must be provided to the Texas Railroad Commission (RRC). See id . This rule also sets forth the requirements for the injection wells. See id. The more popular method of disposal of produced water is into disposal wells, which are governed by Statewide Rule 9. 16 Tex. Admin. Code § 3.9. This rule states that every applicant who proposes to dispose of saltwater or other oil and gas waste into one of these wells must obtain a permit from the RRC, and the disposal shall be in line with the requirements set forth in Statewide Rule 9. See id. The Texas Legislature strives to keep rules current. This past legislative session, the Legislature passed a series of bills aimed at modernizing the handling and reuse of produced water, rules that are set to go into effect September 1, 2025. See Ashleigh K. Myers & J.C. Freeman, Water, Reused: Texas Reshapes Liability and Regulatory Rules on Produced Water, Leaves Ownership Questions Unanswered , Pillsbury (June 9, 2025), https://www.pillsburylaw.com/en/ news-and-insights/texas-produced-water- liability-regulatory-rules-ownership.html. To name a few, House Bill 49 relates to the treatment and beneficial use of fluid oil and gas waste and adds new tort immunity for entities involved in the beneficial use. See id . House Bill 4426 changes the permit duration and renewal processes for commercial surface disposal facilities, establishing clearer guidelines. See id. Finally, Senate Bill 1145 authorizes the RRC to issue permits for the land application of produced water, tasking the RRC with establishing clear regulatory standards that are expected to address application methods, water quality thresholds, monitoring protocols, and site- specific environmental conditions. See id . Not only is the Texas Legislature taking aim at the legislative framework, they are also funding a large study based out of Texas Tech University, called the Texas Produced Water Consortium. The Consortium has the purpose of bringing together information and resources to study the economics and
until the beginning of the 21st century, accompanied by innovations in fracking fluid and horizontal drilling. See Melissa Denchak, Fracking 101 , Nat. Res. Def. Council (Apr. 19, 2019), https://www. nrdc.org/stories/fracking-101. Hydraulic fracturing, in simple terms, involves the blasting of fracking fluid into a horizontal well at a pressure high enough to create new fractures or open existing ones in the surrounding rock, to allow the oil or gas to flow back to the surface. See id . Fracking fluid is typically a mixture of sand, water, and chemicals. Produced Water: A Comprehensive Overview , Select, https:// www.selectwater.com/produced-water/ (last visited Aug. 14, 2025) (noting common additives include biocides, surfactants, and friction reducers). After it is injected and returns to the surface through the well, the hydrocarbons are separated, any recovered water is stored, and the remaining fluid, or produced water, is then taken to facilities to be disposed of or treated. See Jackie Benton, Recycling Fracking Water , Fiscal Notes, Tex. Comptroller (Oct. 2015), https:// comptroller.texas.gov/economy/fiscal-notes/ archive/2015/october/fracking.php. Produced water under Section 122.001(2) of the Texas Natural Resource Code is defined as fluid oil and gas waste. See Tex. Nat. Res. Code § 122.001(2). Because of such designation, the handling of produced water requires appropriate permits, infrastructure, and regulated disposal, which comes with burdensome expenses and potential liability on behalf of an operator-lessee. See Tex. Nat. Res. Code § 81.0531 (authorizing the RRC to impose penalties up to $10,000 per day per violation related to improper disposal). Under Statewide Rule 46 covering fluid injection into productive reservoirs, or injection wells, a permit is required prior to any injection. 16 Tex. Admin. Code § 3.46. During the permitting process, a notice and opportunity for a hearing shall be provided to the government and any affected persons, and a significant amount of information
24
N at i onal A ssociation of D i v i s i on O rder A nalys t s
Made with FlippingBook - PDF hosting