I have just been informed that Ameredev has a case before NM #21381 that requests permission for a vertical well in sec 20, due south of my interests in sec 17 T25S R36E for acid gas injection. _ There is already a salt water disposal well in sec 17. My question is how does the acid gas disposal well impact on the value of my mineral interests if any? My logic is that anything that facilitates the Operators production, especially since I do not have surface rights that can be affected, is also to my benefit. I expect having proximity to disposal wells adds to the valuation. I know sulfur can be removed from the gas but unless the market is high enough the gas production can limit the oil production. Can anyone direct me to info on acid gas treatment and injection?
Yes, theoretically improvements that make marketing and processing of gas better for the operator should be good for the mineral owner. Even if it’s net neutral for your realized pricing today due to your lease terms, it might extend the life of any production on your lease. I’m not familiar enough with that area, Ameredev’s operations, or modern sequestration pros and cons to speak in more detail off the cuff, but I did find the case details where you can learn more about it. The acid gas would be CO2 and H2S sequestration, specifically.
I have used Geolex in the past. Alberto is the best consultant in this area AGI’s. AGI’s are highly regulated by the NMED and you may be able to get more information from them. Usually the target for sequestration is a zone which is non-producing within several miles from the well bore… They normally prefer a zone which is isolated from the others and is unlikely to migrate to other zones
