Pumping oil From Trash to Treasure: Who Owns Valuable Wastewater in the Oil Patch?
Until recently, Texas surface owners were presumed to own the groundwater underneath their property. But recent changes to the Texas Natural Resources Code state that water brought to the surface incident to oil and gas drilling is the property of the person who takes possession of the fluid.
May 24, 2022 at 01:48 PM
4 minute read
Energy
Oil and gas operations don't just produce hydrocarbons. They also produce water. Lots of it. U.S. exploration and production generates over 25 billion barrels of produced water each year. Produced water was long considered a waste liability that had to be hauled off and disposed. But thanks to technological advances, operators can now treat, recycle and reuse it. Once an albatross, produced water can now be a revenue source. And with potential income comes a renewed focus on who owns it.
Until recently, Texas surface owners were presumed to own the groundwater underneath their property. But recent changes to the Texas Natural Resources Code state that water brought to the surface incident to oil and gas drilling is the property of the person who takes possession of the fluid. Texas Natural Resources Code 122.002 states:
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