Texas regulators have officially pulled the plug on Blackbuck Resources’ underground wastewater disposal operations following a string of powerful earthquakes tied to the company’s practices.
On Tuesday, the Texas Railroad Commission voted to suspend the injection permit held by Blackbuck Resources, a Houston-based oil services company, effectively halting its ability to dispose of oil field wastewater underground in West Texas.
The move comes after a growing body of evidence linked deep fluid injection to seismic activity in the region. The U.S. Geological Survey states that “fluid injected at depth is sometimes hydraulically connected to faults,” making earthquakes “more likely to occur on them.”
In December 2023, the commission issued a regional ban on the practice following a series of earthquakes. While major operators such as Chevron and Coterra agreed to work with regulators to cease deep injection, Blackbuck Resources defied the order and continued operations.
In May 2024, the company formally challenged the ban, arguing that its disposal well was geologically isolated and could not be responsible for the seismic events.
However, Railroad Commission technical examiner Arden Elliot disagreed. “Staff asserts that the (saltwater disposal well) is contributing to the seismicity,” he stated.
Seismic activity has steadily escalated in the area. In February 2024, a 5.0-magnitude earthquake struck the region, followed by a 4.7 tremor just four days later. Then, on May 3, a powerful 5.4-magnitude quake—the strongest of its kind ever recorded in Texas—hit the same zone.
Less than two weeks after the May 3 event, the Commission obtained a temporary injunction against Blackbuck, forcing a 15-day pause on its injection operations.
During the hearing that led to Tuesday’s permanent shutdown, Paul DuBois, assistant director of technical permitting for the commission, presented findings showing the area lies above a system of faults being activated as wastewater drains into the subsurface.
More notably, he stated that the epicenters of recent earthquakes appear to be shifting closer to Blackbuck’s site with each new event, a pattern likely caused by neighboring disposal wells shutting down in compliance with the December order.
Tuesday’s decision permanently revokes Blackbuck’s injection permit. However, the company still has the option to appeal the ruling through the courts.
