Sec. 15.704.  TRANSFERS AND CONDITIONS.  (a)  A water right may be deposited in the water bank for an initial term of up to 10 years, unless otherwise held in the Texas Water Trust as established under Section 15.7031 of this code, during which time the water right is exempt from cancellation by the commission under the terms of Subchapter E of Chapter 11  of this code.  A water right is exempt from cancellation under this subsection only once even if it has been transferred or redeposited.
(b)  The commission may not bring a cancellation action under Subchapter E of Chapter 11 of this code for a 10-year period following commission approval of any necessary actions relating to a water right which has been transferred while on deposit in the water bank.
(c)  A contract or option contract to allow use of a water right under this subchapter:
(1)  may include a requirement that the purchaser show diligence in pursuing feasible and practicable alternative water supplies;  and
(2)  does not vest any right in the purchaser beyond the stated terms and conditions of the contract or option contract.
Added by Acts 1993, 73rd Leg., ch. 647, Sec. 1, eff. Aug. 30, 1993.  Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 2.17, eff. Sept. 1, 1997.