Edwards Aquifer Authority v. Chemical Lime, Ltd.

212 S.W.3d 683, 2006 Tex. App. LEXIS 8151, 2006 WL 2631864
CourtCourt of Appeals of Texas
DecidedSeptember 14, 2006
Docket03-04-00379-CV
StatusPublished
Cited by12 cases

This text of 212 S.W.3d 683 (Edwards Aquifer Authority v. Chemical Lime, Ltd.) 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
Edwards Aquifer Authority v. Chemical Lime, Ltd., 212 S.W.3d 683, 2006 Tex. App. LEXIS 8151, 2006 WL 2631864 (Tex. Ct. App. 2006).

Opinion

OPINION ON SECOND MOTION FOR REHEARING

BOB PEMBERTON, Justice.

We deny appellants’ motion for rehearing, withdraw our opinion and judgment dated June 2, 2006, and substitute the following in its place.

In the 1993 Edwards Aquifer Authority Act (EAA Act), the legislature established a new regulatory scheme to govern use of groundwater from the aquifer and a new agency, appellant Edwards Aquifer Authority (the Authority), to administer the regime. The legislature granted a preference under the EAA Act’s permitting regime to existing users of aquifer water. To obtain the preference, the EAA Act provided that existing users had to file with the Authority a declaration of historical use by March 1, 1994 — exactly six months after the EAA Act’s effective date. Intervening legal developments barred implementation of the EAA Act until after the supreme court rejected constitutional challenges to the EAA Act and vacated an injunction against its enforcement in Barshop v. Medina County Underground Water Conservation District, 925 S.W.2d 618 (Tex.1996). In lieu of the then-expired 1994 statutory deadline, the Authority, relying on an interpretation of Barshop, set by rule a deadline of December 30, 1996— six months after the Barshop opinion was issued — for existing users to file declarations of historical use. Appellee Chemical Lime, Ltd., whose New Braunfels plant had used aquifer water since the early 1900s, filed its declaration on January 17, 1997. Over three years later, the Authority rejected Chemical Lime’s declaration for being untimely filed, thereby depriving Chemical Lime of preference as an existing user.

Chemical Lime sought a declaration in district court that the Authority’s filing deadline rule was not authorized by the EAA Act and Barshop, and, in the alternative, that Chemical Lime had substantially complied with the filing requirements. The district court rendered judgment invalidating the rule and declared both that Chemical Lime’s declaration had been timely filed as a matter of law and that Chemical Lime had substantially complied with the filing requirements even if the Authority’s deadline was proper. It also awarded Chemical Lime attorney’s fees. The Authority appeals this judgment.

Construing Barshop in light of the standards governing when appellate court judgments reversing lower court judgments take effect, we affirm the district court’s judgment invalidating the Authority’s filing deadline and declaring Chemical Lime’s historical use declaration to be timely filed. As this ground alone supports the district court’s judgment, we do not reach Chemical Lime’s issues concerning the district court’s alternative substantial compliance ground. We also affirm the district court’s award of attorney’s fees to Chemical Lime.

BACKGROUND

As its name suggests, Chemical Lime produces lime, a product used in road construction, steel manufacture, water treatment, and the removal of sulfur compounds from emissions from coal-fired *687 plants. 1 In 1999, Chemical Lime bought APG Lime, including a lime-production plant in New Braunfels. This plant, in operation since 1907, uses water for lime processing, dust suppression, the cooling of equipment, drinking water, and sanitation. The plant’s sole water source is well water from the Edwards Aquifer, an underground system of water-bearing formations that includes all or parts of Atascosa, Bexar, Caldwell, Comal, Guadalupe, Hays, Medina, and Uvalde counties. See Barshop, 925 S.W.2d at 624-25.

The Edwards Aquifer Authority is a conservation and reclamation district created by the legislature in 1993 and empowered to regulate groundwater withdrawals by well from the aquifer. See Act of May 30, 1993, 73d Leg., R.S., ch. 626, §§ 1.02, 1.14,1.41,1993 Tex. Gen. Laws 2350, 2350-2372 (EAA Act); see Tex. Const, art. XVI, § 59(a). Because this appeal concerns procedural requirements relating to the Authority’s regulation of the aquifer, it is helpful first to examine these requirements — and various legal developments that ultimately delayed their implementation — in order to place the Authority’s appellate issues in context.

The Edwards Aquifer Authority Act

Among other limitations, the EAA Act imposed aquifer-wide limits on water withdrawals by non-exempt wells and empowered the Authority to allocate the caps among wells through a permit system. 2 EAA Act § 1.14(b), (c). The legislature gave “existing users” preference under the permit system. See id. § 1.16. “Existing users” were defined as persons who withdrew and beneficially used underground water from the aquifer on or before June 1, 1993. Id. § 1.03(10). “An existing user may apply for an initial regular permit by filing a declaration of historical use of underground water withdrawn from the aquifer during the historical period from June 1, 1972, through May 31, 1993.” Id. § 1.16(a). The Authority was authorized initially to grant regular permits solely to existing users who properly filed a declaration of historical use and who established “by convincing evidence beneficial use of underground water from the aquifer.” Id. § 1.16(d). Existing users were entitled to an amount of water equal to their maximum beneficial use of water during any one calendar year of the historical period unless the total amount of such máximums by all existing users in the aquifer exceeded 450,000 acre-feet per year through the year 2007 and 400,000 acre-feet per year thereafter. Id. §§ 1.14(b), (c), 1.16(e). If total maximum historical usage exceeded this level, the legislature required the Authority to reduce proportionately the amounts of withdrawals under the permits as necessary to meet the cap. Id. § 1.16(e). Conversely, to the extent that unallocated water within the cap remained after the issuance of permits to existing users who properly applied, the Authority was authorized to issue additional regular permits, subject to the cap. Id. § 1.18(a).

As originally enacted, the EAA Act required existing users to file them “declaration of historical use” on or before March 1, 1994. Id. § 1.16(b). This date was exactly six months after the original effective date of the EAA Act, September 1, *688 1993. See id. § 4.02. Until the Authority actually began granting regular permits, existing users could continue to beneficially withdraw and beneficially use water, provided it was not wasted. Id. § 1.17.

The Barshop litigation and other delays

The EAA Act also provided that the Authority’s board of directors would be appointed by various governing bodies affected by the Authority. Id. § 1.09. This appointment procedure was required to be submitted to the United States Department of Justice for administrative pre-clearance under section 5 of the Voting Rights Act. See 42 U.S.C.A. § 1973c (West 2003).

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212 S.W.3d 683, 2006 Tex. App. LEXIS 8151, 2006 WL 2631864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edwards-aquifer-authority-v-chemical-lime-ltd-texapp-2006.