Texas Bill Would Limit Liability for Oil Firms Recycling Frack Water Into State Rivers

As Texas explores turning treated fracking wastewater into a new water source, oil and gas companies want legal protection before scaling up efforts. A proposed bill would shield producers, treatment firms, and landowners from future liability.

Austen Altenwerth

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Austen Altenwerth

Published 

May 20, 2025

Texas Bill Would Limit Liability for Oil Firms Recycling Frack Water Into State Rivers

Texas oil and gas companies seek legal safeguards as the state deliberates a contentious new approach to address its water crisis: the discharge of treated fracking wastewater into rivers and streams.

House Bill 49, introduced by Representative Drew Darby (R-San Angelo), aims to shield oil companies, treatment operators, and landowners from legal liability when they sell or repurpose treated fracking water, commonly called "produced water," for agricultural or industrial applications. The Texas House has approved the legislation, which is now set for discussion in the Senate.

During a March House committee meeting, Darby revealed that each barrel of oil extracted in West Texas could generate as much as five barrels of contaminated water. The byproduct is commonly repurposed for fracking or stored underground. In the face of escalating water shortages in Texas, driven by increasing population and persistent drought conditions, lawmakers are exploring the possibility of repurposing toxic waste for wider applications, including supplementing rivers.

Companies have announced technological advancements aimed at cleaning produced water to acceptable standards. However, they express caution in proceeding without the establishment of legal protections. Michael Lozano of the Permian Basin Petroleum Association stated, “Without legal certainty, Texas stands to forfeit millions of barrels per day of treated water that could lessen dependence on freshwater.”

Under Darby's proposed legislation, companies would be held liable solely in instances of gross negligence, willful misconduct, or breaches of state and federal treatment regulations. The Texas Commission on Environmental Quality will take charge of permitting processes and the establishment of treatment standards.

Environmental advocates are sounding the alarm. Nichole Saunders, a senior attorney at the Environmental Defense Fund, has raised concerns that permits may inadequately address the presence of various toxic chemicals. “Our approach is based on the regulatory safety net rather than established results,” she stated.

Four treatment companies have submitted applications for permits to discharge treated water into waterways across Texas. Critics assert that the state lacks the necessary scientific data to guarantee the long-term safety of human populations and ecosystems.

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