Hi my name is Lori Denning and my husband and I just bought some land in Kansas with a salt water disposal lease on it. The lease amount is very low and we would like to renegotiate it. Is there someone in Kansas that you would recommend that we speak with on this?
Is the lease perpetual, or do you get the opportunity to re-negotiate the lease every few years? What part of Kansas is the property? Are the additional wells (oil or gas) in production on your property?
The company sent a ratification letter after my Father passed away, and I just recently purchased the land from the trust. The original lease was for delay rental and did not have a clause for payment or royalty on the amount of saltwater disposed of, and the lease had no clause for the landowner to cancel, only the oil company that wrote the lease had the right to cancel. There are additional oil wells in production on the land. I also am curious if saltwater is used in enhanced oil recovery, and if companies typically pay a royalty for the use of saltwater disposal used in this process, or if it is only paid when dumping into the designated saltwater disposal well. I did not sign the ratification letter and have not cashed the delayed rental checks since I have purchased the land. I asked the oil company to renegotiate and they said they did not want to.
I’ve not seen a lease where you could change the terms as long as commercial production exists. I’ve not seen royalties paid on SWDW but on a new lease is a great item to consider. If it’s in the lease your covered.