Ground Water Lease Formed
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FAQ
The amount of water leased shall not exceed 25 percent of the water that would have been applied or stored by the lessor in the absence of the lease agreement in any given hydrological year.
Generally, Texas groundwater belongs to the landowner. Groundwater is governed by the rule of capture, which grants landowners the right to capture the water beneath their property.
Some states, including California, have systems in place for buying and selling water rights, either on a temporary or permanent basis. Between 2009 and 2018, water rights holders in California leased an average of over 1 million acre-feet of water per year, a total of $295 million dollars annually.
Landowners may obtain a water right by applying for a permit from the Texas Commission on Environmental Quality (TCEQ). After obtaining a permit, the landowner can use surface water for domestic, agricultural, industrial, and other beneficial uses.
Water that has travelled down from the soil surface and collected in the spaces between sediments and the cracks within rock is called groundwater. Groundwater fills in all the empty spaces underground, in what is called the saturated zone, until it reaches an impenetrable layer of rock.
