# SWD well contract terms
**URL:** https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761
**Category:** Reeves County, TX
**Created:** [March 28, 2019, 10:06pm UTC](https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761 "2019-03-28T22:06:44Z")
**Posts on this page:** 6
**Page:** 1
### Author:  [@mick\_h](https://www.mineralrightsforum.com/u/mick_h)
#### Post date: [March 28, 2019, 10:06pm UTC](https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761/1 "2019-03-28T22:06:44Z")
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 their 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 pipe/road/electric access.
They are unwilling to deal more. It is “take it or leave it” time.
Thanks,
Mick
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [March 29, 2019, 4:47am UTC](https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761/2 "2019-03-29T04:47:26Z")
I suggest that you contact Nicholas Miller, attorney at Graves Dougherty who is experienced in negotiating SWD agreements. Or some other attorney who is knowledgeable in this area. SWD agreements generally do not have an unlimited term with no chance of price increases. The exact written terms of the agreement are very important. How many pipelines, roads, electric lines? Legal expertise is needed up-front and not after you sign.
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### Author:  [@mick\_h](https://www.mineralrightsforum.com/u/mick_h)
#### Post date: [March 29, 2019, 8:19pm UTC](https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761/3 "2019-03-29T20:19:15Z")
Thank you for the advice.
Is anyone else out there (Reeves) getting similar offers?
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### Author:  [@SouthTexDos](https://www.mineralrightsforum.com/u/SouthTexDos)
#### Post date: [March 30, 2019, 2:53am UTC](https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761/4 "2019-03-30T02:53:24Z")
I am familiar with SWD leases and those are not good terms. I’d suggest just walking away.
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### Author:  [@calisoccer00](https://www.mineralrightsforum.com/u/calisoccer00)
#### Post date: [August 29, 2019, 11:33am UTC](https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761/5 "2019-08-29T11:33:51Z")
I’ve recently read of much higher per barrel rates. More like $0.25 to $0.50 per, if my recollection is correct. I spent about an hour reading SWD articles. The SWD agreements can bring in quite a bit of revenue annually per site. I recommend locating a lawyer or similar that is familiar negotiating those terms. Also, if the permitting is done, that’s all the better as that’s a very long process. Good luck!
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 5:05pm UTC](https://www.mineralrightsforum.com/t/swd-well-contract-terms/43761/6 "2025-01-11T17:05:46Z")