New to the forum, and this seems like the place to be! We currently have a SWD well it has been in operation for 13 years, at about 5000 bbl/d. My grandmother signed the lease for......$10,000 per year for a 15 year contract. Criminal, I know. We are due to renegotiate soon and I have a few questions, likewise I think I have read every forum re: SWD. This SWD is used by pumping produced water from off property, there are no tanks on the property.
Questions
1. Since they now pump from off property, would they need a commercial SWD permit?
2. What is the average rate per barrel in and around Tom Green County, Tx?
1. Not necessarily. If the water is being brought in from wells in the same pooled unit as to where your lands are located, then no commercial SWD permit will be needed. Otherwise, yes.
I don't personally know of the averages to which you are referring. One thing that seems to hold true on horizontal wells, is that they produce tremendous amounts of water after the flush production. Is there any horizontal wells that are or may be drilled soon?
With the recent scholarly papers pointing towards disposal wells contributing to earthquakes, I would have an earthquake clause -- something that does not make a natural disaster like that a force majure situation and also have the strongest hold harmless that can be written.