Form 16-11

Groundwater Rights Warranty Deed

[For Sale of Permitted Groundwater Rights for Off-Site Production]

Notice of confidentiality rights: If you are a natural person, you may remove or strike any or all of the following information from any instrument that transfers an interest in real property before it is filed for record in the public records: your Social Security number or your driver’s license number.

Date:

Grantor:

Grantor’s Mailing Address:

Grantee:

Grantee’s Mailing Address:

Groundwater Authority: [list any groundwater conservation districts or other groundwater authority with jurisdiction over the real property]

Consideration:

Real Property: [describe real property from which groundwater rights will be obtained]

Groundwater Rights: Seller’s perpetual right to withdraw up to [number] acre-feet per year of [name] Aquifer permitted [irrigation/industrial/[and/or] municipal] groundwater (the “Groundwater”) relating to the Real Property. The Groundwater Rights include all of the real and personal property rights, appurtenances, hereditaments, licenses, and contracts, if any, related to or pertaining to the Groundwater, including Permit[s] No[s]. [num­ber[s]] [include if recorded: , recorded in Volume [number], Page [number], of the Offi­cial Public Records of [county] County, Texas] (the “Permit”), as amended or modified, as applicable, insofar as it pertains to the Groundwater Rights, including, but not limited to—

1.all of the real and personal property rights, appurtenances, authorities, licenses, consents, and contracts, if any, relating to or pertaining to the Groundwater, which will also include all common-law property rights in and to the Groundwater as well as those rights or interests that now or in the future may be useful or necessary to withdraw or otherwise benefi­cially use the Groundwater Rights (the “Appurtenant Rights”);

2.all permit rights (including the right in and to the Permit that relates to the Ground­water Rights) allowing for possession, withdrawal, or use of the Groundwater Rights (the “Permit Rights”); and

3.all other rights to withdraw and beneficially use the Groundwater, Appurtenant Rights, Permit, or Permit Rights, together with all modifications, amendments, renewals, extensions, or successor or substitute permits relating to any of the above-described items.

Reservations from Conveyance:

1.Notwithstanding anything herein contained to the contrary, it is understood and agreed that Grantee or its successors or assigns will not enter upon or use the surface of the Real Property for conducting any surface or drilling operations related to the Groundwater Rights.

2.Any beneficial use of the Groundwater Rights from the Real Property will be by way of transfer of the permitted withdrawal rights to a withdrawal point on other lands.

Exceptions to Conveyance and Warranty:

1.Any existing limitations, restrictions, applicable rules, or other conditions now in effect or that may be adopted or imposed by the Groundwater Authority, including but not limited to the limitations and conditions to the rights to withdraw and beneficially use Groundwater Rights as recited in the Permit.

2.Any physical aspect of the water including but not limited to: availability, exis­tence, utility, recoverability, source, quality, condition, potability, chemistry, or other charac­teristics of water, if any, lying on, under, or over the land or lands or that may be produced or used from the land or lands.

3.Lack of a right of access.

4.All groundwater rights from any formations or aquifers under the Real Property other than the [indicate aquifer or groundwater rights formation] formation. This conveyance is limited to Groundwater Rights from the [indicate aquifer or groundwater rights formation] formation.

5.Any subsequent decrease in the amount of water available for withdrawal under the Permit or the portion conveyed to Grantee that is the result of any pro rata reduction applied to all holders of Permits for withdrawal of Groundwater Rights by the Groundwater Authority or any governmental entity with authority to restrict Groundwater Rights withdraw­als.

Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty, grants, sells, and conveys to Grantee the Groundwater Rights, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee’s heirs, successors, and assigns forever. Grantor binds Grantor and Grantor’s heirs and successors to warrant and forever defend all and singular the Groundwater Rights to Grantee and Grantee’s heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the Reservations from Conveyance and the Exceptions to Convey­ance and Warranty.

Groundwater Authority fees on the use of the Groundwater Rights, if any, before the date of this Deed will be paid by Grantor; subsequent Groundwater Authority fees for the Groundwater Rights or Permit are the responsibility of Grantee.

When the context requires, singular nouns and pronouns include the plural.

   
[Name of grantor]

   
[Name of grantee]