DGC Client Prevails in Dispute Over "Produced Water" Ownership

On Friday, July 28, 2023, DGC client COG Operating LLC prevailed in the El Paso Court of Appeals in Cactus Water Services, LLC v. COG Operating, LLC.  The case is a dispute over ownership of “produced water”—the liquid waste byproduct that remains after oil and gas is produced from the earth and most hydrocarbons are extracted from the oil-and-gas product stream.  Produced water is a heavily regulated substance that must be carefully handled in compliance with strict regulations.  After the mineral owners leased the oil and gas, the same mineral owners purported to convey rights to “produced water” to Cactus Water, which had no ability or infrastructure to handle the waste.  Nonetheless, Cactus Water demanded that COG pay Cactus Water for its “produced water” rights. 

DGC attorneys Jad Davis, Ryan Clinton, and Katie Petroski handled the case in the trial court, with Jad Davis successfully arguing COG’s motion for summary judgment. Ryan Clinton wrote the successful motion for summary judgment.  Davis, Clinton, and Petroski served as co-counsel with Baker Botts on the successful appeal.

Resources:
Court of Appeals opinion