(a) Except as provided by subsection (b) of this section, if all or part of a water right has not been put to beneficial use during a consecutive ten-year period, such water right is subject to cancellation in whole or in part as provided by this subchapter.
(b) A water right is not subject to cancellation as provided by subsection (a) of this section to the extent that such nonuse is the result of:
  (1) the water right holder's participation in the Conservation Reserve Program authorized by 16 United States Code, §§3831 - 3836, Food Security Act of 1985 or a similar governmental program;
  (2) a significant portion of the water right has been used in accordance with a specific recommendation for meeting a water need included in the applicable regional water plan approved under Texas Water Code (TWC), §16.053;
  (3) the deposit of the water right in the Water Trust for the maintenance of environmental flow needs in accordance with TWC, §15.7031;
  (4) the deposit of the water right in the Texas Water Bank and the water right is protected from cancellation in accordance with TWC, §15.703;
  (5) the water right was obtained to meet demonstrated long-term public water supply or electric generation needs as evidenced by a water management plan developed by the water right holder, and the water right is consistent with projections of future water needs contained in the state water plan;
  (6) the water right was obtained as the result of the construction of a reservoir funded, in whole or in part, by the holder of the water right, as part of the water right holder's long-term water planning; or
  (7) the implementation of water conservation measures under a water conservation plan submitted by the holder of the permit, certified filing, or certificate of adjudication as evidenced by implementation reports submitted by the holder.

Source Note: The provisions of this §297.71 adopted to be effective February 24, 1999, 24 TexReg 1162; amended to be effective August 15, 2002, 27 TexReg 7152; amended to be effective August 31, 2006, 31 TexReg 6754