HB 4138

relating to the expiration date of certain permits issued by
groundwater conservation districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter D, Chapter 36, Water Code, is amended
by adding Section 36.1141 to read as follows:
Sec. 36.1141.  EXPIRATION OF PERMITS SUBJECT TO LITIGATION.
(a)  A district shall delay the expiration date of a drilling,
operating, or transfer permit, and the expiration of any associated
permits issued to the permit holder by the district, if the
expiration date occurs while the drilling, operating, or transfer
permit holder is a party to litigation concerning the issuance or
(b)  The district shall delay the expiration date until:
(1)  if the litigation ultimately results in the permit
being held to be valid, the two-year anniversary of the date on
which a final, nonappealable judgment in the litigation concerning
(2)  if the litigation ultimately results in the permit
being held invalid, the date on which a final, nonappealable
judgment in the litigation concerning the permit is issued.
(c)  This section does not apply to litigation initiated by
(d)  This section does not apply to a permit holder who:
(1)  is delinquent in paying a fee required by the
(2)  is subject to a pending enforcement action for a
substantive violation of a district permit, order, or rule that has
not been settled by agreement with the district or a final
(3)  has not paid a civil penalty or has otherwise
failed to comply with an order resulting from a final adjudication
of a violation of a district permit, order, or rule.
SECTION 2.  Section 36.1141, Water Code, as added by this
Act, applies only to a permit issued on or after January 1, 2022.
SECTION 3.  This Act takes effect September 1, 2025.