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REGION H WATER MANAGEMENT STRATE

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					       REGION H WATER MANAGEMENT STRATEGY ANALYSIS
                  TECHNICAL MEMORANDUM


STRATEGY TITLE: NON-MUNICIPAL CONTRACTUAL TRANSFERS
DATE: July 14, 2000

SUMMARY

STRATEGY DESCRIPTION: Transfer surplus water supply to meet demands within the
same or neighboring counties and basins, using existing conveyance systems when
possible.

SUPPLY QUANTITY: 25,800 acre-feet per year (change use type from manufacturing
to irrigation)

SUPPLY SOURCE: Chocolate Bayou Water Company

IMPLEMENTATION DECADE: 2010 through 2050

TOTAL STRATEGY COST: No Cost

UNIT WATER COST: No Cost


Water Management Strategy Analysis Description

Introduction:

A contractual transfer is a permanent transfer (contract paper) of water supplies, from one
party to another, which may or may not involve an exchange of water rights. The
primary advantage of contractual transfers is the opportunity to reduce or defer the
construction of major new water facilities. Contractual transfers make the most efficient
use of existing water supplies by allocating available supplies to entities needing the
water.

Analysis:

In identifying potential contractual transfers, projected water supply surpluses were
identified for non-municipal water uses by county and river basin. The analysis consists
of reviewing current water supply contracts and permits and comparing projected water
demands versus each contract or permit. Any identified water excess is a potential
contractual transfer. Extensions of existing surface water supply contracts with major
water providers through the year 2050 were assessed. Groundwater supplies were not
considered available for transfer. Aggregate surpluses under 1,000 acre-feet per year



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were not considered for transfer, although individual industries or irrigators may choose
to pursue these transfers independently.

Table 1 indicates all projected 2050 surpluses considered for transfer. As shown, a
quantity of approximately 178,100 acre-feet per year of water was identified in Brazoria,
Chambers, Fort Bend and Harris Counties for potential transfers. This amount of supply
represents water that is held by Non-Municipal WUG’s who are not projected to have a
demand need for that water through the year 2050.

Review of Table 1 shows that approximately 85,100 acre-feet per year of the total
potential surplus (46%) is owned and controlled by steam electric power entities. The
second largest category of excess supplies (56,500 acre-feet per year) is controlled by
manufacturing entities.


Water User Group Application - Proposed Transfers

Discussions were held with the specific parties that have potential excess water supplies.
These entities were identified from Table 5 of the Region H regional planning tables.
Discussions occurred to assess the viability of a potential transfer. Success of any
contractual transfer requires a willing seller and a willing buyer. Based on the
assessment, the following conclusions can be made:

1. Two of the identified surpluses in Chambers County are not recommended for transfer
   due to their locations. A surplus of irrigation supply was identified in the Neches-
   Trinity basin. However, this surplus is divided among numerous small contracts and
   among private water rights held along coastal streams. Similarly, the identified
   manufacturing surplus in the Neches-Trinity basin is located on East Bay Bayou. An
   additional complication is that there are no identified water shortages within
   Chambers County that would need available supplies.

2. Brazoria County manufacturing has a projected 2050 surplus of 54,017 afy in the San
   Jacinto-Brazos basin. These excess supplies are controlled through water contracts or
   permits by three entities: Gulf Coast Water Authority, Dow Chemical and Chocolate
   Bayou Water Company (CBWC.) The largest quantity of this water is owned by
   CBWC. Based on this analysis, of the total 54,017 afy of excess supplies, only
   approximately 25,800 afy could be made available for transfer. Review of the water
   shortages within the lower Brazos and San Jacinto-Brazos basins reveals that a water
   shortage for irrigation uses controlled by CBWC is projected to occur by year 2000
   and continue to increase through year 2050. The contractual transfer strategy
   proposed herein involves simply reallocating the use of the supply controlled by
   CBWC from manufacturing uses to irrigation uses. This action may require a water
   rights amendment to change the type of use.




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3. The surplus supplies associated with the steam electric power entities within Fort and
   Harris counties is not available for transfer due to long-term future objectives of the
   various power companies.

4. The Harris County irrigation water supply surpluses are controlled by numerous
   irrigators under contract to the City of Houston, San Jacinto River Authority or
   Trinity River Authority. Based on this assessment, there is insufficient detail to define
   how much excess supply exists for each of these MWP’s. In the future, this excess
   water will revert back to each MWP when its use is no longer needed. These supplies
   can then be allocated to other contract users served by each of the respective MWP’s.

In summary, of the potential contractual transfer opportunities, only one involving the
Chocolate Bayou Water Company has the potential to address a significant portion of the
identied water shortages. This transfer would have no associated cost to implement and
could be implemented immediately.




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