Salt Water Disposal Lease & Usage

Our family is in the process of negotiations for our land to be used for Salt Water Disposal in Dimmit County, TX. We are wanting a fair price for our land usage and Salt Water Disposal and have received what we feel is a decent offer.

However, my belief is that this offer is a "starting point" and we want to be wise about what we should ask in return. We have been offered a "flat" monthly payment to use two of our acres to build and perform this for up to 10 years... In this process I have had some helpful people that have mentioned maybe negotiating a per barrel price as well.

Our attorney is in the stage of reviewing our contract now so that liability issues and technicalities are settled and they are also planning on getting a sampling of what other SWD contracts in this area are going for at this time. However, it is my desire to exhaust all options and so I thought I would post on here to see if I could get anyone to help me understand the price negotiations on this particular process and/or what you may have received...

I know some of this may be sensitive information, so I do not expect you to post publically if that is the case. I will share with you what the terms of our proposal is if that could help you. ANY HELP would be appreciated as we are about a week or two from having to settle on the financial terms of this agreement.

Thank you,

Jeff Bullard

pjwinrevival@aol.com

Jeff:

Sounds like you're on the right track by having an attorney get involved in this contract. My advice would be to make sure that this attorney has handled cases involving salt water disposal wells in the past and is aware of all environmental impacts that this operation can have on your land such as leaks and spills. It only takes one large spill to impact trees, ponds, and vegetation which can result in "kill" areas that requires immediate and adequete remediation work on these impacted areas. I would investigate the track record on this operator and make sure they are reliable. You might contact the Texas Railroad Commission field office to search for any information on this operator. Good luck!!