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Expectation 

Management for Water 

Use in Oil and Gas
Texas Water

 Texas has three state agencies with jurisdiction 

over water issues. Texas Water Development 

Board (TWDB) is responsible for planning and 

funding projects that enhance water availability. 

The Texas Commission on Environmental Quality 

(TCEQ) is responsible for protecting the state’s 

water quality and allocating the use of surface 

water; groundwater is neither allocated nor 

managed by a state agency, with a few 

exceptions (see the Availability section). And the 

Texas Parks and Wildlife Department (TPWD) 

ensures that the state’s wildlife, including the 

vital fish, shrimp and oyster industries, have 

sustainable supplies of fresh water.

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 The state’s 89 groundwater conservation districts (GCDs, 

or occasionally GWCDs), some of which cover single 

counties and others multiple counties, were created 

under state laws and are governed by locally elected 

board members. GCDs may develop well-spacing rules, 

pumping permits, fees and overall pumping limits within 

their districts. Under Texas law, GCD enforcement of its 

rules is one of only two ways to limit groundwater 

pumping in an area; the other is a judgment in Texas 

courts, although the Edwards Aquifer Authority can 

restrict pumping within its statutory boundaries.

 Separate from but overlying the GCDs are the state’s 16 

groundwater management areas (GMAs) that generally 

encompass entire aquifers (Exhibit 14). The GMAs exist to 

bring the GCDs within them together to determine the 

region’s anticipated groundwater use, supplies and 

demands. TWDB then uses these estimates to aid in 

planning for Texas’ future water resources.

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Water Management

Managing Public Perception and Local/State 

Governmental Stakeholders, While Remaining 

Compliant With Regulations 

 Understanding how water management is 

perceived outside of the industry

 Current issues related to water 

management

 How local and state governments view 

water management

 Understanding the regulatory framework for 

water management

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Water Lifecycle

 Sourced

 Wells, water bodies, municipal, re-use

 Transported

 Pipelines

 Trucks

 Storage

 Pits (open / lined)

 Water tanks

 Use- Drill & Complete

 Removal

 Trucks

 Pipelines

 Final Disposition

 Injection Wells

 Treated

 Reuse

 Recycle 8

Source

Transport

Storage

Removal Use

Reuse

Final

Disposition
Water Management Stakeholders

 Industry

 Federal Law Makers/Regulators

 State Law Makers/Regulators

 Industry Trade Groups

 Non Gov’t Organizations NGO’s

 Competing Users

 General Public

 Local Government

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Regulatory Landscape

 Direct Influencers

 Federal- EPA, BLM, DOE, etc...

 State- O&G Regulatory Commissions, Health/Environmental 

 Elected Officials- all levels

 Concerned Citizens

 Local Gov’t- Counties, Water Districts, Cities

 Indirect Influencers (Proactive/Reactive)

 While these groups have little to no authority, their 

recommendations or input, if embraced, can be just as 

compelling and lawful as if it came from the top down.

o NGO’s/Advocacy Groups

o Lobbyists/ Trade Groups- TXOGA, TIPRO, TPA, etc....

o Academics

o Industry

o Media 10
Regulatory Considerations

 One size (does not) fit all

 Carve outs for regions

 Primacy between City, County and State

 Balancing water management w/o hurting:

Job Creation

Tax Revenue

Economic input the industry brings

Economic Stabilization Fund

 Water by law is an owned property rights asset

 Massive migration of new residents to Texas

Texas leads nation- competing uses land/water

Views on the industry

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Local Considerations

 Primacy between city & state

 Colorado

Denton, Flower Mound

 More proactive engagement in local politics

Astute electorate- involvement

Influx of new residents

Availability of information

Local competition for economic development

 Competing land-use demands/opportunities

 Local governments can purse nearly any 

course of action that they believe, and can 

having a voting majority to pass, are in the best 

interest of the local government

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Water Constraints

 Drought/Scarcity

 Home water rates- pass through charges

 Water use restrictions

 Lake levels

 Bad PR about water contamination

 General water use concerns

 Golf Course

Pools

Lawns

 Disposal/Induced Seismicity

 Media reports

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What people are exposed to daily
What is the Future

 New TTP’s (Technology, Techniques & 

Procedures)

 Drilling & Completions

o Waterless 

o Displacing Water Use (Substitutes)

o Reusing/Recycling Water 

 Production (Life of Well)

o The geologic formation will yield water based on 

geology

o Ability to clean, reuse and repurpose the water

 Regulations

 Fed, State and Local laws will be introduced to 

manage the industry’s water use

 Regulatory agencies, Fed & State, will be active to 

manage the industry’s water use

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Water Management Regulation

15 Technology/Regulation/Time

$

Current State Regulation

10%

20%

30%

40%

50%

Future State Regulation

Goal is to reduce the water use footprint:

• Initial Use

• Final disposition- Discharged or Disposed
Future Technology

 Waterless drilling

Fluid replacement

 Waterless fracs

LPG/Propane, Air, Other Gas, Kinetic, 

Sound, other

 Reuse/Recycling

Filtering, treating, repurpose

Storage

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What is the Future?

 Technology is getting there

 Laws have yet to begin mandating

 Demand for more restrictive uses will pressure law 

makers/regulators to act

 State and local laws will lead the way in mandating water 

conservation and re-use measures. Feds to follow.

 Increased rates and taxes will be levied for overly consumptive 

use and “perceived” destruction of water

 Within the next 5-10 years industry will embrace more water 

reduction techniques and replacements that will prove 

economical and effective. Upward pressure on commodity 

prices

 As economy and broader tax bases improve, elected officials 

and gov’t budgets will be less constrained by revenues from 

energy related activities

 The globalization of U.S. gas (LNG) will drive an increase in 

production activity. This will focus attention once again on 

practices of the industry and coexistence of activities

 Service companies and consultants lobbying to support laws 

mandating increased recycling.

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Industry

 Conferences like this help explore the 

technology that is available and 

technologies that could be

 Industry must take the lead in R&D

 Capital must be applied and 

expended

 Failures and inefficiency will come 

before success

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Inquires: 

Stephen Lindsey, Senior Director of 

Governmental, Regulatory and Public 

Affairs

Phone: 817-665-4934

Email: Slindsey@Qrinc.com

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Quicksilver Resources 

801 Cherry Street, Suite 3700, Unit 19

Fort Worth, TX 76102

Website: www.qrinc.com