Wednesday, November 3, 2004 
                                     1:30 p.m. 
                           Capitol Extension, Room E1.036 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Water Policy,  
         Select Interim was held on Wednesday, November 3, 2004, in the  
         Capitol Extension, Room E1.036, at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Kenneth Armbrister              Senator Robert Duncan 
         Senator Kip Averitt                     Senator Eddie Lucio, Jr. 
         Senator Bob Deuell                      Senator Eliot Shapleigh 
         Senator Troy Fraser                     Senator Tommy Williams 
         Senator Jon Lindsay 
         Senator Frank Madla 
         Senator Todd Staples 
         The chair called the meeting to order at 1:50 p.m.  There being  
         a quorum present, the following business was transacted:   
         The Chair recognized Senator Madla for an overview of the  
         Subcommittee on Lease of State Water Rights interim report.   
         Senator Madla moved the adoption of the Subcommittee Report.   
         There being 7 Ayes and 0 Nays and 4 absent, the report was  
         The Chair recognized the following for invited testimony:  
         Mr. Edmund R. McCarthy, Jr., Jackson, Sjoberg, McCarthy & Wilson  
         Mr. Lynn Sherman, Water Texas, Inc. 
         Mr. Ron Kitchens, Railroad Commission of Texas  
         The Chair then recognized the following for public testimony:  
         Mr. Gary Middleton, Chairman of South Central Water Advisory  
         Mr. Mike Mahoney, General Manager, Texas Groundwater District  
         Mr. Jace Houston, General Counsel, Texas Groundwater District  
         Mr. C.E. Williams, General Manager, Panhandle Groundwater  
         Conservation District  
         Mr. William Lynch, Dell City, Texas  
         Mr. Brian Sledge, Austin, Texas  
         Mr. David Nabors, Paris, Texas  
         Ms. Nanette Schultz, Whitehouse, Texas  
         Ms. Teresa Goss, Troup, Texas  
         Mr. Mark Flynn, Whitehouse, Texas  
         Mr. Tommy Hayes, Kilgore, Texas 
         Ms. Debra Christian, Tyler, Texas 
         Mr. Alan Goss, Troup, Texas 
         Ms. Barbara Nash, Troup, Texas 
         The following registered but did not testify before the  
         Mr. David K. Langford, Texas Wildlife Association   
         The following registered and submitted written testimony but did  
         not testify:  
         Ms. Lila C. Marsh, Mesa Water  
         Mr. Gordon Morgan, Headwaters Groundwater Conservation District  
         There being no further business to come before the committee, at  
         6:50PM, the Chair moved the committee stand recessed, subject to  
         the call of the Chair.  There being no objection, the motion  
         Senator Kenneth Armbrister,  
         Kelly C. Gilbert  
         Committee Clerk