Layne Water Midstream, a water midstream company in the Permian Basin, and the Texas General Land Office (GLO) today announced an amendment of their long-term agreement that provides Layne Water Midstream with additional exclusive rights regarding reuse and disposal of produced water on the GLO’s acreage in Reeves and Culberson counties. These reuse and disposal rights are in addition to the existing exclusive rights for Layne Water Midstream to develop GLO non-potable water resources for use in oil and gas drilling and completion activities on approximately 88,000 acres located across Reeves and Culberson counties, in the heart of the Delaware Basin oil and gas producing region. The contract amendment will enable Layne Water Midstream to develop, construct and operate water infrastructure on GLO acreage that will gather, transport, treat, recycle and dispose of water produced from oil and gas operations in the region.

J. Michael Anderson, Chief Executive Officer of Layne Water Midstream commented, “We are honored to expand our successful partnership with the Texas General Land Office. The amendment allows us to invest further in water infrastructure on GLO lands in order to gather produced water from energy producers for treatment and reuse in hydraulic fracturing operations and for disposal. Our continuing objectives are to responsibly manage water resources and operate large scale water infrastructure that provides energy producers with simple and cost-efficient access to source water, recycled water and disposal infrastructure. Our GLO partnership is designed to generate water-related revenue streams for the GLO and make it easier for energy producers to operate on GLO acreage.”

The original agreement between Layne Water Midstream and the GLO was signed in November 2017 and enables Layne Water Midstream to develop, construct, own and operate water infrastructure to produce and sell non-potable water to oil and gas companies in the Delaware Basin. Through the expansion of water services provided under the contract amendment, Layne Water Midstream can better serve energy producers through a full range of water midstream services from provision of non-potable source water for hydraulic fracturing to gathering and transportation of produced water, water treatment and reuse, and water disposal. Revenues from water sales and services will be shared between Layne Water Midstream and the Permanent School Fund, the land and mineral assets of which are managed by the GLO.

Layne Water Midstream has begun marketing these additional water treatment, reuse and disposal services on GLO lands to producers in the region and will continue to serve as the GLO’s sales and marketing resource for full cycle water midstream services. Layne Water Midstream is in the process of filing numerous water disposal permits on GLO land and expects that it will construct water infrastructure for recycling and/or disposal during 2020.