# 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.

# TCEQWatermaster 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