Beatty & Wozniak (May 28, 2026) – When it comes to produced water use and reuse, Texas and New Mexico are on the same road but at very different mileposts. Texas is drafting permit mechanics for the land application of treated produced water. New Mexico is still deciding whether to authorize broader off-oilfield reuse at all. Operators, midstream water companies, data center developers, hydrogen and geothermal sponsors, and industrial users with Permian or San Juan Basin exposure should plan around the gap—not around an eventual convergence.
At a glance:
- Texas (TCEQ): On April 30, 2026, the Texas Commission on Environmental Quality (TCEQ) approved publication of proposed rules under Rule Project No. 2026-006-309-OW implementing Senate Bill (SB) 1145. Comment period closes June 16, 2026; adoption targeted 2027.
- Texas Supreme Court (2025): Produced water is oil and gas waste owned by the mineral operator, not the surface owner, absent express agreement. Cactus Water Services, LLC v. COG Operating, LLC.
- New Mexico (WQCC): On May 12, 2026, the Water Quality Control Commission (WQCC) voted 7-4 to advance WQCC 26-18, reopening 20.6.8 NMAC for off-oilfield reuse. Hearing to be scheduled; decision anticipated in 2027.
- New Mexico—current rule: Existing 20.6.8 NMAC generally prohibits discharge of untreated or treated produced water to surface water or groundwater outside of oil-and-gas activities, while allowing limited pilot projects under New Mexico Environment Department (NMED) permitting.
- Commercial takeaway: A reuse project that may be moving toward a permit pathway in Texas may remain legally uncertain in New Mexico. Multi-state projects should be structured by source state, treatment location, transport route, discharge or land-application location, end use, and contract risk allocation.
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