Layne Water Midstream expands contract in TX shale

By Luke Geiver | January 27, 2020

Layne Water Midstream has expanded its role as a water midstream company working with Texas-based agencies. The Woodlands-based company announced this week that it will extend and add to its contract with the Texas General Land Office on work regarding the development, supply and handling of water resources needed for drilling and completion activities associated with roughly 88,000 acres in the Texas Counties of Reeves and Culberson.

Michael Anderson, CEO of Layne Water Midstream commented, "We are honored to expand our successful partnership with the Texas General Land Office. The amendment allows us to invest further in water infrastructure on GLO lands in order to gather produced water from energy producers for treatment and reuse in hydraulic fracturing operations and for disposal.”

According to new terms, revenues from water sales and services will be shared between Layne Water Midstream and the Permanent School Fund, the land and mineral assets of which are managed by the GLO.

Layne Water Midstream has received other support throughout the past two years. In July 2019, the company announced an investment round from several strategic sponsors. Prior to that in April, Layne Water Midstream announced it had received roughly $200 million from Post Oak Energy Capital.

The company currently has water midstream operations across several Texas counties, including Loving, Ward and Winkler. The company was founded in 2016 as part of Layne Christensen, an infrastructure company with more than 136 years of existence.