My mineral lessee has objected to SWD permit on my surface for which would get a disposal royalty (aka, my right as landowner). We will have a meeting very soon about why “my” SWD would be problematic with mineral production. I think they are blowing smoke. Any idea what is up and what I would stand to lose?
Assuming that the proposed disposal formation is sufficiently separated (i.e. deeper or shallower) from the producing formation, the mineral owner has no basis to object. However, if they can present a case that the disposal operation will damage their ability to produce then they have a case. You would stand to lose the income from the SWD operation.
You don’t say what State you are in, but the regulatory body in your State should have the technical expertise to determine if the objection is reasonable and should overrule an unreasonable objection.
Thanks Steve, Texas. Plenty of separation between formations. Permit has passed administrative muster with regulatory body. In protests that body only grants 3% of the protests. The Lessee has much contiguous acreage and quite a few of their own SWD. They and the other large mineral holders see SWD as one of the new revenue sources or management tools to reduce cost. So they don’t want another well taking volume from my pore space.
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