Texas pushes permits for treated oilfield wastewater as disposal wells near capacity

Officials and oil producers in Texas say the Permian Basin is approaching a shortage of underground capacity for injecting the massive daily flow of produced water, a waste stream that can contain hazardous chemicals and has been linked to seismic activity. In response, the Texas Commission on Environmental Quality is developing two permitting programs—one for discharging treated water into rivers and another for applying it to land—though no permits have been issued yet.

Industry pilots are underway, notably Texas Pacific Water Resources’ freeze-desalination facility near Orla, which can treat 420,000 gallons per day and plans to reuse half of the output. Lawmakers and environmental advocates have voiced concerns about the adequacy of water-quality standards and the need for more peer-reviewed research before large-scale reuse. The agency has received nearly 450 comments on its draft land-application rule, with a majority opposing it, while regulators continue to negotiate permit specifics with companies. The outcome will affect oil production, water management, and environmental risk in the region.