Produced Water “Good Purpose” Ownership Bill Passes Through the Texas Legislature

May 11, 2019


Rep. Drew Darby‘s bill to clarify who owns the water produced from oil and gas wells when that water is picked up for recycling or other good use has passed the Texas Legislature.

HB 3246 would amend the Natural Resources Code to establish that, unless there’s a contract that says otherwise, when oil and gas waste fluid is produced and removed from the well propertry by a person who takes possession of that waste for the purpose of treating the waste for later beneficial use, the waste is considered to be the property of that person who takes possession of it.

The bill passed the Senate from the local and uncontested calendar on Friday.