(a) Unless exempted by these sections, no treated or untreated state water hereafter supplied under a contract shall be deemed to be in perfection of the supplier's appropriative right under which the water is supplied, unless and until the contractual amendment is granted by the commission or the contract is submitted to the executive director in accordance with §295.101 of this title (relating to Documents To Be Filed).
(b) If the supplier or the purchaser is required by §297.103 of this title (relating to Special Requirements for Downstream Sales of Water from a Storage Reservoir) to obtain a regular, term, or temporary permit or an amendment to the extent of the purchaser's maximum annual diversions of water not released from storage, the regular, term, or temporary permit or amendment shall be perfected by the purchaser's diversions of water not released from storage.
(c) If a supplier enters into a contract which authorizes a purchaser to divert water upstream of the supplier's storage reservoir in a manner which impairs the supplier's water right, all diversions made by the purchaser shall be deemed for perfection purposes to be diversions from the perimeter of the reservoir.
(d) Nothing contained in this subchapter shall be construed as affecting in any way the perfection of rights exercised prior to January 2, 1964, in a manner not in compliance with §295.101 of this title (relating to Documents To Be Filed), §297.103 of this title (relating to Special Requirements for Downstream Sales of Water from a Storage Reservoir) and §297.104 of this title (relating to Special Requirements for Upstream Sales of Water from Storage) .
(e) The commission shall include the priority date in each contractual amendment.

Source Note: The provisions of this §297.106 adopted to be effective May 29, 1986, 11 TexReg 2331.