EFFECT OF MUNICIPAL WATER SUPPLIER'S FAILURE TO FILE A PETITION

(a) If a municipal water supplier does not file a petition under Section 49.503, the district may retain the water rights for use by the district or may declare the water as excess and contract for the sale or use of the water as determined by the district. (b) Before a district may contract for the sale or use of water for more than one year with a purchaser located outside of a county described by Section 49.502, the district must, for 90 days: (1) make the water available under the same terms to all municipal water suppliers located in those counties; and (2) advertise the offer to sell or contract for the use of the water by posting notice on: (A) any website of the Rio Grande Watermaster's Office; (B) any website of the Rio Grande Regional Water Authority; and (C) the official posting place for the district's board meetings at the district's office. (c) If, after the 90th day after the last date on which the district posted notice, a municipal water supplier in a county described by Section 49.502 has not contracted with the district for the sale or use of the water, the district may contract with any other person for the sale or use of the water under the terms of the offer advertised under Subsection (b).