University Lands FY23 Annual Report

WATER SUPPLY & LOGISTICS

While oil and gas are the assets most commonly associated with the PUF Lands, water actually may be its most valuable resource. Water is essential for the drilling and development of oil and gas wells, as well as for grazing, agricultural and other surface uses. With multiple aquifers running under the PUF Lands, it is imperative that the groundwater be protected and conserved for the good of the Permian Basin as well as the Lands. The University Lands team takes seriously its responsibility to preserve and protect the groundwater, now and for the future. UL’s Groundwater Management Plan helps guide those efforts, balancing the demands of the commercial ventures on the Lands and its related revenue with the need to manage aquifers appropriately and conserve water supplies. One of the strategies included in the plan is to encourage producers to recycle produced water so that it can be used again in drilling and completion, which reduces the need for groundwater. The completion of one horizontal well requires approximately 570,000 barrels of water for the process of hydraulically stimulating the formation (aka “frack the well”), which converts the drill hole into a producing well. Using recycling produced water for this process reduces the reliance on fresh groundwater by approximately 50 percent. However, the recycling of produced water requires a more thoughtful water management approach and is a bit more expensive due to the need for additional infrastructure, such as the installation of recycling facilities, produced water pits and transfer pipes. And while produced water can be recycled for use on an oil well, technology is still evolving that would enable the water to be cleaned sufficiently for irrigation and other uses. Staff members are involved in a variety of organizations dedicated to researching how to improve water management. For example, Richard Brantley, senior vice president of operations, chairs the Permian Basin Produced Water in Energy Conference, which brings subject matter experts together annually to share best practices and lessons learned as the industry collectively strives to improve water management in the oil and gas sector. Accurate accounting of water volumes is another priority. The Groundwater Management Plan requires mineral developers to meter and report water volumes pumped and piped to track the sources and the disposition of the water being utilized. UL sponsors research for aquifer evaluations and has developed best practices for groundwater well spacing and installation, all while keeping a watchful eye on subsurface aquifer levels and drought conditions across the 19 West Texas counties where UL holdings are located. A web-based groundwater database allows users to access and upload water well and groundwater use information, assisting UL staff in their water planning and conservation efforts.

“There is no other asset like this anywhere else in the world, especially one dedicated to supporting higher education and health care, and our teams are committed to being good stewards of these resources.”

Richard Brantley, Senior Vice President of Operations

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