Chocolate Bayou Water Co. & Sand Supply v. Texas Natural Resource Conservation Commission

124 S.W.3d 844, 2003 Tex. App. LEXIS 10571, 2003 WL 22964274
CourtCourt of Appeals of Texas
DecidedDecember 18, 2003
Docket03-03-00143-CV
StatusPublished
Cited by46 cases

This text of 124 S.W.3d 844 (Chocolate Bayou Water Co. & Sand Supply v. Texas Natural Resource Conservation Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chocolate Bayou Water Co. & Sand Supply v. Texas Natural Resource Conservation Commission, 124 S.W.3d 844, 2003 Tex. App. LEXIS 10571, 2003 WL 22964274 (Tex. Ct. App. 2003).

Opinion

OPINION

W. KENNETH LAW, Chief Justice.

Appellants, Chocolate Bayou Water Company and Sand Supply appeal a district-court grant of a plea to the jurisdiction, and in the alternative, summary judgment, dismissing their suit against appellees, the Texas Natural Resource Conservation Commission, 1 the City of *847 Houston, the Brazos River Authority, and the Texas Water Development Board (“TWDB”) (collectively “TCEQ”). Appellants’ central complaint is that TCEQ issued a defective notice concerning the amendment application to the reissued Al-lens Creek water permit that prevented appellants from timely requesting a contested-case hearing on the amendment application. Appellants contend that the notice of the application was defective because general language in the notice differed from the amended permit the Commission actually granted. Appellants have also alleged: (1) Senate Bill 1593, which authorized the Allens Creek permit and its amendment, is unconstitutional as a “special” or “local” law; (2) Senate Bill 1593 violated appellants’ due process rights by authorizing TCEQ to issue TWDB this permit without notice or hearing; and (3) the amended permit infringes appellants’ senior water rights in violation of the Texas Water Code. TCEQ filed a plea to the jurisdiction. In addition, both appellants and TCEQ fried motions for summary judgment. The district court granted TCEQ’s plea to the jurisdiction and in the alternative, also granted TCEQ’s summary judgment. We will affirm.

BACKGROUND

The first Allens Creek permit was issued to Houston Lighting & Power in 1974 for the purpose of providing a cooling reservoir for a proposed power plant. The power plant was never built, and the permit was canceled ten years later at the request of Houston Lighting & Power. In 1999, the Texas legislature passed Senate Bill 1593 (“S.B.1593”), a comprehensive water plan that contained a provision that specifically required TCEQ, the state agency charged with managing water permitting, to reissue the Allens Creek permit to TWDB for the purpose of supplying Houston with municipal water. Because the reissued permit retained all the provisions of the first permit but was intended for a different purpose, the bill also provided that the reissued permit could be amended and that the amendment application would have to meet the notice and hearing requirements of the water code. Further, S.B. 1593 allowed TWDB to transfer the Allens Creek permit to another political subdivision. TWDB has since shared its permit with the Brazos River Authority and the City of Houston.

TWDB filed an application to amend the Allens Creek permit in June 2000. Senior water-right holders, those that hold permits predating the Allens Creek reissued permit, were mailed a notice of the application. Both Chocolate Bayou and Sand Supply hold water rights senior to TWDB’s Allens Creek permit; both were duly given notice of the amendment application. The notice met the sparse statutory requirements of the water code and further indicated that the amended Allens Creek permit would contain stream flow restrictions measured at the Richmond gage that would “safeguard downstream water rights.” See Tex. Water Code. Ann. § 11.132 (West 2000). Stream flow restrictions are one method that TCEQ uses to protect senior water rights. TCEQ may assign a permitee a stream flow restriction. When the river flows below that *848 specified number, the permitee can no longer divert water from the river. Thus, a low stream flow restriction allows the permitee to divert more water than a high restriction. Allens Creek is located upstream from Chocolate Bayou and Sand Supply on the Brazos River.

Chocolate Bayou was sent a copy of the application for amendment along with the notice. Sand Supply stated at oral argument that they did not get a copy of the application until much later. 2 Because the application is a sparse and highly technical document, TCEQ requested, and TWDB filed, more detailed supporting materials along with its application. Both the application and supporting materials were on file and open to review by the public. Once the application for amendment was filed, the Brazos River Authority, co-holder of the Allens Creek permit, conducted a series of “road shows” wherein they discussed the amendment they were seeking with senior water-right holders. Appellants contend that during these meetings, the Brazos River Authority described the Allens Creek permit as a “scalping operation” that would only divert water from the Brazos River during high-water periods.

In March 2001, appellants obtained copies of the draft amended permit. At that time the permit had not yet been formally adopted. The amended permit contained stream flow restrictions measured at a gage over thirty miles upstream from the Richmond gage, a location much closer to the actual diversion point of the Allens Creek permit. It also specified stream flow restrictions that both appellants now claim impair their senior water rights. After receiving its copy of the draft amended permit, Chocolate Bayou filed a request for an evidentiary hearing with TCEQ. In May 2001, Sand Supply requested a formal contested-case hearing regarding the amended permit. However, neither appellant could request a contested-case hearing at that time because the timetable for contested-case filings had elapsed. 3 Both appellants filed several requests for rehearing over the following months. Each request was denied by the Commission. On January 16, 2002, TCEQ formally granted the amended Allens Creek permit.

Appellants filed suit for judicial review in district court. Appellants’ main complaint is that the notice of amendment TCEQ issued to senior water-right holders was defective because it differed materially from the amended permit that TCEQ ultimately granted, and appellants’ reliance on the defective notice prevented them from filing for a contested-case proceeding regarding the Allens Creek permit amendment thereby depriving them of due process. In their district court lawsuit, appellants complained for the first time that the original permit issued pursuant to S.B. 1593 was unconstitutional because S.B. 1593 is an impermissible “local law” and because the legislature required TCEQ to issue the Allens Creek permit without notice or hearing. Appellants also claimed that TCEQ had acted unlawfully by issuing the amended Allens Creek permit in the face of appellants’ protests. The district court dismissed appellants’ claims pursuant to TCEQ’s plea to the ju *849 risdiction and in the alternative granted TCEQ summary judgment.

STANDARD OF REVIEW

Subject-matter jurisdiction is essential to the authority of a court to decide a case. Rylander v. Caldwell, 23 S.W.3d 132, 135 (Tex.App.-Austin 2000, no pet.) (citing Texas Ass’n of Bus. v. Texas Air Control Bd., 852 S.W.2d 440, 443 (Tex.1993)).

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Cite This Page — Counsel Stack

Bluebook (online)
124 S.W.3d 844, 2003 Tex. App. LEXIS 10571, 2003 WL 22964274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chocolate-bayou-water-co-sand-supply-v-texas-natural-resource-texapp-2003.