What Is Produced Water
Produced water is wastewater generated during oil and gas operations. Texas leads the nation in oil and gas production, with an estimated 20-25 million barrels (up to 1 billion gallons) of produced water generated daily in the Permian Basin. Produced water contains a complex mixture of contaminants, including salts, hydrocarbons, heavy metals, PFAS, fracking chemicals, and even radioactive materials. Oil and gas wells continue to generate produced water throughout their productive lives, typically 20-30 years.
Responsibility for produced water management is divided between the Railroad Commission of Texas (RRC) and Texas Commission on Environmental Quality (TCEQ): RRC regulates produced water and treatment activities, while TCEQ regulates reuse outside the oilfield, including the potential for land application (e.g. agricultural irrigation and rangeland restoration) and discharge into rivers and streams.
How Is Produced Water Managed
Some produced water is recycled in the oilfield to support oil and gas production. Most produced water, however, is injected into deep underground disposal wells – a practice that has recently been linked to increased seismic activity (earthquakes) With such large volumes injected every day, available underground disposal capacity is becoming more limited.
Underground injection can also cause “zombie wells” – abandoned oil and gas wells that were poorly plugged or left unplugged – to leak injected produced water, polluting groundwater, rivers, and streams.
These concerns have led to discussions about alternative ways to manage produced water, including treating it to use for irrigation, land restoration, discharge into waterways, and potentially even as a source of water for a variety of other uses, including not only data centers but even municipal drinking systems.
Interest in reuse is growing as Texas faces increasing water challenges and considers whether treated produced water could become part of the state's future water supply. However, research on beneficial reuse is still ongoing, important information on constituents of concern remains proprietary as trade secrets, and protective regulations have yet to be fully developed.
Texas Produced Water Research
But this is where we need to slow down. If we rush ahead, we may risk catastrophic consequences for the environment, human health, and the safety of our water supplies.
Recognizing both the potential and the uncertainty, 87th Texas Legislature passed SB 601 establishing the Texas Produced Water Consortium (TxPWC) to study whether and how produced water could be safely reused. The Consortium brings together scientists, engineers, regulators, nonprofits, and industry representatives to develop treatment technologies, assess environmental and public health risks, determine economic feasibility, and inform policy.
This work reflects a broader understanding that science must guide any decisions about produced water reuse. And while scientists at TxPWC are making progress, this research has also shown how much more we need to learn. For example, we know that treatment of produced water is very expensive and energy-intensive, but it’s still unclear who would bear those costs or whether large-scale reuse is economically viable. It’s also important to remember that because Texas doesn’t require oil and gas companies to disclose all chemicals that they use in fracking, scientists are essentially working with incomplete information, trying to understand treatment of produced water without fully knowing what’s in it.
The Sierra Club Lone Star Chapter participates directly in the TxPWC conversations as an active member of the Consortium and a council member of the TxPWC Stakeholder Advisory Council. We regularly engage in meetings, technical discussions, and TxPWC conferences to ensure that environmental and community considerations are reflected in this process.
Produced Water at the Texas Legislature
Despite the major knowledge gaps, policy to deploy reuse of produced water in Texas is advancing. In 2025, Texas passed SB 1145, which transferred authority over management of produced water outside the oilfield from the RRC to TCEQ and authorized reuse of produced water for land application. At this moment, TCEQ is working on a memorandum of understanding for the transfer of authority and on the rulemaking for the implementation of SB 1145.
Another key development during the 89th Legislature was the passage of HB 49, a bill that expanded liability protections for companies involved in the treatment, transport, and reuse of produced water. In practice, the law shields oil and gas operators, treatment companies, landowners, and other relevant parties from being held liable for damages that may arise from produced water reuse activities. Supporters argued that these protections are necessary to encourage investment and scale up reuse. But for many environmental and public interest groups, including the Sierra Club, the bill raised serious concerns about accountability, especially as scientists are still working to determine if produced water can be safely reused as water supply.
Finally, to their credit, the 89th Legislature did increase funding for the RRC, including authorizing support of a request by the RRC for more than $7.7 million in additional monies and 2 FTEs (full-time equivalent) to create a produced water and injection data reporting system. The RRC is requesting additional $3.7 million in their budget request for the next biennium to complete this database and is expecting to launch it in spring 2028.
At the Legislature, produced water has been discussed in terms of a new water supply for Texas. Projects related to treatment and reuse of produced water are eligible for state funding through the New Water Supply for Texas Fund, a program within the Texas Water Fund, which was significantly expanded by the 89th Legislature, with the historic funding approved by voters through Proposition 4 last fall.
Produced Water at the Texas Commission on Environmental Quality
Texas Commission on Environmental Quality (TCEQ) is currently reviewing at least five applications to allow treated produced water to be discharged into waterways in the Pecos River watershed. The idea behind this approach is to supplement flows in a region where water is scarce. These applications are expected to be reviewed on a first-come, first-served basis, and so far, no permits have been approved, but the agency is expecting to approve the first two permits very soon.
TCEQ is also reviewing seven permit applications for treated produced water to be used for irrigation and rangeland restoration.
Sierra Club Solutions
The Sierra Club Lone Star Chapter’s proposed solutions for produced water reuse put science, public health, and environmental protection first. We call on Texas to continue funding theTxPWC, let the best available science guide policies and regulations, and delay large-scale reuse outside the oilfield until research demonstrates that it is safe for people and the environment. As scientists continue their research into reuse, they must have full access to information about chemicals used in oil and gas operations, including information currently withheld as trade secrets.
We also urge the TCEQ to develop science-based standards for discharging treated produced water into waterways and using it on land, with monitoring before and after reuse begins to detect impacts on rivers, soil, and groundwater—including the potential accumulation of contaminants over time.
How to Get Involved In Produced Water Issues