18-TCEQ APPLICATION FOR AMENDMENT TO WATER RIGHT

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B. Impacts "Beyond or Irrespective" of the Full-Use Assumption In its decision in the City of Marshall case, the Texas Supreme Court suggests that the Commission must evaluate whether a proposed amendment will affect other water rights holders or the on-stream environment "beyond or irrespective" of the full-use assumption. The Court provides that such an effect may occur with applications seeking to move the point of diversion "upstream above a senior right holder," or seeking to change the purpose of use from a "nonconsumptive use to a consumptive one." The City's Application seeks neither of these types of amendments, nor any amendment that will harm other water right holders or the environment beyond the legislatively mandated full-use assumption. The City's COA 02-4940A currently includes an authorization to divert, without any limitation or condition on consumption, up to 20,000 acre-feet of water per annum for industrial purposes within the Sulphur River Basin in Lamar County. The City's proposed amendment seeks only to add an agricultural purpose of use to this existing authorization, and does not in any way alter the amount of water the City may ultimately consume under its water right. With its Application, the City merely seeks the ability to more efficiently utilize its water supply within the current parameters of COA 02-4940A to serve customers that look to the City for existing surface water supplies. VIIL Public Welfare The proposed amendment will allow the City to provide water to customers within Lamar County for beneficial use purposes, as defined in the Texas Water Code. Such action is consistent with the City's intent to protect the public welfare, and will certainly not be detrimental to the public welfare, as is addressed in Texas Water Code § 11.134(b)(3)(C). Indeed, the proposed amendment will benefit the public welfare as it will allow the City to maximize the efficient use of existing supplies to provide raw water to customers within Lamar County that would otherwise require greater use and appropriation of unappropriated water. By maximizing the efficient use of its supplies to serve customers within Lamar County, and managing the use of that water pursuant to its TCEQ-approved water conservation and drought contingency plans, the City can ensure the best use of its surface water supplies and protect the public welfare. IX. Consistency with State and Re�ional Water Plans The City's proposed amendment is consistent with demands identified by the Region D Regional Water Planning Group. While irrigation and livestock demands for Lamar County included in the 2011 Region D Water Plan do not show significant increases, such demands do not include demands created for agricultural use by the Daisy Farms project currently being constructed and permitted. Included herewith as Attachment D is a copy of the Minutes of the Northeast Texas (Region D) Regional Water Planning Group Meeting held on May 16, 2012, during which meeting the Region D Water Planning Group approved a motion to modify the water planning demand projections in Lamar County to include the Daisy Farms project. The City's proposed amendment to COA 02-4940A will allow it to provide water to meet a future demand within Lamar County, and thus this proposed amendment is consistent with state and regional water plans. Furthermore, the proposed amendment is certainly not inconsistent with the state and regional water plans. 3752525.1 Q /� 4 V `i