ORLA, Texas — Texas oil and gas officials and industry leaders warned last week that the Permian Basin could face limits on oil production if companies cannot find alternatives to underground disposal for the nearly 1 billion gallons of wastewater generated each day.
The wastewater, known as produced water, contains chemicals and naturally occurring substances that return to the surface during oil and gas production. Companies typically inject it into underground disposal wells, but increased underground pressure from the wells has contributed to earthquakes and blowouts.
The oil industry is pursuing technologies that can treat and reuse the wastewater as disposal capacity becomes more limited.
The Texas Commission on Environmental Quality is developing two permitting programs for treated produced water. TCEQ began accepting applications in 2024 for companies seeking to discharge treated produced water into rivers but has not issued a permit. The agency also proposed rules this year that would allow treated produced water for irrigation and rangeland restoration.
Railroad Commission Commissioner Jim Wright urged TCEQ to move forward with workable permits during a Texas Senate hearing last week.
“Continued delay could restrict oil and gas development across the Permian Basin,” Wright said.
The Texas Produced Water Consortium, a research group based at Texas Tech University and funded by the state, continues to study treatment methods and water quality.
At the same time, companies have begun developing treatment facilities. Texas Pacific Water Resources opened a facility near Orla that can treat up to 10,000 barrels, or 420,000 gallons, of produced water per day.
The facility uses freeze desalination technology. The process freezes water, separates salts into a concentrated brine and produces water for potential reuse. About half of the treated water can become recoverable for reuse, while the remaining brine requires underground disposal.
The facility requires 5.5 megawatts of electricity to operate, with natural gas microturbines providing 4 megawatts.
Texas Pacific Water Resources also has a permit for a pilot project that applies treated produced water to nearby rangeland. The company has asked TCEQ to increase the permitted volume to 2.73 million gallons per day across 102 acres.
The company submitted a TCEQ application in 2024 to discharge treated produced water into Salt Creek, a tributary of the Pecos River, but the agency has not issued the permit.
Researchers continue to study the potential environmental effects of treated produced water. A recent peer-reviewed study found that treated produced water showed potential as a supplemental irrigation source for alfalfa but described the findings as preliminary because researchers studied only one growing season.
Another study published in July identified gaps in research on treatment technologies, including the need for longer-term studies and more comprehensive water-quality and toxicity testing.
During the Senate hearing, Michael Lozano of the Permian Basin Petroleum Association warned that companies could soon run out of underground disposal space.
“We’re at this precipice,” Lozano said. “This is a large volume of water that we don’t have avenues for that we’re trying to rapidly create.”
Some environmental advocates have urged TCEQ to complete additional research before issuing permits. Julie Range, policy manager for Commission Shift, said regulators should establish safeguards before allowing treated produced water into rivers or onto land.
TCEQ spokesperson Victoria Cann said the agency develops permits based on the proposed activity and its location and designs them to comply with Texas surface-water quality standards and protect drinking water, aquatic life and other existing uses.
At the Produced Water Society’s annual conference in Midland last week, industry officials and regulators also discussed the status of TCEQ permits.
TCEQ Commissioner Catarina Gonzales said several permit applications were in the final stages of review but declined to identify specific projects.
Texas Pacific Water Resources Executive Vice President Robert Crain said companies need a regulatory framework that protects the environment while keeping treatment economically feasible.
Researchers and environmental groups continue to call for additional studies to determine appropriate treatment levels, water-quality standards and the long-term effects of treated produced water on the environment and public health.
