(a) When commission records show that all or part of a water right has not been used during the past ten years, the executive director may file a petition with the commission for a hearing before the commission to show cause why the water right should not be canceled. Except as specifically provided otherwise by this Subchapter, such proceedings shall be held in accordance with the general hearing provisions of Chapter 50 of this title (relating to Action on Applications) of the commission rules.
(b) At least 45 days before the date of the hearing, the commission shall send notice of the petition and hearing to the affected water right holder. Notice shall be sent by registered mail, return receipt requested, to the last address shown by the records of the commission. The commission shall also send notice by regular mail to all water right holders in the same watershed.
(c) The commission shall also have the notice of the hearing published once a week for two consecutive weeks, at least thirty (30) days before the date of the hearing, in a newspaper published in each county in which the diversion of water from the source of supply was authorized or proposed to be used, as shown by the records of the commission. If in any such county no newspaper is published, then the notice may be published in a newspaper having general circulation in the county.
(d) Except as provided by subsection (e) of this section, the commission shall hold a hearing and shall give the affected water right holder and other interested persons an opportunity to be heard and to present evidence on any matter pertinent to the questions at issue.
(e) A hearing on the cancellation of the water right is unnecessary if the right to such hearing is expressly waived by the affected water right holder.
(f) A water right for a term does not vest in the water right holder any right to the diversion, impoundment, storage, taking or use of water for longer than the term of the water right and shall expire and be canceled in accordance with its terms without further need for notice or hearing.

Source Note: The provisions of this §297.72 adopted to be effective February 24, 1999, 24 TexReg 1162