East Texas Groundwater Fight Spurs Legislative Push

A high-profile battle over groundwater in East Texas is drawing attention from lawmakers, water districts, and industry leaders across the state — including many TNLA members in East Texas and the Dallas–Fort Worth area.


Recently, WFAA published a detailed report on Dallas investor Kyle Bass’s plan to pump up to 15 billion gallons of water each year from rural East Texas. The project has sparked fierce local opposition and renewed debate over Texas’s century-old groundwater laws.


Legislative Response
In response, State Representative Cody Harris (R–Palestine), Chair of the House Committee on Natural Resources, has filed a package of bills aimed at modernizing Texas’s groundwater rules. While he has urged the Governor to add them to the current Special Session agenda, it remains uncertain whether they will be taken up before the next regular legislative session in 2027.

Two bills in particular have emerged as his top priorities:

• HB 216 – Would limit how much groundwater a single permit holder can pump and transfer out of a groundwater conservation district. For new permits issued after the bill’s effective date, no single permit could authorize production and export of more than 5% of the district’s total modeled available groundwater, as determined by the Texas Water Development Board.
• HB 218 – Would require greater regional oversight for large-scale groundwater transfers. For wells capable of producing 25,000 gallons or more per day, the originating district would need to notify all other districts in its management area. At least two-thirds of those districts would need to approve the permit before it could be granted, with boards required to consider the impact on long-term water availability.

A Broader Debate Over Texas Water Law
The publicity surrounding Bass’s proposal has reignited conversations about the “rule of capture” — the nearly 120-year-old doctrine that allows landowners to pump as much groundwater as they want from beneath their property, regardless of impacts to neighboring wells.
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Lawmakers, local water districts, and stakeholders are now discussing what could be the most significant overhaul of groundwater governance in state history. Proposals under discussion include:

• Expanding state oversight
• Strengthening local conservation districts
• Potential major reforms to the rule of capture altogether

TNLA will continue monitoring these developments closely. Any changes to Texas groundwater law could have significant implications for our industry, and we will keep members informed as the legislative conversation unfolds. Questions? Please reach out to [email protected] or [email protected]