Updates on Water Sourcing 

Regulations

A Texas Prospective

Michael Sims, P.E.

Engineer, Technical Permitting

Oil & Gas Division, Railroad Commission of Texas

November 2014
2011 Texas Drought
2014 Texas Drought
Agencies Involved In Water Use 

Associated with Oil & Gas Activities

• Texas Commission on Environmental Quality (TCEQ)

• Texas Water Development Board (TWDB)

• Groundwater Conservation Districts (GCDs)

• Railroad Commission of Texas (RRC)
TCEQ

• Administers surface water rights in Texas.

• Surface water in Texas is owned by the state and held in trust 

for the citizens of the state.

• The state grants the right to use this water, through a permit, 

to people, industries, businesses, and cities.

• Domestic, livestock, wildlife, and emergency use exempt from 

the need for a permit.
TCEQ Watermaster Program

• Includes areas of the state needing more active management 

of water rights, including most of Eagle Ford Shale.

• Monitors stream flows, reservoir levels, and water use.
Texas Water Development Board

• TWDB’s mission is to provide leadership, planning, financial 

assistance, information, and education for the conservation 

and responsible development of water for Texas.

• Supports regions in developing regional water plans. 

• Collects data and conducts studies concerning the water 

needs of the state.

• Projects the water needs of the state broken down by region 

and industry type.
Texas Water Development Board

• Reorganized after the 2013 Legislative Session

• Now Has 3 Full Time Commissioners

• Responsible for Administering Water “Bank” 

Approved by Voters in November 2013.
Groundwater Conservation Districts

• Created by the Texas Legislature or by the TCEQ.

• Currently 99 GCDs in Texas.

• Drafts groundwater management plan describing the district’s 

groundwater management goals including:

• Efficient use

• Controlling and preventing waste of groundwater

• Addressing conjunctive surface water management issues

• Plans must be submitted to TWDB for approval.
Existing GCDs
Limitations on GCDs

• Per Texas Water Code, water well used solely to supply water 

to a rig drilling for oil and gas is exempt from obtaining a 

drilling permit from GCD.

• Unclear if exemption also applies to frac water supply well.

• Some operators have obtained permit from GCD for this 

purpose.
Railroad Commission

• Saline/Brackish Water

• Reuse of Frac Flowback / Produced Water

• Reuse of Wastewater from Sources Under TCEQ’s jurisdiction
Saline/Brackish Water

• Operators have approached Commission about installing wells 

to draw “deep” brackish water for use in drilling/fracing

operations

• RRC requests a drilling permit for such wells, casing, and well 

control technology to protect useable quality groundwater 

and underground source of drinking water per standard 

requirements 

• Permit may also be needed from the Groundwater 

Conservation District
Recycling of Liquid Waste

• Commission has rules in place governing recycling of oil and 

gas for subsequent reuse

• In past 3 years, large increase in fluid recycling

• Treat fracture flow back water and produced water for reuse 

mainly in the makeup of fracturing fluid

• Existing treatment technologies now being applied to oil field 

fluids

• Filtration

• Reverse Osmosis

• Electrocoagulation

• Dissolved Air Flotation 

• Distillation
Recycling Rulemaking

• Recycling Rules Amended in Spring 2013.

• Recycling of fluids (produced water and/or frac flow back 

fluid) on an oil or gas lease is authorized by rule.

• Pit located on a lease that is used to stored fluid to be recycled 

or recycled fluid prior to its reuse is also authorized.

• Eliminates the need for a permit for the majority of water 

recycling.

• Off lease fluid recycling still requires a permit.
Multi-Agency Reuse 

Authorization

• RRC is open to looking at other proposals as far as water 

sourcing

• Example:

• Oil and gas company was interested in taking non-contact waste 

water from a refinery that was being discharged to use for drilling 

operations. RRC authorized with this reuse as long as TCEQ also 

concurred.
An Unanswered Issue

• Edwards Aquifer Authority vs. Day

• Texas Supreme Court Ruling, February 2012

• Found that landowner “owns” groundwater 

under his or her land is entitled to adequate 

compensation if limitations are placed on the 

groundwater by a groundwater conservation 

district.

• Ramifications still unclear.

• Possible legislation coming to address water 

issues.
Summary

• Water-related issues in Texas not going away, most likely will 

only intensify

• Jurisdiction varies depending on source of water

• Surface Water – TCEQ

• Groundwater – GCD, RRC, TWDB all possible

• Oil and Gas Waste Recycling – RRC

• New water legislation during next Legislative Session in 

January 2015?
Contact Information

Railroad Commission

Environmental Permits Main Line

512.463.3840

TCEQ

512.239.1000

TWDB

512.463.7847