Texas Supreme Court Rules Oil and Gas Companies Own Produced Water, Redefining Industry Resource Management

In a pivotal decision, the Texas Supreme Court has determined that oil and gas companies hold ownership over the wastewater, commonly referred to as “produced water,” that emerges during drilling operations. This ruling clarifies the default ownership of a byproduct that has garnered increasing commercial interest. Unless a lease agreement specifically notes that the produced water is reserved by the surface owner, the byproduct is now considered to belong to the lessee. Historically regarded as waste, produced water has recently become a valuable commodity, leading to disputes over its ownership. This change highlights the evolving landscape of resource management in the industry. For further details on the ruling, visit the full article on Law.com.