Articles Posted in Subsurface Rights

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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.

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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.

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