Hello All - does anyone have any idea what I should be charging an operator who is interested in disposing produced water into our SWD well? It would be piped in from an existing well. We are in Butler County outside of Wichita, KS.
Idk. If their other option is to truck the water to an SWD you have quite a bit of leverage on pricing. Ultimately it comes down to their other options, and how much oil (revenue) they might lose if they don’t dispose of the water.
This is 8 years back, when oil was pretty much exactly this price, but it would cost us $3/bbl to truck water and we would pay < $1/bbl to dispose of water at an SWD. So for a pipe connected SWD we were paying < $1/bbl. And there was a lot of incentive not to truck water. But there were a lot of options.
In Permian. I know zero about Kansas.
How much water is it? How much of a pain is it? Is it compatible with what you are currently putting in the SWD well? What the actual heck are doing with an SWD well and asking clueless internet people like me what you should be charging?
Good luck
Hey thanks - appreciate the help. We haven’t used it in quite some time and are trying to figure out what we’re gonna do with it.
I’d contact a Kansas oil and gas attorney who is familiar with rates in the area. I worked as a trust officer and negotiated some leases in Kansas and the going rates seemed to be much different than Texas (at least in the area and at the time). SWD’s can be quite lucrative but there can also be a lot of potential liability. My understanding is some states have more stringent regulatory/environmental laws regarding SWD’s.
Thanks Wallace, I appreciate it. It’s my perception that central Kansas oil deposits are not as strong as they used to be judging by the majority of SWDs and oil wells appearing to be capped or no longer functioning per the Kansas Geologic Services database. Is this something you have heard as well?
Sorry I can’t be of help with that question. My very limited experience in Kansas was a little over 10 years ago. My original post was mainly intended to be words of caution.