On June 27, 2025, the Texas Supreme Court issued its long-awaited decision in Cactus Water Services, LLC v. COG Operating, LLC, No. 23-0676, resolving a high-stakes dispute over the ownership of produced water—a vexing byproduct of oil and gas production that is increasingly being viewed as a resource rather than waste—and its constituents. The Court held that, unless expressly reserved, a deed or lease conveying oil and gas rights also conveys produced water as part of the mineral estate. The decision not only reinforces the ownership of produced water under Texas oil and gas law, but also offers insight into how emerging practices such as direct lithium extraction (DLE) from produced water might be treated under existing legal frameworks.
Articles Posted in Texas
Texas Clears Penultimate Hurdle to Class VI Primacy: What it Means for CCS and State-Led Permitting
On June 9, 2025, the U.S. Environmental Protection Agency (EPA) proposed granting the State of Texas primary enforcement authority—commonly referred to as “primacy”—over the permitting and regulation of Class VI underground injection control (UIC) wells under the Safe Drinking Water Act (SDWA). This would authorize the Texas Railroad Commission (RRC) to regulate the geologic sequestration of carbon dioxide (CO₂) through Class VI wells—an essential component of carbon capture and storage (CCS) infrastructure.
From Shale to Salt: Texas Supreme Court Applies Uniform Rule for Ownership of Subsurface Caverns
In a closely watched opinion issued on May 16, 2025, the Texas Supreme Court in Myers-Woodward, LLC v. Undergrounds Services Markham, LLC, — S.W.3d —, No. 22-0878, 2025 WL 1415892 (Tex. May 16, 2025) resolved a long-uncertain issue of subsurface property rights in the context of salt dome mining. The Court held that, unless a deed provides otherwise, subsurface voids created by salt mining operations are owned by the surface estate holder, not the mineral interest holder. By rejecting a salt-specific rule, the Court harmonized ownership principles across subsurface formations, applying a uniform rule regardless of the type of mineral removed.
A Survey of New Texas Environmental and Regulatory Laws Enacted in the 88th Session (Updated)
This is a brief survey of many of the environmental and regulatory laws passed by the Texas Legislature and signed by the Governor in the 88th Regular Session of the Legislature, which ended in May 2023, although a special session has been called to address lingering matters. Altogether, more than 1,000 laws were enacted in this session, including a surprising number of water-related environmental bills.