Water rights are the legal rights to use water — both surface water (rivers, lakes) and groundwater (water beneath the surface) — and they form an estate distinct from both mineral rights and surface rights. In the oil and gas context they matter because operators need large volumes of water to drill and complete wells, and because groundwater ownership varies significantly from state to state.
Land ownership can be unbundled into several estates — the surface, the minerals, and, in many places, water. Water rights govern who may use water and how much. They are generally treated separately from mineral rights: owning the oil and gas beneath a tract does not give you the water, and owning the water does not give you the minerals. Understanding water rights matters to mineral owners mainly because water and oil-and-gas development are deeply intertwined.
Water law distinguishes two kinds of water. Surface water — in rivers, streams, and lakes — is governed in the western states largely by prior appropriation ("first in time, first in right"), and in the eastern states more by riparian rights tied to owning land along the water. Groundwater — beneath the surface — is where ownership rules diverge most, and where the parallels to oil and gas are striking.
Groundwater ownership is not uniform. Texas, notably, applies a rule of capture to groundwater much like the one it applies to oil and gas: a landowner may generally pump the water beneath their land even if it draws from a neighbor, subject to regulation by groundwater conservation districts. Other states apply reasonable use, correlative rights, or prior appropriation doctrines that limit or allocate pumping differently. The result is that whether — and how much — groundwater you "own" under your land depends heavily on your state.
Modern oil and gas development, especially hydraulic fracturing, uses substantial volumes of water, and it also produces water — the salty "produced water" that comes up with oil and gas and must be disposed of, often by injection. Operators therefore need access to water for drilling and completion and to disposal capacity afterward. For a landowner, this can mean an operator seeking a water-supply arrangement or a saltwater disposal well; for a mineral owner, water availability and disposal costs are part of the economics of development. These water uses are governed by water law and regulation layered alongside oil and gas law.
Like minerals, water rights can often be conveyed or leased apart from the surface and the minerals, though the rules are highly state-specific. In water-scarce or drilling-intensive regions, landowners increasingly lease groundwater to operators for drilling and completion, or sell it to municipalities and other users. Where a rule-of-capture or absolute-ownership doctrine applies (as with Texas groundwater), a landowner may have broad authority to produce and sell water, subject to conservation-district permitting; where reasonable-use, correlative-rights, or prior-appropriation doctrines govern, the ability to sell is more constrained.
Because a water lease or sale can affect — and be affected by — surface and mineral development on the same land, these arrangements are worth coordinating with any existing oil and gas activity and reviewing with counsel before signing.
If you own land, whether you also hold the groundwater beneath it — and on what terms you may use or sell it — is a separate question from your mineral ownership, and increasingly a valuable one in areas of active drilling. If you own only the minerals, the water is generally not yours. And because water rules are so state-specific, the answers for your tract depend on where it sits. This is educational background, not legal advice; water rights and groundwater ownership are governed by state law that varies widely, so consult a qualified attorney about your specific situation.
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Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.
No. Water rights — the rights to use surface water and groundwater — form a distinct estate from mineral rights. Owning the oil and gas beneath your land does not give you the water, and owning the water does not give you the minerals. They are governed by separate bodies of law.
It depends on the state. Texas applies a rule of capture to groundwater similar to its oil-and-gas rule, letting a landowner pump water beneath their land (subject to conservation-district regulation). Other states apply reasonable use, correlative rights, or prior appropriation doctrines. Because the rules vary widely, your state governs the answer.
Oil and gas development, especially hydraulic fracturing, uses large volumes of water and produces salty "produced water" that must be disposed of, often by injection. Operators need water for drilling and completion and disposal capacity afterward, so water availability, supply arrangements, and disposal costs are part of the economics of development.
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Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau.
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