Water withdrawals in the Southern Water Use Caution Area (SWUCA) (the south half of the Southwest Florida Water Management District (SWFWMD)) have caused regional movement of the salt water interface and lowering of lakes in Highlands and Polk Counties. In 1994 the SWFWMD proposed a comprehensive set of rules to significantly halt salt water intrusion and to stabilize lake levels.

     The major components of the rules were the:

- Establishment of a minimum Upper Floridan aquifer level SWUCA-wide;

- Prohibition of new quantities of water being withdrawn from the Upper Floridan when the actual level was below the minimum level;

- Provisions to allow renewal of permits, though quantities would be reduced; and

- Creation of the reallocation mechanism to allow transfer of existing permitted quantities between individuals, businesses and governments after SWFWMD permitting criteria was met.

     The proposed rules were the subject of a complex administrative hearing, the longest hearing in the history of the Division of Administrative Hearings ù lasting over a period of about nine months (not including several months of discovery pre-hearing).

     In his Final Order the administrative law judge upheld the minimum level but found invalid the two principle components of the rule that would offset the economic impact of the capping use of the Upper Floridan ù those being components 3 and 4 above. The Final Order stated that renewal and new applicants must be treated equally. There could be no preference given to renewal applicants where the quantity of water had been capped in the basin. Further, where the quantity is capped, the SWFWMD must use competing applications to allocate water among new and renewal applicants. The SWFWMD could not offer reallocation as an alternative to competing applications.

     As a result of the Final Order and a settlement agreement that had been reached prior to the hearing with a number of the challengers, the Governing Board withdrew from rulemaking the four components listed above. Other aspects of the Final Order were appealed.

     Parties filed their notices of appeal in April 1997. Since that time, as of July 12, about 200 filings, have been made in the case by the parties and court ranging from briefs and replies, to motions for extension of time, to case management orders entered by the court. The case continues to be one of the most complex. Oral arguments have yet to be scheduled.

     In the meantime, the Governing Board has directed staff to essentially start over and develop a management and regulatory strategy for the SWUCA. This strategy will be more comprehensive that the SWUCA I proposed rules in that it also fulfills the 1997 statutory requirement for a water supply plan and recovery strategies as well as establish minimum levels and identify regulatory and permitting criteria as did SWUCA I. Rule development will likely not begin until late 2000.