Midland-based Concho Resources and Houston-based Solaris Water Midstream said July 31 they are forming a joint venture for produced water management in northern Delaware Basin. Concho is contributing 13 saltwater disposal wells and 40 miles of produced water gathering pipeline, and Solaris is contributing cash and an equity ownership in its parent company. Solaris will manage Concho’s produced water gathering, transportation, disposal and recycling for about 1.6 million acres primarily in Eddy County, N.M. (also in Lea County, N.M., and Culberson and Reeves counties in Texas).
Bill Zartler, CEO of Solaris, said, “Concho’s saltwater disposal and pipeline assets in Eddy County are well situated and highly complementary to Solaris Water’s Pecos Star system. Integrating these assets accelerates the growth and development of the system, and that benefits all of our customers.”