(a) The board by rule may impose a reasonable fee on each well that is not exempt from regulation by the district and for which a permit is issued by the district. The fee may be based on:
(1) the size of column pipe used by the well; or
(2) the actual, authorized, or anticipated amount of water to be withdrawn from the well.
(b) The board shall base the amount of the initial fee on the amount of water to be withdrawn from the well. The initial fee:
(1) may not exceed:
(A) $0.25 for each acre-foot for water used to irrigate agricultural crops or operate existing steam electric stations; or
(B) $0.0425 for each thousand gallons for water used for any other purpose; and
(2) may be increased at a cumulative rate not to exceed three percent for each year.

(c) In addition to the fee authorized under Subsection (b), the district may impose a reasonable fee or surcharge for an export fee using one of the following methods:
(1) a fee negotiated between the district and the transporter; or
(2) a combined production and export fee not to exceed 17 cents for each thousand gallons for water used.
(d) Fees authorized by this section may be:
(1) assessed annually; and
(2) used to pay the cost of operating the district.