Hello all- I received a proposed brine lease on 50 acres in Arkansas. However, I am in an oil and gas lease with a series of producing oil wells located on the same acres as the proposed brine lease.
My question is- would allowing an operator to extract brine do harm to existing oil wells? Is it a good idea to turn down the brine lease to protect the wells already on the property, or can they coexist?
Are you also a surface owner? The mineral lease usually operates separately from the brine lease. If the brine is coming out of a salt water aquifer, the surface owner usually owns the brine. If the brine is coming out of the oil and gas stream and is separated out, then usually operator will own it since it is considered wastewater and the oil and gas production is not negatively affected. More specific answers will vary according to state law.
Most State regulatory Commissions will require any proposed drilling operations to provide notice the common and adjoining owners. If you are concerned, contact the oil and gas lease operator and the proposed brine operator for comments.
Brine is defined as a mineral in Arkansas.
I don’t think there should be a concern here. My understanding as to brine production is that what is produced is ultimately reinjected into the same formation. If oil is being produced out of that same formation I would think that the reinjection of brine would have the effect of improving oil production, assuming it has any effect at all.
If the oil and brine are being produced from different formations then neither should affect the other.