Cockrell’s proposed rule would expand unlawfully the uses of the mitigation fund

Staff Report & Agenda Item Details

3. Cockrell’s proposed rule would expand unlawfully the uses of the mitigation fund created from the collection of the $0.20/1000 gallon export fees authorized by Section 36.207, Texas Water Code, as amended by HB 3059, including a likely unconstitutional mandate for the District to pay permittees and landowners some form of reparation or damages to “recoup the adverse economic impacts caused by the decline of groundwater levels.”1 For the reasons set forth above, and in light of the plain language of HB 3059 amending Section 36.122, Texas Water Code, which demonstrates the inconsistencies of the Cockrell proposal with the unambiguous intent of the Texas Legislature, FSH and Williams respectively request the Board deny the Petition. 1 See Tex. Const. Art. 3, §52(a). 0002 October 14, 2024 Page 3 Thank you for your favorable consideration of this request. Should you have any questions, please feel free to call me. By copy of this letter | am copying both the District’s General Counsel, Michael Gershon, and Counsel for the Petitioner, Ryan Reed. Best wishes. Sincerely, ERM/tn Encl. cc (via e-mail): Cockrell Investment Partners, LP Attn: Ryan Reed, Counsel Michael Gershon, General Counsel, MPGCD. Fort Stockton Holdings, LP 0003 October 14, 2024 Page 4 Attachment No. 1 Petition for Rulemaking filed on August 19, 2024, by Cockrell Investment Partners LP 0004 MIDDLE PECOS Groundwater Conservation District P. O. Box 1644, Fort Stockton, Texas 79735 Phone: 432/336-0698; Fax: 432/336-3407 Email: mpgcd@mpgcd.org PETITION TO ADOPT OR MODIFY A DISTRICT RULE Instructions: This Petition to Adopt or Modify a District Rule form must be completed as required by District Rule 6.5 and filed at the District office. Each rule adoption or modification requested must be submitted on a separate Petition to Adopt or Modify a District Rule form. A person unable to comply with any procedures under District Rule 6.5, or to provide the information required by this form, may file a written explanation as to why compliance with the required procedure(s) is not possible along with a written request that the District waive the specific procedure(s). The written explanation and written request must be submitted to the District Office at the same time as this Form. Additional information may be attached to this form.