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8 Groundwater Management
Water resources fee/mineral resources compensation fee
The water resources fee system was developed in the early 1980s to prevent groundwater overdevelopment in some provinces and regions in northern China, such as
Tianjin, Shanxi, and Beijing. Articles 7 and 48 of the 2002 Water Law established
the water resources fee system, while the 2006 Regulations on Management of Water
Abstraction Permit and Collection of Water Resources Fees specified the details of
its implementation, including fee collection, use, and management, as at Sect. 2.2.4.
Regarding groundwater, Article 29 of the Regulations specifies that the fee standard should be used to help coordinate the development of surface and groundwater resources and prevent groundwater overdraft. Thegroundwater resources fee
is usually several times higher than that of the surface water fee, though fee standards in overdraft areas in some provinces could be increased further. However, due
to the exemption of agricultural water abstraction, the current fee has no impact on
agricultural water use, which constitutes a large proportion of all groundwater use
in northern China.
In addition, a quota-exceeding or plan-exceeding overcharge system is applied
in China. Article 28 of the Regulations specifies that the water abstractor should
abstract water according to an annual abstraction plan, and if this volume exceeds
the plan or quota, the exceeding amount will be charged at a rate above the water
resources fee, which is normally several times the standard fee level.
In some provinces, development involving geothermal water and mineral spring
water requires the payment of a mineral resources compensation fee. In certain
regions, such as Yunnan, Hainan, and Hebei, both the water resources fee and the
mineral resources compensation fee are collected, while in others only one fee
is collected. According to the 1997 Mineral Resources Compensation Collection
and Management Methods, the mineral resources compensation fee is collected by
geological and mineral resources administrative departments (the predecessor of
the natural resources department), with the involvement of financial departments.
Although the volume is very low compared to other groundwater use, the groundwater
compensation fee, which is defined based on the percentage of mineral resources
sales income, is much higher than the water resources fee. Additionally, with the
mineral resources compensation fee, the mining permit system will also be applied
to groundwater development.
The planned water use system
The planned water use system aims to manage real-time water use in China. It
is implemented through a series of water use plans, including a water resources
regulation plan at the river basin level, an annual water abstraction plan at the permit
level, and an annual irrigation district water use plan in irrigation districts (Shen
2012).
For groundwater management, the system requires that groundwater use be consistent with an annual water abstraction plan, formulated according to the volume
8 Groundwater Management
Water resources fee/mineral resources compensation fee
The water resources fee system was developed in the early 1980s to prevent groundwater overdevelopment in some provinces and regions in northern China, such as
Tianjin, Shanxi, and Beijing. Articles 7 and 48 of the 2002 Water Law established
the water resources fee system, while the 2006 Regulations on Management of Water
Abstraction Permit and Collection of Water Resources Fees specified the details of
its implementation, including fee collection, use, and management, as at Sect. 2.2.4.
Regarding groundwater, Article 29 of the Regulations specifies that the fee standard should be used to help coordinate the development of surface and groundwater resources and prevent groundwater overdraft. Thegroundwater resources fee
is usually several times higher than that of the surface water fee, though fee standards in overdraft areas in some provinces could be increased further. However, due
to the exemption of agricultural water abstraction, the current fee has no impact on
agricultural water use, which constitutes a large proportion of all groundwater use
in northern China.
In addition, a quota-exceeding or plan-exceeding overcharge system is applied
in China. Article 28 of the Regulations specifies that the water abstractor should
abstract water according to an annual abstraction plan, and if this volume exceeds
the plan or quota, the exceeding amount will be charged at a rate above the water
resources fee, which is normally several times the standard fee level.
In some provinces, development involving geothermal water and mineral spring
water requires the payment of a mineral resources compensation fee. In certain
regions, such as Yunnan, Hainan, and Hebei, both the water resources fee and the
mineral resources compensation fee are collected, while in others only one fee
is collected. According to the 1997 Mineral Resources Compensation Collection
and Management Methods, the mineral resources compensation fee is collected by
geological and mineral resources administrative departments (the predecessor of
the natural resources department), with the involvement of financial departments.
Although the volume is very low compared to other groundwater use, the groundwater
compensation fee, which is defined based on the percentage of mineral resources
sales income, is much higher than the water resources fee. Additionally, with the
mineral resources compensation fee, the mining permit system will also be applied
to groundwater development.
The planned water use system
The planned water use system aims to manage real-time water use in China. It
is implemented through a series of water use plans, including a water resources
regulation plan at the river basin level, an annual water abstraction plan at the permit
level, and an annual irrigation district water use plan in irrigation districts (Shen
2012).
For groundwater management, the system requires that groundwater use be consistent with an annual water abstraction plan, formulated according to the volume