Water Y'all Talking About? Produced Water Concerns for Mineral and Surface Owners
August 8, 2024
By Buffie Campbell, Senior Manager, Energy Mineral Management, Whitley Penn
Closely watched litigation regarding the definition and ownership of water has percolated up to the Texas Supreme Court. Interestingly, Cactus Water Services, LLC v. COG Operating, LLC has received amicus curiae briefs from associations across the state representing farmers, ranchers, land, and mineral owners requesting the Court to uphold one of the fundamental foundations of Texas land rights – that groundwater belongs to the surface owner. Water is essential to oil and gas extraction, but as the produced water returns to the surface, the right to claim it has become a little murky.
Produced water is the fluid byproduct brought back to the surface when an oil well is drilled, fractured, and produced. It generally has a high salinity and contains a mix of organic materials, suspended and dissolved solids, and drilling chemicals. Oil wells can produce 3 to 6 barrels of water for every 1 barrel of oil, but that ratio varies by location with some wells as high as 500:1. Produced water has historically been deemed wastewater, with operators either (1) re-injecting and storing underground or (2) recycling and re-using for additional drilling processes.
So, what are the facts of Cactus and what are its impacts on produced water? Complete the form below to keep reading.
Disclaimer: This document is designed only to provide general information regarding the subject matter discussed. The standards, statutes, authorities, and other laws cited are subject to change.
This document is not intended to provide tax, accounting, legal, or other professional advice to any specific person or entity. Any advice or opinion regarding the application of the subject matter for a specific person or entity should be provided by a competent professional advisor based on an application of the appropriate law and authorities to the facts and circumstances applicable to that person or entity.
August 8, 2024
By Buffie Campbell, Senior Manager, Energy Mineral Management, Whitley Penn
Closely watched litigation regarding the definition and ownership of water has percolated up to the Texas Supreme Court. Interestingly, Cactus Water Services, LLC v. COG Operating, LLC has received amicus curiae briefs from associations across the state representing farmers, ranchers, land, and mineral owners requesting the Court to uphold one of the fundamental foundations of Texas land rights – that groundwater belongs to the surface owner. Water is essential to oil and gas extraction, but as the produced water returns to the surface, the right to claim it has become a little murky.
Produced water is the fluid byproduct brought back to the surface when an oil well is drilled, fractured, and produced. It generally has a high salinity and contains a mix of organic materials, suspended and dissolved solids, and drilling chemicals. Oil wells can produce 3 to 6 barrels of water for every 1 barrel of oil, but that ratio varies by location with some wells as high as 500:1. Produced water has historically been deemed wastewater, with operators either (1) re-injecting and storing underground or (2) recycling and re-using for additional drilling processes.
So, what are the facts of Cactus and what are its impacts on produced water? Complete the form below to keep reading.
Disclaimer: This document is designed only to provide general information regarding the subject matter discussed. The standards, statutes, authorities, and other laws cited are subject to change.
This document is not intended to provide tax, accounting, legal, or other professional advice to any specific person or entity. Any advice or opinion regarding the application of the subject matter for a specific person or entity should be provided by a competent professional advisor based on an application of the appropriate law and authorities to the facts and circumstances applicable to that person or entity.