RIGHT OF FIRST REFUSAL FOR CERTAIN WATER CONTRACTS

(a) This section applies only to a contract to sell or provide water: (1) that is for any use other than irrigation in Chambers County outside the authority's boundaries; and (2) that the navigation district had authority to sell or provide under the navigation district's water rights on May 1, 2009. (b) Before entering into a contract, the authority must: (1) send to the navigation district a written notice of intent to sell or provide water for nonirrigation use in Chambers County outside the authority's boundaries; and (2) allow the navigation district 30 days to exercise a right of first refusal to provide the water. (c) Not later than the 30th day after the date the navigation district receives the notice of intent under Subsection (b), the navigation district may exercise its right of first refusal under Subsection (b) by delivering to the authority notice that it intends to exercise that right. (d) The authority may enter into a contract only if the navigation district: (1) fails to comply with Subsection (c); or (2) complies with Subsection (c) and does not enter into a contract to sell or otherwise provide water for the use described by the authority's notice of intent under Subsection (b) before the expiration of four months after the date the navigation district receives the notice of intent.