I am negotiating a salt water disposal well agreement and would love some of the pros here (Wade, Clint, Tennis Daze maybe) to tell me if these terms are “standard”,
5 cents/bbl for a noncommercial well, that does not benefit our operations, They are saying 20K bbls per day( is that reasonable for the long term). It is there own produced water
NO mechanism for price adjustment or renegotiated terms
Unlimited term, no expiration except after 48 months of complete non use( “because it costs so much to drill”)
10K bonus , but no payment for pad or pipeline/road easements
They wanted exclusive access to 300+ acres, but I limited that to two small pads plus plus pipe/road/electricaccess.
They are unwilling to deal more. It is " take it or leave it " time