Does anybody know what the current lease price is for a SWD well on your property? We have been renegotiating a well on our property that was first installed in the 70’s. The price then was $800 a year and it was for three wells. Now there are 7 wells and they want to pay $1,250 a year and there is a line that says "this Agreement allows Operator to bring across the surface of the Property any and all saltwater from Operator’s wells from any location outside the Property in unlimited quantities, except as regulated by the Corporation Commission of the State of Oklahoma, for disposal into the Harper 5 I don’t really like this and don’t want it in there, so they are suggesting a change to " contiguous, adjacent and nearby lands”. Again I don’t like this, what is nearby to me, will be different then what is nearby to you, your neighbor, Joe blow across the way. I want them to define what it means. Are we talking a 5 miles, 8 miles, 100 miles. Their response to that was “see you in court”, am I in the wrong here as the land owner to want to know how much salt water is being put back into my land? Or is this pretty normal? Currently this disposal is not commercial and my worry is that they are trying to make it that way. We put a pad site down for our dream house and put in a pond not too far from the site and I don’t want 50 trucks a day driving in and out past my house invading my peace and quite.
I do not know what is typical in OK. In Texas, SWD wells often require payment at a price per barrel of water disposed which can run over $10,000 per month. You should consult an OK attorney experienced in SWD contracts to review the original agreement and determine what you can demand. There may be differences in your rights between on-lease and off-lease water. You want to be protected in the event that there is an environmental damage due to spills or related pollution.
Yeah, there is a big salt water spill right now that they are cleaning up I guess, that is what prompted the renegotiation. They are cutting down trees and doing a lot of work, but it this is what can happen on a well that can only pump 8,000 barrels a day, I hate to see what would happen on a commercial well
8000 bbls per DAY is 240,00 bbls per MONTH. And they are cutting down trees on your land? You need to rush to get legal advice
If this is off-lease disposal not covered by a previous agreement, then there are red flags. You may be in the catbird seat to negotiate.
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