The Texas Railroad Commission (RRC) revoked the permit of a Delaware Basin water disposal well on June 18 following a three-year battle with the well’s owner Blackbuck Resources.

The revocation came after the commission had called for an emergency suspension of the well’s operations on May 13, after an earthquake with a record 5.4 magnitude for the region struck West Texas 10 days earlier, according to a Houston Chronicle report.

The May 13 order forced Blackbuck to halt operating for at least 15 days, after which the company left the site closed. The latest order closes the site permanently. Blackbuck can appeal the decision in a state court.

The commission’s move follows the implementation of a plan to reduce “seismicity” in the Delaware Basin and Blackbuck’s refusal to stop operations.

Geologists have long suspected that the injection of wastewater into deep wells has been the primary culprit of an increasing number of earthquakes in the Permian Basin. In 2022, the RRC focused on an area just south of the New Mexico border.

After recording a growing number of seismic events, the commission designated the region the Northern Culberson-Reeves Seismic Response Area and introduced an “operator-led” plan to reduce the incidents. Water midstream companies operating disposal wells in the area were asked to limit their injections to no more than 30,000 bbl/d.

The RRC believes the evidence that deep-water disposal causes earthquakes is solid and growing.

The seismic activity in the area continued ramping up, and the commission ordered all deep-well injections to stop in January 2024.

Blackbuck Resources did not follow the order and continued operations. All other water midstream companies in the region ceased.

Blackbuck argued that its well was geographically isolated from fault lines and did not contribute to seismic activity, according to the RRC’s background information.

The company filed multiple legal motions with the state to keep the well in operation and was able to continue operating as the issue went through the legal process, until the May 13 decision.

Blackbuck Resources did not respond to Hart Energy’s request for comment on June 19.

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