We have a large producer with a SWD on our property. The price per barrel they are paying us, I feel, is extremely low.... I have done some asking around and had some folks tell me that .25 per bbl up to .40 per bbl is a good ballpark on the going rate... can anyone give a yea or nay or price per bbl that we should be receiving? Most folks that I talk to say if they didn't have that SWD to dispose into, they'd pay about $2 to $2.50 bbl to have the water disposed of??
I have a saltwater disposal on my property near Verhalen, Texas, Reeves county. The operator collects 60 cents/bbl of
water disposed on average. I, as land owner, get a percentage of GROSS revenues of the SWD on my property. They skim oil from the produced water and sell that each month. You want to have your lawyer negotiate the rate of royalty on monthly gross revenues of the SWD well on your property. Don't go with net revenues because the operator can claim so much overhead there is no 'net' left for you.
8% to 12% of gross revenues is pretty standard for the land owner plus surface damages.
Thanks for your reply and help.