1. (1) Unless otherwise provided by statute or a legally binding agreement, this section applies.

2. (2)

   1. (a) Produced water from an oil or gas producing well is the responsibility of the operator of the oil or gas producing well.

   2. (b) The operator has a possessory interest in produced water from a oil and gas activity, including the right to:

      1. (i) take possession of the produced water;
      2. (ii) engage in the nonconsumptive use of produced water in an oil and gas activity; and
      3. (iii) obtain proceeds from an action described in this Subsection (2)(b).
3. (3) When a person with a possessory interest in produced water under Subsection (2) transfers the produced water to a transferee, upon transfer, the transferee has a possessory interest in the produced water and is liable for the disposal of the produced water.

Enacted by Chapter 58, 2024 General Session