By John Hayter, Broker, Ranch Marketers

I grew up on a ranch in Fort Stockton, Texas. When I look at dry-country land, I want to understand the water before getting too far into everything else. If you are researching ranch water rights West Texas buyers need to check, start with what supplies the property, who controls its use, and what the paperwork actually allows.

A windmill, a running faucet or a creek on a map gives you something to investigate. It does not answer all those questions. The same goes for Southeast New Mexico, where the legal starting point is different.

Start with the water and your intended use

I would ask a buyer to describe the plans for the ranch before deciding whether its water is adequate. Watering livestock, supplying a house and irrigating ground are different uses. A source that serves the existing operation may not support the next one.

Say you are considering grazing land near Pecos with a house well and scattered livestock troughs. You would want to trace each supply, understand storage and distribution, and find out whether any part of the system depends on another owner’s land.

Then separate physical capacity from legal permission. A pump may deliver water that the permit does not authorize for your proposed use. A valid right may exist where the equipment needs substantial work. Both questions belong in due diligence.

Texas groundwater and ranch water rights West Texas buyers should check

Texas Water Code §36.002 recognizes groundwater beneath a landowner’s land as real property. It also says that ownership does not give the owner a right to capture a specific amount. District regulation still matters.

The Texas Supreme Court addressed ownership of groundwater in place in Edwards Aquifer Authority v. Day, 369 S.W.3d 814 (Tex. 2012). For a buyer, the practical point is straightforward: owning the interest and being allowed to pump for a particular purpose are questions to examine separately.

Have an attorney and the title company review whether previous deeds reserved or conveyed groundwater interests, and whether leases or other agreements affect them. Texas groundwater rights should be checked alongside the land title rather than inferred from the presence of a well.

Find the district before assuming a well is exempt

Locate the tract on the Texas Water Development Board’s Groundwater Conservation Districts map, and cross-check the Texas Alliance of Groundwater Districts lookup. Take the legal description and well locations to the district for confirmation. A regional map is a starting point; the tract’s actual boundary matters.

Ask the groundwater conservation district about registration, drilling and operating permits, spacing, production limits, and the treatment of domestic and livestock wells. Obtain the current rules and the file for each well.

Texas Water Code §36.117(b)(1) provides a permit exemption for wells used solely for domestic use or livestock or poultry watering on tracts larger than 10 acres, when drilled, completed or equipped so they cannot produce more than 25,000 gallons daily. That equipment-capacity condition matters; choosing to pump less is not the same thing.

Do not treat “exempt” as an answer to every district question. Ask which registration and construction requirements apply, and whether a proposed change in use would end the exemption. If you plan to divide the land, get district guidance before assuming the existing arrangement will continue.

Pull the ranch well records

TWDB provides two useful starting points: the Submitted Driller’s Report Database and the Groundwater Database. Its Water Data Interactive viewer brings well locations and available reports together.

Use the map and available search fields to compare records with the wells on the ground. Look for construction details, depth, completion information and any reported water-level or quality data. Keep the report number and location with your due-diligence file.

The Groundwater Database contains selected wells; it is not an inventory of every ranch well. If a record is missing, ask the seller, driller and district for their files. An old drilling report describes conditions at a particular time. It does not replace a current inspection or yield test.

Texas surface water and the limits of a stock tank

Texas Water Code §11.021 identifies state water, including water in flowing rivers and natural watercourses. TCEQ’s “Am I Regulated? Water Rights in Texas” page explains that using state surface water generally requires authorization unless an exemption applies.

The distinction needs care around springs and creeks. TCEQ explains that diffuse rainfall runoff and spring water before it reaches a watercourse are excluded from state water. Once water enters a natural watercourse, the analysis changes. Have TCEQ or a water attorney evaluate the particular source and proposed use.

Section 11.142(a) allows certain dams or reservoirs on one’s own property, with normal storage no greater than 200 acre-feet, for domestic and livestock purposes without a water-right permit. The exemption excludes commercial operations. It is a conditional exemption, not general permission to take river water or irrigate crops.

Say a tract near Alpine has a stock tank and a seasonal drainage. Before enlarging the tank or adding irrigation, ask what water feeds it and which authorization or exemption supports the use. On river or creek frontage, ask for the actual water-right documents; frontage alone does not establish a diversion right.

Southeast New Mexico water rights need their own review

New Mexico begins with public ownership of water. NMSA 1978 §72-1-1 addresses natural waters in streams and watercourses, and §72-12-1 addresses underground waters subject to appropriation for beneficial use. The Office of the State Engineer administers water rights.

The property interest to examine is the right to use water. Have a New Mexico water attorney review its ownership, scope and conveyance history, including whether it remains attached to the land being sold or has been separately conveyed. Do not assume the acreage deed answers that question.

Domestic wells under §72-12-1.1 and livestock wells under §72-12-1.2 have their own permit provisions. Pull the actual permit and conditions. A domestic or livestock permit should not be described as unrestricted irrigation or commercial authority.

Say you are considering land near Carlsbad with a household well and a seller’s reference to additional water rights. Ask for both files. Match the well, authorized use and claimed rights to the tract rather than treating them as one undifferentiated water supply.

Search OSE records and understand the gaps

Start at the New Mexico Water Rights Reporting System, or NMWRRS. Its Water Right Summary searches by owner name or water-right file number and provides document images where available. Well Log/Meter Information and Point of Diversion/Well ID Tag reports help connect the paperwork to individual wells.

Where applicable, use the Subfile report to locate adjudicated records by subfile and cause number, and Cross Reference to follow older file numbers. Compare the results with the seller’s documents and legal description.

NMWRRS warns that its data can contain errors and that statewide entry is incomplete. Its status table lists Roswell Artesian Basin non-domestic files as Abstract In-Progress. That is particularly relevant when reviewing irrigation claims around Roswell and Artesia.

A missing result does not settle whether a right exists. Request the underlying file and applicable orders from OSE, and have qualified counsel reconcile gaps before closing.

Ask about Pecos Basin administration

OSE identifies the Lower Pecos River Basin for Active Water Resource Management, connected to compliance with the Pecos River Compact and the U.S. Supreme Court’s Amended Decree in Texas v. New Mexico.

For a buyer, Pecos Basin water rights require a tract-specific question: which basin rules, orders and administration apply to this right? Ask OSE about authorized diversion, metering and any restrictions affecting the proposed use.

Land near Hobbs should likewise be checked against its actual groundwater basin and OSE file. “Southeast New Mexico” describes a region; it does not identify one uniform set of permit conditions.

What to check before closing

I would put these items in the purchase review early enough to get meaningful answers:

Identify each source. Map wells, springs, tanks, diversions, pipelines and shared supplies against the survey or legal description.

Collect well logs. Match TWDB or OSE records to the equipment on the ground, and request missing construction and repair files.

Confirm authorization. Obtain Texas registrations, permits and district rules, or New Mexico permits, declarations, licenses and applicable adjudication documents.

Review conveyance language. Have an attorney and title company check reservations, separate transfers, leases and shared-water agreements.

Test quality and yield. Use qualified well professionals and a laboratory to assess sustained production, recovery and suitability for the intended use.

Plan ownership filings. Ask the Texas district or TCEQ about applicable updates. Ask OSE which change-of-ownership form and supporting conveyance documents apply.

Resolve mismatches. Have the surveyor, attorney, agency or water professional address conflicting locations, names, uses or quantities before relying on them.

OSE’s Water Rights Forms page lists separate change-of-ownership forms: WR-02D for wells permitted under §72-12-1 and WR-02 for other water rights. A filing updates agency records; it should not substitute for reviewing the conveyance itself.

Sellers should describe what the records support

Know what you have, and tell the truth about it. I would rather see a clear explanation of a well’s permitted use, test results and missing records than a broad claim of “plenty of water.”

Keep pumping observations separate from tested yield. Identify the date and scope of a water-quality report. If a supply is shared, explain that arrangement and provide the agreement. Buyers can evaluate a property more sensibly when the description and documents tell the same story.

Put the water questions on the table

Ranch Marketers represents buyers and sellers of ranches, farms, recreational property and acreage. If you are considering land in West Texas or Southeast New Mexico, we can help organize the water questions and identify the records and professionals needed to answer them.

Visit our Contact page. Let’s visit.

This article is for general information only and is not legal or tax advice. John Hayter is not an attorney. Consult a qualified attorney or tax professional about your situation.

Who owns groundwater under a West Texas ranch?

Texas Water Code §36.002 recognizes groundwater beneath the land as the landowner’s real property, but does not guarantee capture of a specific amount. Check the title for reservations or separate conveyances and ask the applicable groundwater conservation district about permitted use. Ownership, pumping authority and actual well capacity each need review.

Are domestic and livestock wells exempt from Texas district permits?

Section 36.117(b)(1) provides an exemption for qualifying domestic, livestock or poultry wells on tracts larger than 10 acres that cannot produce more than 25,000 gallons daily. Ask the district to confirm eligibility and applicable registration or construction requirements. A proposed change in use or division of the land deserves a fresh review.

Where can I find ranch well records in Texas?

Start with TWDB’s Submitted Driller’s Report Database and Groundwater Database, using its Water Data Interactive map to locate available records. Compare locations and report numbers with the actual wells. Ask the seller, driller and district for missing files. Historical construction or water-level records should be supplemented by current professional quality and yield testing.

Does buying New Mexico land include its water rights?

Do not assume the land purchase includes every water right mentioned in a description. Have an attorney examine the deeds, conveyance history and OSE files to determine what transfers. New Mexico treats surface and underground waters as public waters subject to appropriation under NMSA 1978 §§72-1-1 and 72-12-1. Confirm appropriate ownership filings with OSE.

Can I rely on NMWRRS to verify Southeast New Mexico water rights?

NMWRRS is useful for locating file numbers, summaries and available documents, but OSE warns that the database is incomplete and can contain errors. Roswell Artesian Basin non-domestic files are listed as Abstract In-Progress. Request underlying agency files and applicable adjudication documents, and have qualified counsel resolve discrepancies before treating a search result as a title conclusion.