(4) PERCOLATING GROUNDWATER – finish – rule of capture for water as for oil & gas. Permits drainage from underneath a neighbor’s property (& vice versa) as long as it occurs from a legal location. Water depends on a groundwater district & this district dictates distances from property lines. If no district then that not required. Texas law imposes damages if drainage causes wastes, injures a neighbor or causes subsidence. (5) WATER IN UNDERGROUND STREAMS & LAKES – belongs to state. The presumption of percolating groundwater has not been overcome. Below level water belongs to owners, BUT groundwater district has right to space & limit wells. Finally water is a valuable commodity in Texas and ownership is prominent in real estate transactions and on a land sale water CAN BE CONVEYED OR RESERVED.