Sec. 49.508.  CONTRACT TO USE PROPORTIONATE WATER RIGHTS; WATER SUPPLY CONTRACT.  (a)  A municipal water supplier may contract to use water associated with the proportionate water rights described by Section 49.505.
(b)  The contract must be for at least 40 years.
(c)  The price for the contractual right to use the municipal use water is based on an amount for one acre-foot of municipal use water with a municipal use priority of allocation and may not exceed the sum of:
(1)  an amount equal to the district's annual flat rate charge per assessed acre; and
(2)  the equivalent of the charge for four irrigations per flat rate acre of irrigable property in the district.
(d)  The parties to the contract shall agree on the terms of payment of the contract price.
(e)  The board periodically shall determine the flat rate charge and irrigation per acre charge described by Subsection (c).
(f)  The contract must be in writing in a document entitled "Water Supply Contract."  The contract may contain any terms to which the parties agree.
(g)  The municipal water supplier shall file the contract with the Rio Grande watermaster not later than the 10th day after the date the contract is executed.
Added by Acts 2007, 80th Leg., R.S., Ch. 1430 (S.B. 3), Sec. 2.24, eff. September 1, 2007.