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Committee approves bill to let oil-and-gas commission regulate produced water used in E&P
Summary
The Minerals Committee advanced 27 LSO 22, which would authorize the Oil and Gas Conservation Commission to regulate produced-water infrastructure used solely for oil-and-gas exploration and production; supporters said it would clarify commercial reuse authority while excluding NPDES discharges.
The Minerals Committee on Thursday approved a bill draft that would give the Oil and Gas Conservation Commission explicit authority to regulate produced-water infrastructure used for oil-and-gas exploration and production.
Brian Fuller of the Legislative Service Office described 27 LSO 22 as language based on recommendations from the Oil and Gas Conservation Commission. "This bill draft . . . would authorize the commission to regulate produced water for specified oil and gas purposes," Fuller said, and he noted the draft excludes discharges that are permitted under the National Pollutant Discharge Elimination System.
Tom Cropach, oil and gas supervisor for the commission, told the committee that operators increasingly want to transfer and reuse produced water between operators for hydraulic fracturing and other E&P uses to cut fresh-water purchases and reduce disposal. "We are seeing industry want to use more produced water in the state," Cropach said, explaining the draft is intended to close a regulatory gap for commercial reuse facilities and associated infrastructure.
Members questioned whether municipal reuse, data-center cooling, or transfers outside the industry would be affected; Cropach and Fuller said those uses remain subject to state-engineer water-appropriation rules and DEQ discharge permits, and the draft specifically targets industry uses and infrastructure.
Industry witnesses supported the draft. Pete Ober Mueller, president of the Petroleum Association of Wyoming, said the measure helps operators reduce fresh-water use. An industry presenter told the committee industry produced about 1.5 billion barrels of water statewide in 2025 and said reuse potential is basin-specific.
After discussion the committee took a roll-call vote and approved the draft; members indicated it will be carried as a House bill.
What happens next: The approved draft will be introduced for consideration in the upcoming legislative session; the committee asked staff to coordinate statutory cross-references to DEQ and state-engineer authorities.
Sources: Committee testimony by Brian Fuller and Tom Cropach; industry witnesses; committee roll-call.
