WaterBridge Issues Statement on Updated Permitting Regulations From the Railroad Commission of Texas

HOUSTON--(BUSINESS WIRE)--WaterBridge, an industry leader in produced water midstream infrastructure, today issued the following statement following the Railroad Commission of Texas’ (RRC) recently-announced permitting guidance for new or amended permits for produced water handling facilities in the Permian Basin.

WaterBridge’s Commitment to Regulatory Excellence and Industry Leadership

The updated permitting guidelines instituted by the RRC are closely aligned with WaterBridge’s current operating practices for produced water handling via underground injection and will not materially impact our operations.

Industry practices in the Permian Basin are ever evolving. Over the past decade, the RRC has increasingly focused on addressing emerging issues, including seismicity and pore pressure – matters that WaterBridge has long been focused on. We commend the RRC for establishing updated guidelines that will support the permitting process for the benefit of all stakeholders and provide greater clarity and efficiency for the industry.

As formation pressure issues have emerged within certain areas of the Permian Basin, WaterBridge has worked collaboratively with our E&P customers and the RRC to provide feedback, as well as pressure and seismic data and, ultimately, constructive solutions for responsible, long-term produced water management.

WaterBridge has always maintained the highest standards for produced water handling and management. To that end, we have historically taken several measures as part of our infrastructure development methodology and underwriting criteria, including:

• Intentionally developing our infrastructure network to distribute our produced water handling facilities over a broad geographic footprint to mitigate pressure concerns that typically stem from over-concentrated disposal, including minimum spacing restrictions
  
  
• Leveraging our in-house geology and regulatory teams, as well as third party experts, to perform regional reviews to identify potential hazard wells, pressure limitations, current and future production, and/or other geological concerns that present potential environmental risks to the permitting and development of new produced water handling infrastructure
  
  
• Abstaining from development and operation of deep disposal wells in Texas to mitigate potential seismicity risks
  

Further, through our relationship with leading land management platform, LandBridge Company LLC (NYSE: LB), as well as other strategic landowner partners, we have secured significant resources for the continued development of sustainable water handling infrastructure, including access to underutilized pore space. WaterBridge’s partnership approach and resources help ensure that both we and our E&P customers will continue to operate efficiently and responsibly under the updated RRC permitting guidelines.

We strongly believe that our differentiated approach provides E&P customers with the flow assurance needed to facilitate production growth within an environmentally responsible framework, supporting the longevity of our operations in the Delaware Basin area of the Permian Basin.

Jason Long, Chief Executive Officer of WaterBridge, added: “The RRC has taken an important step towards preventing the proliferation of seismicity and pore pressure issues across the Permian. We were grateful for the opportunity to provide the RRC with our insights as they developed these new guidelines which more closely align with our longstanding approach of distributed, environmentally responsible water management. We look forward to continued dialogue with the RRC.”

WaterBridge is well-positioned to accommodate evolving RRC permitting guidelines due to our:

• Track Record of Responsibility: We strive to exceed the regulatory framework, operating one of the most responsible and sustainable water infrastructure platforms in the industry. This approach encompasses our pre-development geo-location analysis, RRC permitting processes and ongoing regulatory compliance
  
  
• Scale and Volume: Our extensive infrastructure and operational capacity allow us to adapt quickly and seamlessly to evolving regulatory requirements and the needs of our E&P customers. It also empowers our ability to continue bringing the most innovative and environmentally responsible solutions to the marketplace
  
  
• Investment in Long-Term Solutions: Since inception, WaterBridge has been focused on long-term water management practices. Benefiting from ample pore space available via LandBridge and other landowner partners, we have proactively distributed our facilities geographically rather than concentrating injection within localized areas, resulting in greater longevity and environmental benefits
  
  
• Ongoing Dialogue with Regulators: We maintain continuous and constructive conversations with the RRC and other state regulatory authorities to ensure our practices remain at the forefront of industry standards
  

About WaterBridge

WaterBridge Operating LLC, a portfolio company of Five Point Infrastructure LLC and GIC, and NDB Midstream LLC, a strategic partnership between Five Point Infrastructure LLC and Devon Energy Corp. (NYSE: DVN), collectively as WaterBridge, operate large-scale produced water transportation, handling, recycling and reuse assets in the Delaware Basin in West Texas and New Mexico, the Eagle Ford Basin in South Texas, and the Arkoma Basin in Oklahoma.

Collectively, WaterBridge handles approximately 2.4 million bpd of produced water and owns approximately 4.2 million bpd of produced water handling capacity along with 2,500 miles of pipeline. Headquartered in Houston, Texas, WaterBridge benefits from a first-mover advantage in the water midstream sector and a deeply experienced and entrepreneurial management team. For further information, please visit www.h2obridge.com.

About LandBridge

LandBridge Company LLC (NYSE: LB) owns approximately 277,000 surface acres across Texas and New Mexico, located primarily in the heart of the Delaware sub-region in the Permian Basin, the most active region for oil and gas exploration and development in the United States. LandBridge actively manages its land and resources to support and encourage energy and infrastructure development and other land uses, including digital infrastructure. LandBridge was formed by Five Point Infrastructure LLC, a private equity firm with a track record of investing in and developing energy, environmental water management and sustainable infrastructure companies within the Permian Basin. For more information, please visit: www.landbridgeco.com.