(a) A water right or portion thereof may be deposited in the bank for an initial term of up to 10 years, unless otherwise held in the Texas Water Trust described in §359.15 of this title (relating to Texas Water Trust), during which time the water right or portion of the water right deposited is exempt from cancellation by the commission under the terms of Texas Water Code, Chapter 11, subchapter E, as provided by Texas Water Code, §15.704. The water right or that portion of the water right deposited is exempt from cancellation under this subsection only once, even if it has been transferred or redeposited. The water right or that portion of the water right which is on deposit remains on deposit until it is withdrawn.     
      (b) The administrator may accept deposits of water rights, including conserved water, into the bank. The administrator, acting within the purposes of the Texas Water Code, Chapter 15, Subchapter K, may also take any appropriate action to facilitate water transactions both within and external to the operations of the water bank.     
      (c) The water right or that portion of a water right that has been transferred while on deposit in the bank is exempt from cancellation by the commission under the terms of the Texas Water Code, Chapter 11, Subchapter E, for a period of 10 years following commission approval of any necessary actions relating to the transfer of that water right.     
      (d) The depositor must notify the administrator within 30 calendar days of the date a contract to transfer a water right or portion thereof is signed.      
        (1) For transfers requiring regulatory approval, transfers are not complete until all necessary regulatory approvals are obtained. The depositor must notify the administrator in writing within 30 calendar days of the date of receipt of final regulatory approvals. The date of final regulatory approvals is the effective date of transfer.       
        (2) For transfers not requiring regulatory approval, transfers are not complete until the terms and conditions of the contract have been fulfilled. In these cases, the depositor must notify the administrator in writing within 30 calendar days of the contract closure. The date the contract is closed is the effective date of transfer.       
      (e) That portion of a water right or the right to use water that has been deposited in the bank may be withdrawn upon the depositor's completion of a withdrawal form, or acceptable substitute, and its submission to the administrator. A copy of this form, or acceptable substitute, must be submitted by the withdrawing depositor to the executive director of the commission at the same time it is submitted to the administrator. The withdrawal is effective upon the date of signature by the administrator on the withdrawal form or 30 days after the submission of the withdrawal form, or acceptable substitute, whichever occurs earlier. A water right may be withdrawn by the administrator under §359.6 of this title (relating to Bank Review).     
      (f) A water right may be used as authorized by law while on deposit in the bank. The depositor must notify the administrator of any actions or conditions that would affect the transferability of the deposited right.     
      (g) A water right transferred while on deposit in the bank may remain in the bank.     
      (h) With the approval of the board, the administrator may enter into contracts with persons to pay for water conservation feasibility studies, or the preparation of plans and specifications relating to water conservation efforts, or studies to estimate the amount of water that would be saved through the implementation of water conservation efforts.     
     Source Note:        The provisions of this §359.8 adopted to be effective May 13, 1994, 19 TexReg 3257; amended to be effective February 4, 1998, 23 TexReg 782; amended to be effective November 9, 1999, 24 TexReg 9843