Could anyone give advice on negotiating the terms of a Salt Water Disposal in McKenzie County, North Dakota in the Bakken Three Forks play? What’s the going rate?
Ruben:
First, does the oil company have an existing well on the lease. If so, I don’t think that a disposal fee would be applicable on a well approved for disposal purposes. I have read in the past, that an oil company in North Dakota was paying five cents/gallon for disposal. Again, the oil company might have the authority to utilize an existing well on the lease if other production is active. You might contact the North Dakota Industrial Commission to verify the well in question was approved for disposal.