Final answer:
Surface water in Texas is held by the state government, which is responsible for managing its use and allocation, taking into account various factors including environmental protection and economic needs.
Step-by-step explanation:
In Texas, surface water is held by c) The state government. While some believe that environmental protection should be managed at the national level, others advocate for state-level regulation due to varying regional needs and resources. Texas, with its specific mix of natural assets and its significant oil and chemical industry, exemplifies a case where state-level management is argued to be necessary. Despite the debate over the regulatory reach of the Environmental Protection Agency (EPA), when it comes to surface water in Texas, it is the state government that has authority over the allocation and use of these water resources. State governments are tasked with identifying appropriate uses of water bodies, considering factors like physical characteristics, geographical setting, economic considerations, and environmental protection.