{"id":14272,"date":"2025-12-22T11:28:53","date_gmt":"2025-12-22T17:28:53","guid":{"rendered":"https:\/\/agrilife.org\/texasaglaw\/?p=14272"},"modified":"2026-04-17T15:09:00","modified_gmt":"2026-04-17T20:09:00","slug":"ag-law-year-in-review-texas","status":"publish","type":"post","link":"https:\/\/agrilife.org\/texasaglaw\/2025\/12\/22\/ag-law-year-in-review-texas\/","title":{"rendered":"Ag Law Year in Review &#8211; Texas"},"content":{"rendered":"<p>As we move toward the end of 2025, we love to take a look back at some of the key agricultural law issues in Texas over the last 365 days.\u00a0 If you missed our nationwide year in review post, <a href=\"https:\/\/agrilife.org\/texasaglaw\/2025\/12\/16\/ag-law-year-in-review-national\/\">click here<\/a>.\u00a0 So, what are some of the biggest ag law issues in the Lone Star State in 2025?<\/p>\n<div id=\"attachment_14274\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-14274\" class=\"wp-image-14274 size-large\" src=\"https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-683x1024.jpg\" alt=\"\" width=\"640\" height=\"960\" srcset=\"https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-683x1024.jpg 683w, https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-200x300.jpg 200w, https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-768x1151.jpg 768w, https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-1025x1536.jpg 1025w, https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-1367x2048.jpg 1367w, https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-scaled.jpg 1708w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><p id=\"caption-attachment-14274\" class=\"wp-caption-text\"><em>Photo by <a href=\"https:\/\/unsplash.com\/@anitaaustvika?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Anita Austvika<\/a> on <a href=\"https:\/\/unsplash.com\/photos\/a-wooden-building-with-a-texas-flag-painted-on-it-JxlGIzu2vCs?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Unsplash<\/a><\/em><\/p><\/div>\n<p style=\"text-align: center;\"><strong>Texas Supreme Court Rules in Produced Water Case; Second Case Filed.<\/strong><\/p>\n<p>There is nowhere else to start but with produced water.<strong>\u00a0\u00a0<\/strong>The Texas Supreme Court decision in\u00a0<em>Cactus Water Services v. COG Operating<\/em> answered an important question with regard to produced water in Texas.\u00a0 The Court held that when a mineral lease is in place, absent something in the agreement to the contrary, the rights to use produced water convey with the mineral rights.\u00a0 [Read more <a href=\"https:\/\/agrilife.org\/texasaglaw\/2025\/06\/30\/texas-supreme-court-produced-water-owned-by-mineral-lessee\/\">here<\/a> and listen to a podcast episode discussing this case <a href=\"https:\/\/aglaw.libsyn.com\/episode-205-jim-bradbury\">here<\/a>.]\u00a0 Given the volume of produced water in Texas (estimates show 33 million barrels\/day) and the concern over groundwater shortages in the state, this decision was extremely important for landowners and oil and gas operators alike.<\/p>\n<p>In November, Cactus Water Services filed a second lawsuit against COG Operating related to produced water.\u00a0 This time, the claims involve allegations that COG sold rights to groundwater still in place before it was produced.\u00a0 This water, Cactus argues, is not owned or controlled by the mineral owner.\u00a0 The <a href=\"https:\/\/agrilife.org\/texasaglaw\/files\/2025\/11\/Complaint-here.pdf\">complaint<\/a> was filed in the Texas Business Court in Harris County.<\/p>\n<p style=\"text-align: center;\"><strong>Proposed East Texas Water Project Draws Scrutiny, Hearings, and Litigation.<\/strong><\/p>\n<p>Speaking of groundwater, a proposed project in East Texas resulted in polarized views, extensive news coverage, contentious meetings, and even\u00a0 proposed action to change Texas groundwater law in the Texas Legislature.\u00a0 Dallas-based investor, Kyle Bass, owns ranches in East Texas where he plans to drill wells and potentially produce groundwater to sell to purchasers in and around the Metroplex.\u00a0 These proposals have resulted in public meetings, proposed legislative action, and lawsuits.\u00a0 Sanderson Farms filed suit against the Neches &amp; Trinity Valleys Groundwater Conservation District seeking to prevent the district from approving the application.\u00a0 The two real estate entities owning the ranches have likewise sued the district seeking action on their proposed permits.\u00a0 \u00a0While there are plenty of news articles to choose from, a couple to start with are <a href=\"https:\/\/www.texastribune.org\/2025\/09\/03\/east-texas-water-supply-bill\/\">here<\/a>,\u00a0 <a href=\"https:\/\/www.texastribune.org\/2025\/11\/10\/east-texas-water-lawsuit-kyle-bass\/\">here<\/a> and <a href=\"https:\/\/grist.org\/regulation\/how-a-billionaires-plan-to-export-east-texas-groundwater-sparked-a-rural-uprising\/\">here<\/a>.\u00a0 Additionally, we discussed this topic recently on the Ag Law in the Field Podcast <a href=\"https:\/\/aglaw.libsyn.com\/episode-209-lynn-sherman-and-jim-bradbury-texas-groundwater-law-update\">here<\/a>.<\/p>\n<p style=\"text-align: center;\"><strong>Texas Supreme Court Rules on Pore Space Ownership<\/strong><\/p>\n<p>The ownership of pore space is another question that was unanswered under Texas law until 2025.\u00a0 In\u00a0<em>Myers-Woodward v. Underground Services Markham<\/em>, the Texas Supreme Court held that, absent an agreement otherwise, it is the surface owner who owns the pore space beneath the land.\u00a0 [Read more about that opinion <a href=\"https:\/\/agrilife.org\/texasaglaw\/2025\/05\/19\/texas-supreme-court-rules-surface-owner-owns-pore-space-beneath-land-absent-agreement-otherwise\/\">here<\/a> and listen to a podcast episode discussing opinion <a href=\"https:\/\/aglaw.libsyn.com\/episode-205-jim-bradbury\">here<\/a>.]\u00a0 My favorite line from the opinion is:\u00a0 \u201cPut more simply, despite its apparent complexity, much of this case boils down to the elementary observation that empty space is not salt.&#8221;\u00a0 With more and more projects aimed at storing substances like hydrocarbons in underground pore space, having a clear answer to who owns this space is important for Texas landowners and mineral producers alike.<\/p>\n<p style=\"text-align: center;\"><strong>New Laws Enacted in Legislative Session<\/strong><\/p>\n<p>Of course, there are a number of new laws that have gone into effect or will go into effect on January 1 coming out of the 2025 Texas Legislature.\u00a0 We did a <a href=\"https:\/\/aglaw.libsyn.com\/episode-207-j-pete-laney-2025-texas-legislature-impact-on-agriculture\">podcast episode<\/a> with our friend, J. Pete Laney on the key bills impacting agriculture. Highlights include SB 17 which prohibits certain foreign persons or entities from owning land, SB 261 prohibiting the sale of cell-cultured protein, SB 541 that expanded the Texas Cottage Food Law, and HB 43 that expands financing and programs offered by the Texas Agricultural Finance Authority.<\/p>\n<p>These new laws have not been without legal challenge.\u00a0 With regard to the foreign ownership law, a federal judge in the United States District Court for the Southern District of Texas dismissed a challenge to the law after holding the plaintiffs lacked standing to challenge.\u00a0 [Read Opinion <a href=\"https:\/\/law.justia.com\/cases\/federal\/district-courts\/texas\/txsdce\/4:2025cv03103\/2016990\/39\/\">here<\/a>.]\u00a0 Two California food companies have also challenged the constitutionality of the cell-cultured protein ban.\u00a0 [Read article <a href=\"https:\/\/www.texastribune.org\/2025\/09\/03\/texas-cultivated-meat-lab-grown-ban-lawsuit\/\">here<\/a>.]<\/p>\n<p style=\"text-align: center;\"><strong>State of Texas sues Xcel Energy over Smokehouse Creek fire.<\/strong><\/p>\n<p>This case was filed just under the wire to make our list.\u00a0 Last week, the State of Texas filed suit against Xcel Energy seeking over $1 billion in losses as a result of the Smokehouse Creek fire.\u00a0 Texas claims the fire&#8211;the largest in Texas history&#8211;was started as a result of Xcel&#8217;s failure to adequately maintain utility poles in the Panhandle. [Read Complaint <a href=\"https:\/\/www.texasattorneygeneral.gov\/sites\/default\/files\/images\/press\/Petition_5.pdf\">here<\/a>.]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we move toward the end of 2025, we love to take a look back at some of the key agricultural law issues in Texas over the last 365 days.\u00a0 If you missed our nationwide year in review post, click here.\u00a0 So, what are some of the biggest ag law issues in the Lone Star State in 2025? Texas Supreme Court Rules in Produced Water Case; Second Case Filed. There is nowhere else to start but with produced water.\u00a0\u00a0The Texas Supreme Court decision in\u00a0Cactus Water Services v. COG&#8230; <span class=\"read-more\"><a href=\"https:\/\/agrilife.org\/texasaglaw\/2025\/12\/22\/ag-law-year-in-review-texas\/\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2444,"featured_media":14274,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7,30,23],"tags":[],"class_list":["post-14272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-texas-legislature","category-texas-supreme-court-decisions","category-year-in-review"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ag Law Year in Review - Texas - Texas Agriculture Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/agrilife.org\/texasaglaw\/2025\/12\/22\/ag-law-year-in-review-texas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ag Law Year in Review - Texas - Texas Agriculture Law\" \/>\n<meta property=\"og:description\" content=\"As we move toward the end of 2025, we love to take a look back at some of the key agricultural law issues in Texas over the last 365 days.\u00a0 If you missed our nationwide year in review post, click here.\u00a0 So, what are some of the biggest ag law issues in the Lone Star State in 2025? Texas Supreme Court Rules in Produced Water Case; Second Case Filed. There is nowhere else to start but with produced water.\u00a0\u00a0The Texas Supreme Court decision in\u00a0Cactus Water Services v. COG... Read More &rarr;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/agrilife.org\/texasaglaw\/2025\/12\/22\/ag-law-year-in-review-texas\/\" \/>\n<meta property=\"og:site_name\" content=\"Texas Agriculture Law\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/texasaglaw\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-22T17:28:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-17T20:09:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/agrilife.org\/texasaglaw\/files\/2025\/12\/anita-austvika-JxlGIzu2vCs-unsplash-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1708\" \/>\n\t<meta property=\"og:image:height\" content=\"2560\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"tiffany.dowell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@tiffdowell\" \/>\n<meta name=\"twitter:site\" content=\"@tiffdowell\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"tiffany.dowell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/agrilife.org\\\/texasaglaw\\\/2025\\\/12\\\/22\\\/ag-law-year-in-review-texas\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/agrilife.org\\\/texasaglaw\\\/2025\\\/12\\\/22\\\/ag-law-year-in-review-texas\\\/\"},\"author\":{\"name\":\"tiffany.dowell\",\"@id\":\"https:\\\/\\\/agrilife.org\\\/texasaglaw\\\/#\\\/schema\\\/person\\\/f44cbb97df9edaa18011b5258d733f73\"},\"headline\":\"Ag Law Year in Review &#8211; 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Texas Supreme Court Rules in Produced Water Case; Second Case Filed. There is nowhere else to start but with produced water.\u00a0\u00a0The Texas Supreme Court decision in\u00a0Cactus Water Services v. COG... 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