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Water Supply & Logistics Water is a finite and essential resource across the Permanent University Fund (PUF) Lands, supporting oil and gas development, emerging energy initiatives, grazing and agriculture, wildlife habitat, irrigated cropland, and other surface activities. University Lands (UL) approaches water management with a long-term stewardship mindset, focusing on conservation, accountability, and responsible use throughout the full water life cycle. UL continued implementation of its Groundwater Management Plan during fiscal year 2025, emphasizing the pro- tection and conservation of aquifers beneath the PUF Lands. This plan balances commercial activity with sustain- able water use to support the long-term health of water resources across the Permian Basin.
PRODUCED WATER RECYCLING & INFRASTRUCTURE
MONITORING & REPORTING Accurate monitoring and reporting are foundational to UL’s water management program. Mineral developers operating on the PUF Lands are required to meter and report water volumes extracted and transported in accordance with applicable lease terms and program requirements. The monitoring framework includes more than 440 operator-owned water meters and ten water import/export meters, with continued imple- mentation across operations. Data is reported on a monthly basis to support accountability and informed decision-making. LOOKING AHEAD Looking forward, UL plans to further enhance its water management strategies in 2026, with an increased focus on the full water management life cycle, ex- panded beneficial reuse of polished produced water, and continued conservation of fresh groundwater aquifers beneath the PUF Lands. These efforts reflect UL’s commitment to continuous improvement and responsible stewardship, ensuring that water resourc- es are protected while supporting ongoing and future operations.
A central component of UL’s water strategy is the expanded use of produced water for drilling and com- pletion operations. UL encourages operators to recycle produced water, which can reduce fresh groundwater usage by approximately 60 percent per well. While produced water recycling requires additional infra- structure - including treatment facilities, storage, and transfer systems - it plays a critical role in preserving freshwater aquifers. During fiscal year 2025, UL worked with Continental Resources to complete one single produced water recycling facility containing 750 thousand barrels and the first large-scale produced water recycling mega-fa- cility on UL with the capacity to store approximately 3.5 million barrels of recycled produced water at any given time for future oil and gas completions, directly supporting groundwater conservation across the Lands.
RESEARCH, COLLABORATION, AND BENEFICIAL REUSE
UL actively participates in research and collaboration with subject matter experts, industry participants, and environmental organizations to advance water man- agement practices. In 2025, UL became a member of the Texas Produced Water Consortium (TxPWC) and is partnering with the consortium on a pilot project to evaluate efficient irrigation methods. The long-term ob- jective of this research is pasture restoration and the potential future use of treated, desalinated produced water for irrigated cropland, where appropriate. UL is also collaborating with water management com- panies to research and evaluate opportunities for the beneficial reuse of produced water, further strength- ening UL’s understanding of water treatment, logistics, and reuse potential.
barrels of produced water were used for oil and gas well completions in FY25, preserving a significant volume of groundwater across PUF Lands. 125 MI LL ION
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