Now, 130 years later, the scrub land owned by Texas Pacific Land Trust is a cash farm. Like University Lands, it makes money on mineral and surface rights. Unlike UL, it manages its water assets. Last June they formed a subsidiary called Texas Pacific Water Resources (TPWR). They have since grown from 2 employees to 52 and generated $25 million in 2017. Water revenue came in from selling brackish water (>1,000 mg/L TDS). They do not sell fresh water for fracking because they want to maintain an environmental and social conscience. They gather, treat, recycle and dispose of produced water. They track water, perform analytics and offer well testing services.
There is no use of the word “conscience” in the 10k or annual report.
Makes me wonder about the profitability of fresh water sales.