(a) The commission may issue a permit for a term of years for the use of unused appropriated water when there is insufficient unappropriated water in the source of supply to satisfy the application.
(b) An application for a term permit under this section shall be denied if:
  (1) the commission finds there is a substantial likelihood that the issuance of the term permit will jeopardize financial commitments made for water projects that have been built or that are being built to optimally develop the water resources in the area;
  (2) if the holder of an affected unused appropriation can demonstrate that the issuance of the permit would prohibit the holder from beneficially using the water right during the term of the permit. Such demonstration may be made by using water use projections contained in the state or regional water plans, economic indicators, population growth projections, electrical generation needs, or other reasonable projections based on accepted methods;
  (3) the proposed permit is not intended for a beneficial use; or
  (4) the proposed permit would be detrimental to the public welfare.
(c) A term permit is subordinate to any vested or senior appropriative water right. Additionally, conditions may be placed in the permit as necessary to protect instream uses and freshwater inflows to bays and estuaries.

Source Note: The provisions of this §297.19 adopted to be effective May 29, 1986, 11 TexReg 2330; amended to be effective June 28, 1996, 21 TexReg 5442; amended to be effective February 24, 1999, 24 TexReg 1162; amended to be effective May 19, 2016, 41 TexReg 3511