Opinion

Bradley B. Ware v. Texas Commission on Environmental Quality

Court
Texas Court of Appeals, 3rd District (Austin)
Filed
Jan 15, 2015
Status
Published
Cited by
0 cases
Authority
More cited than 3.0%

The opinion

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. It 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--~

r? day of

( ~ , 2015, ","«I <op;" ofth, lorego;ng ;n~",m"'t UP""

the patiies to thlS PI' ceedmg, who's full and complete names and addresses appear

below, by certified mail, facsimile, hand delivery, or regular U.S. mail.

Linda Secord, Asst. Attorney General

Office of the Attorney General

P.O. Box 12548-MC015

Austin, Texas 78711-2548

Phone: 512-475-4002

Fax: 512-320-0911

Linda.secord@texasattorneygeneral.gov

APPELLANT'S BRIEF PAGE 45

GLOSSARY OF TECHNICAL TERMS

Brazos Water Availability Model - "Brazos W AM"

The Brazos WAM is a computer simulation that is designed to simulate the

water permits in the Brazos River Basin and the available water supply in the basin

in priority order. It is designed for TCEQ to determine when all of the senior water

rights have been satisfied, that there is additional water available. (See Exhibit D,

Tr. Vol. 1 p.71 line 12 - p.72line 6; Clerk's Record p. 110-111)

APPENDIX

Exhibit A. July 21, 2009 Application for Amendment to Water Right 5594A

Exhibit B. Applicant Bradley B. Ware's Motion for Rehearing

Exhibit C. June 7,2006 Letter from BRA regarding Conditions of Withdrawal of

Protest

Exhibit D. Excerpts of Transcript Volume No.1 of Hearing conducted October

28,2009

Exhibit E. April 20, 2010 Final Order ofTCEQ

Exhibit F. August 28, 1997 Interoffice Memorandum regarding Water

Availability Analysis

Exhibit G. November 14,2006 Interoffice Memorandum regarding Water

Availability Review for Permit No. 5594

Exhibit H. November 25,2008 Interoffice Memorandum regarding Water

Availability Analysis for BRA's Application No. 5851

APPELLANT'S BRIEF PAGE 46

Exhibit 1. Excerpts of the October 17, 2011 Proposal for Decision

Exhibit J. Transcript Volume No.2 of Hearing conducted October 29,2009

APPELLANT'S BRIEF PAGE 47

Exhibit A

July 21, 2009 Application for Amendment

to Water Right 5594A

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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<l Tens Administrative Code Section 295.158(b) Or ©

'stomer Reference Number (if issued): CN 5594

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Form TCEQ-10201(revised 8/02)

64

, ..

'.

TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

..'

PERMIT:TOAPPROPRIATE .

AND USE STATE WATER

APPLICATION NO, 5594 PERMIT NO. 5594 TYPE:. Section 11,121

Name: Bradley B, Ware Address: Rte: 3, Box 211

Killeen, TX 76542

,

Filed: . July 1, 1997 Granted: NOV 0 7 1997·

,.

Purposes: IrrlgatiOll County: . Bell

Watercourse: Lampasas River, tributary Watershed: Brazos River Basin

of .the Little River, tributary

.of the Brazos River

.:" ..

·-witiiREAS·,··Briid1eY"irware 'has -ieqiiei:ted"a~thorizatioil to'dlveiiand-use' noT(o exceei:fi30'

acre-feet of water per annum to irrigate' 100 acres ofland owned by the' applicant in Bell County

approximately 15 miles southwest of Killeen, Texas; and

.. : ,. .. .. . .' .

WBEREAS, the Texas'Natural Conservation Commission frods thaljurisdictlon over the

, ';' application is establishe~; 'and .

.. , ••. ,~ •• , . . . . "'! .,

WHEREAS, no perSOll protested the granting'ofthls application; and

','

,. . . .,

vVlIEREAS, the Commission has complied with the' requirements ofthe Texas Water Code

and Rules . of., the Texas

0" ".. •

Natural

.' •

Resource

• "

Conservation Comb:iission

• • • •

hi isslihi.g this'

~ • ,

pennit.·

'

NOW,. THEREFORE, this permit to appropriate and use State Water' is issue'd to :B;~dl~;' B.

Ware, su~j~ct to, th~, fo~1~:vin~~~~8and _condi~~o.~s: . ...... ,',_ ..... .. '. .... ..... .. '

, .

. ,.,... ,,, . . . . . . , ,o_.

. r ~" ..

.

~ .._ ••• .:- . . . . . . . . ' , . ~ .... " .. - ... 'c' , .. : ..

Pehnittee is authorized t.o divert and use not to exceed 130 ac;re-feet of water per

. anllluri. from the Lampasas River to irrigate 100 acres of'land out of 26 l· acres in

the Vi, Brown Survey, Abstract No, 67, the D.G, Van Vicheton (Vecheton)

1

65

. .

Survey, Abstract No. 851, and the C Edwards Survey, Abstract No. 291 in Bell

,

County, Texas approximately 15 miles southwest of Killeen,' Texas. This iand'is

conveyed to permittee in a deed recqrded in Volume 1524, page 671 of the Bell.

County Deed Records ..

2. DIVERSION

a. Diversion Area: Permitte is authorized to divert water from any point

on the left or east· bank' of the Lampasas River, between a point

N60.6"W 2,050 feet from the southeast corner of the aforesaid Van

Vicheton Survey and a point· located S37'E 4,200 feet from the

aforesaid sutvey· comer in Bell Courity. This downstream point is

located at Latitude 31.032"N, Longitude 97.9,92'W. .

. .

b. Maximum Diversion Rate: 2.67 cfs (1200 gpm).

3, SPECIAL CONDITIONS

a. In order to protect instream uses, biological habitats and water 'quality,

perinittee is authorized to divert water herelmder ·during. the months of

April through ·June only when the flow of the Lampasas River at

U.S.G.S.·Gaging Station No. 08103800 near Kempner; Texas equals

., " .. '::--' ~.~ ..... _.. c' . ·.c-onxCMd~ '38 CfS·tlIi~ ·auri.fig~t1ie·Otliet' m:oj)ths' brily::Whenit"equalS' or- .

'exceeds 1f cfs: ...... c· ' ..... ".,. • . ~.

... "

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 \0 such date permittee applies for an extension [lereof. and such ..

application is suosequently granted for an additional term or' in .

. perpetuity. The priority date of this permit alld ~ll ex~ension.s hereof

shall be July 1, 1997. .. .. . .

. ". .

4. WATERGONSE~.vATION .. ,. ~ ~ " : ~ :. r·:,

,.

,', .

Peqniter, shall: iIn,pJemcn\ a'~at~r ~c?~er,-:aiio!).·.pi!l~ 0-~t.Pt9Yifl~s .f~r. t~e·

..

utilization of those practices,. techniques, and technologies that reduce the

consumption ofwaier, preventor reduce the1G)ss.or waste of water, maintain or

improve the efficiency .ill the use of water,· or increase the recyclb:\g and reuse

of watcr so that a water supply is made available'for future or alternative uses:

. .. .- "

. 'Tlrls pennit is iss~eds;;bject t~ aU superior ~d'sel)io~~~te~ rightsk.tl~e Brazos River Basin.

"~ . .

2

66

"

Permittee agrees t; be bound by the terms, conditions and provisions contained hereih and such

agreement is a condition precedent to the granting of this pennit. .

All other matters requested in the" application which are not specificaUy granted by thi~ permit

are de;nied. .

This pepjJ.it is issued subject to the Rules of the rexas Natural Resource Conservation

Commission and to the right of continuing supervision of Sta~ water resources exercised by the·

Commissiop..

TEXAS NATURAL RESOURCE

,

CONSERVATION COMMISSION

Par u'<.~

DATE ISSUED: NOV 0 7 19S7

ATTEST:

Eugenia K. Brurinn, Ph.D .,Chief Clerk

., .

.,

3

67

REQUIREMENTS FOR WATER CONSERVATION PLANS

FOR INDIVIDUAL IRRIGATION SYSTEMS

These Requirements are a synopsis of the rules as approved by the

Commissioners of the Texas Commission on Environmental Quality on

April 7, 1993. The approved rules were published in the Texas

Register on April 23, and are recorded in the Texas Administrative

Code, Title 30. Chapter 288. Conservation plans reqUired to be

submitted to the Texas Commission on Environmental Quality must

follow these gUidelines. 4

A water conservation plan for an lndlv1dualirrigator shall provide information, where applicable,

in response to each of the follOWing elements, including what the user intends to do, or not to do

and why, wIth regard to that element:

(1) A descrIption of the agricultural production process which shall include but is not limited

to the type of crops and acreage of each crop to be Irrigated. monthly irrigation diversions

and any seasonal or annual crop rotation and soil types of the land 10 be Irrigated;

(2) A description of the Irrigation metllOd or system and equipment including pumps, flow

rates, plans, aneVor sketches of the system layout;

(3) A descrIption as to whlch practice aneVor device will be utilized to measure and account

for the amount of water diverted from the source of supply;

(4) Any previous assessments which may have been performed regarding the system

efficiency of the irrigation system;

(5) Specification of conservation goals including quantitative goals for irrigation water use

efficiency;

(6) Water conserving irrigation eqUipment and application system or method including but not

limited to surge irrigation, low pressure sprinkler, drip irrlgation. pollUtion prevention,

and non-leaking pipe;

(7) Leak-detection. repair, and water-loss control;

(8) Scheduling the timing and/or measuring the amount of water applied, such as, soil .

moisture monitoring;

(9) Land improvements for retaining or reducing runoff, and increasing the infiltration of rain

and irrigation water including but not limited to land leveling, furrow diking. terraCing. and

\~eed control;

(10) Tallwater recovery and reuse;

(11) Any other water conservation practice, method. or technique which the Irrigator show to

be appropriate for preventing waste and achieving conservation.

68

Texas Commission on Environmental Quality

IRRIGATION WATER CONSERVATION DATA AND PLAN

FOR INDMDUALLY OPERATED SYSTEMS

Submit this form with an application for Permit to Appropriate State Water. You may want to contact

the local County Agent, Natural Resources Conservation Service office, the Texas Water Development

Board or a professional engineer in preparing this form. If you have any questions concerning the

information requested, contact us at (51m39"4730.

- Name of Applicant: BRADLEY B, vJARE

DayUme Telephone No.: 254--10 3t+ - 10 '5 217

Requested Diversion Amount: -:--;-1---'50;..0"''--:-:-::-::-::---:::-:---::-:::--_ _ _ _ _ _ _ _ _ _ __

5EG P>--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\<J'l3E: I SDR6HUM-j bAlS w m--\ A LE6uME.

Su eM As "'-U$i RIAW W 110IER PEAs,

C:\FORMS\IO~lG:.\\pj (rcv1scd:vm Page Z

69

Bradley Ware

Part 1.

Some of my land I double crop.

Type 0/ crop: Growing season (months) Acres inilyear

1. Tifton 85 Bermuda I 8 months 36

Soft Wheat (Grazing) ---1 (donbJe crop) 6 months 36

2. Improved Native Grass 9 months 22

3. Brown midrib Sorghum] 7 months 54

Bob oats or soft wheat (double crop) 5 months 54

4. Costal Bennuda grass:::J (double crop) 8 months 20

Bob oats or soft wheat 5 months 20

70

I.

IV. Describe your soli type (include permeability characteristics. If available): 1305Ql.l.E CLA'Y

LOAM \\lqH WATER ~\DLDIt06 CAP/\UTV. /:)8JTOJ0 SILTY ClAY-DEEP

w(lL DRMj(D. SLDWL'/ PERMABl£ PRE.SE:JJ1\I)j 0.0WTDUR TE.RRI\CEPAfJD

5EEbEO TO tJAT\\lE E\RA'55 St:EC\ES .CJ</.>,\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.i<TEDS IDI0

5E\<.1J 1(£ , LuBi'IOC-K --rx

DR LEblJ NGW! TEXf'-S (loD~FATlUE: G><r8JSIOiJ

Page 3 .ANl.A1< 1LLo I TX'

71

Reslllts of the evaluation: tePA DES1Gk) CE;lSlEi< Pl\JC5f SYsTE,us ARE:.

PRD\)W TO EXCEED '45% E-FFCJJCfEtj01 At-JD qb% WJIPoRMITY

OF DI:5TRIBUTIOlJj E>Clill3li5 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<OU.tJD

_VIII, cant. DELlVE.R'1 PIFE. LOW E.NER6Y PRECISE APP~

CLEf">/;,) 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.'l<AS cooPE';R,A.TIVE: E':,crWSlDhJ SE!<.\lICE:

PUBLICAnDDS I 6-(00/1 f L-2.2,Q I BC,;>ilc>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. :;>

e.-I 0701 B-0oIQ.

'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 reque<rted rerum flows become

available only at the furthest downstream point in the basin; diversions at other

points are possible due to specific facts and circumstances ofiliat 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.l34(b), and granting Applicant a continued right to appropriate 1SO

Acre-feet of water dating from his July 1, 1997 pIiority date, the Commission's April 20, 2010

Order "aliocated" the water available for appropriation in the Brazos River Basin to a subsequent

applicant, BRA.

ArrLlcANr'SMonON FOR REHEARJNG

MAY 14,2010 PAGE 10

85

V. POmT OF ERROR NUMBER THREE

The Commission's April 20, 2010 Order is in violation of the requllements of Texas

Water Code, §11.l381, regarding the consideration and granting of water rights permits for a

telm of years.

DISCUSSION

Texas Water Code §11.1381 states:

Sec. 11.1381. TERM PERMITS. (a) Until a water rightis perfected to

the full extent provided by Section 11.026 of this code, the commission may

issue permits for a tenn 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 if the 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,

(0) The commission shall refuse to grant an application for a term

permit if the holder of the senior appropriative water right call demonstrate that

the issuance of the tel1ll pennit would prohibit the senior appropriative water

right holder from beneficially using the senior rights during tl,.

tenn of the term

permit. Such demonstration will be made using reasonable projections based on

accepted method,.

(d) A permit issued under this section is subordinate to any senior

appropriative water lights.

Accordingly, even the Commission's unlawful recognition of the avallabilit), of return

flows in the Brazos River Basin, albeit solely for use under Brl1Zos River Authority's ("BRA")

pending water rights application, is unspoken Commission recognition that the evidence of

1 record shows there is water available for appropriation for Applicant's diversion and use, at least

for a term ofyears. BRA has only a pending application for a proposed appropriation. The water

\ Al'PLlCANt'sMOTION FORREllEARlNG

MA.¥ 14, 2010 PAGE 11

86

that the ColIl1llission's April 20, 2010 Order finds available for that proposed appropriation by

BRA is, by definition, available to Applicant before any new appropriation by BRA is authorized

by the Commission. Additionally, the evidence of record is that BRA is using only 20% of its

e:rlsting Stillhouse Hollow Lake water right, the closest and most pertinent water light to

Applicant.. Tex. Water Code § 11.1381 requires the holder of a senior appropliative 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 tenn of the tenn permit." In

this case, there was no senior appropriator party-- BRA withdrew; and there could bave been nO

demonstration of hann to BRA because it only has a pending application, not any right to

appropriate the 421,449 acre-feet per year ofreturn flows found to he available for appropriation

in the Commission's April 20,. 2010 Order. There was no demonstration of harm to any other

existing water rights holder in the Brazos River Basin, on the facts of record ill this contested

case hearing.

MPLICANT'S MOTION FOR RF.llEARlNG

MAV14,ZOlO PAGE 12

87

VI. POINT OF ERROR NUMBER FOUR

The Commission's April 20, 2010 Order violates the fundamental doctrine of water rights

law of "fu:st in time, first in right," as sot forth in the Texas Water Code, Chapter 11.

DISCUSSION

Texas water law establishes. 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 further

defined the priority of an appropriation at Texas Water Code, §11.141. When the Conunisslon

issued Mr. Ware's original Permit No. 5594 in "Appropriate and Use State Water" in 1997, the

Commission's inclusion of Special Condition 3(b) merely memorializes the "fu:st ill time first ill

right" doctrine in Texas Water Code, §11.027 and §11.141. Special Condition3.(b) states:

"The priority date ofthls permit and all extensions hereof shall be Jnly 1, 1997."

Sections 11.027 and 11.141 protect the appropriation of Slate water, not an application for the

appropriation 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 establishes the priority of Applicant's

appropriation; Tex. Water Code, §11.141 states:

Sec. 11.141. DATE OF PRIORITY. When the commission issues a pennit, the priority

of the appropriation of water and O,e claimanes right to use the water date from the date

of filing of the applloation.

n,e priority date applies to the original appropriation, regardless of whether the appropriation is

authorized for a term of years or in perpetuity. Where the appropriation is perpetual, the date of

the original application for same wOllld not change. When the appropriation is for a term of

years, necessitating re-application if the appropriator wished to retain the water tight, there could

be confusion about which "application" date controlled. Logically, on a renewal of au existing

appropriation it would remain the date of the original application. However, the Commission ill

ArPLICANr'S MOllON FORRElJI:.\WNG

MAY 14,2010 PAG£13

88

1997 eliminated ali confusion and ambiguity by expressly interpreting Texas Water Law and

including Special Condition 3(b) ofPer!llit No. 5594.

When the Executive Director and, ultimately, the Commission, changed Mr. Ware's

priority date to January 5, 2006 [Finding ofFMt 48] the action violated §11.l41 of the Water

Code and §2001.174(2)(A) of the Government Code. Mr. Ware was deprived of a property right

conferred by the original Commission order issuing Permit No. 5594 without any notioe and

opportunity to respond to the removal of the right. A new, far less senior priority date was used,

improperly, in the Exe.cutive Director's November 14,2006 Water Availability Review of Mr.

Ware's application and in 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. GO'll'!. Code §2001.174(2)(C).

APPLIChN'f'S MonON FOil REBEIJONG

MhY14,2010 l'AGE14

89

vn. POINT OF EUROR 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 Fann under Pennit No. 5594, an

authorized appropriator, 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 applicants, new permittees, and other water rights holders.

DISCUSSION

The Commission's unlawful insistence on the absence of water available for a requested

150 acre-feet per year appropriation for Applicant's Ware Farm in this case stands in stark

contrast to its detennination of water availability for other appropriations. Without contested

case hearings, the Commission issued water lights fur perpetual permits to the City of Bryan and

the City of College Station. During the pendency of this proceeding, the Commission granted

Permit No. 5912 to the City of Bryan on February 5, 2010, authorizing the diversion and use of .

14,282 acre-feet (less losses) of tbose return flows [returned to a surface watercourse in the

Brazos River Basin] per year with not priority date. Also during the pendency of this

prooeeding, the Conunission granted Permit No. 5913 to the City of College Station, also on

February 5, 2010 authorizing diversion and use of 12,88 J acre-feet (less losses) of those return

flows [ret\ll1J.ed to a surface watercourse in the Brazos River Basin] per year with no priority

date. And, of course, in this case, the ConnniRsion's April 20, 2010 Order found water available

for a proposed appropriation by BRA, even though BRA is 1I0t a party to this case.

Effective March 10, 2005, ahuost eight years after Applicant's autholized appropriation,

BRA, the City of Abilene, and West Central Texas Munioipal Water Dl8trict entered into an

agreement on file with TCEQ regarding in part, the water proposed to be appropriated under

BRA's pending water rights application (and, at the same time, the water requested for

appropriation by Applicant), conferring upon each other water rights "for so long as any of the

Parties' water rights referenced in this Agreement remain in effect." The Conunission's April

Al'rLlC>lNT'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, certifie<l 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 retumed to a watercourse or stream,

however, it is considered surplus water and therefol'e subject to reservation

for insll'ealn uses or beneficial inflows or to appropriation by others unless

c:,:pl'essly provided otherwise in the perroit, certified filing, or certificate of

adjudication. [Emphasis supplied.]

The Commission's order, which recognizes 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 Applicant's continned appropliation, is founded upon unlawful procedure. The

Texas Water Code and COlmnission lUles do not provide for reservation of state water available

for appropriation to future applicants. There is no law or lUle, and conse<juently no legal

justification for the Commission's actions denying a re<juested appropriation for Ware Farm

while granting perpetual or long (enn pewits for other later applicants and appropriators.

The importance of fair and accurate watex availability analysis by the Commission, has

its basis, not oniy in the Texas Water Code, but also in ptinciples of fundamental fairness, and

ArPLICANT'S MOTION FOR REITEAlUNG

MAV14,2010 PAGE 16

91

prohibition against property deprivatioll witilout compensation Ot due process, under the

Constitution of the United States of Amedca and the Texas Constitution. Water rights are

property rights, and the termination or denial of those rights witilou! 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. Secret deals with applicants,

reliance on erroneous or outdated data, refusal to apply filets as dictated by statute, operating in

accordance with non-existeut roles and procedures unlawfully compromise tile Connnission's

water rights regulAtion. Above everything, Applicant should uot be denied under Commission

procedures which determine water availability based on unspecified proceclures and non-public

mles which favor some applicants over others \vitiloul regard to the statutory mandate, "As

between appropriators, tile ftrst in time in the fast in right.

Apparently, tile Commission misled Applicant in 1997 when it issued a term pennit, but

issued perpetual water rights to later Brazos River Basin applicants. Now, tile Commission's

April 20, 2010 Order compounds its previous errors by continuing to deny Mr. Ware access to

water available for appropriation in the Brazos River Basin.

M?!.JC>INT'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

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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