Texas water laws can often be a confusing and complex web of technicalities and unclear wording, and that is precisely why it is crucial to prevent those who understand these complexities from taking advantage of citizens who rely on clean water for their daily lives.

Texas lawmakers are calling out billionaire investor Kyle Bass for exploiting the state's fine print on groundwater extraction to profit his own business, a move that was quickly met with swift backlash once it was discovered.

Last year, Bass had two affiliated companies apply for well drilling permits in Anderson, Henderson, and Houston counties, which all pulled groundwater from the Carrizo-Wilcox aquifer. This aquifer spanned across the Northeast Texas border down to the southern border along Webb County.

Bass was slated to purchase the rights to about 45,000 acre-feet per year from 43 of these wells in both Anderson and Henderson counties, which adds to about 14.6 billion gallons of groundwater storage for local communities.

There is so much water that it supports more than just those counties. Still, because of Texas's "rule of capture," the individual who owns the land upon which the well resides also owns the groundwater those wells pull from, even if the water is extracted from a source on an adjacent property.

This means that even entities that are next to the well would have no legal claim to that groundwater within it because Bass would own the land.

Luckily, a hearing was held on June 19, 2025, in which members of the groundwater conservation districts (GCD) presented to the board to consider contests of the permits.

The issue soon found its way into the Texas Legislature and the House Natural Resources Committee, where a committee heard more than 10 hours of testimony from local landowners, elected officials, and even Bass himself.

"When the rule of capture was adopted over 120 years ago, they didn't have three-phase electricity powering 400-horsepower motors running 24 hours a day, seven days a week," said chairman Cody Harris (R-Palestine) as he convened the hearing.

"They had windmills. I believe it's time to modernize the rule of capture while still protecting groundwater as a precious property right."

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Groundwater is an essential natural resource that many residents rely on to survive, so protecting it from exploitative practices such as this is the only way to keep communities safe.

This is especially true now that evidence suggests groundwater aquifers are seeing their water levels fall slowly year by year, making water an even more precious resource than ever before.

Aside from doing your part to reduce your own water use in your home, supporting and calling for government action to implement greater groundwater regulation measures is key to combating the issue, and the Texas Legislature proves this is possible.

"Crippling these communities to profit a few is not progress, it's repugnant," Harris continued.

"Texas cannot be Texas if we stand by and allow large corporations to undermine local communities and local interests creating irreparable havoc. Loopholes in the law must be closed."

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