngs of Fact No-s. 42-52,
    MrUCANT's MOnON FOR RElreARJNG
    MAY 14, 2010                                                                                                        PAGE 8
    83
    IV.     POINT OF ERROR NUMBER TWO
    The Commission's April 20, 2010 Order violates the directives and requirements of
    Texas Water Code, §11.134 (b), regarding Commission action on water rights applications.
    DISCUSSION
    Pertinent requirements of Texas Water Code, §11.134(b) are:
    (b) The Commission shall grant the application only if:
    (I) the application comonns to the requirements prescribed by this
    chapter and is accom!>anied by the prescribed fee;
    (2) unappropriated water is available in the source of supply;
    (3) O,e proposed appropriation:
    (A) is intended for a beneficial use;
    (B) does not impair existing water rights or vested riparian
    rights;
    (C) is not detrimental to the publio welfare;
    (0) considers any applicable environmental flow standards
    established under Sectio" ILl471 and, if applicabJe, the assessments perfonned uuder
    Sections 11.147(d) and (e) and Sections 11.150, 11.151, and 11.152; and
    (E) addresses a water supply need in a marmer Ihal is
    consislent wilh the state water plan and the relevanl approved regional water pJan for any
    area in which the proposed appropriation is located, unless the commission determines
    that conditions warrant waiver oftbis requirement; and
    (4) the applicant has provided evidence that reasouabie diligence will
    be used to avoid WOSle ""d achieve water conservation as defrned by Section
    11.002(8)(B).
    The Findings of Fact and Conclusions of Law in the Commission's April 20, 2010 Order do not
    address the requirements of Texas Water Code, §11.134(b). To the extent that the Conclusions
    of Law ultimately denying Application No. 5594A flow from the Findings of Fact regarding
    water available for appropriation in the Brazos River Basin are not reasonably supported by
    substantial evidence when considering the record as a whole; are arbitrary               01'   capricious or
    APPLICANT'S MonON FOR Rtll£.\llJNG
    l\1AY14,2010                                                                                       PAGEY
    84
    characterized by abuse of discretion or clearly unwarranted exercise of discretion, the
    Commission's April 20, 2010 Order also violates Texas Water Code, §11.134(l;» as well. The
    Commission's Order states:
    44.    The addition of "new water," [return flows] if it were proved to exist,
    would be subject to all prior appropriation rights of sealor water rights holder and
    could not be treated as available for neW allocation.
    Finding of Fact No. 44 presents an unlawful inte.rpretation of Commission requirements under
    Texas Water Code, §11.l34(b), which is only highlighted by the subsequent contradictory
    finding that:
    45. The full amount [described in Finding ofFact No. 49 as 421,449 acre-feet of
    water per year] of the Brazos River Authority's requelNT'S MonON FoR REIlEAlUNG
    MA1(14,2010                                                                              PAGElS
    90
    20, 2010 Order then, effectively supports the unlawful allocation of water to the parties to this
    agreement in violation of Texas Water Code §11.027. Other parties who "settled with BRA,"
    include the City of College Station and the City ofBtyan. Consequently, the Commission's April
    20, 2010 Order is founded upon the unquestionably unlawful procedme of allowing a water
    rights holder to determine the allocation of Slate water available for appropriation.
    Consequently, the Commission's April 20, 2010 Order denying Applicant's amendment
    application is madc through the unfair and unlawful procedure of denying somo Applicant's
    access to water available for appropriation in the fonn of return flows or updated information on
    water availability. Texas Water Code §11.046(c) states:
    §11.046(c). Except as specifically provided otherwise in the water right, water
    appropriated under a permit, certified filing, or certificate of adjudication may,
    prior to its release into a watercourse or stream, be beneficially used and reused
    by the holder of a permit, certifieINT'S MOTION 1'01< REHMruNG
    MAY 14, 2010                                                                               PAGE 17
    92
    YIlL POJNTOFERRORNUMBERSIX
    The Commission's April 20, 2010 Order adopted of Findings of Fact pertalning to a
    . pending non-party applicant; Moreover, the details of said applicant's pending application and
    proposed appropriation were unlawfully used as a basis to deny Applicant's water right
    application.
    DISCUSSlON
    The Commission's April 23, 2010 Order contains Findings of Fact 45,49, 50 and 51;
    which refer to the unidentified application of Brazos River Authority, a non-party. 'These
    findings of fact regarding the ongoing contested applicatiou of a non-party were used as a basis
    to deuy Mr. Ware's application. Therefore, the Commission order violated Tex. Gov'!. Code
    §200l.174(2) because the decision was made through \m1awful procedure [§2001.174(2)(C)]; it
    was not reasonably supported by substantial evidence considering the reliable and probative
    evidence in the record as a whole [§2001.174(E)]J; and was arbitrary and capricious and was
    characterized by an abuse of discretion [§2001.174(F)]. The referenced Findings of Fact Nos.
    45,49,50 and 51 appeal'\o refer to BRA's pending water rights AppJlcationNo. 5851. However,
    as of its April 14, 2010 consideration of the Proposal for Decision in Applicant's case, the
    Commission had yet to even consider that pending application in an open meeting lawfully
    convened pursuant to the Texas Open Meeting Act, Tex. Gov't. Code Chapter 551 et. seq. and,
    of course, had not rendered any final order granting all or any portion of BRA's proposed
    appropliation. [See Tex. Gov'!. Code §2001.005(a)]
    On April 28, 2010, the Commission referred BRA's Application No. 5851 to the State
    Office of Administtative Hearings ("SOAR"), granting the requests for a contested case hearing
    of several protestants. The hearing before SOAR is subject to the Texas Rules of Evidence in a
    non-jury civil trial. (See Tex. Gov'!. Code §2001.081) BRA was not a party to Mr. Ware's
    application, and no witness on behalf of BRA was sponsored to verify any portion of Application
    5851   0)'   any other application filed by BRA. Even more importantly, Applicant was provided no
    opportunity to cross exanline or otherwise detennine the validity of any evidence associated with
    Al'~UCAJUNG
    lVU.Y 14,2010                                                                            PAGE 19
    94
    purpose of establishing that it was the most current water available analysis performed by the
    Executive Director of !lie Brazos River Basin. )ll that review (App. Ex. 50) the Executive
    Director updated the Brazos WAM that had been used two years before in its review of Mr.
    Ware's application. The fact that the Executive Director found that 74,387 acre-feet afwater was
    available in the Brazos River Basin using the same reliod of record as was used in Mr. Ware's
    Water Availability Review was relevant and probative infonnation for the Commission's
    consideration of Mr. Ware's application. The fact that another applicant (or any other applicant)
    may have also applied for the water available for appropriation is il1'eievant to any issue in this
    case. Applicant strenuously objected to the admission of any evidence about BRA's application
    during Mr. Ware's healing for the reasons discussed herein. The Commission's inclusion of any
    information -about BRA or its pending application is objectionabJe and unlawful.
    APrLIcANT's MonON Foll. RE[jE~RING
    lV/Ay14,2010                                                                              PAGE 20
    95
    IX.   SUMMARY
    The Commission's April 20, 2010 Order denying Mr, Ware's application to appropriate
    150 acre·feet of water per year from ilie Lampasas River, Brazos River Basin. violates the Texas
    Water Code, ilie Texas Constitution, and ilie Constitution of ilie United States and is voidable
    and reversible. Apart from being unl"v,ful, ilie Commission's role in administering water rights
    is called into question when it denies a family fatmer access to water available for appropriation
    in ilie Brazos River Basin for any term at all on ilie one hand, and supports contractual water
    rights, and issues perpetual penni!s for use of State water associated wiili retum flows and
    updated streamflow conditions and data sets on ilie oilier hand.         Applicant requests ilie
    Commission rehear this caSe and reverse its unfau' and unlawful decision.
    Al'~LlCI>NT'S MOTION FOR REIJEAlUNG
    M'Av14.2010                                                                               PAGE 21
    96
    WHEREFORE, CONSIDERING TIlE FOREGOJNG, Applicant asks the Texas
    Commission on Environmental Quality to vacate its unlawful April 20, 2010 Order denying the
    Application of Bradley B. Ware to Amend his Permit to Appropriate State Water No. 5594, and
    issue lawful order based on the evidence of record and tile Texas Water Code and all applicable
    law which grants Applicant a right to divelt and use 150 acre-feet of water per year for
    agricultural purposes at Ware Farm, a Texas Century Farro, in accordance with the
    Commission's updated detenninations of water availability in the Brazos River Basin.
    Respectfully Submitted,
    WEBB & WEBB
    Attorneys at JAlW
    712 Southwest Towers
    211 Bast 7fi1 Street
    Austin, Texas 78701
    (512) 472·9990 Telephone
    (512) 472-3183 Facsimile
    Stephen P. Webb
    State BarNo. 21033800
    Gwendolyn I Webb
    State BarNo. 21026300
    ATI'ORNEYS FOR APPLICANT, BRADLEY B. W ARB
    ~LICANr'S MonON Fon REltEhlUNG
    l\1hv14,2010                                                                                PAGE 23
    98
    Exhibit C
    J nne 7, 2006 Letter from BRA regarding
    Conditions of Withdrawal of Protest
    Bickerstaff, Heath, Pollan &Caroom, L.L.P.
    816 Oollgre" Avenu.   Sull. 17\10   Austin, Texas 18101      (512) 412-8021    Pax (612) 3UJ.5638   www.blck....t.ff.c<>m
    June 7, 2006                                                          ~,   -.,}
    App. Exh. _     f..( , __                                                          2         Q;~           0
    2:
    Via Hand DelivelY                                                                                               q:j      fo"            n"-:;
    ~
    ~~
    Ms. LaDonns Castaiiuela
    Office of the Clerk, MCI05
    OPA \\
    <:/3
    I
    "-J          ~~f~~
    • :f'(!J¥?
    ..   '~8:;)
    Texas Commission on Environmental QUality                                JUN 0 7 20Jt,                         0        ""
    ""                  .)
    12100 Park 35 Circle, Building F, 1st Floor
    Austin, Texas 78753
    Re:       Application No. 5594A by Bradley B. Ware
    ay_~                   .r,!
    ~~r?!
    :B
    IY;       W
    vJ
    :.; de:
    ,-1
    f':
    Dear Ms. Castafiuela:
    On behalf of the Brazos Rivet Authority (BRA), I protest the above-referenced application and
    request that a contested case hearing be held on Application No. 5594A.
    BRA holds the following water lights in the Brazos River Basin, both upstream and downstream
    of Water Use Permit No. 5594: Certificate No. 12-5155 (Possum Kingdom Lake); Certificate No.
    12-5156 (Lake Granbury); Certificate No. 12-5157 (Lake Whitney); Certificate No. 12-5158
    (Lake Aquilla); Certificate No. 12-5159 (Lake Proctor); Certificale No. 12-5160 (Lake Belton);
    Certificate No. 12-5161 (Lake Stillhouse Hollow); Certificate No. 12-5162 (Lake Georgetown);
    Certificate No. 12-5163 (Lake Granger); Certificate No. 12-5164 (Lake Somerville); Certificate No. 12-
    5165 (Lake Limestone); alld, Pelroit No. 2925A (proposed AlIens Creek Reservoir). One or more of
    these rights may be impaired if Water Use Permit No. 5594 is changed from a tenn permitto a permanent
    water right.
    BRA would withdraw its protest and request for a contested case hearing ifand only ifWater Use
    Penni! No. 5594, as amended, includes a special condition that it remain a term pennit with all expiration
    date no later than November 7, 2017, which would be a IO-year extension of its present term.
    Additionally, BRA would not be opposed to the authorization to irrigate on additional 31 acres and to the
    use of an additional 20 acre-feet of water per annum, provided Water Use Permit No. 5594, as amended,
    remains a term permit with the special conditions as noted herein.
    Thank you for you attention to this matter. I request that BRA and I be placed on all notice lists
    so that it may receive notice of all fhrther actions with regard to Application No. 5594A.
    Sincerely,
    ~~~
    Btuce Wasmger
    BWlbc
    cc;      Lauralee VaUoll
    David Wheelock
    Brazos River Authority
    Exhibit D
    Excerpts of Transcript Volume No. 1 of
    Hearing conducted October 28, 2009
    r;:::.\
    \.::../                                       1
    1                SOAH DOCKET NO. XXX-XX-XXXX
    2               TCEQ DOCKET NO. 2008-0181-WR
    3
    4 APPLICATION OF BRADLEY B.        )      BEFORE THE STATE OFFICE
    WARE TO AMEND                    )                OF
    5 WATER USE PERMIT NO. 5594        )      ADMINISTRATIVE HEARINGS
    6
    7
    8 ADMINISTRATIVE LAW JUDGE:            HON. PAUL D. KEEPER
    9
    10
    11
    ,/:
    12   ******************************************************
    13                 TRANSCRIPT OF PROCEEDINGS
    14                 TAKEN ON OCTOBER 28, 2009
    15                         AT AUSTIN, TEXAS
    16                  VOLUME 1        PAGES 1 - 249
    17   ******************************************************
    18
    19
    20
    21     TRANSCRIPT OF PROCEEDINGS, VOLUME I, taken in the
    above-styled and numbered cause on the 28th day of
    22 October, 2009, from 9:01 a.m. to 5:01 p.m., before
    C. Mack Lane, CSR, in and for the State of Texas,
    23 reported by machine shorthand, at State Office of
    Administrative Hearings, 300 West 15th Street, Austin,
    24 Travis County, Texas 78201, pursuant to the rules of
    the Texas Administrative Code, the Texas Water Code,
    25 and the Texas Rules of Civil Procedure.
    ALArID CITY REPORTING   (210)
    19
    G9:D:54     1 we'll get to the issues involving the Texas Water Code
    G9:24:00    2    briefly.        Please proceed.
    09:24:04    3                            MR. WEBB:      All right.
    09:24:04                Q.       (BY MR. WEBB:)         What is -- what is this page,
    4
    09:24:08    5    r~r.   Wa re?
    09:24:08
    6           A.       This is my father, Elwood Ware, Sr., on his
    09:24:14         Farmall tractor there and he used to row water back in
    7
    09:24:20    8 the '30s and '40s.
    09:24:20                Q.       Okay.     And what is Exhibit-2A -- or page 2A?
    9
    09:24:28    10          A.       This is the thrashing where they harvested
    09:24:32    11   grain where all the neighbors would get together and
    09:24:34    12   thrash the grain back in the 1800s.
    09:24:40    13          Q.       Okay.     And we've got one more.                By the way,
    09:24:46    14 was 2A an actual picture of the Ware Farm?
    09:24:50                A.       Yes.     All these are actual pictures of the
    15
    09:24:54    16   farm.
    09:24:54
    17          Q.       Has Ware Farm been using water historically?
    09:24:58               A.       Yes.     My grandfather used to pump water
    18
    09:25:00   19   minimally I would say, you know, during his time and
    09:25:02   20   all to water the cows and to do some of the crops like
    09:25:06   21    that and then my fathe r du ring the '30s, '40s, '50s,
    09:25:08   22    he would what I would call heavily row water very
    09:25:14   23   what we would consider wasteful watering nowadays in
    09:25:18   24    today's technology, but that was the biggest heaviest
    09:25:20   25    time during my dad's farming.
    ALAMO CITY REPORTING   (210) 710-3890
    102
    20
    09:25:24    1        Q.     And is it your understanding that" one of the
    09:25:26    2    issues in this case is the historical use of water as
    09:25:32         part of your application?
    3
    09:25:34    4        A.      Yes.
    09:25:34    5        Q.      Okay.    Very good.       What are we looking at
    09:25:36
    6 now?        What page is that?
    09:25:36    7        A.      This is the family cemetery.
    09:25:40    8        Q.      Could you provide the judge a little bit of
    09:25:46    9 the actual location of the farm relative to the area
    09:25:50    10   that you're applying for?
    09:25:52    11       A.      Well, it's in Bell County.                As I said
    09:25:54    12 earlier, it's 261 acres.              It's landlocked.          There's
    09:25:58    13   four neighbors landlocked inside the Parrie Haynes
    09:26:02    14   Ranch which is 4500 acres.             It's run by Texas Parks &
    09:26:04    15 Wildlife.
    09:26:06   16                       I would have to say the Ware Farm is the
    09:26:08   17   best part of Parrie Haynes Ranch.                  They've only got
    09:26:10   18   maybe a quarter mile of river above me and down below
    09:26:14   19   us and I have two miles of the very best farmland.
    09:26:18   20   The terrain is similar.           Ours has been kept up over
    09:26:24   21   the years of the cedar control, the fields being
    09:26:28   22   cleaned, the grasses and stuff like that and Parrie
    09:26:32   23   Haynes Ranch is heavily wooded and in dire need of
    09:26:36   24   some improvement, you know, from the fencing to the
    09:26:38   25   brush control and stuff.
    ALAND CITY REPORTING   (210) 710 - 3890
    103
    21
    09:26:45 1     Q.   Okay. Now, you mentioned earlier that your
    09:26:48 2 family used to row irrigate. What is rolV irrigation?
    09:26:52 3     A.   Row crop irrigation is where you put beds or
    09:26:56 4 burrows or list the field and you run the water down
    09:27:00 5 every other row. You pump it -- this picture you see
    09:27:02 6 up here is the .. was the pump station way back then
    09:27:04 7 where they pump it to high ground and let it free flow
    09:27:13 8 down the fields and crops to .. and, as I said
    89:2"1:14 9   earlier, technology has increased so much that this
    09:27:18 10   was terribly wasteful .back in the days and my dad
    n:27:M 11     realized it was wasteful and kind of give up hopes of
    09:27:28 12   irrigation back in his days and it got shut down in
    n:v:§ 13      the '60s or '70s.
    09:27:32 14          Q.     Incidentally, the judge wanted to know a
    n:V:34 15     little bit about why Ware Farm doesn't have a
    ":V:36   16   permanent water right that you obtain through the
    09:27:40 17   adj udication process.          Could you enlighten the judge a
    n:v:. 18      little bit about why that is?
    09:27:48 19          A.     My daddy got up into his 60s or so and
    ":v:~    20   physical stress kept him from work.                   It's a matter of
    09:27:56 21   lots of work and rubber boots and stuff Uke that and
    09:27:58 22   all.        He knew how much .. he used to drive a pump off
    ":a:~    23   the tractor a lot of times.                 He knew the amount of
    ":a:M 24      fuel that it took to pump that water and of course his
    ":a:0825      mind set was the way he watered it.                   He doesn't
    AlAI10 CITY REPORTING   (210) 710-3890
    104
    22
    09:28,10    1   understand about new technology that's come along.
    09:28,14
    2                     So he had given up hope and during the
    09:28:16    3   '70s, my dad and mother went to through a tremendously
    09:28:20    4 bitter divorce from cattle being shot, the barns being
    09:28:24
    5   burnt, and this was over a 10-year period, you know.
    09:28:26
    6   I mean a violent situation.              So my mother's deal was
    09:28:30    7 to destroy the farm because that's what he loved and
    09:28:32
    8 my dad!s    ~eal    was to save the farm because that's what
    09:28,36
    9 he loved.
    09:28:36
    10                     So water he had slowed down and might
    09:28:38
    11   never quit at that time.          Water was the least of his
    09:28:42
    12 worries and the sad part about that is that was during
    09:28:44
    13   the '70s during the adjudication period whenever I was
    09:28:48
    14   still young and didn't know any better and we did big
    09:28:52
    15   lick.    We dropped the ball there to be able to get
    09:28:56   16   that water, but the water was used before that and
    09:29:00
    17   I've tried to straighten that up.
    09:29:06
    18       Q.     Has water in fact been used on Ware Farm
    09:29:10
    19   continuously since 18747
    09:29:12   20       A.     Yes.    We -- even when my dad was shut down in
    09:29:16   21   the '70s, I still went and set the sma n _.               Vie   had a
    09:~:W     22 little pump and heat motors and we set the pump and
    ":~:22     23   pumped water to the windmill tanks and filled them
    ",~:~      24   because the wind didn't blow during the summertime so
    ":~:D      25 we had to depend off of the river water to water the
    ALAHO CITY REPORTING   (210) 710-3890
    105
    23
    09:29:32    1    cows not to mention the garden and little small
    09:29:34    2 patches here and there of ribbon cane or something
    09:29:36    3    like that that we might be growing at that time.
    09:29:38
    4        Q.     Do you operate Ware Farm as a business today?
    09:29:40    
    5 A. I
    try to.    That's kind of a tricky thing now
    09:29:44    6    days to say what is a farmer.           My thought was back
    09:29:48    7    whenever my   grandfathe~'s     farm and that's all he did.
    09:29:52    8    Nowadays I pick up welding jobs and stuff like that in
    09:29:58    9    town because I have the equipment, I have the ability,
    09:30:00
    10   and I can put it into my schedule and all, but to say
    09:30:04    11   I'm a 100 percent farmer myself, I can't say that.
    09:30:10    12   Probably y'all would.       But I work 24 hours a day and I
    09:30:14    13   work seven days a week.        I don't take vacations.         I
    09:30:18    14   enjoy what I do.       When I'm out there working whether
    09:30:20    15   it's building a fence or setting irrigation pipe, I
    09:30:~     16   enjoy that.
    09:30:26   17       Q.     How many acres do you have cultivation
    09:H:H     18   presently?
    09:30:30   19       A.     There's about 180 acres.            You know, I'm
    H:H:TI     20   improving things.       I'm turning some into native
    H:H:~      21   pasture.     It's rocky type soil or something like that
    H:H:H      22   so it bounces back and forth.
    09:30:38   23        Q.    What is page 6 of Exhibit-I?
    09:30:40   24     A.   That's my small valley irrigation system.
    09:Y:"     25 I've got four different systems on the place.
    ALANO CITY REPORTING   (210) 710-3890
    106
    45
    09:57:12
    1       A.      Yes, I'm still paying for it.
    09:57:14
    2       Q.      Okay.     Go on.
    09:57:16
    3       A.      But we had the irrigation system laying in
    09:57:18      4   the field bolted together and fixing to stand it up
    09:57:20
    5   and put it on the tires and Brazos River Authority
    09:57:22
    6   phoned and says ·We have run into a snag or a problem
    09:57:26
    7 with your permit," and I said, "Well, what do you
    09:57:30
    8   mean?    I've got a contract.               You know, the pivot is in
    09:57:34
    9   the field.     I hired -- I paid the electric company
    09:57:38
    10   $15,000 to move electric poles out of my field where
    09:57:40
    11   this pivot could make a circle.                  I took out fences.            I
    09:57:44     12   removed trees to clear for this to get the advantage
    09:57:48
    13   of the full size I could go with."                    And they said __
    09:57:52
    14 well, TNRCC at that time said that we can't sell water
    09:57:56
    15   upriver.     It's kind of a layman's term that I got out
    09:58:00
    16   of it.     I never understood the full story I guess I
    09:58:04
    17   should say.
    09:58:06
    18                       But, anyhow, it turned out there was
    09:58:08
    19   about ten       eight or ten different people that had
    09:58:12
    20   talked to Brazos River Authority, was lining up
    09: 58: 14
    21   contracts, looking at the possibility.                         There was two
    09:58:18     22   of us that had actually written contracts buying this
    89:58:24
    23   water and I didn't know about the other fellow.                         He's
    09:58:26
    24   upriver from me about seven or eight miles.                         And so I
    09:58:32     25   said, IIWell, what are we going to do?                     We've got
    ALAr40 CITY REPORTING   (210) 710 - 3890
    107
    46
    09:58:36
    1 irrigation stuff in the field.              We have spent $75,000
    09:58:3B
    2 already.     You know, there's fixing to be a lawsuit
    09:58:40
    3 here because you're going to buy that irrigation
    09:58:44
    4 equipment.     I can guarantee you that,"                 And they said
    09:58:46
    5 "Well, let's see what we can do."
    09:58:48
    6                  So they sent their lawyer out of Waco,
    09:58:50
    7 which I was very impressed at that time, instead of
    09:58:54
    8 just blowing us off.        They went to Austin -- and I
    89:58:56
    9   remember this was in '96 when all permits was
    09:58:58
    10   suspended at that time.        There was no way you could
    09:59:02
    11   get water they said.      They went down there and
    09:59:04   12   negotiated several trips.         They kept us informed, me
    09:59:06
    13   and the other fellow.
    09:59:10
    14                  The lawyer eventually got back with --
    09:59:14
    15   the Brazos River Authority lawyer got back with us and
    09:59:16
    16 said we've worked out a deal with the state to where
    09:59:18
    17 we can get your water and so I got -- and of course
    09:59:22
    18 when I applied back then, I applied for permanent
    09:59:26
    19   water because I knew this was a 20-year deal.                  I knew
    09:59:28
    20   that there's a possibility in the future that we would
    09:59:32
    21   always need water and they said 10-year permit is all
    09:59:34
    22 you could get.
    09:59:36
    23                  So I got that because that's all I could
    09:59:38
    24   get and they said, well, it' 5 kind of like you r
    09:59:40   25   problem.   In 10 years we should be able to work out
    ALAI10 CITY REPORTING   (210) 710-3890
    108
    47
    09:59:44
    1   something, you know, and so now we're to that 10-year
    09 :59:46
    2   deal.    I know they stressed that you need to make sure
    09:59:48
    3   your application gets in a couple of years in advance
    09:59:52
    4   for getting it through the system and so --
    09:59:54
    5       Q.    \lI}eH, that brings us to I"here we are now.
    09:59:56
    6 Would you identify what's been marked as Exhibit-2?
    10:00:06     7       A.   This is the 5594 water permit that -- my
    10:00:10     8   short-term -- 10 year.
    10:00:12     9       Q.   Now, is Exhibit-2 your entire application?
    10:00:~     10   Take a look at it.
    10:00:22    11       A.    Yes, I believe so.              I went through back there
    10:00:26    12 and filled out the conservation plan and all the
    10:00:28    13 deals.
    10:00:30    14       Q.    Incidentally, has the Commission told you
    lO:N:~      15   that there's a problem with the conservation plan?
    10:00:38    16       A.   No. I've met all criteria except the water
    10:00:40    17   availability is my understanding.
    10:00:46    18       Q.   All right.        And is your signature on
    lO:H:~      19   Exhibit-2?
    10:00:50    20       A.    Yes.
    10:00:50    21                    MR. WEBB:       Your Honor, we offer
    1O:N: 52    22   Exhibit-2.
    10:00:54    23                    JUDGE KEEPER:            Any objection?
    10:00:54    24                    MS. HORTON:         No objection.
    lG:OO:56    25                    JUDGE KEEPER:            Admitted.
    ALAt-!O CITY REPORTING   (210) 710-3890
    109
    71
    10:47:20
    1 of the water available for a particular permit?
    10:47:26     2       A.    As far as I know, yes.
    10:47:26     3       Q.    What do you mean as far as you know?
    10:47:32             A.    I don't know how it reads.
    4
    10:47:36             Q.    Well, I don't either.            That's why I was
    5
    10:47:38
    6 asking.     So it's a determination of the Executive
    10:47:42     7    Director, isn't it?
    10:47:42     8        A.   Yes.
    10:47:42      9       Q.   Of the water available for a particular
    19:47:46     10   application?
    10:47:48              A.   Yes.
    11
    10:47:50     12       Q.   Okay.    What is a Water Availability Model?
    10:48:80     13       A.   The Water Availability Model is -- I can
    10:48:02          speak specific to our Water Availability Models that
    14
    10:48:04     15   we use as opposed to a generic Water Availability
    10:48:08     16   Model.
    10:48:08    17       Q.   I'm sorry.       Mr. Thomas, I should have been
    10:48:10    18   more specific.    I only want to hear about the Water
    lO:U:14     19   Availability Model that you use in the agency.
    10:48: 16   20       A.   Okay.    A Water Availability Model -- Water
    10:U:H      21   Availability Model -- our Water Availability Models
    10:48:H     22   are designed to simulate the water permits in the
    10:48:38    23   basin and the water supply in the basin in priority
    10:48:G     24   order and to determine if when all of the senior water
    10:.:9      25   rights have been satisfied that there's additional
    ALN10 CITY REPORTING   (210) 710-3890
    110
    72
    lO:g:~      1 water available.
    10:46:56   2        Q.   But it's computer simulation, isn't it?
    ,
    10:48:58    3       A.   Yes.
    10:48:58
    4       Q.   And the compute r simulation is two pa rts, the
    10:49:02
    5    actual software program, isn't it?
    10:49:04
    6       A.   Yes.    There's a WRAP program, which is the
    10:49:88
    7    word tran program that actually runs the data set.
    10:49:12
    8   The data set is the input deck.             The WRAP program can
    10:49:18
    9   be used for different data sets.              We use them as
    10:49:22
    10   different basin models and then the specific data set
    10:49:28
    11   that was used here is the Brazos data set which is the
    10:49:32
    12   input deck.     The input deck or the data set has the
    10:49:38
    13   specific water rights in the Brazos Basin, their
    10:49:42   14   priority dates, their relation to each other, their
    10:49:46
    15   drainage areas, naturalized flows.               The WRAP program
    10:49:48
    16   basically orders and runs calculations on that data.
    10:49:54
    17       Q.   Okay.     You've been in the Water Availability
    10:49:58
    18   Department what?      11 years.         Has the Executive
    10:50:04
    19   Director always used the current Brazos Water
    10:~:10    20   Availability Model?
    10:50:10   21       A.   No.
    10:50:10   22       Q.   What did he use before then?
    10:50:14   23       A.   To my knowledge            it was before I was
    10:50:16   24   wo rking at the TCEQ, but to my knowledge there vlere
    lO:~:H     25   previous models used, legacy models, and after a
    .----.~--.
    ALAMO ClTY REPORTING   (210) 710-3890
    111
    109
    11:50:04
    1 sorry.      We offer Exhibit-54.
    11: 50: 12
    2                    JUDGE KEEPER:            Any objection to the map?
    11:50:14
    3                    MS. HORTON:         No objection.         It's fine.
    11 :50: 16
    4                    JUDGE KEEPER:            Exhibit-54 is admitted.
    11:50:16
    5                     (Applicant's Exhibit-54 admitted)
    11:50:20
    6      Q.     (BY MR. WEBB:)         Would you identify what's
    11:50:20
    7 been marked as Exhibit-47?
    11:50:30      8       A.    This is a copy of my Water Availability
    11 :50: 32
    9 Review memo for Mr. Bradley Ware's application dated
    11:50:36     Hl   November 14, 2006.
    11:50:36              Q.
    11             And so this is your actual one - - the one
    11:50:38
    12   that's at bar in this case, correct?
    11:50:40
    13       A.    Yes.
    11: 50:42
    14       Q.    Now, you were here when Ms. Ho rton stated the
    11:50:50     15   reason why the Executive Director is here?
    11 :50 :52   16       A.    Yes.
    11:5G:52
    17       Q.    And it was a disagreement of whether there
    11:50:56
    18 was water available?
    11: 50:58    19       A.    Yes.
    11:50:58     20       Q.    And would it be fair to say that the reason
    11:51:02     21   why everybody is in this room now is because of
    11:51:%      22   Exhibit-47?
    11:51:12     
    23 A. I
    suppose so, yes.
    11:51:14     24       Q.    Not to put any pressure on you.
    11:51:18     25       A.    Thank you for that ..            It's at the heart of
    ALAI·IO CITY REPORTING   (210) 710-3890
    112
    110
    11: 51: 22
    1 everything, yes, sir.
    11:51:24      2       Q.    Right.    This is where the Executive Director
    11:51:24
    3 determined through you that there was no water
    11:51:30
    4 availab le --
    11:51:36      5       A.    Yes.
    11:51:36      6       Q.        for Mr. Ware or unappropriated water
    11:51:34
    7 available?
    11:51:34
    8       A.    Yes.
    11:51:42      9                    MR. WEBB:      Your Honor, off the record,
    11:51:46     10   please.
    11:51:46
    11                    JUDGE KEEPER:          Let's go off the record
    11:51:46     12   for a moment.
    11:51:46
    13                    (Recess from 11:51 a.m. to 11:53 a.m.)
    11:53:34     14                    JUDGE KEEPER:          It's five minutes to 12.
    11:53:36     15 Why don't we get back here at 1 and we'll start again.
    16                    (Noon recess was taken from
    17                      11:53 a.m. to 1:04 p.m.)
    18
    19
    20
    21
    22
    23
    24
    25
    ALAND CITY REPORTING   (210) 710·3890
    113
    116
    13:11:20
    1          Q.     Based on an article of faith?
    13:11:22
    2          A.     And based on working models that are still
    13:11:28
    3 working, yes.
    13:11:28
    4          Q.     Based on an article of faith?
    13: 11: 32
    5          A.     Okay.     Sure.
    13:11:32
    6          Q.     You agree with that?
    13:11:34
    7          A.     Sure.
    13:11:34
    8          Q.     All right.          Referring to Exhibit-47 right
    13:11:58
    9 under Water Availability Review, would you please read
    13:12:82     10 the last full sentence of that first paragraph?
    13:12:06     11          A.      "The applicant's request was modeled with a
    13:12:88
    12   priority date of the administrative complete date of
    13:12:12
    l3   the application, January 5th, 2006."
    13:12:16
    14          Q.     An right.           Let me stop you there for a
    13:12:18
    15   moment -- well, not stop you.                    That's all there is to
    13:12:20     16   say.        Priority date is important for a model because
    13:12:26
    17   that determines -- that's one of the variables that
    13:12:30
    18   determines whether or not the unappropriated water is
    13:12:32
    19   available, right?
    13:12:34     20          A.     Yes.
    13: 12:34
    21          Q.     As a matter of fact, it's a pretty
    13:12:36
    22   substantial one, isn't it?
    13:12:38     23          A.     Yes.
    13:12:38
    24          Q.     Because after all first in time is first in
    13:12:42
    25   right.       That' 5 the rule, right?
    AlAI~O   CITY REPORTING   (210) 710-3890
    114
    117
    13:12:44      1       A.    Yes.
    13:12:44      2       Q.    And so the earlier priority date gives the
    13:12:52
    3   subject of the model a greater advantage than a later
    13:12:58      4 priority date.          Do you understand what I mean by that?
    13: 13:~2     
    5 A. I
    understand what you mean.
    13:13:04
    6       Q.    I'm real bad about stating these things.
    13:13:06      
    7 A. I
      would say greater potential, not greater
    13:13:10      8   advantage,    ~ut    --
    13: 13: 10
    9       Q.    A greater potential of having his water
    13:13:16     10 pe rmit granted, right?
    13:13:16     11       A.    Right.
    13:13:18
    12       Q.    All right.         So let's look at Exhibit-2.                I
    13:13:22     13   don't know whether you have it up there.                     It's the
    13:13:~      14   application.        Okay.    We're looking at sheet 4 of
    13:13:44     15   Exhibit -2 which is the second page of Mr. Wa re' s
    13:13:~      16   permit.   All right.         And I think you know where I'm
    13:13:58     17   going.    I'm going to special conditions 3B.                  Would you
    13:14:04     18   read the last sentence of that special condition?
    13:14:08     19       A.     "The priority date of this permit and all
    13:14:U      20   extension hereof shall be July 1st, 1997."
    13:14:14     21       Q.    All right.         And you use a priority date of
    13:M:M       22   January 5th, 2006, correct?                 Am I correct?
    13:14:26     23       A.    Actually there's -- there's a little deeper
    13:M:TI      24   story here.
    13:14:32     25       Q.    I   would love to hear it.
    ALAflO CITY REPORTING   (210) 710-3890
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    13:14:34      1      A.    The administrative complete date of this
    13: 14: 36    2 application was March 20. 2006.
    13:14:38
    3      Q.    Okay.     And that's not January 5th. 2006.
    13:14:42      4 either. right?
    13:14:42      5      A.    That's correct.
    13:14:44
    6       Q.   So when you said the administrative complete
    13: 14: 46
    7 date of the application was January 5th, 2006. that's
    13:14:50      8 not right, is it?
    13:14:50
    9       A.   That's an error.
    13: 14:52    10       Q•   All right.           Go on.
    13:14:52
    11       A.   When I received the application. I did a
    13:14:56
    12   preliminary analysis to see if there was water
    13:15:00     13   available because we know that that particular water
    13:15:02     14   right is in an area of the basin of the state where
    13:15:94
    15   there's very limited water available.                    We do this in
    13:15:10
    16   an effort to provide information to the applicant to
    13:15:14     17   allow them to supplement their application with
    13:15:16     18   alternative sources or to withdraw the application
    13:15:18     19   without spending money on four days notice if they
    13:15:24
    20   determine they don't want to proceed with the
    13: 15: 24
    21   application because there's limited water.
    13:15:26     22                    I did a preliminary analysis from
    13:15:30     23   Mr. Ware's application dated January 5th. 2006.                    When
    13:15:32     24   I put this -- when I put this memo together. it was a
    13: 15: 34   25   clerical error on my part to carry the wrong date for
    Al.A~IO   CITY REPORTING   (210) 716-3890
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    119
    13: 15:38    1 what the actual          the actual analysis that is
    13:15:42     2    referenced in this memo used a priority date of
    13:15:46
    3    March 20th, 2006, which is the administrative complete
    13:15:50     4 date.
    13:15:50     5        Q.   All right.     Well, that indicates one aspect
    13:15:54     6 of Exhibit·47 that isn't accurate, but what's the
    13:15:58     7    story on not using July 1st, 1997?
    13: 16: 02   8        A.   It is our practice in the hydrology group to
    13:16:08      9 analyze new permits with the new priority date of the
    13:16:14     10   administrative complete date of the application.
    13:16:16
    11       Q.   And did you think this was a new permit?
    13:16:18     12       A.   This was a new application to either renew or
    13:16:24     13   extend the term of this permit, yes.
    13:16:26     14       Q.   Well, does the Executive Director take the
    13:16:28     15   position that he can ignore orders of the TCEQ?
    13: 16:38    
    16 A. I
    don't know that the Executive Director does
    13:16:38     17   or doesn't take that position.           I'm directed to
    13:16:42     18   process applications with the administrative complete
    13:16:46     19   date of the application.
    13: 16:48
    20       Q.   But wait a minute.           Were you directed to
    13:16:50     21   ignore the fact that the TCEQ granted a permit where
    13:16:58     22   any extensions of the permit was to have .. were to
    13:17:02     23   have a July 1st, 1997, priority date?
    13:17:04     
    24 A. I
    was directed to use the administrative
    13:17:06     25   complete date of the application.
    ALAMO CITY REPORTING   (210) 710·3890
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    120
    13:17:08 1         Q.   Rather than the date that the agency told you
    13:17:10 2 to lise?
    13: 17: 10 3    A.  The agency told me to use the administrative
    13:17:14 4 complete date of the application.
    13:17:16 5      Q.  Let's be clear about this. The Executive
    13:17:18 6 Director told you to do that, but the TCEQ -- the
    13:17:22 7 actual commissioners directed anybody to use July 1st,
    13:17:26 8 1997. That's correct, isn't it?
    13:17:30 9      A.That's written in the -- that's written in
    13:17:32 10 his prior permit, yes.
    13:17:32 11     Q.   Well, what does that mean when you say it's
    13:17:34 12 written in the prior permit? What do you think that
    13:17:38 13 means? I mean, read the entire paragraph and you tell
    13:17:42 14 me whether o~ not Mr. Ware qualified.
    13:17:48 15     A.   This is special condition 3, special
    13:17:52 16    condition 8, the authorization to divert and use 130
    13,17:54 17    acre-feet of water per year shall expire and become
    13:17:58 18    null and void on November 7th, 2007, unless prior to
    13:18:02 19    such date permittee applies for an extension hereof
    13:18:08 20    and such application .is subsequently granted for an
    13:18: 10 21   additional te rm   0   r in pe rpetuity.     The p rio rity date
    13:18:16 22    of this permit and all extensions hereof shall be
    13:U: 16 23    July 1st, 1997.
    13:18:18 24        Q.   And Mr. Ware filed for an extension of this
    13:18:2225     permit long before November 7th, 2007, didn't he?
    ALAMO CITY REPORTING   (210) 710-3890
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    13: 18:24
    1       A.   Yes.
    13: 18:24
    2       Q.   SO that meant he was entitled to a priority
    13:18:28
    3   date on an extension of July 1st, 1997.                  Isn't that
    13:18:32
    4 what that means?
    13:18:32
    5       A.   That's how it reads, yes.
    13:18:34
    6       Q.   SO the priority date that the Executive
    13:18:40
    7 Director used to do a Water Availability Review is
    13:18:46      8   erroneous, correct?
    13: J.8:52
    9       A.   The priority date used to analyze Mr. Ware's
    13:18:56     18   application is the administrative complete date of the
    13:19:00     11   application which is the date that we use on every
    13:19:02     12   application that comes in.
    13:19:04
    13       Q.   Well, I'm not talking about every application
    13:19:06     14   that comes in, Mr. Thomas.             I'm talking about this
    13:19:08
    15
    13:19:14     18            Yes.
    13:19:26     
    22 A. I
    was directed to use the date and
    13:19:30     23                   MR. WEBB:      Your Honor, move to strike.
    13:19:H      24   Object to the witness as being nonresponsive.
    13:19:36     25                   JUDGE KEEPER:          Do you have a response to
    ALAMO CITY REPORTING    (210) 710-3890
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    13:19:40
    1    that?
    13:19:40     2                     MS. HORTON:       I think it's been asked and
    13:19:42
    3    answered.     I think what he's saying is that his job --
    13:19:44     4    this is what he was told to do.             So that's all he can
    13:19:48     5    do.     He can't make a legal determination whether it's
    13:19:52
    6 correct or incorrect.           That's what his job was.
    13:19:56      7                    MR. WEBB:      Your Honor, he has certainly
    13:19:58
    8 not answered my question of why the Executive Director
    13: 20: 00    9   chose to disregard an express provision in a
    13:20:06     10   certificate and to use an erroneous priority date that
    13:20: 12
    11   definitely adversely affected Mr. Ware's rights.                 We
    13:20: 14
    12   need an answer to that in this record.
    13:20:16     13                    JUDGE KEEPER:          Okay.    Well, let me tell
    13:20:18
    14   you what       I'm going to give you my perspective on
    13:20:22     15   where we are in all of this for better or worse and
    13:20:24     16   that is that this gentleman is Mr. Thomas and he is
    13:20:30     17   not the Executive Director.             So for -- I think what
    13:20:34     18   Mr. Thomas can testify to is what is within the scope
    13:20:38     19   of his knowledge as a fact witness.               I believe he can
    13:W:~       20   also testify what is within the scope of his opinion
    13:20:Q      21   as an expert witness, but only to the extent of his
    13:20:50     22   expertise.     I don t believe he's an expert with
    I
    13:W:~       23   respect to what the Executive Director believes or
    13:20:56     24   thinks, but I think he has given us what he knows with
    13:21:m      25   regard to what he has been instructed to do.               Now
    ALMIO CITY REPORTING   (210) 718-3890
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    13:21:04
    1 whether that comports with the law or otherwise, that
    13:21:12
    2   determination will have to be made either through the
    13: 21: 14
    3   testimony of another witness or through legal
    13:21:18
    4   argument.
    13:21:20
    5                   MR. WEBB:       All right.         Can we have this
    13:21:22
    6   question, Your Honor?
    13:21:24
    7        Q.     (BY MR. WEBB:)      So the truth is, Mr. Thomas,
    13:21:28
    8   you don't know why the Executive Director didn't
    13:21:30
    9   direct you to use the July 1st, 1997, priority date?
    13:21:38
    10   You just don't know?
    13:21:40
    11        A.     I'm told that our practice --
    13:21:44     12                   MR. WEBB:       Objection to "hearsay, Your
    13:21:46     13   Hono r.
    13:21:46     14                    JUDGE KEEPER:          Well--
    13:21:48     15                   MR. WEBB:       Your Honor, he's not entitled
    13:21:~      16   to answer my question with hearsay.
    13:21:52     17                   JUDGE KEEPER:           One second.      Response.
    13:21:54     18                   MS. HORTON:        My response is that if he's
    13:21:~      19   asking what the Executive Director does or doesn't do,
    13:n:~       20   as you know, we're an organization with several levels
    13:22:02     21   above Mr. Thomas.      So he can't - - either he can answer
    13:22:06     22   everything that - - the questions that are just within
    13:22:10     23   his personal knowledge or he can answer questions that
    13:22:12     24   are outside of that and say this is what I've been
    13:22:"      25   told, this is what I know, but he can't do both.
    ALAMO CITY REPORTING   (210) 710-3890
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    13:22:16
    1                    MR. WEBB:       Absolutely not, Your Honor.
    13:22:18    2   I'm not asking this witness to tell me what somebody
    13:22:2e    3   else told him.     I asked a very precise question and
    13;22:24
    4   that is you don't know the reason why the director --
    13:22:26
    5   the Executive Director told you to use one priority
    13:22:30    6   date as opposed to another.
    13:22:32    7                    MS. HORTON:        He has
    13:22:32    8                    MR. WEBB:       Now
    13:22:32
    9                    JUDGE KEEPER:           Hold on.
    13:22:34   18                    MR. WEBB:       Now that's a yes or no
    13;22:34
    11   question -- answer, Your Honor.                 If he knows, fine; if
    13:22:38        he doesn't know, fine.
    12
    13:22:40   13                    MS. HORTON:        May I respond?
    13:22:42   14                    JUDGE KEEPER:           Yes.
    13:22:42   15                    MS. HORTON:        Obviously he can't know
    13:22:42   16   what's in someone else's head, but he can know what
    13:22:42   17   that person told him was in his head and that's what
    13:22:50   18   he's doing.
    13:22:50   19                    MR. WEBB:       That is absolutely worthless
    13:22:52   20   information in an administrative record that relies on
    13:22:56   21   the rules of evidence, Your Honor.                We're not asking
    13:23:00   22   him to say what's in his head and what's not in his
    13:23:02   23   head.   If he knows and he has to know using competent
    13:23:06   24   probative evidence that satisfies one of the
    13:23:10   25   exceptions to the hearsay rule.
    ALAf10 CITY REPORTING   (210) 710-3890
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    13:23:12     1                 JUDGE KEEPER:          Here's what my problem
    13:23:14     2   is, Mr. Webb, and that is you began your testimony --
    13:23:16
    3   not your testimony, your line of questions beginning
    13:23:22     4 with some assertions about the fact that Mr. Thomas'
    13:23:30     5 memo of November 14th, 2006, is the action of the
    13:23:38     6 Executive Director, correct?
    13:23:42
    7                 MR. WEBB:      As far as we know.        We
    13:23:44
    8   haven't heard it's not the actions of the Executive
    13:23:48     9   Director.
    13:23:48    10                 JUDGE KEEPER:          Right.    So perhaps --
    13:23:50    11   perhaps the manner in which to resolve this sort of
    13:23:54    12   legal almost existential question about who is
    13:~:~      13   speaking here, maybe the question that ought to be
    13:~:"      14   asked of this witness is why he took particular action
    13:~1"      15   that he took and if he was directed to take particular
    13:24:12    16   action, who did it?    I   do not know, but my suspicion
    13:24:16    17   is that there maybe be other layers of administration
    13:~:H      18   between him the Executive Director.
    13:24:22    19                 MR. WEBB:      Well, Your Honor, we're
    13:24:24    20   satisfied that the record indicates that Mr. Thomas
    13:7.4:26   21   has said he was directed --
    13:24:28    22                 JUDGE KEEPER:          Right,
    13:24:28    23                 MR, WEBB:          to use the priority date
    13:24:32    24   that he did - - well, the priority date that he did,
    13:~:~      25   not the one that he wrote down that he did,
    ALAMO CITY REPORTING   (210) 710-3890
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    126
    13:24:38     1                   JUDGE KEEPER:             I understand.     Why don't
    13:24:40     2   we do this:    Let's begin again and let's see where we
    13:24:44     3   can get and we will examine more carefully the steps
    13:24:50     4 that are taken down the road that you're traveling.
    13:24:52         So go ahead.
    5
    13:24:52     6                   MR. WEBB:         All right.         We'll try to move
    13:24:54     7   on, Your Honor.
    13:25:00     8                   JUDGE KEEPER:             Mr. Webb, I get it.
    13:25:02     9                   MR. WEBB:         All right.         Thank you.
    13:25:06    10       Q.     (BY MR. WEBB:)         Incidentally, you weren't
    13:25:S8    11   told by the Executive Director to ignore all special
    13:25: 12   12   conditions in the existing permits that are seeking to
    13:25:16    13   be renewed, were you?
    13:25:18    14       A.     Not specifically, no.
    13:25:22    15       Q.     Sounds like a qualification to me.                What do
    13:25:24    16   you mean not specifically?            You were told generally to
    13:25:26    17   do that?
    13:25:26    
    18 A. I
    was told to use a specific date.                I was not
    13:25:30    19   told to ignore special conditions.
    13:25:36    20       Q.     All right.       And I started to ask you this,
    13:25:42    21   but isn't July 1st, '97, the proper priority date to
    13:25:46    22   use?
    13:25:48    23       A.     July 1st, 1997, was the priority date of his
    13:25:~     24   previous application.          It is the date that is stated
    13:25:56    25   in that permit.
    ALAI~O   CITY REPORTING   (210) 710-3890
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    13:36:44
    1       Q.   Well, if he had made that determination,
    13:36:46
    2   wouldn't that radically change his opinion in this
    13:36:50
    3   case?
    13:36:52
    
    4 A. I
    don't believe -- I don't know.                  I don't
    13:36:54
    5   believe so.
    13:36:56
    6       Q.   Okay.     Let me ask you -- let ask you to
    13:37:00
    7   identify -- let me ask you what's been marked                    to
    13:37:36
    8   identify what's been marked as Exhibit-50.
    13:37:40       9       A.   This is a memorandum submitted by Kathy
    13:37:%       10 Alexander, hydrologist, on November 25th, 2008.                    It's
    13:TI:~       11   a Water Availability Analysis of the Brazos River
    13:37:56
    12 Authority application 5851.
    13:37:58      13       Q.   Okay.     And is this a Water Availability
    13:~:H        14 Analysis like the one you did for Mr. Ware?
    13:38:04      1
    5 A. I
    t's a Water Availability Analysis, yes.                       I
    13:38:08      16 don't know --
    13:38:08      17       Q.   What do you mean by the difference?
    13:38: 10     
    18 A. I
    don't know that it's like the one that I
    13:38:
    12
    19   did for Mr. Ware because Mr. Ware's -- Mr. Ware's was
    13:38:M       20   an application to renew a term permit.
    13:38:16      21       Q.   Do you think this is an application for new
    13:~:W        22   authority?
    13:38:22      
    23 A. I
    don't know.
    13:38:22      24                    MS. HORTON:        Your Honor, I object to
    13:~:~        25   this exhibit entirely.         It's completely irrelevant to
    ALAt10 CITY REPORTING   (210) 710· 3890
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    135
    13:38:26
    1 this case.
    13:38:28      2                   MR. WEBB:        Your Honor, we most certainly
    13:38:28
    3 believe that this exhibit is not irrelevant
    13:38:32
    4 whatsoever.      At this point we were just asking the
    13:38:36
    5 witness to identify the exhibit.                  Our next step is to
    13:38:40
    6 offer the exhibit -- or actually, Your Honor, pages 1
    13:38:44
    7   through 7 of the exhibit.
    13:38:44      8                   We only have supplied the party with a
    13:38:48
    9 copy of the entire document because we wanted to
    13:38:54
    10   maintain the integrity of it as a certified copy.                    We
    13:38:58
    11   actually only one want to offer into the record
    13:39:e4
    12   Exhibit-50 up to page 7 of 14 where the Executive
    13:39:12
    13   Director makes a determination of the status of
    13:39:18     14   existing return flows in the Brazos River Basin at the
    13:39:24
    15   time the Brazos River Authority came in and in support
    13:39:28
    16   of the -- in support of our offer, Your Honor, we also
    13: 39: 34   17   submit our trial brief on the admissibility of
    13:39:38
    18   Exhibit-50.     It is our contention, Your Honor, that
    13:39:44     19 what we have here is a simple admission by a party
    13:39:48          opponent.
    20
    13:39:50     21                   MS. HORTON:          Your Honor, we haven't had
    13:39:~      22   an opportunity to brief this issue.                  I don't think
    13:§: 52     23   it's fair that the Applicant gets to do that.
    13:39:56     24                   JUDGE KEEPER:             Well, now, hold on a
    13:39:%      25   second.     I mean, what happened here is where we are in
    ALAI'1O CITY REPORTING   (210) 710-3890
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    13:40:00    1 the process is that Mr. Webb has - - is heading down
    13:40:04   2 the road toward making an offer if he has not already
    13:40:68    3   made an offer.     You have objected and his response
    13:40:12    4 is --
    13:40:14
    5                    MR. WEBB:       In part that written
    13:40:16
    6 document, Your Honor.
    13:40:16
    7                    JUDGE KEEPER:           Well, I mean, his
    13:40:18    8   response is in writing or at least a portion of it.                 I
    13:40:22    9   mean, there's nothing improper about it, but I'll
    13:40:26
    10   certainly give you the opportunity to respond in a
    13:46:28   11   reasonable fashion within a reasonable period of time.
    13:40:32
    12                    MR. WEBB:       And to give them an
    13:40:32   13   opportunity to respond, we don't mind if we go off the
    13:46:36   14   record so that everybody has a chance to read my
    13:40:38
    15   brief, Your Honor.
    13:40:40   16                    JUDGE KEEPER:           What's your preference?
    13:40:42   17                    MS. HORTON:        I would prefer to have the
    13:40:44
    18   opportunity to present a written response tomorrow
    13:40:46
    19   morning.
    13:40:48   20                    MR. WEBB:      Well, Your Honor, we need to
    13:~:~     21   be able to go on with the presentation of our case.
    13:40:52   22 If you wish to take the issue under advisement while
    13:40:54   23 vie continue Ivith our case, we have no objection to
    13:41:00   24   that.
    13:41:00   25                    JUDGE KEEPER:           And that's acceptable to
    ALAI40 CITY REPORTING   (210) 710-3890
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    137
    13:41:02
    1 you?
    13: 41: 02    2                 MS. HORTON:        That's acceptable, yes.
    13:41:04      3                 JUDGE KEEPER:           Okay.     So if you would
    13:41:04
    4 like to proceed, Mr. Webb.
    13:41:06
    5                 MR. WEBB:       All right.          Incidentally, for
    13:41:08
    6 all assembled, we have attached the copies of the
    13:41:10
    7 cases to the brief.
    13:41:18
    8                 JUDGE KEEPER:           Mr. Webb, before you go
    13:41:20
    9 any further, let me just make sure I'm with you.                    My
    13:41:22     10   questions are to your advantage, not to your
    13:41:24     11   disadvantage and that is:        What you've presented here
    13:41:28
    12   in Exhibit-50 is an interoffice memorandum which
    13:41:32
    13   according to you provides some evidence of the
    13:41:38     14   existence of some additional -- I want to make sure I
    13:41:44     15   understand -- appropriated but unused water in the
    13:41:48     16   Brazos River Basin?
    13:41:48
    17                 MR. WEBB:       Absolutely not, Your Honor.
    13:41:50     18 That's why our brief lays it all out because it is
    13:41:54     19   kind of complicated.
    13:41:54     20                 JUDGE KEEPER:           Okay.
    13:41:54     21                 MR. WEBB:       Or not complicated.          What
    13:41:58     22   Exhibit-50 is it's the same as Exhibit-47.               It's the
    13:42:00     23   same as Exhibit-49.     It is a determination by the
    13:~:14      24   Executive Director of the available water in the
    13:42:08     25   Brazos River Basin       the same Brazos River Basin
    ALAl10 CITY REPORTING   (210) 710 - 3890
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    138
    13:42:12     1   using the same Brazos WAM using the same period of
    13,42:16
    2   record and while it is true that the applicant in that
    13:42:22     3   case wants to be able to use that unappropriated
    8:42:28
    4   water --
    13:42:28     5                    And that is what we're talking about,
    13:42:30
    6   Your Honor.     We're not talking about appropriated
    13:42:34
    7   unused water.     We're actually talking about
    8:42:38     8    unappropriated water.         Once you read my brief, you'll
    13:42:42
    9   see the Executive Director actually makes a
    8:42:44     10   determination that 74,387
    8:42:48     11                    MS. HORTON:        Your Honor, I have to
    13:42:48    12   object to this.      This is testimony as to what the
    8'42'~      13   exhibit contains and this is in the nature of a
    13:42:52    14   clos ing argument.
    8:42:54     15                    MR. WEBB:       Well, Your Honor --
    13:42:56    16                    JUDGE KEEPER:           Hold on.         I'm going to
    13:42:56    17   ove r rule you r obj ection.      Mr. Webb, you can continue.
    8:43:00     18                    MR. WEBB:       Right.      The Executive
    13:43:"     19   Director makes that determination that 74,387
    13:43:04    20   additional acre-feet is actually already in the Brazos
    13:43:10    21   River Basin and is available - - unappropriated water
    13:43:14    22   available for appropriation in this case by Brazos
    13,43:M     23   River Authority.
    13:43: 16   24                    Now, we don't care what happens in the
    13:~:20     25   BRA application.      We really don't.            We do care about
    ALAMO CITY REPORTING   (210) 710-3890
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    13:43:22
    1 that determination made by the same party, the same
    13:43:26     2 party in '97 to use a basin, the same party in 2006 to
    13:43:32
    3   use a basin and after 2006 found out some additional
    13:43:36
    4 information.    Well, maybe he found out from additional
    13:43:40     5 expert witnesses elsewhere.                It doesn't really matter
    13:43:42
    6 to us.    What matters is that that's the fact that
    13:43:46     7   we're talking about.
    13:43:46     8                 JUDGE KEEPER:              Okay.    Ms. Horton, let me
    13:43:50     9   clarify my ruling and I apologize.                I did not mean to
    13:43:52    10   be stern with you or unreasonably stern.                  What I'm
    13:43:58    11   doing is I'm allowing Mr. Webb to make legal argument
    13:44:02    12   based upon evidence that has been offered but has not
    13:44:86    13   yet been admitted.       So I'm willing to listen to
    13:44:10    14 whatever ii'is that he may have within the bounds of
    13:44:12    15   reason in terms of legal argument about all of this,
    13:44: 16   16   but you're certainly not forestalled from making your
    13:44:18    17   own legal argument nor am I accepting what he has to
    13:44:24    18   say as testimony.
    13:44:24    19                 Okay.        So I think that the best way to
    13:44:28    20   proceed just in terms of administrative/judicial
    13:~:34     21   economy here is to allow Mr. Webb to ask                  ~uestions   of
    13:44:48    22   this VIi tness about this document and then I'll rule --
    13:44:46    23   and I'll rule on his objection and - - I mean I'll rule
    13:44:50    24   on his offer- and your objection and if you wish to
    13:44:54    25   submit something in writing in response to his trial
    ALA~IO   CITY REPORTING   (210) 710-3890
    130
    140
    13:44:58     1   brief on admissibility of Exhibit-58, you're certainly
    13:45:04     2   welcome to do that.          And when do you propose to do
    13:45:06     3   that by?
    13:45:08     4                       MS. HORTON:        First thing tomorrow
    13:45:08     5 morning.
    13:45: 10
    6                       JUDGE KEEPER:           That's certainly
    13:45:12     7   acceptable.
    (Ll'.l
    13:45:12     8                       MS. HORTON:        May I ask you a question?
    13:45:12     9                       JUDGE KEEPER:           Certainly.
    13:45:14    18                       MS. HORTON:        So you're going to go ahead
    13:45:16    11   and actually admit it before getting our response
    13:45:18    12   brief?
    13:45:20    13                       JUDGE KEEPER:           No.
    13:45:20    14                       MS. HORTON:        Okay.      Thank you.
    13:45:20
    15                       JUDGE KEEPER:           What I'll do is I'll
    13:45:22    16 allow him to ask questions about it, but my choices
    13:e:~      17   seem to be to admit it and change my mind; if I decide
    13:e:~      18 to change my mind, conditionally admit it; but it's
    13:e:~      19   all variations on the same thing.                  So let's just
    13:45:36    28   proceed with the questions and i f what I conclude is
    13:e:w      21   that it is inadmissible, then the line of questioning
    13:e:n      22   and the responses about it will be stricken.
    13:45:%     23                       Mr. Webb, please continue.
    13:45:48    24                       MR. WEBB:       Thank you, Your Honor.
    13:45:50    25       Q.     (BY MR. WEBB:)           Mr. Thomas, turning to page 3
    ALA~10 CITY REPORTING   (210) 710-3890
    131
    141
    13:45:50      1 of 14 -- first let me ask you this:                     Is there more
    13:45:56      2 than one Brazos River Basin?
    13:45:56      3       A.      No.
    13: 45: 58
    4       Q.      Is there more than one Brazos WAM?
    13:46:00      5       A.      No.
    13:46:06      6       Q.      Okay.     But the Brazos WAM can be updated with
    13:46:10
    7 additional,current conditions information, correct?
    13:46:14      8       A.      Yes.
    13:46:14
    9       Q.      And that's what you were talking about
    13:46:14
    10   earlier, correct?
    13:46:16     11       A.      Yes.
    13:46:16     12       Q.      And that's what the Executive Director
    13:46:16     13   apparently    ~id   in Exhibit-50, correct?
    13:46:22
    14       A.      Apparently, yes.          I'm not familiar with this
    13:46:24     15   document    o~this     analysis.
    13:46:26     16       Q.      All right.       The last think I wanted -- well,
    13:46:30     17   page 3 under Water Availability Analysis, what is the
    13:46:36     18   apparent period of record used by the Executive
    13:46:46     19   Director?
    13:46:46     
    20 A. 1940
    through 1997.
    13:46:48     21       Q.      Same one, right?
    13:46:48
    22       A.      Yes, sir.
    13:46:48
    23       Q.      As you used -- as he used in Mr. Ware's case,
    13:46:52     24   correct?
    13:46:52     25       A.      Yes, sir.
    ALAMO CITY REPORTING   (210) 710-3890
    132
    142
    13:47:04
    1       Q.   Next page 4 of 14, under return flows, the
    13:47:08      2 application requests appropriate of current and future
    13:47:14
    3   return flow in the Brazos Basin discharged from 136
    13:47:16      4 locations of various entities, right?
    13:47:20
    5       A.   Yes.
    13:47:20
    6       Q.   So return flows was used to update the
    13:47:26      7 current conditions
    , . !:'x '1-
    by the Executive Director, correct?
    13:47:32      8       A,   My understanding of reading that sentence is
    '\   I   I
    13:47:34
    9 that return flows were used in the analysis in this
    13:47:42
    10 Water Availability Analysis.
    13:47:42     11       Q.   All right.             And that is what you said are
    13:47:44
    12   updates of the current conditions, correct?
    13:47:46     13       A.   Those are some of the updates, yes.
    13:47:50     14       Q.   Okay.           So if the Executive Director got some
    13:47:54     15   informatioh from whatever source to update the current
    13:47:58     16   conditions, that's no more than what you've been
    13: 48: 02   17   saying that the Executive Director does, correct?
    13:48:06     18       A.   That's correct.
    13: 48: 06   19       Q.   All right.             Next page, the current conditions
    13:48:10     20   data, read. that out loud into the record.
    13:48:14     21       A.   "The current conditions data set was updated
    13:48:18     22 with the amount of current return flows as indicated
    13: 48: 22   23   in the application (74,387 acre-feet which is the sum
    13:48:26     24   of the maximum reported annual discharge amounts for
    13:48:30     25   each plant)."
    ALAMO CITY REPORTING   (218)   71G-3890
    133
    143
    13:48:34
    1       Q.      So, in other words, the Executive Director
    13:48:36      2 was given information that he deemed reliable,
    13:48:40      3   correct?
    13:48:42
    4       A.      Yes.
    13:48:42
    .5       Q.      That updated the current conditions?
    13:48:46
    6       A.      Yes.
    13:4S:46      7       Q.      So it's true, isn't it, then that since you
    I,' •
    13:48:48      8 wrote your water availability -- I keep getting it
    13:48:54      9   mixed up -- since the Executive Director wrote his
    13:49:00     10   Water Availability Review in 2006 for Mr. Ware, he
    13:49:02
    11   learned new information?
    13:49:04     12       A.      Yes.
    13:49:O4     13       Q.      And that information is now being sought to
    13:49:08     14   be used by somebody else?
    13:49: 16    15       A.      Yes.
    13:49:16     16       Q.      Any reason why it couldn't be used for
    13: 49: 20   17   Mr. Ware since this hea ring is taking place after he
    13:49:22     18   learned the new information?
    13: 49: 26   
    19 A. I
    did not have this information.
    13:49:28     20       Q.      I~m      not asking you that.           I know you didn't,
    13:49:32     21   but is there any reason you can think of that Mr. Ware
    13: 49: 36   22   shouldn't be able to use this new information that the
    13:49:4O     23   Executive Director has learned since he did the review
    13:49:44     24   in Exhibit-47?          Any reason you can think of as an
    13:49:50     25   engineer?
    ALANO CITY REPORTING   (210) 710-3890
    134
    144
    13:49:56      1       A.      Yes.   One possible answer is the return flows
    13:50:00
    2 from specific plans and the way that the Executive
    13:50:02      3   Director has directed us as the hydrologists to
    13:50:08
    4 consider that information and to write permits based
    13:50:10          on retu rn flows.
    5
    13:50:12     6        Q.      Why would that make any difference?
    13:50:18      7       A.      Because we are directed by the Executive
    13:50:20
    8 Director and I'm directed by my supervisors that we
    13:50:24
    9 only write permits to authorize return flow to either
    13: 50: 28
    10 the original source diverter of that water or to the
    13:50:34
    11   discharger of that water
    13:50:34
    12       Q.      Well, now --
    13:50:36     13       A.      -- if either of those -- either of those
    13:50:38     14 entities are the ones who should be applying for
    13:50:42     15   retu rn flows.
    13:50:44     16       Q.      Well, did I read Exhibit-50 wrong or was the
    13; 50; 52
    17   Executive Director saying that other return flows
    13:50:54     18   other than from BRA were subject to BRA's use as
    13:51:02     19   potential sources of appropriated water?
    13:51:06     
    20 A. I
    don't know.        I'm not familiar with this
    13:51:08
    21   document.     I didn't prepare this document.
    13:51:16     22       Q.      AII right.      Next sentence, page 5 of 14,
    13:51:18     23   after the one that we read, read that into the record,
    13:51:24          the request to reuse.
    24
    13:51:28     25       A.      "The request to reuse return flows was
    ALAMO CITY REPORTING   (210) 710-3890
    135
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    13:51:30    1 modeled at the most downstream pOint in the basin to
    13:51:32
    2   determine the volume of return flows available to BRA
    13:51:36    3   on a basin-wide basis."
    13:51:40
    4       Q.    So the question -- the issue in Exhibit-50 is
    13:51:46    5   how can BRA use the additional return flows on a
    13:51:52
    6   basin-wide basis.        Did I misstate that?
    13:52:00
    
    7 A. I
    'm not sure that I understand the question.
    1 h:
    13:52:02
    8   I'm sorry. , .
    13:52:02
    9       Q.   Well, have I misstated that the issue in
    13:52:08   Ul   as represented in that sentence that you just read is
    13:52:12
    11   the question of whether BRA should be able to use
    13:52:16   12   those return flows on a basin-wide basis?                  That's the
    13:52:22   13   issue, isn't it?
    13:52:22
    14                  · MS. HORTON:         Your Honor, I would like to
    13:52:24   15   object.   H~'~ already stated that he is not familiar
    13:~:~     16   with this document.
    13:52:26   17                      MR. WEBB:      Well, then, Your Honor, we
    13:52:28   18   should allow the p rofessiona l enginee r rep resentative
    13:~:32    19   of the Executive Director to become at least familiar
    13:~:36    20   enough to be able to understand what the sentence
    13:52:38   21   says.
    13:52:40   22                      JUDGE KEEPER:          So are you proposing that
    13:~:42    23 we take a break to allow him to read the document?
    13:52:44   24                      MR. WEBB:      Absolutely, Your Honor, at
    13:52:46   25   least pages 1 through 7.
    ----------------------------------~
    ALAMO CITY REPORTING   (Z10) 710-3890
    136
    146
    13:52:48 1               JUDGE KEEPER: Before we do that,
    13:52:50 2 Mr. Thomas, let me ask you a quick question. If we
    13:52:54 3 were to take a short break for you to be able to read
    13:52:58 4 this information, do you anticipate that you would be
    13:53:00 5      able to respond to Mr. Webb's question or shall we
    13:53:04 6      just take a break and see what happens?
    13:53:06 7                       THE WITNESS:       I'm still not sure that I
    13:53:08S"undersi:and Mr. Webb's question, but I'm also not sure
    13:53:12 9 that just reading this document gives me all the
    13:~:14   10    background information that was used to prepare this
    13:~:16   11    document to know how the decision was made and how to
    13:53:22 12     answer his question.
    13:53:24 13                      MR. WEBB:      Well, Your Honor, I'm
    13:53:24 14     certainly not asking this witness to give us any
    13:53:30 15     information of all the background information.
    13:53:34 16     Honestly, Your Honor, we don't care where the
    13:53:36 17     background information came from.              All we know is that
    13:53:38 IS     this party in this case has, since he told our client
    13:53:44 19     that there's no water available, made a determination
    13:53:48 20     that there's another 74,000 acre-feet available.              He
    13 :53: 52 21   made that determination.         This is an official release
    13:53:~   22    determination.
    13:53: 56 23                     Mr. Thomas, discussed earlier in his
    13:~:Y    24    testimony how the Executive Director works.              He makes
    13:54:60 25     determinations, et cetera, et cetera of the water
    ALAMO CITY REPORTING   (210) 710-3890
    137
    147
    13:54:04     1    availability.     It's not -- we're not trying to retry
    13:54:06     2    BRA's application.      We're not trying to try it.             I
    13:54:12     3    understand it hasn't been tried.                 We don't want to.
    13:54:14     4    We don't care what BRA wants to do.                 We don't care how
    13:54:16     5    they want to use it.        We don't care where they want to
    13:54:20      6   use it.     We don't care what they use to give the
    13:54:24      7   information       to the Executive Director if that's how it
    . j.'.! .
    13:54:24      8   happened.
    13:54:26      9                    All we know is that the Executive
    13:54:30     10   Director bought it; that they agreed; they said yes,
    13:54:34     11   the water is there; the water is there for
    13:54:36     12   reappropriation and let's see what we do with your
    l3:54:40     13   appl~cation.     Well, the let's see what we do with
    13:54:42     14   applicatio~    part is of no consequence to us.              It's the
    13:54:46     15   determination that the water is there in the basin.
    13:54:48     16   That's the specific factual determination that is to
    13:54:52     17   say the least a little relevant and material in this
    13:54:56     18   case and that's all we care about.
    13: 54: 58   19                    So we don't need Mr. Thomas or want
    13:55:02     20   Mr. Thomas to tell us how the Executive Director came
    13:55:04     21   to make that determination, only to confirm that he
    13:55:10     22   did.
    13:55:10     23                    JUDGE KEEPER:           Okay.     Ms. Horton, do you
    13:55:14     24   wish to make a response?
    13:55:18     25                    MS. HORTON:        No.      That was the question
    ALAt40 CITY REPORTING    (210) 7le-3890
    138
    148
    13:55:20
    1   he asked and I think Mr. Thomas can read the document
    13: 55: 22    2   and answer that question of what his determination
    13:55:24
    3   was.
    13:55:24      4                         JUDGE KEEPER:             Okay.    Let's take a short
    13:55:26
    5   break.        Mr. Thomas, if you'll read those seven pages
    13:55:30      6   and when you're -- we'll go off the record while you
    13: 55: 32    7 are.          When you're ready, just signal and we'll come
    13:55:34
    8   back or. the record.
    13:55:34      9                         (Recess from 1:55 p.m. to 2:02 p.m.)
    14:02:08     10                         JUDGE KEEPER:             So if we're ready, let's
    U:~:W        11   go back on the record.                And, Mr. Thomas, have you had
    14:02:12     12   an opportunity to complete reading the seven pages of
    U:02:16      13   Exhibit-50?
    14:02: 18    14                         THE WITNESS:          Yes, I have.
    14:02:18     15                         JUDGE KEEPER:             Thank you very much.       And
    U:~:~        16   so, Mr. Webb, have you a question?
    14:02:22     17          Q.      (BY MR. WEBB:)           So the question is:        Did the
    14:92:24     18   Executive Di recto r make the dete rmination that anothe r
    U:B2:~       19   74,387 acre-feet of additional water was available to
    14:02:34     20   BRA for use in its application?
    14:02:38     21          A.      Yes.
    14:02:46     22          Q.      All right.         Isn't there a law regarding the
    U:02:g       23   use of return flows?
    14:02:52     
    24 A. I
    'm not sure that I understand that question.
    14:02:56     25          Q.      Well, I don't want to be cryptic.                 Doesn't
    ALA~IO   CITY REPORTING   (210) 710-3890
    139
    149
    14:03:04    1 Section .046 of the Texas Water Code, doesn't it
    14:03:12    2 capture return surplus water?
    14:03:36    3                       MR. WEBB:       Your Honor, would you like to
    14:03:36    4   read along with us?          We have another
    14:03:38    5                       JUDGE KEEPER:           What section are we
    14:03:40    6 looking at?
    14:03:40    7                       MR. WEBB:       11.046.
    .-: : '
    14:03:46    8                       JUDGE KEEPER:           Thank you.
    14:03:52    9       Q.   (BY MR. WEBB:)             Would you read the
    14:03:52   10   highlighted section?
    14:03:54   11       A.   Yes.        This is Section 11.046 (c) :             "Once water
    14:04:02   12   has been diverted under a permit, certified filing, or
    14:04:06   13   certificate of adjudication and then returned to a
    14:04:08   14   watercours~or        stream, however, it is considered
    14:04:12   15   surplus water and therefore subject to reservation for
    14:04:14   16   instream uses or beneficial inflows or to
    M:M:M      17   appropriation by others unless expressly provided
    14:04:20   18   otherwise in the permit, certified filing, or
    14:04:22   19   certificate of adj udication."
    14:04:24   20       Q.   50 that means that some of that 74,387
    M:M:~      21   acre-feet of water is available to Mr. Ware for
    M:B4: 38   22   reappropriation, correct?
    14:04:40   
    23 A. I
    can't say that I know that.
    14:04:42   24       Q.   Okay.        The point is you didn't use any
    M:M:44     25   portion of that additional water in the basin in your
    ALAI40 CITY REPORTING   (210) 710- 3890
    140
    150
    14:04:48    1 model?
    14:64:50
    2         A.   That's correct.
    14:04:50
    3         Q.   Okay.     And because of how the model works,
    14:04:56
    4 the Brazos WAM works, additional water anywhere in the
    14:05:00
    5 basin is used to assess whether or not a particular
    14:05:08
    6 water right would have a negative impact on all of the
    14:05:12
    7 water rights, isn't it?
    14:05:15
    8         A.   I.'m sorry.       I'm not sure exactly what yo8're
    14:05:26
    9 asking.
    14:05:26   10         Q.   Additional unappropriated water would benefit
    14:05:30   11   the entire basin, WOUldn't it7
    14:05:30              A.   Yes.
    12
    14:05:32
    13         Q.   And so it doesn't matter whether it's above
    14:05:34
    14 Mr. Ware, below Mr. Ware, above Stillhouse Hollow
    14:05:38   15   Lake, below it?       It would benefit everyone, wouldn't
    14:05:40
    16   it?
    14:05:42
    1
    7 A. I
    t would benefit everyone downstream of it
    14:05:44   18   and potentially that -- yes, I can -- I can say that
    14:05:50
    19   it would benefit everyone in the basin, yes.
    14:05:54
    20         Q.   Because after all, even if you're upstream
    14:05:58
    21 where all of that beneficial water -- additional
    ~:%:ao     22   beneficial water is coming in, you don't have to count
    ~:%:M      23   the -- the person upstream of where it's all coming in
    ~:%:a8     24   can use it all and the people downstream wouldn't have
    ~:%:10     25   to worry, correct?         And I'm being simplistic.
    ALAr10 CITY REPORTING   (210) 710 -3890
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    14:06:14    1          A.     There are situations where it would change
    14:06:16
    2   priority calls and benefit everyone in the basin.
    14:06:20
    3          Q.     Incidentally, what was the priority date that
    14:06:26
    4   the Executive Director used - - and I know it's not
    14:06:32    5   really relevant, but it's in the first seven pages.
    14:06:34    6   At the top of page 5 through 14, what was the priority
    14:06:38
    7   date used?
    ~ 'i   ()   !
    14:06:42
    8          A.     Priority date of October 15th, 2005 -- 2004.
    14:06:46
    9          Q.     So BRA even has a later priority date than
    14:06:58
    10   Mr. Ware's July 1st, 1997, priority date?
    14:07:04
    11          A.     Octobe r 15th, '04, is late r than July of '97,
    14:07:08   12   yes.
    14:07:08   13          Q.     Not later than January 5th, 2006, is it?
    14:07:14   14          A.     Nt;'.
    14:07:14   15          Q.     Or March something 2006 either?
    14:07:18   16          A.     That' 5 correct.
    14:07:20   17          Q.     All right.                    50 that wrong priority date
    M:M:n      18   really does hurt Mr. Ware, doesn't it?
    14:07:24   19                                      MS. HORTON:        I'm sorry.            I think that's
    M:07:m     20   another mischaracterization.
    14:07:30   21                                      MR. WEBB:       I'll withdraw that question,
    M:M:H      22 Your Honor.
    14:07:36   23          Q.      (BY MR. WEBB:)                      And just so the record is
    14:07:38   24   clea r,     YOLl          ce rtainly didn't include - - you al ready
    14:07:40   25   answered that.                       I don't have to ask that.                  I'm almost
    ALM10 CITY REPOI\TING   (210) 710-3890
    142
    152
    14:07:46    1   done, Mr. Thomas.
    14:08:12    2                              I don't know whether I've asked you this
    14:08:14
    3   or not.   You can't think of any reason why Mr. Ware
    14:08:18
    4   wouldn't be entitled to any of this additional water
    14:88:22    5   that the Executive Director has discovered, do you?
    14:08:24
    6       A.    No.
    14:88:30
    7       Q.    Now, in light of Exhibit-50, isn't it --
    "!   !-"H;:'-
    14:08:38    8   wouldn't you agree with me, Mr. Thomas, that the
    14:08:42    9   analysis done by the Executive Director before he had
    14:08:H    10 this additional information really doesn't help the
    ~:U:52     11   administrative law judge very much in making a
    ~;08;~     12   determination of water availability for Mr. Ware, does
    14:08:56   13   it?
    14:09:02   14       A.    Are'you asking if my analysis is useful?
    14:09;88   15       Q.    Yes.             In light of all this new water that's
    ~:B9:12    16   not put intd the model.
    14:89:14   1
    7 A. I
    believe my analysis is still useful and
    ~:";18     18   still correct.
    14:09;20   19       Q.    Correct from the terms of when it was done?
    14:09;24   
    20 A. I
    believe it's still correct today.
    14;09:26   21       Q.    So are you stating that an additional 74,387
    14:09:34   22   ac re -feet wouldn't make any di ffe renee to a fa rme r' s
    14:09:38   23   application for 150 acre-feet on a term permit basis?
    14:09:48   
    24 A. I
    f that additional 74,000 acre-feet were
    ":":52     25   available to Mr. Ware and anyone else in the basin, it
    ALANO CITY REPORTING   (2l0) 710-3890
    143
    153
    14:09:56 1 would be. My understanding of this from reading this
    14: 10:00 2 application is that that 74,000 acre-feet is from
    14:10:88 3 water rights owned by or discharged in connection with
    14: 10: 12 4 BRA and that it's not new water introduced to the
    14:10:16 5 basin. It's BRA's water that they are using.
    14:10:52 6       Q.   If you look at the last paragraph of
    14:10:58 7 Exhibit-50, page 4 of 14 going up to 5 of 14, doesn't
    :',\.- '
    14:11:06 8 that indicate that only certain portions of the 74,387
    . \ -,.,
    14:11:\2 9 acre-feet were explicitly granted based on return
    14:11:18 10    flows now being claimed as part of the application?
    14:11:36 11                    Withdraw that question.                     I have a better
    14:l!:40 12    question.
    14: 1l:40 13                    Looking at Exhibit -50 page 5 of 14, the
    14:11:52 14    sentence th~t begins because of this and part of the
    14:11:58 15    sentence before that starts at the 4 of 14, doesn't
    U:12:~    16   the Executive Director acknowledge that other parties
    u:u:~     17   other than BRA are entitled to some of these return
    U:12:U    18   flows?
    14:12:12 19        A.      The Executive Director recognizes that other
    14:12:14 20    pa rties have been granted wate r right s based in pa rt
    14:12:1121     on the presence of those return flows.
    14:12:28 22                    MR. WEBB:          No further questions.            We
    U:U: 30   23   pass the witness.
    14:12:42 24                    MS. HORTON:           I want to give the Public
    14:12:44 25    Interest counsel an opportunity to ask his questions.
    ALAMO CITY REPORTING   (210) 710-3890
    144
    154
    14,12,44
    1                              CROSS EXAMINATION
    14,12:54     2 OUESTIONS BY MR. ARTHUR:
    14:12:54     3           Q.   Good afternoon, Mr. Thomas.                    So am I correct
    14:12:58     4 that the Brazos River WAM is updated periodically or
    14,13:04
    5 the inputs or the data set?
    14:13:06     6           A.   The inputs and the data set are updated.                    As
    14: 13: 10   7    we grant new water rights, those new water rights are
    14:13,14      8   included in the data set.
    -:.   [
    14:13:18      9          Q.   Okay.       So at the timing of the updating, it
    14,13:22     10   is based on a new water right?
    14,13:24     11          A.   Well, there's also -- there's also an effort
    14,13:32     12 to make sure that the return flows are accounted for
    14:13:36     13   appropriately.          That's not done on a regular basis.
    14:13:40     14 The water rights are added basically because
    14:13:44     15 they're -- they're added to perform an analysis and if
    14:13:50     16   that    analy~is       indicates that a water right should be
    14:13:56·17       granted, then they're included in the latest version
    14:13:58     18   as those water rights become granted.                       An effort to go
    M,14,16      19   through and check and update the naturalized flows or
    14:14:11     20   to go throughout the whole basin and update all of the
    14:14:14     21   return flows is not done on a specific regular basis.
    14:14:14     22          Q.   Okay.
    14:14,21     
    23 A. I
    t's done as resources are available within
    14,M:~       24   the water right scheme.
    14: 14:28    25          Q.   So recognizing that current conditions is
    AlAflO CITY REPORTING   (210) 710·3890
    145
    Exhibit E
    April 20, 2010 Final Order of TCEQ
    Bryan W. Shaw, Ph,D., Chainnarz
    Buddy Garcia, Commissioner
    carlos Rubinstein, Conunissioner
    Mark R. Vickery, P.G.,. Executive Director
    TEXAS COMMISSION ON ENVIRONI\1ENTAL QUALITY
    Protectil1g Texas by Reaucing and Preumtil1g Pallll/ion
    April 23, 2010
    TO:       Persons on the attached mailing list.
    RE:       Bradley B. Ware
    TCBQ Docket No. 2008-0181-WR; SOAB Docket No. XXX-XX-XXXX
    Water Use PennitNo. 5594
    Decision of tile Commission on Application.
    The Texas Commission on Bnvironmental Quality ("TCEQ" Or "Commission") has made a
    decision to deny the above-referenced application. Enclosed with 'this letter is a copy of the
    Commission's order. Unless a Motion for Reheating ("MFR" Or "motion") is timely filed with
    the chief clerk, as described below, this action of the Coromission will become final. A MFR is
    a reqnest for the Commission to review its decision on the matter. Nay motion must explain why
    the Commission should review the decision.
    Deadline for Filing Motion fOI'Rehearing_
    A MFR TIms! be received by the chief clerk's office no later than 20 days after the date a person
    is notified of the Commission's order on this application. A person is preswned to have been
    notified on the third day aftor the date that this order is mailed.                   .
    Motions           may         be       filed        with     the     chief     clerk    electronically    at
    ht1p:llwwwJO.tc~.state.tx.us/~c/efili!lm                or by filing an original and 7 copies with the Chief
    Clerk at the followhlg address:
    LaDonna Castanuela, Chief Clerk
    TCBQ,MC-105
    P.O. Box 13087
    AUStill, Texas 78711-3087
    Fax: 512/239-3311
    In aqdition, a copy of the, motion must be sent on the same day to each of the individuals on the
    attached mailing list as 'indicated by an asterisk (*). A certificate of service stating that copies of
    the rnotion were sent to those on' the mailing Jist must also be sent to the chief clerk. The
    procedures for filing and serving motions for rehearing and responses are located in 30 Texas
    Administrative Code (TAC) §80.272 and 30 TAC §1.10-1.l1. The hardcopy filing requirement
    is waived by the Gener;ll Counsel pursuant to 30 lAC §1.10(h).
    P.O. So, 13087        AmUn, Texas 78711-3087
    .",. '. - .       .'.'
    The written motion must contain (1) the name and representative capacity of the person filing the
    motion; (2) the style and official docket lllUnbei' assigned by SOAli: or official docket number
    assigned by the Commission; (3) the date of the order; and (4) a concise statement of each
    allegation of error.
    Unless the time for the Commission to act on the motion is extended, the MFR is overruled by
    operation oflaw 45 days after a person is notified of the Commission's order on this application.
    If you have any questiollS or need additional jnfOimation about the procedures described in tlris
    letter, please call the Office of Public Assistance toll free at 1-800-687-4040,
    Sin~~~
    ~nnacas~~
    I.../~Clerk
    LDC/ms
    Enclosures
    147
    Bradley B. Wru:e
    TCEQ Docket No. 2008-0181-WR
    SOAR Docket No. XXX-XX-XXXX
    FOR TIffi APPLICANT:                        Steve Ramos, Technical Staff
    Texas C01IUllission on Environmental Quality
    Stephen P. Webb ~                           Water Supply Division MC·160
    Gwendolyn Webb                              P.O. Box 13087
    Webb & Webb                                 Austin, Texas 78711-3087
    712 Southwest Tower
    211 East 7ti) Street                        FOR OFFICE OF PUBLIC ASSISTANCE
    Austin, Texa.~ 78701                        via electronic mail:
    Bradley B. Ware                             Bridget Bohac, Director
    911 Gann Branch Road                        Texas Commission on Environmental Quality
    Killeen, Texas 76549                   .'   Office of Public Assistance MC-I08
    P.O. Box 13087
    INTERESTED PERSONS:                         Austin, Texas 78711·3087
    Andrew Miller                               FOR PUBLIC INTEREST COUNSEL
    Kemp Smith LLP                              via electrQllic mail,
    816 Congress Avenue, Suite 1150
    Austin, Texas 78701                         Garrett Arthur, Attorney*
    Texas Commission on Envirorunental Qualily
    Gene W. Ray, DVM                            Public Interest Coullsel MC-! 03
    Town & Country Veterinary Medical Center    P.O. Box 13087
    505 Ba.~t Elms Road                         Austin, Texas 78711-3087
    Killeen, Texas 76542
    FOR THE CHIEF CL\'>RK
    Bruce Wasinger                              via electronic mail:
    Bickerstaff Heath Delgado Acosta LLP
    3711 South MoPae Expressway                 LaDonna Castaiiuela
    Builcling 1, Suite 300                      Texas COlIUllission on Environmental Quality
    Austin, Texas 78746                         Office of Chief Clerk MC-l 05
    P.O. Box 13087
    FOR THE EXECUTIVE DIRECTOR                  Austin, Texas 78711-3087
    via electronic mail:
    Shaua Horton, Staff Attorney *
    James Aldredge, Staff Attorney .
    * The Honorable Paul Keeper
    Administrative Law Judge
    Texas Commission on Em1romnental Quality     State Office of Administrative Hearings
    EnviroIUnental Law Division MC-173           P. O. Box 13025
    P.O. Box 13087                               Austin, Texas 78711-3025
    Austin, Texas 78711-3087
    • Courtesy Copy via inter-agency mail
    ., ..
    148
    149
    TEXAS COMMISSION ON ENVIRON1Y1ENTAL QUALITY
    I'HIHlli\Tt;; OI'TEl(AS
    eOUNW 61"'flllAVI!l
    II\?IOO( tertijy inal this ~ .1"'6 .00 Mfll!i1\f&1?ll\ ''" '!>"""'J
    r~~.'l ('.ornrnl~l;i!Jn on (!_nvifooment~! QualitY
    AN ORDER Concerning the Application of nradlcy B. Ware to amend
    wlIter llse Permit No. 5594; TCEQ Docket No. 2008-0181-
    'WR; SOAli Docket No. XXX-XX-XXXX
    On April 14, 2010, the Texas Commission on Environmental Quality (TCEQ of
    Commission) considered the application (Application) of Bradley B. Wru'e to Amend Water Use
    Pennit No. 5594 (Pennit). A Proposal for Decision (PFD) was presented by Pan! D. Keeper, an
    Administrative Law Judge (ALJ) with the State Office of Administrative Hearings (SOAH), who
    condncted a hearing in this case from October 28 through October 29, 2009, in Austin, Texas.
    After considering the AU's PFD, the Commission adopts the following Findings of Fact
    atld Conclusions of Law:
    1. FINDINGS OF FACT
    General Findings·
    1.     The applicant is Bradley B. Wru·e. Mr. Ware owns a 261-acre farm ou the Lampasas
    River, about 15 miles southwest of Killeen, Texas.
    2.      Mr. Ware's street and mailing address is 911 Gann Branch, Killeen, Texas 76549.
    3.      Mr. Ware's farm is located in Bell County, Texas, fUld is within the Brazos River basin.
    Iiistory o/tlte Perlltit
    4.      On November 7,1997, the Commission issued Mr. Wru'c the Penni! for a ten-year tenn.
    .~.     .',:   ',   ..   ~"-
    150
    5.     The Pertnit authorized Mr. Ware to diver! and use 130 acre-feet of water annually fi'om
    the Lampasas Ri verto irrigate 100 acres,
    6.     The Permit also established July 1, 1997 as "the priority date of this pennit and all
    extensions hereof ...."
    7.     The Pelmit was to expire on November 7, 2007, unless before that date, Mr. Ware
    received the Commission's approval to extend the term or to convert the Permit to a
    . perpetual right.
    .8.    Mr. Ware's rights lIllder the Permit remained in effect pending a final administrative
    ruling on the Application.
    9.      During the 1;\'1elve years in which Mr. Ware has had irrigation rights, he has fmmed hay,
    plUUpkinS, wheat, sorghum, oats, and winter peas.
    to.    Mr. Ware has tried to impound his water by installing six or seven eruthcn tanks, but the
    composition of the solllimits the runount of water that the tanks will retain.
    11.     Mr. Ware has purchased 100 acre-feet of water rights and installed 8,000 to 10,000 feet
    of two-inch pipes, pIns an eight-inch pipe to a central pivot system.
    12.     On November [5,2005, Mr. Ware timely filed his Application to: (1) either extend his
    Pennit for another ten-year period or convert his Permit to a perpetual right, (2) withdraw
    20 more acre-feet of water annually, and (3) lITigate 31 more acres of his fann.
    13.    On J31lUary 5, 2006, the ED determined that the Application was administratively
    complete.
    14.     On June 7, 2006, the Brazos River Authority contested the application.
    15.    On November 4, 2006, the ED's surface water availability and interstate compacts team
    completed a water availability review and detennined that there was not S\lfficient water
    available at the Applicant's location to support the requested demand.
    J6.    On November 6, 2006, the ED recommended denial of the Application.
    2
    151
    17.           On January 8, 2007, 11'11'. Ware requested a contested case hearing at SOAR.
    18.           On January 25, 2008, the Commission directly referred the case to SOAR for a hearing
    Oil      the merits.
    19.               On April 3, 2008, the SOAR administrative law judge (AU) convened a preliminary
    hearing and took jurisdiction.
    20.               On January 12,2009, the Brazos River Authority was granted the right to withdraw as a
    protesting party.
    2),               On 0c;tober I, 2008, the AU issued an order folloVi1ng a telephonic preheating
    conference and notified the parties that the hearing on the merits would be held March 18
    through 19, 2009.
    22.              At the request of Mr. Ware, the hearing on the merits was rescheduled to convene
    October 29 through 30, 2009.    .........
    23.              The hearing convened on October 28, 2009, and adjoumed On October 29, 2009. The
    administrative record closed on December 21, 2009, after cloSing arguments and replies
    were Hled.
    ED's recommendatioll to dellY the Application
    24.              After Mr. Ware filed bis Application in 2005, the ED's Surface Water aIld Interstate
    Compacts Team determined that "little to no water" was available at Mr. Ware's
    diversion point on the Lampasas River, without regard to whether the amended Penni!
    would have a petpetual 01' limited telm.
    25.              The ED's Surface Water Availability and Interstate Compacts Team confirmed the
    hydrologist's conclusion in a water availability review memo that calculated that
    insufficient water was availabJe at Mr. Ware's diversion point to support even the
    original 130.acre-feet of term-limited appropriation rights.
    3
    ,/.,'
    ..   ~',   ,"   . ..
    ~     ~
    152
    26.    In recommending denial of the Application, the ED rI'lied      Oll   the Commission's Wate),
    Availability Model for the Bra7J)s River besin (Model). The calculation used a historical
    period of record of 1940 to 1997.
    27.    Although previous water availability models were developed and used by the
    Commission, the CUlTent Model has been in use since 2001. The Commission has relied
    on the Model in evaluating all applications fo), appropriative rights since then.
    28.    In evaluating the Applioation with the Model, the ED used a priority date of January 5,
    2006, the date on which the Application was administratively complete.
    29.    The Model predicts that Mr. Ware's current request could be satisfied at a 100% level in
    none of the years and at least 75% in 5.2% of the years.
    Stand/fig
    30.    The evidence presented by the ED at the hearing on the merits was generated by the
    Commission or was offered to support the integrity of the Commission's underlying
    infonnation.
    The reliability of the Model
    31.    The Model is designed to be the most accurate method available to the ED without regard
    to the size of the request for water.
    32.    The design relies in part on the Model's use of a period of record.
    33.    The period of record gives the Commission a set ofhistoricnl boundaries ranging from
    the most severe basin-wide drought to the most severe flood periods ever recorded.
    34.    The historical period was developed by the Commission in conjunction with other state
    agencies and outside consultants.
    35.    The Model relies on afl applicant's particular location within a river basin to determine
    availability.
    4
    153 .
    36.    If an applicant's diversion point is located within a large drainage area, then the applicant
    would be able to rely on large stream flows and potentially greater water availability.
    37.    The Commission gathers information abott! streamflows by relying OJ) gauge information
    and data from otber sources.
    38.    v,'here gauge iuformatioll is unavailable, then the Commission may extrapolate
    information based on the readings a~ nearby gauging stations. This type of adjustment
    occurs during the creation of the naturalized flow data set.
    39.    Naturalized flow data has value to the Commission because it reflects the flows that
    would have occurred without the impacts created by hurnau diversions and storage of
    water.
    40.    The Model takes into account an application's priority date in evaluating a request.
    41.    The role of the priority date is to determine the seniority status of a particular
    appropriative right previously given by the Commission.
    42.    By examining an application in terms of period of record, location, and priority date, the
    ED is able to evaluate an application of any size in terms of tbe current conditions
    presented.
    43.     At this time, the inclusion of more recent gauge flow data would have no effect on the
    range of data reflected in the historical period of record used ill the Model.
    44.    The addition of "new water," if it were pi'oved to exist, would be" subject to all prior
    appropriation rights of senior water tights holder a~d could not be treated as available for
    new allocation.
    45.    The full amount ofthe Brazos River Authority's requested return flows become available
    only at the furthest downstream point in the basin; diversions at other points axe possible
    due to spedfic facts and circumstances of that application.
    5
    -   ....
    154
    Priority dates
    46,     The priority date of Mr, Ware's CUITent Permit is July 1, 1997, and applies to "all
    extensions, , .. "
    47,     The priority date in the Pennit has no relation to applications for new permits or to any
    matter other than establishing when the permit holder began the approprIation of water or
    when the permit holder acquired the rIght to use the water,
    48,     The priority date of Mr. Ware's application was established on the date on which it
    became administratively complete, January 5, 2006,
    49,     The Brazos River Authority is seeking a permit from the Commission to appropriate an
    additional 421,449 acre-feet per year of unappropriated water, or several thousand times
    the amount that)\Jr, Ware is seeking authority to appropriate from the sanle river basin,
    50,     The priority date of the application of the Brazos River Authority is October 15, 2004,
    51. .   The priority date of the Brazos River Authority's application is earlier than that of
    Mr, Ware's application,
    52,     The ED engaged in no manipulation of the priority dates in recommending the denial of
    Mr, Ware's application,'
    II. CONCLUSIONS OF LAW
    1,      The Commission has jurisdiction oVer the determination of water rights in Texas rivers
    and streams, TEx, WATER CODE ANN, ch. 11.
    2,      Notice was provided in accordance with TEx, WATBR CODE ANN, § 11.132, 30 TEX,
    AOMIN. CODB (TAC) ch, 295, Bubch, C; and TEx, Gov, CODE ANN, §§ 2003,051 and
    2003,052,
    3,      SOAH     ha~   jurisdiction to conduct a hearing and to prepare a Proposal for Decision in
    contested cases referred by TCEQ, TEX, GOV, CODE ANN, § 2003.47,
    6
    155
    4.            The Application became administratively complete on January 5, 2006. TEx. WATER
    CODBANN. § 11.141 and 30 TAC § 297.44(c)
    5..        The Application was processed and the proceedings described in this Order were
    conducted in accordance with applicable statutes and the rules of the Commission and
    SOAl!. TEX. WATERCODEANN,ch, 11; 30 TACeh. 80,1 TACeh. 155.
    6.         Mr. Ware held the burden of proof. 30 TAC § 80. 17(a). Mr. Ware did not meet his
    burden.
    7.         Any person may appear at a hearing at which the issuance of a permit is to be considered.
    TEx. WATBRCODEANN. § 11.133.
    8.         The ED is required to participate as a party in contested hearings relating to applications
    about water rights, 30 TAC § 80.108(b)(l).
    9.        The ED is required to represent the Commission in hearings that raise matters that affect
    the public's interest in the state's environment and natural resources, including matters
    that have been determined to be Jlollcies of the slate. TEx. WATER CODE ANN. § S.228(a).
    10.       In contested case permit hearings, the ED's presentation is limited to "the sole purpose of
    providing information to complete the administrative record." TEx. WATER CODE ANN.
    § 5.228(c).
    11.    In a contested hearing, the ED's presentation is limited to "information developed by the
    Commission .... " TEx. WATBR CODE ANN. § 5.228(a).
    J2.    In a contested hearing, the ED may provide infonnatlon that opposes rul application, as
    long as the information is within the litnits of the law. TEX. WATER CODE ANN. § ILl33.
    13.    All parties to a contested case have the right to present a direct case and to cross-exrunine
    the opposing party's evidence. 30 TAe § 80.1 15(a).
    7
    '..
    "
    ,~ ~..                                                                                                          156
    14.   The ED has standing to appear as a party in this proceeding and was authorized to pmsen!
    the Commission's evidence and arguments ill opposition to Mr. Ware's case.
    15.   An applicant may request that au application be remanded to the ED for action as an
    uncontested matter if: (l) all timely hea1'ing reqnests have been withdrawn or denied or
    (2) all parties to a contested case reach a settlement so that no facts or issnes remain
    cOlltrovelted. 30 TAC § 80.101.
    16,   A heming was required in this case because the ED remained a party to a contested case
    after the Brazos River Authority withdrew its opposition and because there was not a
    settlement between the remaining parties.
    17.   Scientific testimony presented by a party must be offered through the testimony of an
    expert, and that testimony must be based on a reliable foundation. TEx. R. EvrD. 702.
    18.   A finder of fact is to determine the reliability of the evidence, and "[u)nreJiable expert
    testimony is not evidence." Gross v. Burt, 
    149 S.W.3d 213
    , 237 (Tex. App.--Fort Worth
    2004, pet. denied).
    19.   To establish the reliability of an expelt's testimony, an offering patty must first establish
    the reliability of the analysis that the expert used in reaching his conclusions.        Six
    nonexclusive factors are used in determining whether scientific testimony is reliable:
    (1) the extent to which the theory has been Or can be tested; (2) the extent
    to which the technique relies upon the subjective interpretation of the
    expert; (3) whether the theory has been subjected to peel' review and
    publication; (4) the technique's potential tate of error; (5) whether the
    underlying theory or technique has been generally accepted as valid by the
    relevant scientific community; and (6) the non-judicial uses that have. been
    made orthe theory or technique.
    8
    157
    Gross v. 
    Burt, 149 S.W.3d at 237
    , citing Merrell Dow Phm'ms.. Inc. v. Havner, 
    953 S.W.2d 706
    , 714 (Tex. 1997), cel'l. denied, 
    523 U.S. 1119
    (1998) and E.l. du Pont de
    Nemours & Co. v. Robinson, 923 S.W.2d 549,557 (Tex. 1995).
    20.    Mr. Ware did not establish that the method used by Mr. Jones, Mr. Ware's expert
    witness, was reliable.
    21.    The water of every flowing river in the State of Texas is the property ofthe state, and the
    Commission is the state's agent for the regulation oHts water. TEx. WATBR CoPE ANN.
    § 11.021(a).
    22.    The COlmnission has the authority to allow persons to appropriate state water for specific
    uses. TEX. WATBR COPE ANN. § 11.022.
    23.    The Commission may grant permits to applicants who seek to appropriate unappropl'iated
    state water. TEX. WATBR CODE ANN. § 11.124.
    24.    The amount of water for which the Commission may grant permits may not be more than
    is available. TEX. WATER CODE ANN. § 1l.023(e).
    25.    In 1967, the Texas legislature abandoned the state's former system of recognizing both
    riparian and appropriative rights. In re Adjudication of Water Rights of Brazos III
    Segment ofBrazos River Basin, 
    746 S.W.2d 207
    , 209 (Tex. 1988).
    16.    .In place of the fanner system, the legislature adopted "an orderly forum and procedure
    for the [Commission's] adjudication and administration of water rights." Brazos 
    Ill, 746 S.W.2d at 209
    .
    27.    The Commission is required to "provide certainty in water management" by evaluating
    the state's major river basins. TEx. WATER CODE ANN. § 11.0235(d-2).
    28.   For all permits, the holder has the right to appropriate water only to the extent and for the
    purposes stated in the permit and subject to the protection of the holders of senior water
    rights. TEx. WATER CODBANN. §§ 1l.135(a) and 1351.
    9
    ~ '.   :-   "   .'
    158
    29,   An "appropriative dght" is the right to impound, divelt, store, take, or use a specific
    quantity of state water acquired by Jaw. 30 TAC § 297.1(4-),
    30.   The holder's rights to appropriate water may be affected by the amounts that the holder
    actually uses or can beneficially use, and "all water not so used is considered not
    appropriated," TEX. WATER CODE ANN. § 11.025,
    31.   If the holder of a permit does not beneficially use his water, then the right of
    approptiation is considered to be not perfected, TEX. WA1ER CODE ANN, § 11.026.
    32,   The Commission has discretionary authority to temporarily reallocate unperfected
    appropriative water rights to persons other than the regular permit holder. An applicant
    may seek a term permit, a permit that is issued for a term of years rather than in
    perpetuity, TEx. WATER CODE ANN. §§ 1l.1381(a) and 11.026.
    33.   A term pennit allows all applicant to use water rights that have not been perfected by the
    holders. A term permit creates derivative rights, not original rights, so that the maximum
    use of water maybe achieved. TEx, WATER CODE ANN. § 11.123.
    34,   The Commission may deny an application for a term pennit if the permit will jeopardize
    financial conunitments for water projects or if the pennit will prevent the holder of the
    senior appropriative right from beneficially using his rights during the period of the tcnn
    pennit, TEx. WATER CODE ANN. § 11.1381(b) and (c).
    35.   If the Commission approves a permit, then the rights that it confers are subordinate to any
    senior appropriative rights. TEX, WATER CODE ANN. § 11.l381(d).
    36.   The Commission may issue a term pennit "when there is insufficient unappropriated
    water in the source ofsnpply to satisfy the application." 30 TAe § 297.19(a).
    37.   A holder of a senior appropriative right may challenge an application for a term permit by
    showing that the Commission's issuance of a term permit wonld adversely affect the
    holder's benefioial use of its senior rights. In proving this adverse effect, the holder may
    use as its proof: water use projections in the state or regional water plans, economic
    10
    159
    indicators, population growth projections, electrical generation needs, or "other
    reasonable projections based on accepted methods." 30 TAC § 297.19(b)(2).
    38.    The Commission may deny an application if the proposed pennit would be detrimental to
    the public welfare. 30 TAC § 297.l9(b)(4).
    39.    In 1997, the Texas legislature mandated the Commission to adopt an updated water
    availability model (Model) for six river basins in Texas. TEx. WA'fER CODE ANN. §
    16.012(g).
    40.    For direct diversions from a stream without suffwient water storage facilities, an
    applicant must prove that approximately 75% of the water requested is available
    approximately 75% of the time when distributed on a monthly basis and based on the
    available historic slream flow record. 30 TAC § 297.42.
    41.    Neither the ED nor an applicant is required to use the Model in determining wheth~r
    water is available in each river basin in Texas.
    42.    The COlmnissiOIl has the anthority to contract for "scientific and technical enviromnental
    services," illCludit)g scientific data analysis, to be used in the modeling to be conducted
    by the ED. TEX. WATER CODE ANN. § 5.2291 (a).
    43.    The ED has the authority to rely on scientific data analysis it) enforcing the terms of a
    permit and in presenting information abont an application for a pennit. TEx. WATER
    CODE ANN. § 5.230.
    44.     A contesting permit holder may rely       Oil   "reasonable projections based on accepted
    methods," and an applicant and the ED may do the same. 30 TAC § 297.19(b)(2).
    45.    The Commission may Use approximate numbers in estimating water availability in permit
    application proceedings. 30 TAe § 297A2(c).
    46.    For every permit, a priority date is established for the appropriation of water and for the
    claimant's right to use the water. TBX. WATER CODE ANN. § 11.141.
    [[
    160
    47.   The me8Bllring date fol' these priority dales is the date of filing of an administratively
    compiet~   application, 30 TAC § 297.44(c),
    48.   The date on which a priodty date comes into being is "[w]hen the Commission issues the
    permit .... " 30 TAC § 297.44(c).
    49.   An applicant's right to tak~ and use water is limited "to the extent and purposes stated in
    the permit." TEX. WATER CODE ANN. § 11. 135(a).
    50.   A permit may include special conditions that limit the total amount of water that may be
    divelted. TEx. WATER CODE ANN, § 11.l35(b)(5).
    51.   With respect to all types of permits, the Commission may include «     •••   conditions and
    restrictions ... to protect the priority of senior water rights." TEx. WATER CODE ANN. §
    11.1351
    52.   Each term pennit is subject to the unique statutory limitation      makin~.   term permits
    "subordinate to any senior appropriative rights," TEx. WATER CODE § 11.l381(d).
    53.   Courts generally interpret undefined temlS according to their ordinary meaning. TEX.
    Gov'T CODE ANN. § 311.011(a); Geters v. Eagle Ins. Co., 834 S.W.2d 49,50 (Tex.
    1992).
    54.   In affirmative sentences, the ordinary melUling of "any" is "every" or "all." BRYAN A.
    GARNER, GARNER'S MODERN AMERICAN USAGE 52 (3d ed. 2009).
    55.   Term permits are subordinate to all senior water rights,        TEX. WATER CODE ANN.
    § 11.138J(d); 30 TAC § 297.19(a).
    56.   Ml'. Waxe failed to carry his burden of proving that sufficient water exists in the Brazos
    River basin or that all applicable statutory and regulatory requirements have been met to
    warrant issuing to him the proposed Water Use Permit No. 5594A.
    57.   Pursuant to tbe authority of, and in accordance with, applicable laws and regulations, the
    requested Permit should not be granted.
    12
    161
    58.   Pw'Suant to 30 TEX.   ADMn~.    CODE AJ<.1N. §§ 80.23 (d)(2), the Executive Director and
    Office of Public Interest Counsel may not be assessed allY portion of the transcript and
    reporting costs.
    III.    EXPLANATION OR CffANGES
    1.    The Commission sustained the ED's Exceptions regarding Findings of Fact Nos. 24, 25,
    34,37,38,39,43,45 and Conclusion of Law No. 40, as recOlmnended by the ALJ in his
    March 17,2010 reply to the parties' post-PFD submissions.
    2.    The Commission modified Finding of Fact No. 29 to provide consistency with the
    TCEQ's water availability review, included in the record as Applicant's Exhibit No. 47.
    The change was consistent with the ED's Exceptions.
    NOW, THEREFORE, BE IT ORDERED BY THE TEXAS COMlVllSSION ON
    ENVIRONMENTAL QUALITY, IN ACCORDANCE 'WITH THESE FINDINGS OF
    FACT AND CONCLUSIONS OF LAW TffAT:
    1.    The application of Bradley B. Ware to amend Water Use Permit No. 5594 is denied.
    2.    The Applicant shall pay the COUlt reporting and transcript costs for this case.
    3.    The CWef Clerk of the Conunission shall forward a copy of this Order to all parties, and
    no amendment to Water Use Pelmit No. 5594 shall be issued.
    4.    All other motions, requests for specifio Findings of Fact or Conclusions of Law, and
    other requests for general and specific relief, if not expressly granted, are denied for want
    of merit.
    13
    .• ~.   • ',.o .... ~••
    162
    5.   If any provision, sentence, clause, or phrase of this Order is foJ' any reason held to be
    invalid, the invalidity of any portion shall not affect the validity of the remaining POltiOllS
    of this Order.
    6.   The effective date of this Order is the date the Order is final, as provided by 30 TAe
    § 80.273 and TEX. Gov. COPE ANN. § 2001.144.
    ISSUED:   APR 2 0.2010
    TEXAS COMMISSION ON
    ENVIRONMENTAL QUALITY
    14
    163
    Exhibit F
    August 28, 1997 Interoffice Memorandum
    regarding Water Availability Analysis
    , TI
    Texas Natural Resource Conservation Commission
    INTEROFFICE   MEt40P..1'.NDU1~
    To:          Kariann 8okulsky, !~anager                  h.ugust :;!8. 1997
    Wacer Righcs permltt~ng "nd Conserv'at lon SeCt-ir.n
    Water Quantity Di"/isicn
    ...
    Throuah~:.
    .. Surface
    Harman Settemeyer, Leader
    Water Avai:abilitv        '" InterState C"o:nract Team
    .Iatar Quantity OivisiSaS River
    Bra~os River Basin
    aeli County
    9lATER AVAILABILIT¥ ANALYSIS
    Application Summary
    The applicar.c is seeking authori:.atio!1 co di .tert 13(; acre-feet pel:
    4
    year ~or irrigation purposes from the Lampasas Rive". cributary of
    '":.he ~i':tle River,   t.:t'ibutary of the 1317«::::05 River,   tho B~azos River
    Basin.     The maximum diversion rate is 1.U "f.s '5GO 9"x).
    DO>lll.s.tream water Rights of Record
    There are 24 downstream wate);' rights of ,ecord Oil the La:~pasas River,
    a",l1;horizing 69,111 acre-feet per year for municipa'. industrl.al.,
    irrigation and mining purposes.
    Reported consumptive use for these Hater rights durin\' the period. of
    ),970 through 1989 averaged 10,532 acre-feet per year '15 percent of
    the authorized amount) with a maximum in 19~" oE r,,,, 01" ',C1:e- feet (93
    percent of the authorized amount) .
    'rhere are 61 further dO>lllstream ~1ater rights of recoro ;1 the Little
    River and the Brazos River, authorizing 817,744 acre :.ilet·per year
    for tm.lnicipal, industrial, irrigation. minir>9, recreation and other
    purposes.
    Reported consumptive use for these water rights durin£1 the period of
    1970 through 1989 averaged 364,394 acre-feet per year /45 percent of
    the authorized amount) with a maxinlum in 1970 of 424,600 acre-teet
    (52 percent of the authorized amount) .
    . Estimated Stl:Elamflow and Streamflow Simulation
    Staff used two USGS gages to estimate streamflow at the appl~ .. ,\Ut ~ s
    location: 1) USGS gage OS~04000 on the Lampasas River ae Youngaport,
    Texfts·, which is located about ~~ miles downstream of chs applicanj:' s
    location;. 2) USGS gage 08~03800 on the Lampasas River llear Kempner,
    Texas, which is located about 13 miles upstream of the applicant's
    location _    For the period of 1940 through 1993, the ~stimated
    streamflow at the applicant's location averaged 164,560 acre- teet per
    year with a maximum fiow of 661,245 acre-feet in 1992 a~d a minimum
    flow of 11,692 acre-feet in 1951.
    The Environmental Analysis fo. this application has recommended an
    instream flow restriction of 16 CE8 at the applicant's location (or
    12 cts at: USGS Gage No. 08:1.03800) during the tr.ontf:t1 July t;hl:ough
    :-latch and 51 cfs at the applicant's locat.ion (or :;8 cfs at USGS Gage
    !·10. 08103BOO) during the other months.
    US'ifl..g estimated str~a.mf 10V}, Gtat f YE.!." f oIT.ied di t ""ct di 'lersi on
    simulation for the delnand of 130 acre-feet per :;·:,ar loith ·the
    streaflow restriction.      Simulation result.s indl.ca':..€: that, for the
    period of 1940 through 1.993, 100 percent and at least 75 percent of
    the demand of 130 acre-feet per year would be mel: ~n 44 and 78
    pel:cent of years, respectively. Honthly demand I. lind *297 AN th"'ll~h *~'1, .5~. These staltnes
    n..'"quirc loh!! TNRCC to c()n~id(!r th!,): p\)~:-;ihlu impac:ts urlhe granting 1.)1' tl \\ute,' right on \h¢ instrcam
    uses of the affected hody nf wflter. Inslrcmn us. .'$. \nc\u~t~. hut al' ...~ nHl Iim1t\.~d 11 \, water quality. fish
    and \\ i1dlife hnbitut. ,md rccrcoliim. In ndditinn.I'M,ihlc ill\Pllcl~ hi h:\y~ "nd "'PlOries nrc addressed.
    Ex.anlplcs (If ~igniticai\t impacls mc those that nllcet nUluml rcsnurccs: r\!$.uH in dt!\~rillration of\\'a\~r
    qunlil) or tlood protection: result ill \UHllln\\ubll.l rt:duclinn nr itl . 'ntil1i1l1k
    .              ins~rci.lm uses: cndung¢r
    species or plont nnd nnimnllir" ollllthcir hahitat: signiliclll\ll)' rcJuce pl'<\ductivil)' "I' lite hay and
    cstuar;. syslems: or contrihttlc 10 R sct'ies or rdated projects Ihat in~l\lve inJividually minor but
    collccth'cl)' signit1cnnt (ldvcrsc imracl~,
    ~:NVIRON~1f.NTAL                   ,\NAt.YSIS
    The applicant seeks nut!torl,ntinll 10 divert and usc not tn c~cccd 130 ncre·!'eet          'Vlller per annum
    rrom llie Lampasa, River ttl irrigate 100 acre,; ofland inl!dl County. 'fhe mnxin'. H diversion is 1.11
    cr•.' tnQr4er to protecl instr,,",n tlSes. hinlogical habil<\\,. ,lnd walcrq\lulit;. t>ftht l.ampasas River.
    staffr¢Commcnd& dfycrsiol1 be limited to \imc~ \\'hel1 st~nmno\\' Itt th¢ USGS g3g~ ,,081 003800 n~ar
    KC1I1lX'r. Texas is 'equallo or exceeds 38 ciS during lite monlhs of Aprillhrou!lh June and 12 efs during
    . 'july    through March.                                                                 . '
    .   .,.;,
    ..                                 : .:
    . ';',.   ,;',
    ",:
    ,.' ,   .
    ... Memo to Kariann Sokulsky
    Page 2
    Jul)' 28. 1997-
    •
    Recreational t)sos
    According to USGS top(lgrnphk map~. the Lampu;as River is a perennial slre:tm. The TOMS Parks
    and WlIdlife (TPWD) publicnlioll. "An .'\o"I;"is \lfTcxas \\'al~,,\nys." chamotorizes this section of
    the river_lh~ 42 miles nbovc Ihe Slillhou,,, II"Uo\\' Rescr"l.ir. u., 1111\ ill[\ 1.1\\ \"Iler k,vel, 1\\051 ~lfthe
    time. I Jowc\'cr. during rcrlod~ ofhci\\-y nlin)oi, tile rh er h~~tlmcs un exciting n:cn:ntiorml corridor to
    a scenic and imoresting area.
    Aquatic and Riparian                         H~hitfllS
    ·\quatic and riparian habitnt~ of the La11lp""as Rlwr (Ire of high qlli\lh~. Based on photo!lraphs
    prn> idcd by Ihe applical1l. the banks appenr to be heavily, c!!ctalcd wilh nmive Irc«. hrush and grosses
    which provide for aqualic habitals along the l.amp"'"< Rh·cr. I'still1t1t~d from I'SGS gage data.
    monthly median flows for the Lampasas Ri\'C'r prnratcd lfllhC' "ppljCrtnl'~ Itlcnli,'n range from;). high
    "r 12:1 cfs in :-'131' to a 10\\ 20 cfs in August tTahle II.
    Jan              ~Iar   Apr
    $.'      6:!    ..
    I" '                    'I
    TNRCC uscs a default mcthotlnh\g)' I'llI' delNlllining n,1\\ Nstriclioll" dcvck'pcd liy Lyons (1979).
    l.yon" recommcnds minimum !lows uf 411"1, "I' the munthly m"diun Il,\\\'> I;" October thr(lugh
    February and 60% or the monthly mcdinn 110l\'s Ill(- March Ihrough Scptcmhcr 1<' Pi'lltcct fisheries
    habitat. Applying 1..)'tll1<' rccommcndnli(llls to thc opplicmlt's 10coII"". nnd avcroging the
    r"commendations ror inonths Octobcr-Fc:hruary ~1I1d :\ through Ma-
    The applicant's proposed diversion point is located ab(\\"c Stiliholise 110110\\ Keservoir On the
    l.a.mpasns River ·desigl1nleu as Stream Scgmelll No. 1217 of the Slate of Texas Watci' Quality
    Irrventory,f19?6); a'cffiucnl limited segmenl, lJesign~tcd water lISCS of the s~gmcnt incllidc c',>ntri~t
    . ·rcCJell.lion and.high aquatic·life \lSC. There nrc II tOlnl of seven pcmlitted outfall, n" n c~mhincd lOla.!
    :,d[~"aigc ·~f 4'.00 MOD.· There. lire Il\l knO\\1\,\Val~r «"ulil)' problems in Ihe segment. . . . . .... '. ,
    .' "
    ,;
    ',:Foide~eimi~i~g \l~illijlitil;)·li()\V~· ;,hid; w~illd ~ustnit; ,;vat~; qu~lity, the seveh ~l\Y.I\\,q'~.c;tdowno\v'        "   ._'
    ..,,",
    (7Q~Hs.used,                  '.,The .7Q2 is dcn~ed.d,~ the \(lWCSI .average now for s¢vcn.collsC                  ",                      ",."       ':.   ','
    ':                                              ";' ,
    ." .
    "': ,
    .:.     ,
    '. Memo 10 Kilrinnn Sokulsky
    Page 3
    July. 28. 1997
    •                                                       •
    expecled 10 rccur ever), 1\\'0 years. The 7Q2 is 'lali$tically.rleril"ed from hi,torical d~il~ now data. The
    .7Q2 from the Texas Surlacc Waler Quality Standards 'Hthe 1'SGS gage ~nSl 0)800 for the period or
    record. 1964-1994, is 11..13 cfs. Since the Illwer 11,)\\' restriction "I' 12 til; is higher tlmn the 7Q2. Ihe
    recommended n"w restrictions should pW\'lde ~d\."\lUt\l~ pr\\h!Clim~ tbr {1\1..' \\lUer quality o.f the
    Lamp"-~s River.
    llA YS AND ESn' ARIES
    The       prnpo,~u    diversion site    i~   more than :W(} rh ~r     mi1c~ l~lfIn   lht! Gutf of   ~kxicl,).   The pwposeu
    diversion of I,ll "ere·fect ofwaler rtnm Ihe I .aml""'" Rhor should nOI Mfcct the oa~s and estuaries
    oflhe Bouzas Rher Basin. The elll11l1ll1ti\'c effect ,,1"011 waler rights inlhe Bmll)' Rivcr Basin upon
    the (cct;lving bars and csluaril!s is Ill)! known.
    SnnlARY
    The applicant seeks uuthl,)rir.;:llinJl 10 di\'ert und usc nOI h) t!xct\!d 1;\0 ac~wf\!c:l 1\1' \\oter per annllm
    from tile l.ampnsus River tor irrigution purrN;C5, The nKlximunl dhcr~i(ln i.. 1.11 cf:-:. In order to
    protect inslrcmn uses. biologica! habilllls. and W"I~r qu,,1it~ ofl!>c I.amp~,~s Ri\cr. slafr recommends
    diwr>ion be limited to times \\'hen streamflolV allh~ I.:SUS·gagc "OSJ()(j~Stli' lIcaT Kemper. Tcxn.,
    i. equal 10 or exceeds 38 cis during the monlhs of April through .I line und 12 cf, during July through
    ~1afch. Thi,> illslrcam ao;s¢~!'mcnl \\'H~ t,'ondw.'ted w:ing ~Hrr'l!nl T~R("(, l1pt..'r'l1ing proct::uurcs and
    policies am! a\'nit:lh'~ l'xi.::ting. data.
    L1TEHA1TRE CITE!)
    Bounds. R. L. and ll. W. Lyons. :979.              Existing resen'oir ami "'eam management
    recommendations statewide minimum Streamflow rCCIIlllmcuunliolls. Fcde'ral .\ir's Licn
    rt:Corded in Volume 1524, pnge 1i71 of the Bell County Ikcd RccI' llw len. or. casl. bank or the \cach
    ot: the rJveradjacell~ io his property. The upstream point of lhe river at his pT~lpcny line is N 6O.6"W; 2,050
    , feet from the soulheast corner ,of the aforesaid Van Vichetoll Survey. The downstream. pomt of-the Hvcr at
    at
    .... his·property linP'EXh'~
    "   ~    '"
    """-""'>;<.--...
    .                                                                     -
    Texas Commission on Environmental QuaUty
    INTEROFFICE MEMORANDUM
    To:              Kathy Hopkins, Application Manager                 Date: November 14, 2006
    Water-Rights Team
    Water Rights Permitting & Availability Section
    Through:   ~ Bookout, Team Leader                     .
    Surface Water Availability and Interstate Compacts Team
    From:            Jeff Thomas, Engineer
    Surface Water Availability and Interstate Compacts Team
    Subject:         Bradley B. Ware
    WR5594
    CN 5594
    Lampasas River, Tributary ofthe Little River, Tributary of the Brazos River, Brazos River
    Basin
    Bell County
    WATltR AVAILABILITY REVIEW
    Application Summary -
    Water Use Penni! No. 5594 Authorizes the permittee (Bradley B. Ware) to divert and use not to
    exceed 130 acre-feet otwater per year from the Lampasas River, Brazos River Basin. The pennit
    will expire on November 7,2007. The pennitlee has applied to extend the term an additional 10
    years.
    Water Availability Review
    The Commission's water availability model (WAM) for the Brazos River Basin protects existing
    water rights based on the prior appropriation doctrine. The period of record for the Brazos WAJ\11s
    1940 to 1997. The applicant's request was modeled with a priority date of the administrative
    complete date ofthe application, January 5, 2006.
    The existing tenn pennit contains an in stream flow restriction of38 cfs for the months April through
    June, and a flow restriction of 12 cfs for all other months. This flow restriction is appJied at
    U.8'.G.S. gaging station 08103800 lleaT Kempner, TX TCEQ Resource Protection Staff did not
    recommend any changes to the existing instream flow restriction.
    Using the W AM Cuuent Conditions simulation of the model, simulation results indicate that 100%
    and 75% ofthe allilual demand of 130 acre-feet would be met in none of the years, and 5.2% ofthe
    years, respectively.
    Bradlqv B. Ware Term Renewal Applicalioll. Permit No. 5594
    Page 2 0/3
    Noyember J4, 2006
    Conclusioll
    The water avaiJability analysis indicates there is not sufficient water available at the applicant's
    location 10 support the requf,sted demand of 130 acre-feet per year. Therefore, hydrological analysis
    cannot support the granting of this application to renew the existing term permit.
    180
    ,,'
    Bradley B, Ware Terlll RenewClT Application. Permit No, 5594
    Page 3 0/3
    November 14. 2006
    ID:'DROLOGY UNIT ANALYSIS FACT SHEET
    Applicant: Bradley B. Ware
    Water Right: 5594
    Stream: Lampasas River
    . Basin: Brazos County: Bell
    Requested Amount: 130 af/yr
    Remarks: Resource Protection staff did not recommend any changes or additions to the, existing
    sh'eamftow restrictions.
    WAMcode:
    WR559411   130. JRR3J9970701 1 2 0.0000                  P559U 1'559415594101      BRADLEY B WARE
    181
    Exhibit H
    November 25, 2008 Interoffice
    Memorandum regarding Water
    Availability Analysis for BRA's
    Application No. 5851
    ,
    App. Exh.   "_--,,S~C?e:._
    Texas Commission on Environmental Quality
    INTEROFFICE MEMORANDUM
    To:                Ron Ellis, Application Manager                         November 25, 2008
    Water Rights Permitting Team
    Through: .  ..R~ Lann Bookout, Team Leader
    6--:   Surface Water Availability & Interstate Compacts Team
    From:              Kathy Alexander, Hydrolohr1S1
    Surface Water Availability '& Interstate Compacts Team
    Subject:            Brazos River Authority
    Application 585 I
    CN600506794
    Brazos Rivet·, Brazos River Basin
    WATER AVAILABILITY ANALYSIS
    Application Summary
    The Brazos River Authority (BRA Or the Authority) has applied fol' a pelmit, designated its "System
    Operation Pe!ffiit". The BRA owns the following water rights, which comprise BRA's system of
    reservoirs: Certificate No. 12-5155 (Possum Kingdom Lake), Certificate No. 12-5156 (Lake GranbUly),
    Certificate No. 12-5165 (Lake Limestone), Cettificate No. 12-5157 (Lake Whitney), Certificate No. 12-
    5160 (Lake Belton), CeJ1ificat~ No. 12-5 I 59 (Lake Proctor), Certificate No. 12-5164 (Lake Somerville),
    Celtificate No. 12-5161 (Lake Still house Hollow), Celtificate No. 12·5163 (Lake Granger), Certificate
    No. 12-5162 (Lake Georgetown) and Cettificate No. 12-5158 (Lake Aquilla). The BRA, along with the
    Texas Water Development Board and the City of HOllston, owns Water Use Permit 2925A (Aliens Creek
    Reservoir). The BRA also owns Certificate Nos. 12·5166 and 12-5167, which authorize various uses of
    water within the applicant's other certificates and penn its. The applicant is cun'entl), authorized, pursuant
    to a TCEQ order, to manage and operate its tributalY reservoirs as elements of a system, coordinating
    releases and diversions frolU the tributary reselvoirs with releases and diversions from the applicant's
    main~stelll reservoirs to CO\lselve water.
    BRA seeks a Water Use Permit to authorize:
    •   A new appropriation of state water ill the amount of 421,449 acre·feet per year for mulliple use
    purposes on a finn basis ill the Brazos River Basin. Out of the 421,449 acre-feet pel' year of
    unappropriated water being requested, the maximum amount of unappropriated water that will be
    available if such water is divelted upstream at USGS gage No. 08091000 Ileal' Glen Rose. Texas
    is 150,538 acre-feet per year of firm water, and if such unappropriated water is divetted upstream
    at USGS gage No. 08098290 near Highbank, Texas, the maximum amount of unappropriated
    water that will be available 'at that location is 144.306 acre·feel per year of firm water.
    •   Diversion of the water from: (i) the existing diversion points authorized b) BRA's existing water
    rights; (ii) the Brazos River or the USGS gage No. 08091000 neal' Glen Rose, Texas; (iii) the
    Brazos Rivel ar USGS gage No. 08098290 neal' Highbank. Texas: (il') the Brazos River al Ihe
    8ra;o,~ River Author/I)'
    Pel'lu/1 S851             '
    Page 2 of 14
    Gulf of Mexico; and (v) at such other diversion points that may be identified and included in
    BRA's proposed Water Management Plan (WMP), which is subject to TCEQ's approval.
    •           Use of tip to 90,000 acre-feet of water pel' year of the firm supply to produce, along with other
    unappropriated flows, an interruptible water supply of 670,000 acre.feet per yeai' and the
    appropriation of that inten-uptible water supply. Out of the 1,001,449 acre-feet of finn lind
    interruptible water being requested, the maximum amount of finn and interruptible water that will
    be available if such water is diverted upstream at USGS Gage No. 08091000 near Glen Rose,
    Texas is 60,538 acre-feet of firm water pel' year and 157,000 acre-feet of intelTuptible water per
    year and if such water is diverted upstream at USGS Gage No. 08098290 near Highbank, Texas,
    the maximum amount of film water is 54,306 acre-feet of water per year and 303,000 acre-feet of
    interl'llptible watel' per year.
    •          An exempt interbasin transfer authorization to use, on a finn and interruptible baBis, the
    appropriated water in the adjoining San Jacinto-Brazos Coastal Basin and the Brazos-Colorado
    Coastal Basin.
    •        An appropriation of eun'ent and future retUl11 flows (treated sewage emuent and brine
    bypasslretum) to the extent that such return flows continue to be discharged or returned illta the
    bed and banks of the Brazos River, its tributaries, and BRA's reservoirs. BRA indicates that such
    appropriation of return flows would be subject to intelTuption by direct use or indirect use within
    the discharging entity's city limits, extraterritorial jurisdiction, or contiguous water certificate of
    convenience and necessity boundary. Specified discharge points and amounts of water will be
    accounted for on a monthly basis as part of BRA's WMP, which is subject to TCEQ's approval. .
    •        Operational flexibility to (i) use any source of water available to BRA to satisfy the diversion
    requirements of senior water rights to the same extent that those water l"ight.s would have been
    satisfied by passing il1flows through the BRA's reservoirs on a priority basis; and (ii) release,
    pump and transport water from any ofthe BRA's reservoirs for subsequent storage, diversion and
    use throughout the BRA's service area.
    •     Recognition tilat the System Operation Permit will prevail over inco\\sistent provisions in the
    BRA's existi11g water rights l'egarding system operation.
    •     Use of the- bed and banks of the Brazos River, its tributaries and BRA's reservoirs for the
    conveyance. storage, and subsequent diversion of (i) water appropriated under this application;
    (ii) waters lhat are being conveyed via pipelines and subsequently discharged into the Brazos
    River, its tributaries or stored in the BRA's reservoirs; (iii) surface water imported from areaS
    located outside the Brazos River Basin for subsequent use; (tv) in-basin surface water and
    groundwater subject to BRA " control;(I') waters developed from future prC(iects; and (vi) current
    and future reuse of surface and groundwater based emuent requested by this application. This bed
    and banks authorization is subject (0 BRA, after identifying specific points of discharge and
    diversion and conveyance and other losses, obtaining future authorizations to satisfy the
    requirements ofTWC § 11.04:'. Such points of discharge and diversion and conveyance and other
    losses may also be identified and included in BRA's proposed WMP, which is subject to TCEQ's
    approval.
    183
    [jra;Ol R/\1t!/' AlilhoJ'l1y
    f'cwmit 58JJ
    Page 3 of 14
    Until the construction of Aliens Creek Reservoir is completed, the BRA requests that the System
    Operation Pe,mit include special conditions which authorize:
    •       Appropriation of state water in the amount of 425,099 acre-feet per year for multiple use purposes
    on a firm basis in the Brazos River Basin. Out oflhe 425,099 acre-feet pel' year of unappropriated
    water being requested, the maximum amount of unappropriated water that will be available if
    such waler is div.,ted upstream at USGS Gage 08091 000 11eal' Olen Rose, Texas is 150,538 acre-
    reet per year of fil111 water and if such unappropriated water is diverted upstream at USGS Gage
    08098290 near Highbank, Texas the maximum amount of unappropriated water that will be
    available is, at that location, 175,306 acre-feet per year finn water.
    •      Use of up to 90,000 acre-feel of water per year of BRA's finn supply to produce, along with othe,'
    unappropriated flows, an interruptible water supply of 869,000 acre-feet per year. Out of the
    J ,204,099 aore-feet of firm and interruptible water being requested, the maximum amount of finn
    and interruptible water that will be available if suoh water is diverled upstream at USGS Gage
    No. 08091000 near Glen Rose, Texas, will be 60,538 acre-feet of firm water per year and 190,000
    acre-feet of interruptible water per year and if such water is diverted· upstream at USGS Gage No.
    08098290 near Highbank, Texas the maximum amount of finn water will be 85,306 acre-feet of
    water per ye." and 284,000 acre-feet of interruptible water per year.
    •    Exempt interbasin transfer authorization to use, on a firm and intem'ptible basis, the appropriated
    water in the adjoining San Jacinto-Brazos Coastal Basin and the Brazos-Colorado Coastal Basin
    and to transfer such wate,' to any county, munioipality or the municipality's retail service area that
    is partially I'll the Brazos River Basin for use in that part of the county or municipality's retail
    service area not within the Brazos River Basin.
    Water AvaUability Analysis
    The Commission's Water Availability Model (WAM) for the Brazos River Basin protects existing water
    rights based on the prior appropriation doctrine. The period of record for the Brazos WAM is \940
    through \997. The appllcation was declared administratively complete on October 15, 2004. TCEQ
    Resource Protection Staff recommends that the applioation be subject to special conditions to protect
    aquatic habitat and the envil'Onment, inclUding the following (For specific numeric values for the flow
    requirements below, refer to the Resource Protection Staff menlO dated November 25, 2008):
    I. Total storage in Permittee's system reservoirs is the trigger for determining hydrologic
    condition, which, in turn, determines instream flow requirements.
    2. Interim instream flow requirements apply at six USGS gaging stations, The instream
    flow requirements are applicable at all times.
    3. The level of flow (i,e., Subsistence, Dry, Average, or Wet) is determined seasonally
    based on hydrologic condition.
    4, Permittee sllall meet a seasonal schedule of individual high flow pulses. The
    magnitude, duration. timing and frequency and measurement location for the pulses
    are included as special conditions in Resource Protection Staffs 111emO (Additional
    discussion of how these high flow pulses were included in the availability anall's;, i,
    included in Section C.2 (UI1(Ij'propl'ialed Waler) orthis memo).
    5. 1n addition to the above requirements. Permittee is prohibited from divelting and
    184
    Bra:os River /lulhoJ'it},
    Pel'lII/f 56'S;
    Pag.e 4 of J4
    storing water authorized by this ·permit unless streamflow meets or exceeds the 7Q2
    value at additional gages located below Pennittee's reservoirs as specified in Resource
    Protection Staff's memo.
    A.           Inlerbasin       Tran~rel'   and Bed and Ballks
    Pursuant to TWC §11.085(v)(3) and (v)(4), the requesl for an exempt interbasin transfer does not require
    a waler availability analysis. For the request to use the bed and banks of the Brazos River and its
    tributaries, the application indicates that although specific locations, quanlities and diversion rates for the
    bed and banks request are unknown at this time, potential diversion locations include the perimeter of all
    existing and proposed BRA reservoirs. The application also indicates that potential diversion locations
    include the fo\1owing stream reaches:
    •      Brazos River from the confluence of the Salt and Double Mountain Forks to the Gulf of
    Mexico,
    •      Double Mountain Fork of the Brazos River below Lake Alan Henry to its confluence
    with the Brazos River,
    o      Leon River from Lake Proctor to the confluence with the Little River,
    o      Lampasas River from Lake StiHhouse Holtow to the confluence with the Little River,
    o      Little River from the junction of Leon and Lampasas Rivers to the confluence with the
    Brazos River,
    •      Yegl1a Creek from Lake Somerville to the confluence with the Brazos River,
    o      Navasota River from Lake Limestone to the confluence with the Brazos River,
    o      Allens Creek from below Aliens Creek Reservoir to confluence with the Bra7..Ds River.
    o     Any oth~r tributary of the Brazos River into which water appl"Opriated under ·this
    application (groundwater or surface water under the control of BRA) is discharged.
    With the exception of Permit 2925 (Aliens Creek Reservoir), BRA's cunent rights authorize use of the
    bed and banks of the Brazos River atld its tributal"ies below the Authority's reservoirs to deliver water to
    downstream customers. The application indicates that the location of specific amounts, rates, releases and
    loss information will be detailed in BRA's Management Plan once the specific amount of unappropriated
    water and return flows available 10 BRA is determined. Staff is of the opinion that accounting for the bed
    and banks transfer of water through a delivery plan will mitigate any effects on basin water rights. The
    accounting/delivery plan should be included in BRA's Water Management Plan (WMP).
    B.             Re/UI'17   Flows
    The application requests appropriation of current and future return flows in the Brazos Basin discharged
    from 136 locations by various entities. These discharges includ.e surface and groundwater based retut1l
    flows. The surface water based return flow includes discharges from BRA facilities, discharges of water
    originating from BRNs water rights, as well as discharges from facilities owned by othel· entities and
    originating from non-BRA sources of supply.
    A review of water rights in the Brazos River Basin indicates that Permit 4218 (diversion of In acre-feet
    of water from South Nolan Creek): Permit 5088 (diversion of 37 acre-feet of water from South Nolan
    Creek): and Penhit 5089 (diversion of 60 acre-feet of water from South Nolan Creek) we,·e explicitly
    granted based on the presence of retum flows now being ch;imed as patl of this application. Staff
    185
    !Jra=()). Rh'er Ihf/horl~'
    fermif 50'51
    Pa!:!.e 5 of14
    re;ognizes the possibility that other basin rights wel'e granted based 011 the presence of the requested
    return flows. Because of this, a priority date of October 15, 2004 is assigned to the applicant's diversions
    of historically dischal'ged return flows. To evaluate the request for reuse of return flows, staff identified
    those return flows discharged from BRA facilities, or originating from diversions authorized by BRA's
    existing water rights, that have not been previously appropriated by other water rights as indicated in
    Table 1. below. BRA also requested reuse of retull1 flows generated by four power plants that receive
    contract water from BRA's water rigMs. These return flows result from once through cooling water, 01'
    other power plant operations, and are thus highly variable. The application did not provide sufficient
    itlfonnation to evaluate this request and these return flows were not included in the analysis.
    The Current Conditions data set was updated with the amount of cmrent return flows as indicated in the
    application (74,387 acre-feet which is the sum of the maximum reported annual discharge amounts for
    each plant). The request to reUse return flows was modeled at the most downstream point in the basin to
    determine the volume of retum flows available to BRA on a basin-wide basis. Results indicate that 100%
    and 75% of the retulll flows were available in 45% and 81 % of the years in the period of record,
    respectively and the monthly amount of discharged return flows was available in 87% oflhe months.
    Table 1. Return Flows Available to BRA
    Current    Current
    Percent     Surface    Ground-
    TPUES       Permitted
    Name        Permit      Discharge
    Current BRA          orsw       Water       water
    Source             from       Returns    Returns
    Number        (mgd)
    BRA          (ae-       (ac-
    ftlyr)     ft!yr)
    Sportsmans World
    MUDWTP                   02461000      0.01      Possum Kingdom           100%      11.2          0
    Double Diamond           02789000      0.06      Possum KinQdom           100%       67           0
    Authority SWATS          02889000       2.5      Granbul"\' System        100%       730          a
    City of Copperas
    Cove                     10045003       ~.5      .Lake Belton             100%       923          0
    City of Copperas
    Cove                     10045004       2.5      Lake Beltol1             100%      1.375         0
    City of Copperas
    Cove                     10045005        4.0      Lake Bellon             100%      1.600          0
    -
    City of DeLeon          10078001        0.3      Lake Pl"Oc\or           100%        192          0
    City of Marlin          10110002        ~.O      Whitnev SV5tem           16%       159.4         0
    City of Harker
    Heivhts                 10155001        3.0      Lake Bellon              100%      2.780        '0
    City of Gatesville      10176002       '1.2     Lake Belton              100%      1.731         0
    City of Gatesville      10176004       1.0      Lake Bellon              100%      703           0
    Cit\' of Granbury       10178002       2.0      Granbury System          100%      1313          0
    186
    IJra::m liNer Author/I)'
    Parmi/tio'51
    r ~ge 6 of 14
    Current CUrrent
    Percent   Surface Ground-
    TPDES         Permitted
    CUrrent BRA         ofSW      Water   water
    Name            Permit        Discbarge
    Number                         Source           from    Returns Returns
    (mgd)
    BRA       (nc-    (ac-
    ft!yr)     ftlvr)
    Lake Still house
    City of Lampasas         J0205002         1.5      Hollow                 JOO%     580         0
    City of McGregor
    (South WWTP)           J0219002        ·0.99     Lake Bel(on            95%     651.7        0
    City of Moody            J022500J          0.2·    Lake Belton          JOO%       157         0
    Authority/LCRA                                     Georgetown/Still
    BCRWSS West              10264001         3.0      -house System        100%      ZA02       1,657
    Authority/LCRA                                     Georgetown/Still
    BCRWSS East              10264002         21.5     -house System        100%      J6.767        0
    City of Taylor           10299001          4.0     Grangel' System      100%      2.220         0
    Bell County
    WClD#J                   1035100J          0.9     Lake Belton           100%       983         0
    Bell County
    WCID#J                   10351002          J 8.0   Lake Belton           100%      J4.123       0
    Bell County
    WCID#J                  J0351003          6.0      Lake Bel(on          JOO%      5,389         0
    City of Brenham         10388001         3.55      Lake Somerville      100%      2,485         0
    City of Dublin          10405001          0.45     Lake Proctor         100%       325            0
    Georgetown/StH!
    City of Georgetown      10489002         Z.5      -house System        100%       J,815          0
    Georgetown/Still
    City of Georgetown      10489003          2.5     -house System        100%       1,423          0
    Georgetown/Still
    Gity of Georl!etown     10489005          1.5     -house System        100%       1.389          0
    City of Hamilton        10492002         0.44     Lake Proctor          JOO%       392           0
    City of Hillsboro       10630001         1.81      Lake Aquilla         100%      1,440           0
    Lake Stillhouse
    Citv of Rosebud         10731001          0.25     Hollow               100%       194            0
    Bell County
    WCID#3                  J0797001         0.675     Lake Belton          100%       360            0
    Lake Stillhouse
    Cit" of Holland        10897001           0.2     Hollow               JOO%        93            0
    Bell County
    WCID#2                 11090001         0.094     Lake Belton          100%        63            0
    Bell CoUllt)'
    WCID#2                  I J09100J        0.08     Lake Belton          100%        70             0
    Authol'ity TBRSS        11318001         10.0     Lake Belton          100%       8.5J3           0
    187
    flra~o,," Rh'cl' A~,'hD/'II:.l'
    /lcrmiJ 56'51
    PR!!e 7   0   r 14
    Current Cunent
    Percent           Surface Gl'ound-
    TPPES              PermItted
    Current BRA                   ofSW              Wate),    water
    Name                 Permit             DIscharge
    Source                       from            RetuJ'Ils Returns
    Number'              (mgd)
    BRA                 (ae-              (ae-
    W\'r)            rtfy!,)
    Acton MUD                         14211001                  0.6           Granbury System                    100%                366                0
    Acton MUD                         1421200J                 0.49           Granbury SYstem                    \00%                268                0
    City of Comanche                  14445001                  0.6           Lake hoctor                        100%                324                0
    C.                  Unappropriated     WaleI'
    The request for unappropriated water was incorporated into the TCEQ WAM as follows:
    1) The Dual Simulation1 approach was used. For each existil1gBRA authol'ization:
    a) Wale" rights activated only in the initial simulation represent e)listing diversions and storage
    authorized by the BRA's senior rights. These water rights calculate the total depletions and
    storage.                                                        .
    b) Water rights activated duting the second simulation calculate the depletion for the senior rights
    limited by the streamflow depletion in the preceding step.
    c) The final depletions al'e stored at a virtual control point until the priority date of the System
    Operation Pennit application (October 15, 2004), and
    d) BRA's reservoirs are refilled using a priority date of October 15, 2004, with the stored final
    depletions. Any remaining water is returned to the stream at the control points of the BRA's
    existing water rights.
    2) TCEQ Resource Protection Staff recommendations for instream flow protection were incorporated
    into the Brazos WAM at the priority date of the application as follows:
    a) Seasonal flow requirements were converted to monthly values in acre-feet.
    b) The instream flow requirements were subtracted from the seasonal pulse values to determine the
    incremental HFP (high flow pulse).
    0) The incremental HFP was multiplied by the seasonal pulse frequency to detennine the-total pulse
    volume for each season.
    d) The total pulse volume for each season was distributed by l1l0l1th
    e) The monthly pulse volume was added to the monthly in stream flow volume for each flow regime
    to determine tile WAM instream flow constraint for each month for each flow regime. and
    f) 702 flows for the additional control points were converted to an annual value in acre-feet and
    added to the model.
    g) Based on a distribution of the annual diversion amollnt to a monthly value in WAM and
    conversion of that valtte to a daily diversion in cfs, staff determined that the diversion rate for
    BRA's diversions would be- below 7,535 cfs at USGS Gage 081]4000, Bl-azos River near
    Richmond.
    3) Afler applying the instream flow constraints. the new appropriation of water was then included in lhe
    I ror acldhinnfll explanation of Dual SimU\Dllon. Sf\: \\\llb~. R~lph A. 2(J(li WaleI' It,ghl., AIl(J~\·.H., I'ackagl' (lI'U..J/'J A/(JddlJJf ~\I'.sr"m {,.1m
    !./wllfal TH-:!S&. Te»fl~ Watcr RC~(I\1(ce$ Ins\llIlle. CtlHcg.e Stalion. re:-;as. Pp. Q4-%
    188
    Bra~()$   Riwl' Alllhol'iI),
    Pal'll/II )85/
    Page 8 of 14
    second simulation (which generated the final results) as follows:
    a) All BRA reservoirs are refilled with any unappropriated water at the priority date of this
    application.
    b) Diversions are made, backed up by system storage in all BRA reselYoirs, and
    c) All BRA reservoirs al'e then refilled again to ensure that all water potentially available under the
    permit application is impounded.
    To determine the amount of water available for appropriation, Staff first evaluated the applicant's request
    for firm water, i.e., that amount of water that would be available 100% of the time during the period of
    record. The request for finn water was modeled using the rCEQ Full Authorization simulation, which
    does not include retulll flows. Staff evaluated the requests for finn yield water at the three points
    requested in the application; from upstream to downstream being Glen Rose, Highbank and the Gulf of
    Mexico. The most downstream point fol' measurement of in stream flow requirements is the Richmond
    gage. Staff calculated the amount of flow available to BRA at the Gulf of Mexico by detennining the
    amount of flow available at the Richmond gage and applying a drainage area ratio Idationship between
    the Richmond gage and the WAM control point representing the basin outlet at the Gulf of Mexico.
    The analysis was conducted for two scenarios. The first simulation included Aliens Creek Resel'voit· at its
    fully authorized amounts fo\' storage and diversion, and was used to detelmine the amount of water
    available for appropriation after consideritlg all water rights at their fully authorized amounts. The second
    simulation was conducted to detemline if the watel' appropriated for Aliens Creek Reservoir could be
    used more efficiently by the BRA, in conjunction with other water rights requested by this application,
    until sucll time as Allens Creek ReselYoir is constructed. The amount of firm water available to BRA is
    indicated in Table 2. below. To the extent that removal of the requirement for wet season pulses at
    Richmond resulted in additional unappropriated water, staffrecomme)lded the additional amount.
    The application requested an amount of additional water that would be available on a reasonably
    dependable basis. The application stales that this water would be available if 90,000 acre· feet of film
    water was used, along with other sources available to the applicant, to produce Ihe additional supply,
    Pursuant to 30TAC §297.42(d), Staff may recommend granting applications that are nol based upon the
    continuous availability qf historic, nOlmal stream flow on a case.by-case basis. A system operation in
    conjunction with other water rights is an application that may not be required to be based on the
    continuous availability of historic, normal slreamflow. The applicant has requested that the additional
    amount of water be evaluated using the criteria in 30TAC §297.42(c), thaI is, 75% of the water is
    available 75% oflbe time whe!1 distributed on a mOllthly basis (75175 criteria). Staff modeled this request
    using the Full Authorization simulation aud included the applicant's estimated CllITen1 return flows.
    Model results (Table 3.) indicate that additional amounL, of water are available to the applicant using the
    -15175 criteria.
    Table 2. New Annl'o{!riation of Water (includes Aliens Creek)
    Volume in acro·feet
    Location                      Firm                      Non·Flrm
    Glen ROse                    13L363                       157.000
    Hh!hbank                     144,306                     303.000
    --
    .
    Richmond                     )88.470                      670.00(1
    Gulf of Mexico               191.516.                     670.000
    189
    Bl"a=o~. RiveI' /lllillor/t;'>'
    Parm1l585}
    Page 9 of 14
    Table 3. New AI'PIoJ>riation of Water (does not Include Aliens Creek)
    Volume in acre-feet
    -                                 Non-Firm
    Location                     .yirm                .
    Glen Rose                    131,363                     190,000
    Highbank                     J 75,306                    284,000
    Richmond                     237,920                      869,000
    Gulf of Mex.ico              241765                       869.000
    No Inju!')' Review
    The application requests authorization for operational flex.ibility to use any source of water available to
    BRA to satisf), the diversion requirements of senior water rights to the same extent that those water rights
    would have been satisfied by passing inflows through the BRA's reservoirs on a priority basis. The new
    authorization requested in this pemlit has a priority date junior to most basin water rights. Although
    changes in operations for BRA's existing water rights resulting from additional operational flexibility
    have the potential to affect river flows in the Brazos River and its tributaries, Staff is of the opinion that
    implementation of accounting measures should mitigate any impacts to senior and superior wator rights.
    These accounting measures should be pat1 of the accounting/delivery plan, which should be included in
    the WMP.
    The application requests authorization to release, pump and transport water from any of the BRA's
    reservoirs for subsequent storage, diversion and use throughout the BRA's service area. The request to
    release, pump atld transport stored water should have no effect      ,m
    othel' basin rights so long as BRA
    obtains the appropriate bed and banks authorizations as needed. In addition, speelal conditions requiring
    BRA to maintain an accounting of water in storage by priority date should mitigate any impacts to
    downstream sellior and superior water rights.
    The application requests that the Commission recognize that the System Operation Pennit will prevail
    over inconsistent provisions in the BRA's existing water rights regarding system operation. This would
    include existing limitations on the percentage of reservoir storage allowed to be used in system operations
    and identification of sources of supply. Specifically, the existing system operation order requires the BRA
    to exclude tributal), reservoirs from operation of the system during any period of time in which BRA's
    permitted storage space is less than 30% full. The application states that the Commission's teview and
    approval of the BRA's Management Plan will provide equivalent safeguards and, at the same time, allow
    the BRA greater operational flexibility. Staff agrees that there may be inconsistent provisions and
    recommends special conditions to clarify inconsistencies while protecting other basin waleI' rights.
    Conclusion
    Based on the revie\,>, and analysis of this application. staff can supp011 granting the application provided
    the permit contains the special conditions proposed by Resource Protection staff and additional special
    conditions as indicated below.
    A. Jnlel'basin Tran.!(er and Bed and Banks
    The water requested for exempt interbasin transfer will be authorized with a prioril) date of October \5.
    :;004 and as such will be alllong the most junior rights in the Brazos River Basin. Therefore. there can be
    190
    B/'(J=OJ; IlIwr AlllhOl'ilJ'
    Bra=o~' Rh\11' /Jas/J)
    Page lOofl$
    110   effects on eKisting water rights and staff can recommend granting this request.
    Staff can recommend authorization for the use of the hed and banks of streams alreadv authorized in
    BRA's current permits, certificates and amendments, subject to identification of specific losses. Staff
    recommends that the permit contain the following special conditions:
    1. The use of the bed and banks of Aliens Creek from below Aliens Creek Reservoir to the Brazos
    River is not authorized until Pennittee applies for and is granted an amendment to Permit 2925A.
    2. Permittee is authorized to use the following reaches, authorized in Permittee's eeltificates and
    amendments, for conveyance of water, pre\'iously appropriated to the Permittee and water
    authorized hy this penn it, downstream for diversion at Glen Rose, Highbank and the Gulf of
    Mexico and any of the Pennittee's currently authorized diversion points within these reaches:
    A. Brazos River from below Possum Kingdom Reservoir to the Gulf of Mexico
    B. Leon River from Lake Proctor to the confluence with the Little River
    C. Lampasas River from Lake Stillhouse Hollow to the confluence with the Little River
    D. Little RiVer from the junction of Leon and Lampasas Rivers to the confluence with the
    Brazos River
    E. Yegua Creek from Lake SomCl'VilJe to the confluence with the Brazos River
    F. Navasota River from Lake Limestone to the confluence with the Brazos River
    3. Prior to use of tIle bed and banks identified in Special 'Condition A.2. above, Permittee must
    submit to and have approved by the Executive Director, as part of its accounting/delivery plan, a
    procedure to estimate daily deliveries of water. This procedure should be in electronic format and
    detail by source, type and priority date, the amounts to be conveyed and delivered, losses
    associated with the conveyance, specific points of diversion, associated travel times, and times of
    commencement and tennination of transit for conveyed walers. Documentation of actual
    deliveries as wel! as the accoullthlg/delivety plan shall be maintained by the Pennittee in
    electronic fonnat and made available to the general public dlll'ing normal business hours and to
    the Executive Director upon request. Modifications or changes to the accOImtingidelivelY plan
    must be approved by the Executive Director.
    4.     The use of the bed and banks of additional streams and tributaries in the Brazos River Basin for
    conveyance of water appropriated under this permit, or other sources available to the Permittee, is
    subject to Permittee, after identifying specific sources and types of water, specific points of
    discharge and diversion, and conveyance and other losses, obtaining future autllOrizations to
    satisfy the t"'luirements ofTWC ~ 11.042.
    5. The use of additional points of diversion within the reaches specified in Special Condition A.2.
    above is subject to Permittee, obtaining authorization to use those diversion points. The points of
    diversion may also be identified and included in Permittee's proposed \!{MP which is suqiect to
    Commission approval.
    B. Reuse of Relul'Il Flows
    Staff can recommend grantillg BRA authorization to reuse return flows discharged from BRA facilities or
    originating from diversions under BRA's water rights, as indicated in Table I. above. subject to the
    following speqial conditions to protect water rights granted based on the presence of those return flows as
    191
    8ra:o~ mwl' AWnoriry
    BI'(1;()s TU),{!r Basin
    Page II ort~
    well as other senior water rights:
    1. Prior to the diversion of retum flows authorized by this penn it, Permittee must submit to and
    have approved by the Executive Director, a reuse accounting plan. Tbe reuse accounting plan
    must be in electronic fonnat and accollnt, by source, for all retunl flows discharged and
    subsequently diverted. The reuse accounting plan should include amOtmts discharged by outfall,
    am aunts of return flows used by permits granted based on the presence of these retUl" flows, and
    estimated travel times and conveyance losses from discbarge point to diversion point(s). If the
    return flows will be stored in Permittee's reservoirs, the reuse accounting plan should include any
    evaporative losses associated with the storage. Pennittee shall maintain the approved reuse
    accounting plan in electronic fOOlla! and make it available to the general public during nonnal
    business hours and to the Executive Director upon request. Modifications or changes to the reuse
    acconnting plan must be approved by the Executive Directol'. The reuse accounting plan shall be
    included as pmt OfPellllittee's accounting/delivery plan,
    2. The right to divelt discharged return flows from plants owned by lbe City of Granbury (TPDES
    Pennit No. 10178002), Acton MUD (TPDES Permit Nos. 14211001 and 14212001), Bell County
    WClD #2 (Tr,DES Permit No. 11090001), City of Georgetown (TPDES Permit Nos. 10489002
    and 10489003) and the Cit)' of Holland (TPDES Pennlt No, 10897001) is limited to the amount
    of surface water based retum flows discharged from those plants that originates from water rights
    owned by the Petmittee. Pennittee is not authorized to divelt groundwater based retuOl flows
    discharged from tbese plants, except as may be auihorized by Special Condition BA .. Pennittee
    must include in the reuse accounting plan the total amount discharged from the plants and the
    percentage of that water that is divertable under this permit.
    3. Permittee is authorized to divert historically discharged groundwater based retum flows from the
    Brazos River Authority/LCRA BCRWSS West (TPDES Pefmit No.1 026400 1).
    4. Future discharges of groundwater based return flows may be diverted if those retUI1l flows
    originate from groundwater owned by Permittee 01' are discharged from treatment plants owned
    by the Permittee. Prior to diversion, Permittee must apply for and be granted an amendment to
    this permit authorizing these diversions and shall submit for approval by the Executive Director, a
    revised accounting/del ivery plan addl'essing such new groundwater based discharges ...
    5, Pennittee is authorized to diveli only that water discharged by the City of Madin (TPDES Permit
    No. 10110002) originating from water rights owned by the Permittee. Permittee shall calculate
    the diveliable amount oHile City'S discharge and include this information in the reuse accounting
    plan.
    6,     Permittee shall only divert the actual annual amollnt of return flows discharged from the Bell
    County WCID #1 (TPDES Permit Nos. 10351001 and 10351002) and the City of Harker Heights
    (TPDES Permit No. 10155001) less up to 172 acre-feet as authorized by Permit 4218.37 acre·
    feet as authorized by Pemli! 5088 and 60 acre-feet as authorized by Permit 5089 when the
    aforementioned permits are being used.
    7, Diversions and storaue of retul1l flows shall not occur at rates or in amounts higher than the actual
    daily amount of return nows discharged into watercourses in the Brazos River Basin. after
    accounting for the calculated losses and traveltime from the discharge point(s) to the diversion
    poin\(si in accordance with the accounting/delivery plan.
    192
    8ra::os· Rn'el' Allfhcwlty
    Bra:oJ,' Rnl$1' Ballin
    Pagt 12 or 15
    8.     Prior to diversion of the water authorized herein, if sufficiently accurate measuring devices are
    not available, Permittee shall install and maintain measuring, deyice(s) capable of measudng
    within plus or minus 5% accuracy, at the discharge point of each wastewater treatment plant
    (WWTP) to record the amount of return flows discharged into the Brazos River or its tributaries
    on a daily basis.
    9. The priority dale for diversion of up \0 116,434 acre-feel (l 03 .899 mgd) of return flows is
    October 15,2004.
    10. The priority date for diversion of future return flows ill excess of I J 6,434 acre-feet (103.899
    mgd) of diSCharged return flows is October 15, 2004 but is not subject to call by senior and
    superior pelmit holders in the basin and is not subject to insU'eam flow limitations.
    J I. Prior to diversion of any return flows in excess of the individual TPDES Permit limits indicated
    in the Yable l. Return Flows Available to BRA, Pelmittee must appJy fOI' and be gl'anted the right
    to reuse those return flows. Permittee must amend the reuse accounting plan to include future
    return flows prior to divelting said retul'n flows.
    12. The diversion of up to 116,434 acre-feet (103.899 mgd) of water is dependant upon potentially
    intet11lptible return flows or discharges and is conditioned on the availability of those discharges.
    The right to divert the discharged return flows is subject to revocation if discharges become
    permanently unavailable for diversion and may be subject to reduction if the return flows are not
    available in quantities and qualities sufficient to satisfY the permit. Should any of the discharges
    become permanently unavailable for diversion, Permittec shall immediately cease diversion of
    those return' flows and reflect such reductions in the reuse accounting plan.
    13. Pel1nittee's diversion and use of return flows is subject to interruption by direct use or indirect
    use within the discharging entity's corporate limits, extraterritorial jurisdiction, or contiguous
    water ce.iilieate of colwenience and necessity boundal)', provided the discharging entity has
    applied for and been granted authorization to reuse the retum flows.
    C. UnappropriaFed Water
    Staff can recommend granting reduced amounts ofunapprop1'iated water as follows:
    !.able 4. New Annro dation of Water
    Volume ill acre-feet
    r14catioll,            ]:il'm Water                   Non-Firm 'Vater
    Glen Rose                   131363                       157,000
    .Highbank                     144.306. ____              -303.000
    Richmond                     J 88.470                    670.000           -.-
    Gulf of Mexico               191.516                     670.000
    193
    lJt(J:(),~ RI\'C~r tluthorJly
    Bra:Q,' Ril'eJ' BtLsin
    p(J~  lS of}$
    Table 5. New Appro riation of Water (does not include Aliens Creek)
    Volume in acre-feet
    Location                     Fkm                     Non-Firm
    Glen Rose           ,      131.363                     190,000
    Highbank                   175,306                     284,000
    Richmond                   237,920                     869.000
    Gulf of Mexico             241,765                     869.000
    In order to ensure that existing basin rights are protected, the following special conditions should be
    included in the pelmit:
    1.     Prior to diversion or storage of the additional water authorized by this pennit, Pennittee shall
    provide to and have approved by the El' The ED "lCOrrectly asserts that· Section 11:042(c) "specifically discuss[esl retlse of retum flows." ED
    Initial Brief at 16 (en'phasis in original).                              .
    ~.. BRA Il;itial Brief at 7.
    'os. TPWD Initial Briefs! 2.
    208
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    TCEQ DOCKET NO. 200S·1490-WR
    BRA contends that if, as the ED suggests, Subsection 11.042(c) deals with return flows,
    then Subsection 11.042(b) would be entirely unnecessary because return· flows, whether based on
    groundwater or surface water, would already be covered by Subsection (c). BRA argues that,
    becau~e   it specifically addresses return flows (and limits its authorization to groundwater-based
    return flows), the existence of Subsection (b) suggests that Subsection (c) must be addressing a
    category of water other than return Hows. SV6
    As to Section 11.046, SB 1 added Subsections (b), (c), and (d). In BRA's view, the
    . amendments simply codified existing law regarding return flows. Sigruficantly, Subsection (c)
    authorizes direct reuse, but then explicitly states that, once the water is returned to the
    watercourse, "it is considered surplus water and therefore subject to reservation for instrcruri uses
    or beneficial inflows or to appropriation by olhers. ...,,507                  In BRA's vl~w, this means that
    retum flows are state water, available for appropriation "by others," S9 long as those flows are
    not otherwise required for senior rights or environmental needs. S03 TPWP and OPIC agree. SfJ9
    In BRA's view, the two statutes can only be construed so that no conflict exists between
    them by defining the word "water" in Section 11.042(c) t.o mean "developed water" (i.e.,
    imported surface water or raw groundwater not naturally part of the water in the basin):SIO BRA·
    contends that the benefits of its approach include:
    •     All return flows would be available for appropriation and beneficial use.
    ,os BRA Initial Briefat 54.
    '" (Emphasis added.) BRA contends that the final phrase cifthe subsectlon-"mtless expressly provided
    otherwise in the permit, certified filhig, or cmiilicat. of adjudication"- provides a vehicle for the water right holder
    to seek reuse !!uthOl:ization by amendment of ~he underlying water dght.
    'OB BRA Initial Brlefat 40.
    so, TPWo Initial Brier at 3; OPIC Initial Brief at 5·6.
    SlO   TPWD makes the same argument. TPWD Initial Brief at 2.
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    TCEQ DOCKET NO. 200s..149()"WR
    •         All retlnn flows would be available for satisfaction of environmental flow needs, and
    the needs of senior water rights, often enhancing the reliability of senior water rights.
    By contrast, the ED's approach would generally subject only historically dischargeo
    return flows to such requirements, while future discharges wonld not be subject to the
    priority system or environmenW flow requirements.
    •         The BRA approach is consistent with historical permitting decisions.
    •         The BRA approach does not result in multiple categories of water with independent
    accounting requirements, facilitating enforcement under the prior appropriation
    system.
    •         Under the BRA approach, all return flows would be subject to well-established
    requirements applicable to all state water. By contrast, because it is not mandated by
    statute or deflned by mles, much of the ED's approach Could be modified in the'
    future if the Executive Director 01' Commission chose to do 80.511
    BRA submits that these public policy considerations clearly support treating return flows as state
    water available for appropriation following their discharge into a watercourse.
    2,            The ED's Arguments
    Under the ED's approach, specific accOlmting provisions would be imposed to require
    tbat the discharge and diversion ofreturn flows be accounted for separately from other water in
    the rivei,Sl2 The ED believes that its approach does a better job of describing how return flows
    will be accounted for In order to prolect water rights. Sl3 In the ED's view, there is a conflict
    between Sections 11.042 and 11.046,514 that can only be resolved by defining "others" in Sectiqn
    I 1.046(c) to mean that only the discharger ofretum flows, the owner of the base water right, or
    someone having contractual rights with either of them can be the ones to apply to reuse the
    >II   BRA Exs. 77 and 78.
    m Tr.1975-81.
    51l   ED Initial Brief at 13.
    ,,, See, e.g., BRA Ex. 59 (Chenoweth Febmary 25,2005 memo).
    ~----------------------------------~----------------------~
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    TCEQ DOCKET NO. 2005·1490·WR
    return flows. SlS      Dow agrees with this interpretation, because, it considers it to be "more
    conservative and likely to be mOre protective of existing water rights."SI6
    The ED constl11es Subsection 11.042(c) to apply to, among other things, all return flows
    ~ther than groundwater-based return flows (which are addressed by Subsection 11.042(b».$l7
    The ED disagrees with BRA's contention that the word "water" in Subsection 11.042(c) should
    be construed to mean "developed water." The ED argues that Subsection 11.042(c) is addressing
    a wider category than Subsection (b) which only addresses "return flows."                        ThllS, the ED
    contends that Subsection (c) deals with a broad array of different kinds of water, including return
    flows. sl8 BRA counters that when Section 11.042(c) is construed as broadly as the ED proposes,
    it not only creates a significant break from pre.existing law, but it also creates the "conflict" with
    Section 11.046(c) that results in the ED's strained and otherwise \U\supported limitation of
    "appropriation by others" to three specific categories of persons not identified in the statute,S19
    The ED bases his approach, at least in part, on Conunissioner statements. made at the
    Commission's August 12, 2005 work session. s2o BRA counters that this Commission work
    session is a "slender and ambiguous reed" upon which the ED relies. For example, at the
    conclusion of the work session; the Conlmission directed 'the staff to prepare a memo
    memorializing its decisions. However, the staff was never able to do so because it could not
    'reach COnsensus on what had been decided as to how to implement Sections 11.042 and
    , 11.046.521
    '" BRA Ex. S9 (Chenoweth February 25, 2005 Memo); TPWD Ex. 1 at 35·36 (Chenoweth Deposition); Tr.
    2060,2079·80.
    '" Dow Initial Brief at 47.
    '" ED Reply Brief at 4.
    '" ED Reply Bri.fa14·5.
    '" BRA Initial Brief at 55.
    S20   BRA Ex. 66 (Inte.rrogatoiy Nos. 2 & 3). None ofthe current Commissioners was serving at that time.
    ,,, TPWD Ex. I at 47-48.
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    TCEQ DOCKET NO. 200S-1490-WR
    Further, the ED's current position on Section J 1.046 appears to be inconsistent with the
    Commission's decision regarding con;-tmction of that statute in a prior contested hearing,
    ironically a position that was adopted ·by the Commission at the urging of the ED. That case
    involved accounting for inflows and storage in Lake Grapevine among three holders of water
    rights of different priorities. S22 In response to exceptions filed by the ED and by Dallas County
    Park Cities Municipal Utility District (DCPCMUD), the Commission ruled that return flows
    discharged by the City of Grapevine (the most junior water Fight holder) and subject to
    Grapevine's pending indirect reuse application were properly allocated to the senior water rights
    first. TIle senior water right holder, DCPCMUD,asserted a prior right to Grapevine's return
    flows, uns\lpported by any contract or other agreement with Grapevine. In making its decision,
    the Commission relied upon Section 11.046, holding that upon discharge Grapevine's return
    flows became state water subject to the prior appropriatiou system.523 Among other things, the
    ED told the Commission that "lIlf a water right holder uses water, then returns it to the
    watercourse or stream it is considered unappropriated state water and may be used by others."S24
    It is undisputed ·that the COllUnission has never adopted t1l1es or a formal policy
    authorizing the approach that is now being advocated by the ED.S2l BRA submits that the ED's
    position, reserving return flows solely for the discharger or water right holder, cannot be justified
    and shonld not be followed .
    .$n An Order granting the Executive Director's Petition to Amend Certificate of Adjudication No. 08 2363
    w
    of Dallas County Park Cities Municipal Utility District, Certificate of Adjudication No. 08-2458 of City of Dallas,
    and·Certificate of Adj(,dicatioll No. 08-2362 of City of Grapovine; TNRCC Docket Nos. 95·l626-WRand 96-1017-
    WR; SOAH Docket Nos. XXX-XX-XXXX and XXX-XX-XXXX (Apr. 4, 2000) .
    .m    Exs. BRA 74, 75, and 76.
    m BRA Ex. 75 at 5,
    515   Tr. 2002,2061-64.
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    TCEQ D'OCKET NO. 2005·1490-WR
    3.         The ALJs' Analysis
    The ALJs disagree with both parties' competing lIIlalyses of Sections 11.042(c) and
    '11.046(c). As noted by TPWD,- the return flows issues raised by the BRA Application are
    "extremely complex," and involve II great deal of ambiguity about confusing legal and regulatory
    issues.s26 In its initial brief, TPWD states:
    There is no adopted TCEQ'policy that controls the outcome of the application
    [regarding return flows]. The ED staff is using its own interpretation of existing
    law to review the application, and it simply has a different approach than TPWD
    IIIld BRA. Jt is up to the Administrative Law Judges to examine the different
    approaches and determine how to apply the iaw. There is no commission policy
    that guides the resolution of these contested issues.
    The ALJs agree. A considerable amount of evidence was introduced by the parties attempting to
    prove that the TCEQ currently has, or has had in the past, an established approach to reuse
    issues.S27 On balance, however, this evidence demonstrates that no consistent agency policy
    exists with respect to these reuse issues. As such, there is no official TCEQ interpretation to
    which the ALJs might def~r.               Accordingly, the ALJs make the following conclusions regard
    how the bed and banks and return flow provisions of the Water Code should properly be applied
    to the SysOp Permit.
    50'   TPWD Initial Brief at 9.
    m See. e,g" Exs. TPWD 1, BRA Exs, 56-58, 61, 67, 70, 72-73,75; ED Exs. AI, CI, DI, EI, FI, and 01;
    see also Tr. 2005 (Alexander acknowledging, that return flow issues historically handled on ut:ase-by-casc" basis,
    without a fixed policy),
    SOAR DOCKET NO. 581-10.4184                PROl'OSAL FOR DECISION                           PAGE 148
    TCEQ DOCKET NO. Z005·1490-WR
    a. BRA misconsmles Sl\Ction 11.042(c): The bed and banks
    authorization contemplated in Section 11.042(0) applics to a wide
    array of types of water, including return flows.
    Section 11.042(c) authorizes a person to obtain a bed and banks authorization to "convey
    and subsequently divert water in a watercourse."S28 BRA argues that the only way tlus section
    can be read so as to avoid a conflict with Section 11.046(c) is to interpret the word "water" in
    Section 11.042(c) to mean developed water, but not return flows. TIlis interpretation is not
    reasonable and is contrary to the plain wording of the statute. If the Legislature 'had intended for
    Scction 11.042(c) beq. and banks authorizations to only be available for raw surface water
    imported from another basin or raw groundwater, then it could easily have so stated in the
    statute.    Ther~   is ample evidence that the Legislature knows how to be specific when it wishes to.
    For'example, in Subsection (a-I) the legislature authorized bed and banks permits for a different
    type of imported water"':"water imported from another state.         Similarly, in Subsection (b), the
    Legislature chose allow beds and banks authorizations for abighly specific category of water -
    '~el(isting   retum flows derived from privately' owned grolllidwater." The use of the broad and
    generic word "water" in Subsection (c), indicates a legislative intent that the bed and banks
    authorization contemplated in that subsection should apply to a wide array of various types of
    water, inc\\I(ling return flows.
    b. The ED misconstrucs Section 11.046(c): The right to appropriate
    retUrn flows pl'ovided by Sedion 11.046(c) does not extend only to the'
    discharger of·those return flows, the owner of the base water right
    from which the return flows originated,' 01· someone having
    contractual rights with either of them.
    Section 11.046(c) provides that once water has becn diverted and' is returned to a
    watercourse "it is considered slUplus and thetefore subject to ... appropriation by others.,,529
    The ED argues that the only way Sections 11.042(c) and 11.046(c) can be read so as to avoid a
    '" pmphasis addC274 S.W.3d 742 
    (Tox. App. - San Antonio
    2009, pet. granted).                                                           .
    '" For Ole sake of convenience, throughout thts discussion, the ALIs refer to the "discharger" of the retum
    flows. However. the AU's broadly define "discharger" as '.'the discharger ()f return flows, the owner of the base
    water right from which the retnrn flows originated. or someone having contractu~l rights with either of them."
    '" In effect, the bed and banks authorization grante.t in Section 11.042(c) works as an exception to the
    general rule in Section 11.0if6(c) tlmt once return flows are discharged into a watercours~ the discharger loses claim
    to those waters.
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    TCEQ DOCKET NO. 2005-1490·WR
    Conversel)', the ALJs conclude that when BRA seeks to divert someone else.'s surface
    water-based return flows it need only obtain an approp~iative right pursuant to Section 11.046(c),
    and need not obtain a bea and banks authorization pursuant to Section 11.042(c). In such a case,
    and consistent with the wording of Section 11.046(c), BRA would clearly be an "other" person
    seeking to appropriate someone else's relnm flows. Likewise, BRA would not be seeking to
    "convey," as required by Section 11.042(c), someone else's relnm flows, but only to divert those
    flows.
    The ALJs note a caveat to this general rule. In order to address the needs of in-basin
    dischargers and many of its own customers, BRA's version of the proposed SysOp Perniit adopts
    .a relnrn flow policy that encourages direct reuse and indirect reuse of retnrn f1o~vs by
    dischargers, within their boundaries 01' service areas, by allowing BRA's appropriation of.others'
    return flows to be interrupted for tliese plUposes. Additionally, as a result of an agreement with
    the Cities of Bryan and College Station, a provision addressing groundwater-based return flows,
    without any service area limitation, has also been requested and is included in the BRA preferred
    draft of the penult. In this respect, BRA's position differs from a pure "state water" approach to
    return flows that might prevent futnre indirect reuse by dischargers. S37   Because this deviation
    from the general nll~-that retnrn flows become state viatcr upon discharge into a watercourse-
    is agreed to by BRA and serves as a limitation upon BRA's permit, the AUs find no reason to
    reject it.
    d. BRA's .. equest to divert "future" j'eturn flows (i.e., return flows that
    arc not nIt-cady being discharged into the Brazos River Basin) is
    reasonable and preferable to the approach advocated by the ED.
    In the Application, BRA seeks to appropriate both ClU'rent and future retum flows, "to'the
    extent that such retnrn flows continue to be discharged or returned to the bed and banks of the
    Brazos River, its tribuiarles, and BRA reservoirs."S38 In BRA's ~odeling, futlU'e retnrn flows for
    '" BRAEx. I at 30.32; BRA Initial Briefa! 61-62.
    '" BRAEx.ISatI6.
    SOAI:I DOCKET NO. XXX-XX-XXXX                 PROPOSAL FOR DECISION                        PAGE 152
    TCEQ DOCKET NO. 2005-1490-WR
    the year 2060 were estimated based on projected population multiplied by current per capita
    retum flows based' 011 historical data'. In certain cases, future tctum flows were reduced to
    account for existing or proposed reuse projects. S39 BRA then included those estimated future
    tetum flows in the WAM and assumed they would be available to all water rights in order of
    seniority. Any amounts left over were assUlIled to be available to the SysOp Pennit, subject to
    envhonmental flow requirements. 54o
    The ED argues that granting BRA an approptiation based upon future retum flows poses
    a risk of hann to semor water rights holders because the water availability analysis will likely
    find mOore water available than actually exists in the stream.541 Dow agrees: "If the water
    availability is inflated because the amount of return flows assunwd to be discharged into the river
    exceeds the amount that is actually discharged into the river, the water availability analysis will
    overestimate the unappropriated water.,,5~2
    BRA responds that over-appropriation is not a risk because the objective of the draft
    SysOp Pennit was to ensure that, in actual practice, BRA is able to divert retum flows amy to the
    extelit that they are actually being discharged into the basin, and to not interfere with the ability
    of return flow dischargers from reusing their own retum flows if they wish to do so.543 A
    , munbcr of special pennit conditions are included in the draft permit to achieve those goals,
    Special condition S.A.1. in the SysOp Pernlit requires development of a return f1owacc01mting
    plan prior to use of the retum flows, in order to assure that the amount of supply actually
    available for use based on return flows is accurately detennined. 544 Special condition 5.A.2
    provides that BRA's ability to divert surface water-based return flows is subject to intenuptioll
    '" BRA Ex. 15 at 46.
    '" BRA Ex. 15 at 46.
    $41   ED Ex. KA-l at 18,33-34; ED Initial Briefnt 18,
    s.u Dow Reply Briefat 39.
    $I' 'fl'. 423.
    ".. BRA Ex. 8B at 8; BRA Ex. 15 at 47.
    SOAHDOCKET NO. 582·10-4184                    PROPOSAL FOR DECISION                       PAGEIS3
    TCEQ DOCKET NO. 2005-1490-WR
    by direct use or indirect use by the discharger of those return flows, provided that the discharger
    is using those retum flows within its corporate limits, extraterritorial jurisdiction, or contiguous
    water cCltificate of convenience and necessity (CCN) boundaries and the discharger has applied ,
    for and been granted authorization to reuse the return flows. This provision is meant to ensure
    that dischargers will be able to develop their own reuse programs. S4S           Similarly, Special
    Condition S.A.3 provides that BRA's ability to divert groundwater-based return flows is subject
    to interruption by direct or indirect reuse by the discharger of those reutrn flows, provided that
    ,              ,
    the discharger obtains a bed and banks authorization to reuse the return flows. This provision is
    also meant to ensure that dischargers will be able to develop their        OWn   reuse programs. 546
    Special condition 5.A.4 requires the installation of meters at the discharge points for each
    wastewater treatment plant (WWTP) from which retunl flows will be used, and the recording of ,
    discharge anlOunts on a daily basis. Discharges from a WWTP generally cannot be used until
    such meters are installed.547
    OPIC has no objection to BRA's approach regarding appropriation of future "retum flows,
    contending that all diversions of return flows by BRA under the SysOp Permit,          regardle~s   of
    whether those diversions are of existing or future return flows, should be treated as new
    appropriations and, therefore, subject to all legal requirements for new appropriations including
    Instream flow requirements.548 That Issue will be discussed more in the next section.
    As stated above, the ED argnes that granting BRA an appropriation based upon future
    reUlm flows poses a risk of harm to senior water rights holders because the water availability
    analysis will likCly find more water available thatl actually exists ill the' stream. gowevcr, the
    ED's treatment of return flows in the ED's modeling effolis and draft SysOp PerI)1it is not
    consistent with that approach. Under the ED's approach, BRA would obtain authorization t6
    54'   BRA Ex. 8B at 8-9;' BRA Ex. 15 at 47.
    ,,' BRA Ex. liB at 9; BRA Ex. 15 at 41.
    147   BRA Ex; SB at 9; BRA Ex. 15 at 41.
    m OPIC Initial Briefat 5,
    2lP
    SOAHDOCKET NO. 582·10·4184                   PROPOSAL FOR DECISION                                       PAGE 154
    TCEQ DOCKET NO. 2005·1490·WR
    divert return flows up to the amount of return flows that each discharger c,an make pursuant to its
    Texas Pollution Discharge Elimination System (TPDES) permit. s49 The ED calculated that thc
    total discharge amount for all applicable TPDES permits was 120,625 acre·feet. sso The ED
    conceded, however, that actual current discharge totals might be much less than 120,625 acre-
    feet. SSI In other words, the ED's Proposed Pennit would also autholize BRA to divert future
    retum flows that do ilOt currently exist in the stream, albeit for a smaller quantity of such return .
    flows. Moreover, the ED's draft SysOp Permit then e~plicitly allows BRA to appropriate future
    retum flows (I.e" retum flows over and above the TrDES total of 120,625 acre-feet).552
    The AUs conclude that, asslUning the Commissioners agree with the overall two-step
    approach contemplated in this application, BRA's approach as to future retum flows is
    sufficiently tailored so as to avoid authorizing diversions of retum flows that are not act\mlly in
    the river at the time. The special conditions in BRA's draft SysOp Permit are sufficient to ensure
    that, in actual practic\" BRA will. be authorized to divert only return flows that are actually being
    discharged, and without interfering with the ability of return flow dischargers to reuse their own
    retum flows if they wish to do so.
    e.        BRA's diversions of return flows, both current and future,
    should be treatcd as new appropriations subject to ~atisfying
    instream flow ,·equircments.
    NWF and bPIC contend ihat all diversions of return flows by BRA under the SysOp
    Permit, regardless of whether those diversions are of existing or future retum flows, should be
    ",. IlD Ilx.lS4 As to what he considerS,"future" return flow'discharges (i.e.,
    those over and above 120,625 acre-feet), the ED would give BRA the right to divelt those return
    flows at a 2004 priority date, but the diversions would not be subject to instream flow
    requirements. S55 The rationale behind this different treatment is that fill\lre return flows "have
    not been present in the river" and, thus, have not been relied upon in the past to satisfy instream
    needs.5S6
    The Conunission need not decide if the ED's position is legally correct. BRA is willing
    to make all of its diversions of return flows (both cirrrent and future) subject to instrerun flow
    requirements. 557       BRA asserts, convincingly, that its approach is more protective of the
    environment because it makes more water subject to instream flov,;s protections.ss8 In light of
    BRA's consent to such treatment of filture return flows, the ALJs conclude that all BRA
    diversions of return flows under the SysOp Pennit, both current and future, should pe treated as
    subject to satisfying instream flow requirements.
    '" NWF Reply Briefat 7;      opic Initial Briefat 5.
    '54   ED Ex. K2 at 13; ED Ex. KA-I at 26, 31; Tr. 2108-09.
    '" ED Ex. K2 at 13-14; ED Ex. KA-I at 26,31; 'fr. 437, 2107.
    '" ED Ex. KA-I at 31.
    '" BRA Ex. SB at 8;
    '" Tr. 2722-23.
    2.21
    SOAH DOCKET NO. XXX-XX-XXXX                PROPOSAL FOR DECISION                        PAGEJ56
    TCEQ DOCKET NO. 2005-149().WR
    f.       Both BRA's and the ED's versions of the SysOp Permit comply
    with 30 TEx. ADMIN. CODE § 297.42(g) •.
    , Pursuant to 30 TEx. ADMIN. CODE § 297.42(g). a water right may be granted based upon
    the avaibibility ofretwn flows. However, a water right granted upon return flows might cease ill
    the future because of new or increased direct or indirect reuse by the discharger. Thus, Section
    297.42(g) states that a w'ater right granted based 'upon the availability of return flows must "be
    granted with the express provision that the water available for the water right is dependent upon
    potentially interruptible return flows'or discharges."
    In reliance upon this rule, the ED crafted the draft SysOp Pennit to make a distinction
    betWeen the quantities of water available under the pennit as "finn" water and as "non-firm"
    water (with "non-firm" being the water based upon the availability of return flows).559 The ED
    contends that this is the required approach in ordeno comply with Section 297.42(g).560 BRA's
    version of the SysOp Permit makes no distinction between "l1ml" and "non-firm". watcr. It does,
    however, expressly note that diversions of return flows are based upon potentially interruptible
    return flows. 56 I Thus, both approaches ,comply with therequil'ements Of 30 TAC § 297.42(g).
    Accordingly, having proven that its version is compliant, the ALJs conclude that BRA is entitled
    to its choice of approach over the ED's.
    XVII. BED AND BANKS AUTHORIZATION
    BRA's application for            a bed   and banks authorization complies with Water
    Code § 11.042, which provides, in relevant pal1:
    '" ED Ex. KA-l 0123-24.30: ED Ex. K2 at 5·6: Tr. 2009·10.
    '60   ED Ex. KA-l aI23-24.
    , SOl   BRA Ex. 8B at 8-9.
    222
    Exhibit J
    Transcript Volume No.2 of Hearing
    conducted October 29, 2009
    250
    1                SOAH DOCKET NO. XXX-XX-XXXX
    2                TCEQ DOCKET NO. 2008-0181-WR
    3
    4 APPLICATION OF BRADLEY B. )             BEFORE THE STATE OFFICE
    WARE TO AMEND             )                       OF
    5 WATER USE PERMIT NO. 5594 )             ADMINISTRATIVE HEARINGS
    6
    7
    8 ADMINISTRATIVE LAW JUDGE:         HON. PAUL D. KEEPER
    9
    10
    11
    12 ******************************************************
    13                TRANSCRIPT OF PROCEEDINGS
    14                TAKEN ON OCTOBER 29, 2009
    15                      AT AUSTIN, TEXAS
    16                VOLUME 2        PAGES 250 - 400
    17 ******************************************************
    18
    19
    20
    21       TRANSCRIPT OF PROCEEDINGS, VOLUME 2, taken in the
    above-styled and numbered cause on the 29th day of
    22   October 2009, from 9:03 a.m. to 3:39 p.m., before
    C. Mack Lane, CSR, in and for the State of Texas,
    23   reported by machine shorthand, at the State Office of
    Administrative Hearings, 300 West 15th Street, Austin,
    24   Travis County, Texas 78201, pursuant to the rules of
    the Texas Administrative Code, the Texas Water Code,
    25   and the Texas Rules of Civil Procedure.
    ALAMO CITY REPORTING    (210) 719.'189.
    377
    M:~:48      1 Lake, that Mr. Ware's 150 acre-feet still must go to
    14:47:52    2    satisfy water rights downstream to the Gulf of Mexico
    14:47:56    3    and upstream to Lubbock at the playa lakes?
    14:47:56    4        A.   Yes.
    14:48:00    5        Q.   Okay.     I ask you to look at page 4 of 14 on
    14:48:52    6    water availability.
    14:48:52    7                     JUDGE KEEPER:            Which exhibit?
    14:48:58    8                     MRS. WEBB:       50, Applicant's 50.
    14:49:00     9                    THE WITNESS:        Okay.
    14:49:08    10       Q.   (BY MRS. WEBB:)          And can you read that
    14:49:W     11   paragraph that begins a review of water rights in the
    M:O:U       12 Brazos River Basin?
    14:49:16    13     A.   "A review of water rights in the Brazos River
    M:O:W       14   Basin indicates that Permit 4218 (diversion of 172
    M:49:M      15   acre-feet of water from South Nolan Creek"
    M:49:~      16   Permit 5088 (diversion of 37 acre-feet of water from
    M:0: 32    17   South Nolan Creek), and Permit 5089 (divetsion of 60
    M:0:36     18   acre-feet from South Nolan Creek) were explicitly
    M:0:38     19   granted based on the presence of return flows now
    14:0: 42   20   being claimed as part of this application."
    14:49:44   21       Q.   Okay.     Continue.
    14:49:44   22       A.   "Staff recognizes the possibility that other
    M:0:46     23   basin rights were granted based on the presence of the
    M:O:~      24   requested return flows.           Because of this, a priority
    M:O:~      25   date of October 15th, 2004, is assigned to the
    ALAt10 CITY REPORTING    (210) 710-3890
    224
    378
    14:49:56     1    applicant's diversions of historically discharged
    14:50:00     2    retu rn flows."
    14:50:00     3        Q.     Okay.     Now, that October 15th date, that is
    14:50:04     4 the          that is the date of administrative completeness
    14:50:10     5 of this systems operation permit --
    14:50:16     6        A.     Yes.
    14:50:16     7        Q.      -- by Brazos River Authority?
    14:50:16     8        A.      Yes.
    14:50:20     9        Q.      And that sentence regarding the priority date
    14:50:22     10   of October 15th, 2004, describes the Executive
    14:50:28     11   Director's position at the time this memo was written
    14:50:32          regarding the allocation of return flows available for
    12
    14:50:36     13   appropriation in the Brazos River Basin?
    14:50:40     14       A.      Yes.
    14:50,49     15       Q.      Okay.    And so there were return flows
    14:50:42     16   available and you gave them a priority date of
    ~:~:Q       17   October 15th, 2004?
    14:50:48    18       A.      Yes.
    14:51: 10   19       Q.      Okay.    You mentioned that there were 74,387
    M:51:M      20   acre-feet of return flows resulting from different
    M:51:n      21   discharges up and down the Brazos River Basin
    M:51:28     22   determined to be available by TCEQ hydrology?
    14:51:32    23        A.     Yes.
    14:51:32    24        Q.     And those are the return flows that were
    14:51: 34   25   given the October 15th, 2004, priority date?
    ALAMO CITY REPORTING   (210) 710-3890
    225
    379
    14:51:38
    1       A.   Yes.
    14:51:40
    2       Q.   Okay.     And that -- and none of those return
    14:51:48
    3   flows, not any portion of them were allocated for use
    14:51:52
    4   by Mr. Ware under either a 1997 priority date or any
    14:51:56
    5   other priority date?
    14:51:58
    6       A.   The return flows were considered and __
    14:52:02
    7       Q.   Yes or no, Ms. Alexander.
    14:52:82
    8       A.   No.
    14:52:04
    9       Q.   Okay.     Thank you.       Okay,      When you say that
    14:52:38
    10   the Executive Director has at present determined that
    14:52:44
    11   water available for diversion by Brazos River
    M:~:48     12 Authority under this systems operation permit is
    M:52:~     13   available at a diversion point on the Gulf, you did
    M:~:g      14   determine that, didn't you?
    14:53:00   15       A.   Yes,
    14:53:02   16       Q.   Under certain circumstances, and under
    M:~:M 17        certain terms and conditions, and we don't know how
    'M:~:06 18      any of that is going to play out; but if that water
    14:53:08   19   is - - if that water - - and let me ask you:             That water
    M:~:12     20   that's available, it's not 74,387 acre-feet, is it,
    14:53:U    21   that you determined .to be available for diversion by
    14:~:~     22   BRA down at the Gulf?
    14:53:30   23       A,   Are we talking just about return flows7               I'm
    M:~:32     24   not sure I understand.
    14:53:32   25       Q.   I'm talking about the draft permit,
    ALAND CITY REPORTING   (210) 710.3890
    226