Salt Water Disposal Well Lease Terms and Proposal - Eagle Ford Shale

Surface Owner Issues
1

I am trying to find out the typical terms I should be looking for on my land that I have been approached by a SDW Company to lease. Does anyone have a lease or propsal that can share? My land is in DeWitt County and I walking into this somewhat blind.

JLW

2

I wouldn't settle for less than 10% skim and .10 per barrel.

3

Jessica:

There are several questions regarding your post. First, do you own the surface rights because in Texas, the surface owner owns the right of disposal and not the mineral owner? Second, is this going to be a Commercial Disposal Well? In entering into an agreement for any saltwater disposal well, I would address accidents or spills and detail the remediation process to be utilized. Remediation areas such as pasture land, ponds and creeks should be addressed. You will of course want to address the amount to be charged, usually per barrel. Also, I would address compensation for any damages to the property such as fences, etc. which could be damaged due to traffic on the property. If this will be a Commercial Disposal Well, alarm systems should be installed and the access has to be locked if no attendant is on the premises. In the event of a spill, the Railroad Commission of Texas would be in charge of routine inspections until the spill is cleaned up and the impacted areas properly remediated. They usually don't get involved in damages to fences, etc. In conclusion, be sure the agreement addresses all areas to protect you.

4

JUST LIKE OIL & GAS LEASE SWD LEASE IS BASED ON LOCATION AND ACTIVITY AROUND THE AREA

I WOULD ASK LAND OWNERS IN YOUR AREA FOR ANY PRICE INFO, GO ONLINE AND GET A STANDARD LEASE

FORM

I HAVE A SWD IN RUSK C TX AND I RECEIVE .04/BBL WITH A MIN OF 1000/MO

THIS IS THE MKT FOR THIS AREA , GAS DRILLING HAS DECREASED THEREFORE LESS SALT WATER TO DISPOSE

5

Possibly only $40 a month for a SWD well ? Did they build a depot at the edge of your land with a buried pipeline to the well to minimalize disruption ? How much surface does this well take up including road, if any ?

john mcwilliams said:

JUST LIKE OIL & GAS LEASE SWD LEASE IS BASED ON LOCATION AND ACTIVITY AROUND THE AREA

I WOULD ASK LAND OWNERS IN YOUR AREA FOR ANY PRICE INFO, GO ONLINE AND GET A STANDARD LEASE

FORM

I HAVE A SWD IN RUSK C TX AND I RECEIVE .04/BBL WITH A MIN OF 1000/MO

THIS IS THE MKT FOR THIS AREA , GAS DRILLING HAS DECREASED THEREFORE LESS SALT WATER TO DISPOSE