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I I I I I I I I I I I I I I I I I I I Many court battles have been fought over the water in the Rio Grande Basin within Texas. The lower segment of the River beginning at Falcon Dam in Starr County has been adjudicated and is essentially fully appropriated. An adjudication order for the Middle Rio Grande has been issued by the Texas Water Rights Commission (now known as the Texas Water Commission) and is waiting a final court order to completely implement the adjudica- tion process. The Court presently is hearing evidence on the last claim before a final order is issued. The Trans-Pecos area is experiencing a decline in irrigated agriculture due to a shortage of a surface supply of a quality suitable for use for farming practices. The upper portion of the Rio Grande in Texas, although not finally adjudicated, is fully appropriated. Ground water Ground water in Texas is considered to be a property right and is pri- vately owned by the surface landowner. The owner can withdraw as much water as he can beneficially use. The owner also has the right to sell the water for use anywhere within or without the basin. Only recently in the case of Smith-Southwest Industries v. Friendswood Development Company, (Civ.App. 1977, 546 S.W.2d 890) has a "reasonable use" rule even been suggested in the courts and that ruling remains largely untested. IMTERST~TE COMP~CTS Rio Grande Compact The Rio Grande Compact, agreed to by the three states in March 1938 covers the entire basin in Colorado and New Mexico and to Fort Quitman in Texas. It provides for scheduled annual deliveries of water from Colorado to Mew Mexico and from New Mexico to Texas. Annual deliveries are based on a complex allocation formula which was derived to allow for fluctuations in streamflows. The Compact provides for oat":" , ~o 58