TX NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE A. ADMINISTRATION

CHAPTER 221. WETLAND MITIGATION

SUBCHAPTER C. PROVISIONS FOR POLITICAL SUBDIVISIONS



§ 221.041. APPLICATION TO FEDERAL AGENCY.
     On behalf of an eligible political subdivision that proposes to administer its own individual or general wetland regulation program, the governor may apply to the appropriate federal agency for program approval.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997.

§ 221.042. COMPLIANCE WITH FEDERAL PROGRAM.
     An eligible political subdivision authorized to implement a wetland mitigation program may comply with a program established by the federal government with respect to the implementation of a wetland regulation program or for the acquisition, ownership, or operation of a wetland mitigation bank.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997.

§ 221.043. COUNTY APPROVAL OF POLITICAL SUBDIVISION PROGRAM.
     An eligible political subdivision may not institute a
      wetland regulation program unless the commissioners court of each county in which the eligible political subdivision lies approves the program after conducting a public hearing.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997.

§ 221.044. RULES FOR WETLAND DELINEATION.
     (a) An eligible political subdivision authorized to implement a wetland mitigation program may adopt and compile reasonably necessary rules.
     (b) An eligible political subdivision by rule may set standards for delineating land as wetland for purposes of:
          (1) this chapter; or
          (2) a federal requirement.
     (c) A rule under Subsection (b) may be adopted after consultation with federal agencies, including the United States Fish and Wildlife Service, the United States Environmental Protection Agency, the United States Army Corps of Engineers, and the Soil Conservation Service of the United States Department of Agriculture.
     (d) A standard for delineating wetland must comply with federal requirements for delineating wetland.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997.

§ 221.045. PERMIT.
     (a) An eligible political subdivision authorized to implement a wetland mitigation program may issue a permit that incorporates, and assures compliance with, an applicable:
          (1) requirement of this chapter; or
          (2) federal requirement.
     (b) A permit may be terminated or modified for cause, including:
          (1) violation of a permit condition;
          (2) obtaining a permit by misrepresentation or not fully disclosing all relevant facts; or
          (3) a change in a condition that requires temporarily or permanently reducing or eliminating the permitted activity.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997.

§ 221.046. MITIGATION BANK FINANCING.
     (a) A mitigation project participant may issue a bond, note, or other obligation to acquire land for, to pay any part of the cost of, or to acquire, construct, improve, operate, or maintain a wetland mitigation bank.
     (b) The subdivision may issue a bond, note, or obligation:
          (1) in one or more series; and
          (2) payable from and secured by:
               (A) a tax;
               (B) an assessment;
               (C) an impact fee;
               (D) revenue;
               (E) a grant or gift;
               (F) a lease or contract; or
               (G) a combination of resources listed in Paragraphs (A)-(F).
     (c) In this section, "mitigation project participant" means an eligible political subdivision that seeks to:
          (1) implement a project the unavoidable result of which would adversely affect wetland; and
          (2) compensate for the loss of wetland acreage or wetland habitat value through participation in a mitigation bank.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997.

§ 221.047. BOND REQUIREMENTS.
     (a) A bond issued under Section 221.046 is a negotiable instrument within the meaning and for purposes of the Business & Commerce Code.
     (b) The bond may be:
          (1) issued registrable as to principal or as to both principal and interest; or
          (2) made redeemable before maturity.
     (c) The bond may be:
          (1) issued in the form, denominations, and manner and under the terms provided by the order or resolution authorizing the issuance of the bond; and
          (2) sold in the manner, at the price, and under the terms provided by the order or resolution authorizing the issuance of the bond.
     (d) The bond shall:
          (1) be executed in accordance with the order or resolution authorizing the issuance of the bond; and
          (2) bear interest at the rate provided by the order or resolution authorizing the issuance of the bond.
     (e) The bond may bear interest and may be issued in accordance with:
          (1) Chapters 1201, 1204, and 1371, Government Code; or
          (2) Subchapters A-C, Chapter 1207, Government Code.
     (f) The bond may be additionally secured by a:
          (1) mortgage or deed of trust on real property that is related to the mitigation bank; or
          (2) chattel mortgage, lien, or security interest on personal property appurtenant to that real property.
     (g) The eligible political subdivision may authorize the execution of a trust indenture, mortgage, deed of trust, or other encumbrance to evidence the indebtedness.
     (h) The eligible political subdivision may pledge to the payment of the bond any part of a grant, a donation, revenue, or income received or to be received from the United States or any other source.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.361, eff. Sept. 1, 2001.

§ 221.048. BOND PROCEEDS.
     If the use authorized by the order or resolution authorizing the issuance of a bond under Section 221.046, the bond proceeds may be used to:
          (1) pay interest on the bond during or after the acquisition or construction of an improvement project financed by the bond issue;
          (2) pay administrative and operation expenses;
          (3) create a reserve fund for payment of the principal of and interest on the bonds; or
          (4) create any other fund.

Added by Acts 1997, 75th Leg., ch. 165, § 24.01(a), eff. Sept. 1, 1997.