University Lands, manager of more than 2.1MM acres of state-owned surface and mineral interests in western Texas, in January awarded a water services contract to a new joint venture formed specifically to manage its water.
The contract was awarded to a joint venture formed by H2O Midstream and Layne Water Midstream.
The joint venture was selected based on the track record of the two companies in the Permian and their experience with water management throughout the oil well development and production lifecycle.
The agreement includes services for water sourcing, storage, transport, recycling and disposal of water produced from oil and gas wells across 167M acres of UL lands in Ward, Winkler and Loving Counties.
Mineral production on UL managed lands in 2018 returned more than $1 billion to the state’s Permanent University Fund. Proceeds benefit the more than 20 educational and health institutions under Univ. of Texas and Texas A&M.