DNA OF A TEXAS PERMIT

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We said we’d be transparent on our permit path, so here’s the latest.This week we had a nice call with the nice folks at RRC. The number one question that has become the elephant in the room — or in oilfield if you like — is this question:

Who owns that water once it’s treated/cleaned and is put to beneficial use? The RRC checked with their internal lawyers for the answer.

Quick, let’s see if you can guess the answer for the Texas Permit Trivial Pursuit: Who owns produced water that has had its constituents and purpose changed?

Well….if your answer was “Nobody knows” then you’re the winner!

Here’s what the RRC, who has jurisdiction over the water says, “After discussions with the RRC attorney, the RRC does not make determinations on water ownership. You will need to discuss this with a water rights attorney in the State of Texas.”

Seem like the State of Texas itself should know the answer to this question.

Meanwhile, in West Texas, it’s not raining and the cotton is burning.