I am interested in hearing the dos and don’ts when negoiating the lease for a salt water well which is
required for horizontal drilling. Should we accept a pre-established monthly fee ($1500) for each well, or
can a per barrel fee be set?
I was successful in getting the elimination of: “lessee expressly reserves the right to dispose of salt water from wells not located on
the lands that are the subject of this lease”.
My concerns originate from reading about the 50,000 Barrel a Day
permit for saltwater disposal issued to CAVU Resources @ Pauls
Valley (March 15,2011). “The off loaded water filters through a series of settling tanks at the SWD well facility and all oil is skimmed,
segregated and accumulated for sale. It is estimated that the
initial commitments could produce as much as 100 barrels of oil per
day. The skim oil aspect of the saltwater disposal business is like
owning a producing well which never depletes”.
Is this a legitimate point to argue?
Hey Nancy,
Did you ever get clarification or an answer to your questions? What is the status of it now?
CEarly said:
Hey Nancy,
Did you ever get clarification or an answer to your questions? What is the status of it now?
I could not get past $1500 per month for our well only. Learned from the Corp Commission it
is a 30,000 barrel/day SWD well. But, I don't know what others are paying. We had one
previously in another county that paid $1000 month, but it never was used much.
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Thanks for your input, just wish I could have heard from someone at the time we were leasing to bolster
my argument. We have consulted attorneys in our area, but they don't specialize in oil/gas issues and I
have left their office feeling like I was the one educating them.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
This so foreign to my group as royalty owners out of state. We own rights to 750 acres in the sw corner of atascosa about 3 miles north of McMullen border and a sliver of land crossing into frio. From recent maps in can get online there appears to be permits for drilling if not on our land very close. How in the world do u find out if permits have been issued on royalty land? Obviously our lease now with Cabot oil has survey references but I don’t know how to keep up with any of it. Thanks so much if you or anyone can help us
Clay Wommack said:
CEarly said:
I’m new to this forum, so I don’t want to break any rules…
I will tell you that I’m not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I’ve been researching this quite alot, and while the term amounts/percentages may vary, what I’ve seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Do you have any idea how long it usually takes to get a commercial SWD well permitted through the state of TX? I am in negotiation currently with someone wanting to put well on my property. Any other suggestion on negotition points. Have you seen anyone ask for up front bonus $ as well as minimum monthly payment.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Mr. Wommack...haven't been on here in a while... Did you ever get an answer regarding how to locate the information you were wanting? If not, I can help. Just let me know...
Christi
Clay Wommack said:
This so foreign to my group as royalty owners out of state. We own rights to 750 acres in the sw corner of atascosa about 3 miles north of McMullen border and a sliver of land crossing into frio. From recent maps in can get online there appears to be permits for drilling if not on our land very close. How in the world do u find out if permits have been issued on royalty land? Obviously our lease now with Cabot oil has survey references but I don't know how to keep up with any of it. Thanks so much if you or anyone can help us
Mr. Wommack...haven't been on here in a while... Did you ever get an answer regarding how to locate the information you were wanting? If not, I can help. Just let me know...
Mr. Purswell,
How are the negotiations coming along? What is the status of everything?
Christi
Don Purswell said:
Do you have any idea how long it usually takes to get a commercial SWD well permitted through the state of TX? I am in negotiation currently with someone wanting to put well on my property. Any other suggestion on negotition points. Have you seen anyone ask for up front bonus $ as well as minimum monthly payment.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Christi
I am still working on the actuall terms and waiting on responses. As usual hurry up and wait. I had followed your suggestions and asked for minimum monthly amount, or a % whichever is greatest, Up front $ for the use of the land and a % of the skim oil. any more suggestions?
Thanks
Don
CEarly said:
Mr. Purswell,
How are the negotiations coming along? What is the status of everything?
Christi
Don Purswell said:Do you have any idea how long it usually takes to get a commercial SWD well permitted through the state of TX? I am in negotiation currently with someone wanting to put well on my property. Any other suggestion on negotition points. Have you seen anyone ask for up front bonus $ as well as minimum monthly payment.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Christi
Just wanted to see if you saw my earlier reply in regard to time line on getting SWD well permitted. It looks like things may be moving forward somewhat on the SWD well. Not sure what all you do in the SWD process but would love to talk to you in a little more detail.
Thanks
Don
Don Purswell said:
Do you have any idea how long it usually takes to get a commercial SWD well permitted through the state of TX? I am in negotiation currently with someone wanting to put well on my property. Any other suggestion on negotition points. Have you seen anyone ask for up front bonus $ as well as minimum monthly payment.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Hey Don, The permit process consists of several “phases” and 10-12 “puzzle pieces” put together make up the application packet. I own a consulting business and this is what I do everyday. I’ve created a timeline to help my clients (mostly O&G operators) to understand this process a little better. I can forward that to you if you will send me a msg with your email…or Is there a way to send that on here?
I believe this timeline will help you.
Don Purswell said:
Christi
Just wanted to see if you saw my earlier reply in regard to time line on getting SWD well permitted. It looks like things may be moving forward somewhat on the SWD well. Not sure what all you do in the SWD process but would love to talk to you in a little more detail.
Thanks
Don
Don Purswell said:Do you have any idea how long it usually takes to get a commercial SWD well permitted through the state of TX? I am in negotiation currently with someone wanting to put well on my property. Any other suggestion on negotition points. Have you seen anyone ask for up front bonus $ as well as minimum monthly payment.
CEarly said:
I’m new to this forum, so I don’t want to break any rules…
I will tell you that I’m not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I’ve been researching this quite alot, and while the term amounts/percentages may vary, what I’ve seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Christi
My email is (EDITED by ADMIN - Please use the private messaging system for contact info - it protects you and the forum from spam) I would appreciate you doing this for me. Do you do any work in the Gonzales area? I will pass you name to the people involved.
Thanks
Don
Hi Don,
I'm hoping I uploaded the attachment correctly. The timeline isn't written in stone but it's what I've been experiencing with my most recent permit applications.
Hope this helps.
Christi
CEarly said:
2987-PermittingTimeline.xls (41.5 KB)Hey Don,
The permit process consists of several "phases" and 10-12 "puzzle pieces" put together make up the application packet. I own a consulting business and this is what I do everyday. I've created a timeline to help my clients (mostly O&G operators) to understand this process a little better. I can forward that to you if you will send me a msg with your email...or Is there a way to send that on here?
I believe this timeline will help you.
Don Purswell said:Christi
Just wanted to see if you saw my earlier reply in regard to time line on getting SWD well permitted. It looks like things may be moving forward somewhat on the SWD well. Not sure what all you do in the SWD process but would love to talk to you in a little more detail.
Thanks
Don
Don Purswell said:Do you have any idea how long it usually takes to get a commercial SWD well permitted through the state of TX? I am in negotiation currently with someone wanting to put well on my property. Any other suggestion on negotition points. Have you seen anyone ask for up front bonus $ as well as minimum monthly payment.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
Christi
I got the time line. Thanks so much.
Don
CEarly said:
Hi Don,
I'm hoping I uploaded the attachment correctly. The timeline isn't written in stone but it's what I've been experiencing with my most recent permit applications.
Hope this helps.
Christi
CEarly said:Hey Don,
The permit process consists of several "phases" and 10-12 "puzzle pieces" put together make up the application packet. I own a consulting business and this is what I do everyday. I've created a timeline to help my clients (mostly O&G operators) to understand this process a little better. I can forward that to you if you will send me a msg with your email...or Is there a way to send that on here?
I believe this timeline will help you.
Don Purswell said:Christi
Just wanted to see if you saw my earlier reply in regard to time line on getting SWD well permitted. It looks like things may be moving forward somewhat on the SWD well. Not sure what all you do in the SWD process but would love to talk to you in a little more detail.
Thanks
Don
Don Purswell said:Do you have any idea how long it usually takes to get a commercial SWD well permitted through the state of TX? I am in negotiation currently with someone wanting to put well on my property. Any other suggestion on negotition points. Have you seen anyone ask for up front bonus $ as well as minimum monthly payment.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
CEarly. Would you mind contacting me via email. I have a scenario I would like to discuss privately donnakma at yahoo dot com. Urgent please. Thank you.
CEarly said:
I'm new to this forum, so I don't want to break any rules....
I will tell you that I'm not an expert, by any means, but my job has been dealing directly with the Railroad Commission and permitting Saltwater Injection Wells (for an Oilfield company I currently work for). I see the lease agreements and the terms. You would definitely be selling yourself short by NOT expecting to negotiate further than just the $1000-$1500 mth land use/surface use lease payment.
I've been researching this quite alot, and while the term amounts/percentages may vary, what I've seen the most is: A negotiated
- Monthly lease amount
- $Amount per barrel of water injected into the well (Could be a price point or percentage)
- $Amount per barrel of skim oil sold (Usually a percentage)
There are also factors that determine how much negotiating power you might have. Such as:
- The location of your well/property.
- Oil activity in your area
- Other SWD in your area
- The condition of the well
Those are just a FEW of the many factors. Like I said, I'm not a professional....I just work in this industry. The rush for SWD wells is coming. It is a CASH COW for the O&G Operators and investors. But the thing I keep seeing over and over are the Landowners not being informed when it comes to negotiating a fair agreement for yourself.
I hope this information helps.
I know this is an old thread.... but I have been approached to lease part of my property for a SWD. What are the current rates per barrel for the saltwater, skimmed oil, monthly 'rental' and any other terms that would be in the lease. Anything I should be watching for specifically?
CEarly: could I get that permit process from you too?
Thanks!
N Case
I have no concerns about any of the previous comments. However, I did not see anyone mention an inflation clause that give you the right to renegotiate the agreement as prices increase. That was the biggest mistake I made the last time I signed an SWD agreement. Also, you should talk to your attorney and CPA about what would be best for you to use, a lease in the same sense as an oil and gas lease or a rental agreement where you are paid rent for the use of the land and subsurface injection sand. Good luck.