Reporting for this story was supported by a grant from the Fund for Investigative Journalism.
WINKLER COUNTY, Texas—In 2003, water samples from the T-Bar Ranch in West Texas revealed unexpected salinity. This area, part of the City of Midland’s water security plan, was acquired in 1965 to secure future water needs. However, the discovery of salts disrupted those plans.
Investigations pointed to Heritage Standard Corporation, a Dallas-based company operating nearby oil and gas wells, as a possible contaminant source.
Midland filed a complaint in 2007 against Heritage Standard, alleging groundwater contamination due to the company’s injection well. The Railroad Commission of Texas mandated remediation, but the company filed for bankruptcy in 2010. The pollution remains unresolved, with Heritage Standard abandoning six orphan wells. The Railroad Commission now deals with these, amid over 11,000 orphan wells needing plugging in Texas.
The Railroad Commission’s role includes safeguarding water, as demonstrated in T-Bar Ranch, which highlights the challenges of cleaning oil industry pollution. The bankruptcy allowed Heritage Standard to avoid responsibilities, echoing over 500 active contamination cases the commission manages.
Heritage Standard’s executive Michael B. Wisenbaker Sr. declined to comment.
“The existing regulatory framework has been effective,” stated Railroad Commission spokesperson Bryce Dubee, emphasizing groundwater protection under the commission’s Underground Injection Control (UIC) program.
Oilfield contamination poses threats to Texas’s water. In November 2025, voters approved funding up to $1 billion annually for the Texas Water Fund to boost water supply.
Julie Range, policy manager at Commission Shift, stressed the importance of water protection amidst risky operations: “We’re investing heavily in new water supplies and must safeguard existing resources.”
Oil and Water Concerns
The 2024 Texas Joint Groundwater Monitoring and Contamination Report lists 531 ongoing cases of oil and gas-related groundwater contamination. Injection wells, spills, and leaks are key contributors.
Most incidents don’t affect domestic water, but areas like T-Bar Ranch show impacts on public reserves. The Colorado River Municipal Water District noted benzene in a water well in 2012.
Public water sources in Texas have tested positive for industrial contaminants over 200 times. The source is often unclear, but the oil and gas industry is a significant contributor, especially through produced water disposal in injection wells.
Finding potable water in the Permian Basin is challenging due to saline aquifers and arsenic. The risk of contamination is constant, aggravated by open-pit disposal of produced water until 1969.
The Texas Water Commission in 1989 identified brine as a major aquifer pollutant, noting the difficulty of remediation.
In 1991, a Texas Monthly article highlighted legal actions against oil companies for water pollution.
A 2020 study confirmed groundwater quality deterioration in the Permian Basin from 1992 to 2019, due to agriculture and oil spills.
Improperly sealed wells have worsened the situation, drawing attention from landowners Ashley Watt and Schuyler Wight over similar issues on their properties.
Midland’s experience underscores the risks of oil and gas drilling near water supplies.
T-Bar Ranch Developments
Midland, bordering the Chihuahuan Desert, relies on Colorado River reservoirs for its water. It purchased T-Bar Ranch for future needs, despite oil and gas activities on the property.
Under Texas’s Rule of Capture, landowners can freely pump groundwater unless restricted by a groundwater district. However, mineral rights often belong to others, necessitating cooperation with oil and gas operators.
In 1994, Heritage Standard converted an oil well at T-Bar Ranch into an injection well for produced water. By 2003, water tests indicated significant salinization, prompting investigations.
The 2007 testing revealed casing holes in the Tubb well, dating back to 1999. Estimates suggested up to 63 million gallons of produced water might have leaked, though some reports indicated lower volumes.
Midland complained to the Railroad Commission, describing the contamination as a “significant threat.” Despite this, Heritage Standard denied responsibility. The commission approved a remediation plan involving plume monitoring and water extraction.
Heritage Standard faced no fines but was ordered to investigate fully in September 2010. Days later, the company declared bankruptcy.
Bankruptcy Implications
The oil industry’s cyclical nature leads to frequent bankruptcies. Between 2015 and 2020, 115 Texas companies filed for bankruptcy, the most nationwide. These firms often leave behind environmental liabilities.
Chapter 11 bankruptcy prioritizes creditor payment over environmental liabilities. Midland and the Railroad Commission sought court approval for remediation funds from Heritage Standard’s estate.
A settlement allocated $1.025 million for cleanup, far less than Midland’s $6.5 million claim. The commission was to cover additional costs if the escrow depleted.
During the bankruptcy, legal and financial constraints limited cleanup efforts. Environmental costs were capped to ensure creditor payment.
Clark Williams-Derry from the Institute for Energy Economics and Financial Analysis criticized the bankruptcy system for extending the life of non-viable oil assets.
Midland Assumes Control
Midland took over cleanup amid drought and water shortages. A 2013 pipeline project allowed Midland to draw from uncontaminated aquifers, but concerns about the contamination spreading persisted.
Midland disagreed with the commission’s assessment and proposed a new plan involving interceptor wells. The commission approved, allowing Midland to manage the situation independently.
Midland’s Carl Craigo explained plans to sell extracted water unsuitable for municipal use to recoup costs. He noted previous remediation efforts were insufficient.
Communication with oil operators at T-Bar remains crucial for safeguarding water sources.
Trucks frequent the area, a testament to ongoing oilfield operations. A lone sign marks the contaminated site, illustrating the challenges Midland faces.
Lingering Orphan Wells
Heritage Standard ceased operations post-bankruptcy, leaving behind orphan wells. The state mandates well plugging after production ceases. The Railroad Commission identified several wells needing attention.
Heritage Standard’s remaining wells were eventually added to the orphan well list. The state’s backlog of orphan wells is at its highest since 2006, posing groundwater contamination risks.
Addressing Challenges
The Railroad Commission secured increased funding for orphan well plugging, but groundwater issues remain under-examined. Public records and court filings document cases like Heritage Standard’s.
Commissioner Wayne Christian downplayed the issue in a 2025 meeting, questioning the extent of pollution. However, Texas law mandates future water protection, underscoring the need for action.
Oil and gas production thrives in the Permian Basin, but water availability declines. Fracking demands have escalated water use, and regional projections indicate potential shortages by 2050.
While oil output flourishes, water scarcity looms, highlighting the need for sustainable resource management.
Original Story at insideclimatenews.org