2003

January

January 10, 2003 – The regular monthly meeting of the Authority Board of Directors is held in Castroville, Texas. The meeting in Castroville fulfills a commitment made by the board of directors to the region to hold at least two monthly meetings each year outside of the Authority office in San Antonio.

January 10, 2003 – Authority directors approve initial regular permits for the San Antonio Water System (SAWS), Bexar Metropolitan Water District (Bexar Met) and fourteen other permit applicants. These final orders represent approximately 185,500 acre-feet of Edwards groundwater. SAWS and Bexar Met are the two largest pumpers of Edwards Aquifer groundwater. These permit amounts will take effect January 1, 2004.

January 10, 2003 – Authority directors approve proposed amendments to the Authority Act (the Act). These amendments will be presented to the 78th Session of the Texas Legislature for consideration. If approved the proposed amendments will: 1) establish residency requirements for candidates seeking appointment or election to the Authority's board of directors and create a process to certify residency of those candidates; 2) remove provisions in the Act requiring Authority district lines to be drawn conterminously with county voter precinct lines; 3) require the Authority to issue all permits regardless of the aggregate total and reduce the total issued permits to 450,000 acre feet by January 1, 2007, and also revise the date to achieve the 400,000 acre-foot Edwards Aquifer pumping limitation from January 1, 2008 to January 1, 2011; 4) allow groundwater to be used outside of the Authority's boundaries if that area is located within a permittee's or applicant's Certificate of Convenience and Necessity; 5) allow permittee's or applicant's to transfer base irrigation groundwater withdrawal rights to any other agricultural use within the county; 6) to allow the base irrigation rights to be converted to any purpose of use within the county if the land where the irrigation originally occurred can no longer be irrigated.

January 28, 2003 – Gregory M. Ellis, Authority General Manager, holds a legislative briefing, in Austin, for members of the Texas Legislature and their staff. This briefing provides information and resources regarding the Edwards Aquifer and the Authority.

January 31, 2003 – Authority v. White - The Authority files a civil action against Mr. White for groundwater withdrawals from the aquifer without a permit and waste of aquifer water. This action is in violation of the Authoritys Act and rules.

February

February 3, 2003 – A special board meeting is held, Authority directors revise their original amendments approved at the January 2003 board meeting, and approve asking the legislature to adopt several proposed amendments to the Authority Act (the Act). These amendments will be presented to the 78th Session of the Texas Legislature for consideration.

If approved, these amendments will: 1) establish residency requirements for candidates seeking appointment or election to the Authority's board of directors and create a process to certify residency of those candidates; 2) remove the requirement for the Authority's single-member district lines to be drawn the same as county voting precinct lines; 3) allow Edwards Aquifer groundwater to be used outside of the Authority's boundaries if that area is located within the original permittee's or applicant's Certificate of Convenience and Necessity; 4) allow irrigators to transfer all their groundwater rights with some restrictions; and 5) validate all groundwater transfers that have been made prior to the effective date of these amendments, if enacted.

Under current law, one-half of each irrigation groundwater right may not be leased to any other user or any other purpose of use. The proposed legislation would allow irrigators to transfer those groundwater rights to another agricultural use within the county where the original permit is issued. The legislation would also allow irrigators to transfer their groundwater rights to any other purpose of use if the original farmland can no longer be irrigated.

February 11, 2003 – Authority directors approve a settlement offer for the City of Kyle in the amount of $68,278.32. A portion of this settlement will fund a Surface Water Supply Augmentation project. This project will improve the city's water distribution system and create opportunities for broader distribution of surface water, thereby reducing the City of Kyle's dependency on Edwards Aquifer groundwater. The board also approves settlement offers for 14 other permittees and applicants who have violated the Authority's rules in 2001. These violations include failing to report Edwards Aquifer groundwater use and over pumping groundwater.

February 11, 2003 – Authority directors approve Final Rules to create a Groundwater Trust. AUTHORITY RULES ch. 711, subch. N. (Groundwater Trust) allow the Authority to purchase or lease groundwater withdrawal rights, and either make them available to small industries or hold them in trust as a means to reduce aquifer demand. These rules take effect February 21, 2003.

February 11, 2003 – Authority directors approve initial regular permits for four applicants who had previously filed protests on their proposed permits representing approximately 2,116 acre-feet of Edwards groundwater.

February 11, 2003 – Authority directors adopt an omnibus final order approving six initial regular permits representing approximately 3,205 acre-feet of Edwards Aquifer groundwater withdrawal rights.

February 11, 2003 – Authority directors receive a technical presentation from Eugene Habiger, General USAF (Ret.), President/CEO San Antonio Water System (SAWS), regarding revised population projections and the impact to SAWS water supply and demand planning.

February 11, 2003 – Authority directors renew a contract with BIO/WEST, Inc. to evaluate the effects of variable springflow on ecosystems in the Comal and San Marcos springs. The data from this monitoring effort will be the most comprehensive information collected on these ecosystems and will provide significant support in the Authority's efforts to develop a Habitat Conservation Plan. The board approved the original contract in February 2001.

February 19, 2003 – Gregory M. Ellis, Authority General Manager, holds a legislative briefing, in Austin, for members of the House Natural Resources Committee. This briefing provides information and resources regarding the Edwards Aquifer and the Authority.

March

March 11, 2003 – Authority directors add to their list of possible amendments to the Authority Act. These amendments, along with other amendments approved by the board on February 3, 2003, will be presented to the 78th Session of the Texas Legislature for consideration.

If approved, all these amendments will: 1)raise the "cap" or permitted withdrawals to 550,000 acre-feet per year; 2) interrupt permitted withdrawals in the San Antonio pool only if the level at J -17 declines to 650 feet above msl; 3) interrupt permitted withdrawals in the Uvalde pool only if the level at J -27 declines to 845 feet above msl; 4) guarantee all permittees' receive a permit for no less than the guaranteed "minimums" specified in the Act; require the Authority to achieve the 550,000 acre-foot withdrawal limit by January 1, 2005; 5) require reductions of permitted withdrawals to 350,000 acre-feet, on an annualized basis, when the J -17 well level is below 627 feet above msl, or when the J -27 well level is below 842 feet above msl; 6) require the Authority to adopt a new demand management/critical period plan by September 1, 2004, based on the 550,000 acre-foot withdrawal limit.

Failure to adopt the plan by the deadline will: 1) reduce permitted withdrawals by 20% until the plan is adopted; 2) require the Authority to issue revenue bonds to finance for recharge projects and groundwater withdrawal permit retirement; and 3) allow the Authority to use aquifer management fees to repay revenue bonds and finance recharge projects.

March 11, 2003 – Authority directors approve a Proposal for Decision (PFD) brought from the State Office of Administrative Hearings (SOAH). The SOAH administrative law judge recommends the board issue an initial regular permit to Burrell Day & Joel McDaniel, a South Bexar County ranch partnership, for 14 acre-feet. The applicant originally requested 600-acre feet of Edwards Aquifer groundwater withdrawal rights but could only substantiate 14 acre-feet. This protested permit was referred to SOAH in 2001. This action by the board represents the judicial authority granted to it by the Texas Legislature. The applicant may appeal the board's decision to a state district court.

March 11, 2003 – Authority directors refer 49 sets groundwater withdrawal permit protests to SOAH. This set includes contested permit proposals to be heard by SOAH to propose a final action on each application to the board.

March 11, 2003 – Authority directors approve initial regular permits for four applicants who had previously filed protests on their proposed permits representing approximately 9,500 acre-feet of Edwards groundwater.

March 11, 2003 – Authority directors adopt an omnibus final order approving two initial regular permits representing approximately 87 acre-feet of Edwards Aquifer groundwater withdrawal rights.

March 11, 2003 – Authority directors approve four new members to the Authority's Citizens Advisory Committee (CAC). The new members are Mr. Robert Thornton of San Marcos, Dr. Ralph Beeman of Victoria, Mr. Ken Roberts of La Coste, and Mr. Carl Nentwich of San Antonio. The CAC is required by state law to provide input to the Authority in the development of its Habitat Conservation Plan.

March 11, 2003 – Authority directors present the Fifth Annual A.O. Odie Gilliam Agricultural Water Conservation Award to Medina County Irrigator Michael Saathoff.

April

April 8, 2003 – The Authority is awarded a $328,000 grant from the USFWS and the Texas Parks and Wildlife. The Authority enters into an interlocal agreement with Texas Parks & Wildlife (TPW). Under this agreement, TPW will reimburse the Authority up to $328,000 for expenses related to the development of the Authority's regional Habitat Conservation Plan. Annually, the U. S. Fish & Wildlife Service (Service) provides "pass through" grants to state environmental agencies that can be awarded to specific endangered species-related projects or activities. In November 2002, the Service notified TPW it would be receiving a grant for development of the Authority’s Regional Habitat Conservation Plan. In order to complete the grant process, the Authority and TPW must enter into an Interlocal agreement, effective from January 1, 2003 to December 31, 2004, to disperse these funds to the Authority.

April 8, 2003 – Authority directors renew a contract with the Southwest Texas Rain Enhancement Program for the operation of the Authority's 2003 Precipitation Enhancement Program. The Southwest Texas Rain Enhancement Program will perform cloud-seeding for the Authority over Uvalde County at a cost of $37,951 or 4 cents an acre.

April 8, 2003 – Authority directors approve initial regular permits for five applicants who had previously filed protests on their proposed permits representing approximately 1,968 acre-feet of Edwards groundwater.

April 8, 2003 – Authority directors deny one initial regular permit representing approximately 27 acre-feet of Edwards Aquifer groundwater withdrawal rights.

May

May 13, 2003 – Authority directors approve revised proposed rules for AUTHORITY RULES ch. 715 (Comprehensive Water Management Plan Implementation Rules) subchs. A (definitions), B (variance procedures) and C (groundwater conservation and reuse rules). These rules will require permittees to implement water conservation practices throughout the region. These rules will be assessed for their possible economic and environmental impacts, and submitted for public comment. Public hearings are set for July 2003.

May 13, 2003 – Authority directors receive a technical briefing from Dr. Roberto Pabalan, Southwest Research Institute, on a preliminary feasibility assessment for the treatment and use of water from the Edwards Aquifer saline zone. The report provides desalinization cost information for two treatment techniques and for a range of well yields and water chemistries. Preliminary results indicate that this water supply option could be economically feasible if sufficient quantities of water are available from the saline zone.

May 13, 2003 – Authority directors approve initial regular permits for three applicants who had previously filed protests on their proposed permits representing approximately 265 acre-feet of Edwards groundwater.

May 13, 2003 – Authority directors adopt an omnibus final order is approving three initial regular permits representing approximately 866 acre-feet of Edwards Aquifer groundwater withdrawal rights.

May 13, 2003 – Authority directors deny two initial regular permit applications for Edwards Aquifer groundwater withdrawal rights.

May 13, 2003 – Authority directors direct the General Manager to send demand letters and file suit against 24 irrigation and 28 municipal or industrial permittees for failure to file their quarterly allocation schedules for 2003. The General Manager is also directed to send demand letters and file suit against 19 pumpers who failed to file annual groundwater withdrawal reports in 2002 and one who failed to file a report for both 1998 and 1999.

May 13, 2003 – The General Manager is authorized to present a compromise and settlement agreement to one pumper who exceeded their pumping limit in 2001 and to 17 pumpers who exceeded their pumping limit in 2002.

On May 27, 2003 –Burrell Day and Joel McDaniel v. Edwards Aquifer Authority – Plaintiffs, Initial Regular Permit applicants before the Authority, file suit in federal court seeking a declaratory judgment that: the Act is unconstitutional as a denial of due process; it fails to define ‘convincing evidence’ the Authority is not subject to judicial review; the Act takes private property without just compensation and violates procedural due process; 11.021 of the Texas Water Code violates procedural due process and takes property without just compensation; and Plaintiffs appealed from the Authority’s decision to deny Plaintiffs’ Initial Regular Permit application. The federal district judge granted a dismissal of the lawsuit on the grounds of Pullman and Burford abstention.

June

June 2, 2003 – The 78th Session of the Texas Legislature is adjourned. Only one amendment to the Act, passes during the 78th Session of the Texas Legislature, and was contained in House Bill No. 2455 filed by Representative Warren Chisum of Pampa, commonly called “The Sunset Bill.” Each interim the Sunset Commission is charged with reviewing various state agencies to determine whether they should continue in operation. The Act as originally passed in 1993 requires the Authority board to undergo sunset review in 2005. Sunset Commission staff amended the Sunset Bill to repeal provisions requiring sunset review for four agencies including the Authority Board of Directors.

The only other bill to pass directly affecting Authority operations is House Bill No. 2130 filed by Representative Edmund Kuempel of Seguin. Senator Armbrister amended that bill to add a provision that states a district or authority that regulates groundwater withdrawals in five or more counties “may not impose permit requirements on or otherwise regulate a ‘project in progress’ ….” According to the language in the bill, “A project is considered in progress if a permit or other form of authorization establishing vested rights for the project pursuant to Chapter 245, Local Government Code, was in effect in the area of the authority’s jurisdiction as of the rules adoption date, whether before, on, or after the effective date of this Act.”

June 10, 2003 – At their regular monthly meeting, Authority directors are briefed on the rise in Edwards Aquifer levels after recent rains by Chief Technical Officer, Geary Schindel. The level at J-17, the San Antonio index well located at Fort Sam Houston, is measured at 678.4 feet above msl on Wednesday, June 11, 2003. Since June 1, 2003, the level at the J-17 index well has risen approximately 6 feet and is currently 16 feet above the June historical monthly average of 662.4.

June 10, 2003 – Authority Chief Technical Officer, Geary Schindel, also presents a technical briefing to the Authoritys directors on the drilling and plugging of wells. Mr. Schindel provides directors with general information on common well construction techniques and the importance of closing abandoned wells.

June 10, 2003 – Authority directors approve a joint funding letter agreement with the U.S. Army Corps of Engineers for the analysis of structural controls on the Edwards and Trinity Aquifers interface in the Helotes Quadrangle. The General Manager is authorized to execute the agreement. This study is part of the Authority’s Optimization Technical Studies (OTS) as adopted by the board and is specifically related to the focused flowpath group of studies.

June 10, 2003 – Authority directors approve initial regular permits for three applicants who had previously filed protests on their proposed permits representing approximately 199 acre-feet of Edwards groundwater.

June 10, 2003 – Authority directors adopt an omnibus final order approving three initial regular permits representing approximately 499 acre-feet of Edwards Aquifer groundwater withdrawal rights.

June 10, 2003 – Authority directors deny two applications for Edwards Aquifer groundwater withdrawal rights.

July

July 8, 2003 – The regular monthly meeting of the board of directors is held on the campus of Southwest Texas State University.

July 8, 2003 – Authority directors present a Memorial Resolution to the family of Jerri W. Martin. Mrs. Martin, a Hays County resident, served as a member of the board of the EUWDand was Chairman from December 1994 to December 1995. Mrs. Martin was taken from her family and friends on May 13, 2003. During her tenure as Chairman, Mrs. Martin worked hard to ensure a smooth transition from the EUWDto the Authority.

July 8, 2003 – Authority directors approve a comprise and settlement agreement for St. Marys University in San Antonio, for allegedly violating Authority Rules in 2001 by allegedly overpumping their Edwards Aquifer groundwater withdrawal permit. In lieu of paying a fine, the University agrees to spend approximately $75,000 on water conservation improvements to its physical plant and facilities.

July 8, 2003 – Authority Chief Technical Officer, Geary Schindel, presents directors with a technical briefing on the Authority’s 2002 Hydrogeological Report. Mr. Schindel provides directors with general information on the data collected by the Authority and cooperating agencies regarding Edwards Aquifer water levels, precipitation, aquifer recharge and discharge and water quality. Each year, these data are compiled into an annual hydrogeological data report and can be found on the Authority’s website.

July 8, 2003 – Authority directors approve an interlocal agreement with the San Antonio Water System to jointly fund the construction, operation, maintenance and use of Edwards Aquifer freshwater/saline water interface monitoring wells and aquifer modeling. The Authority and the San Antonio Water System (SAWS) have been cooperatively funding the Edwards Aquifer freshwater/saline water interface studies since September 1998. The purpose of the study is to assess whether saline water could encroach into the freshwater portion of the Edwards Aquifer during extended drought periods. This study is being conducted as part of the board-approved Edwards Aquifer Optimization Technical Studies (OTS) in support of the Edwards Aquifer Optimization Program (EAOP).

July 8, 2003 – Authority directors approve a contract between the Authority and George Veni and Associates for tracer testing, stormwater monitoring, and water sampling. Tracer testing and water sampling are planned to identify aquifer flowpaths to Comal, San Marcos, and Hueco springs. The stormwater monitoring and water sampling is planned to evaluate the potential for aquifer water quality impacts from stormwater in northern Bexar County. This study is being conducted as part of the board-approved Edwards Aquifer Optimization Technical Studies (OTS) in support of the Edwards Aquifer Optimization Program (EAOP).

July 8, 2003 – Authority directors approve initial regular permits for two applicants who had previously filed protest on their proposed permits representing approximately 290 acre-feet of Edwards groundwater.

July 8, 2003 – Authority directors adopt an omnibus final order approving one initial regular permit representing 50 acre-feet of Edwards Aquifer groundwater withdrawal rights.

August

August 11, 2003 – Authority directors approve Final Rules for AUTHORITY RULES regarding well construction and aquifer storage and recovery. The Authority’s well construction rules address procedures for constructing, operating, maintaining and plugging wells that penetrate the Edwards Aquifer. The new well construction rules are more stringent than those currently mandated by the State of Texas. The Authority’s aquifer, storage, and recovery rules generally address permits to add more water to the aquifer, and how that water can be recaptured for later use.

August 11, 2003 – Authority directors receive a technical briefing from HDR Engineering on the San Antonio Water System’s (SAWS) pumping from the Edwards Aquifer. Mr. Ken Choffel, PE. HDR Engineering presents a report regarding an analysis recently performed by HDR Engineering for SAWS. In the report, Mr. Choffel details the objectives of the analysis and provides directors with general information on the data collected.

August 11, 2003 – Authority directors receive a report on “Assessing Droughts in South Central Texas” from Drs. Steve A. Tomka and Raymond P. Mauldin, University of Texas at San Antonio, Center for Archaeological Research. The Authority contracted with Drs. Tomka and Maudlin to evaluate the drought of record and compare it in severity and occurrence to other droughts in San Antonio using dendrochronology. Dendrochronology is the study of tree rings and is based on the fact that trees add one layer of wood each year; a layer is thinner during dry years and thicker during wet years. The study found that the drought of record occurred only once in the 279 years prior to 1979.

August 11, 2003 – Authority directors approve a joint funding agreement between the Authority and the American Water Works Association Research Foundation. The overall project objective is to develop software for a groundwater model designed to simulate groundwater flow in a karst aquifer. This project is conducted as part of the board-approved Edwards Aquifer Optimization Technical Studies (OTS) in support of the Edwards Aquifer Optimization Program (EAOP). Development of software to model karst aquifers will further the process of modeling the Edwards Aquifer using the best available methods.

August 11, 2003 – Authority directors approve initial regular permits for five applicants who had previously filed protests on their proposed permits representing 1,685 acre-feet of Edwards Aquifer groundwater.

August 11, 2003 – Authority directors approve an omnibus final order for one initial regular permit representing one acre-foot of Edwards Aquifer groundwater withdrawal rights.

August 11, 2003 – Authority directors deny two applications representing a total of two acre-feet of Edwards Aquifer groundwater.

September

September 9, 2003 – Authority directors approve Final Rules for aquifer recharge, storage and recovery. These rules outline requirements for obtaining a permit to add more water to the aquifer, and how that water can be recaptured for later use.

September 9, 2003 – Directors approve Proposed Rules to amend existing groundwater withdrawal permit rules. These amendments consist of minor changes and one major change that exempt federal facilities from the requirement to obtain a groundwater withdrawal permit. These Proposed Rules will be submitted for public comment. Public hearings are set for October 2003.

September 9, 2003 – The 2004 Proposed Operating Budget is presented to the board by Authority General Manager Gregory M. Ellis at their regular monthly meeting. Public hearings on the proposed budget will be held in October.

September 9, 2003 – The creation of a water quality task force is referred to the Research and Technology Committee of the board. The goal is to create a task force with membership made up of stakeholders throughout the region. This task force will then make a proposal to the board on the role the Authority should play regarding water quality within the Edwards Aquifer.

September 9, 2003 – Authority directors receive a technical briefing from Mr. Steve Raabe, Director of Planning and Development - San Antonio River Authority. Mr. Raabe’s report focuses on the status of the Region L water resources planning. Mr. Raabes report focuses on the status of the Region L water resources planning. Mr. Rabbe also gives Authority directors background regarding the passage of the Brown-Lewis State Water Plan in 1997 that initiated state water planning by designating sixteen planning regions and establishing a rigorous and consistent set of planning criteria to follow.

September 9, 2003 – Authority directors approve a joint funding agreement with the United States Geological Survey (USGS) for data collection projects. These projects include surface water gauging, Edwards Aquifer recharge calculations, springflow discharge calculations and surface water runoff monitoring in Comal and Hays counties. The Authority and its predecessor agency have cooperated with the USGS to jointly fund hydrologic data collection projects for more than 40 years.

September 9, 2003 – Authority directors approve an interlocal agreement with Texas A&M University to determine if recharge in the Edwards Aquifer Recharge Zone can be enhanced through brush control and if so to what extent.

September 9, 2003 – Sixty-two permit proposals are referred to the State Office of Administrative Hearings (SAOH). These protests will be heard by SOAH to propose a final permit to the board.

September 9, 2003 – The General Manager is authorized by Authority directors to present compromise and settlement agreements to permittees who either did not file or were late in filing their 2003 Demand Management/Critical Period Management Quarterly Withdrawal schedules.

September 9, 2003 – Authority directors approve one initial regular permit for an applicant who had previously filed a protest on their proposed permit representing approximately 75 acre-feet of Edwards Aquifer groundwater.

September 9, 2003 – Authority directors adopt an omnibus final order approving four initial regular permits representing approximately 527 acre-feet of Edwards Aquifer groundwater withdrawal rights.

September 9, 2003 – Two permit applications are denied representing 484 acre-feet of Edwards Aquifer groundwater.

October

October 14, 2003 – Authority Directors approve Proposed Rules to amend the initial regular permit rules. These proposed rules will help the Authority avoid having to purchase initial regular permits to meet a 450,000 acre-foot permit cap. The proposed rules divide initial regular permits into two portions. One portion of the permit, the “Junior Groundwater Right,” can be used by permittees when the Edwards Aquifer is above 665’oposed rules for regulatory assessment and public comment. The public comment period for these proposed rules begins on Friday, October 24, 2003, and ends on Monday, December 8, 2003. A public hearing will be held on Wednesday, November 12, 2003, 6:00 p.m. Authority, 1615 N. St. Mary’

October 14, 2003 – Authority directors approve an initial regular permit for one applicant who had previously filed protests on their proposed permit representing 450 acre-feet of Edwards Aquifer groundwater.

November

November 18, 2003 – Authority directors approve a $13.9 million 2004 operating budget. This budget requires an aquifer management fee of $29 per acre-foot for all non-agricultural users, which is the same fee assessed for 2003. The aquifer management fee for agricultural users was limited by the 77th Texas Legislature to no more than $2 per acre-foot. The Authority raises all revenue through aquifer management fees, assessed against the amount of Edwards Aquifer groundwater authorized to be withdrawn each year. Non-agricultural users are charged a fee based on their authorized pumping and agricultural users are charged a fee based on the amount of groundwater actually used.

November 18, 2003 – The board appoints a 29-member water quality task force. The task force is made up of stakeholders throughout the region. The goal of the task force is to provide recommendations to the board on the Authority’s appropriate role in water quality protection regulations. The task force, chaired by former Senator and State Comptroller, Mr. John Sharp, is expected to complete its work in mid – 2004.

November 18, 2003 – Directors approve proceeding with a feasibility analysis for an in situ refugia pilot project in the Comal Springs ecosystem. A “refugia”in situ refugia is one that occurs “on-site,”in situ refugia is to provide optimum conditions for survival and propagation of the species during even a severe drought. The study concept is presented by Mr. Ed Oborny of BioWest Inc., who states that in situ refugia would only be a temporary solution and should only be used as a last resort.

November 18, 2003 – Authority directors approve initial regular permits for three applicants who had previously field protests on their proposed permits representing approximately 214 acre-feet of Edwards groundwater.

November 18, 2003 – Authority directors approve a Proposal for Decision (PFD) brought from the State Office of Administrative Hearings (SOAH). The SOAH administrative law judge recommends the board deny the application of Mr. Danny McFadin. SOAH finds that Mr. Danny McFadin did not withdraw or beneficially use groundwater from the Edwards Aquifer for irrigation during the historical period from June 1, 1972, through May 31, 1993. This action by the board represents the judicial authority granted to it by the Texas Legislature. The applicant may appeal the board's decision to a state district court.

November 18, 2003 – Mr. Michael D. Beldon, Chairman of the board of directors, and Director District 4 - Bexar County, announces he will resign his position on the Authority board effective December 31, 2003. Mr. Beldon was appointed to the board by the Texas Legislature in 1995, and has served as Chairman since that time.

December

December 16, 2003 – At their regular monthly meeting, Authority directors elect the following officers for 2004: Mr. Douglas R. Miller, District 9 (Comal/Guadalupe counties), as Chairman; Mr. Rafael Zendejas, District 5 (Bexar County) as Vice Chairman; Mr. Hunter Schuehle, District 12 (Medina County), as Treasurer; and Dr. Levi Jackson, III, District 2 (Bexar County), as Secretary. Mr. W. Bailey Barton, District 11 (Hays/Caldwell counties), was also selected as the At-Large Member to the Executive Committee.

December 16, 2003 – Authority directors approve Final Rules to amend the initial regular permit rules. These Final Rules will help the Authority avoid purchasing initial regular permits to meet the 450,000 acre-foot permit cap. These final rules divide initial regular permits into two portions. One portion of the permit, the “Junior Groundwater Withdrawal Right,” can be used by permittees when the Edwards Aquifer is above 665’ above msl at the J-17 index well (San Antonio pool) and 865’ above msl at the J-27 index well (Uvalde pool). The second portion, the “Senior Groundwater Withdrawal Right,” 650’ above msl at the J-17 well and 845’ above msl at the J-27 well.

December 16, 2003 – Authority directors vote to proportionally adjust all initial regular permits (IRPs) in accordance with the Authority’s final rules. Therefore, all IRPs that become effective on or before January 1, 2004, will be proportionally adjusted under the Authority’s rules and the authorized groundwater withdrawal amounts will be recalculated for Initial Regular Permits for the Year 2004.

December 16, 2003 – Authority directors approve a contract with Daniel B. Stephens & Associates, Inc. (DBS&A) to develop and implement a process to evaluate the availability of additional water supplies from the Edwards Aquifer. Upon completion of the process, Authority rules outline a process for the board to permanently adjust the aquifer withdrawal cap, if the additional water supply report recommends that additional water is available.

December 16, 2003 – Authority directors approve the selection of Todd Engineers to conduct an analysis of recharge and recirculation, and authorize the General Manager to proceed with developing a contract between the Authority and Todd Engineers, to include a scope of work, schedule, and budget. The final contract will then be submitted to the board for final approval.

December 16, 2003 – Authority directors approve a three-year employment agreement between Mr. Gregory M. Ellis, General Manager, and the Authority. The agreement takes effect January 1, 2004, and expires on December 31, 2007. Ellis has been the general manager of the Authority since January 1997.

December 16, 2003 – The Authority seeks nominations for the Sixth Annual A.O. “Odie” Gilliam Agricultural Water Conservation Award. The award is named for former director, A.O. “Odie” Gilliam, who was dedicated to the efficient use of groundwater. Deadline for entries is January 9, 2004.