NGL Energy Partners Accepts TCEQ Draft Permit for West Texas Produced Water Treatment

The final discharge phase would provide approximately 400,000 barrels per day of new water supply.

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Project advances a new water source for West Texas through responsible, produced water treatment.

TULSA, Okla.--(BUSINESS WIRE)-- NGL Energy Partners LP (NYSE: NGL) announced today that its wholly owned subsidiary, NGL Water Solutions Permian, LLC, has accepted the terms of a draft permit from the Texas Commission on Environmental Quality (TCEQ) for its produced water treatment project in Reeves County, Texas. The project is advancing to public notice and comment, bringing NGL closer to developing a new long term water resource for the Pecos River Basin and industrial customers.

The project builds on NGL’s existing produced water gathering and handling infrastructure to develop a new source of water for Texas. Potential applications include irrigation, farming, and cooling water for data centers, power plants and other industrial users, reducing the use of current municipal water supplies. Using this source in place of conventional freshwater can preserve Texas’ groundwater and surface-water supplies for future generations.

The Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ0005445000 provides for phased treated-water discharge to Salt Creek and the Upper Pecos River downstream of Red Bluff Reservoir. Daily average discharge capacity begins at 650,000 gallons and increases to 2 million, 10 million and ultimately 16.9 million gallons, equivalent to approximately 400,000 barrels per day of new water supply in the final phase. This phased approach allows treatment capacity and capital investment to scale alongside commercial demand.

NGL’s project is designed to bring advanced desalination and water purification to commercial scale, removing salts and other constituents from produced water to meet TCEQ’s discharge standards. Demonstrating treatment performance, verifying water quality, and meeting TCEQ’s requirements will guide project operations to protect public health and the environment.

About NGL Energy Partners LP

NGL Energy Partners LP is a Delaware limited partnership whose Water Solutions business gathers, transports, treats, recycles and disposes of water generated by oil and gas operations. NGL operates water infrastructure in the Delaware, Eagle Ford and DJ Basins and also provides crude oil transportation and logistics services. More information is available at www.nglenergypartners.com.

Forward Looking Statements

This release contains forward-looking statements about the treatment project, permitting, discharge capacity, industrial water supply opportunities, development and potential water uses and benefits. These statements reflect current plans and expectations. Actual results may differ because of the public notice and comment process, final regulatory decisions, permit conditions, treatment performance, customer requirements, project costs, financing, construction, commercial arrangements and other risks described in NGL’s filings with the Securities and Exchange Commission. These statements speak as of the release date. NGL will update them only as required by applicable law.

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Investor Contact

NGL Energy Partners LP
InvestorInfo@nglep.com

Source: NGL Energy Partners LP

Key Terms

produced water technical

Produced water is the salty, oily wastewater that comes up from underground alongside oil and gas when wells are drilled and operated; it contains dissolved salts, leftover hydrocarbons and treatment chemicals. For investors, produced water matters because handling, treating, storing and disposing of it creates ongoing operating costs, regulatory obligations and environmental risk—similar to how a factory’s wastewater can drive cleanup bills or fines—while opportunities to reuse or recover resources can offset some costs.

desalination technical

Desalination is the process of removing salt and other minerals from seawater or brackish water to produce fresh water people and businesses can use, similar to running salty water through a large, industrial filter or distillation system. It matters to investors because desalination plants are capital-intensive, often produce steady long-term revenue from water sales or contracts, and are sensitive to energy costs, regulation and environmental concerns—factors that affect profitability and risk.