We have a large producer with a SWD on our property. The price per barrel they are paying us, I feel, is extremely low.... I have done some asking around and had some folks tell me that .25 per bbl up to .40 per bbl is a good ballpark on the going rate... can anyone give a yea or nay or price per bbl that we should be receiving? Most folks that I talk to say if they didn't have that SWD to dispose into, they'd pay about $2 to $2.50 bbl to have the water disposed of (trucked away) ?? Thanks for any help.
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I would like to follow this post. I’ve been offered .10 a barrel on an offer. I know this is low and would like to hear about others before we start negotiating
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$0.10 per bbl is a pretty standard rate these days - see University Lands Rate & Damage Schedule The disposal fees were much higher several decades ago. If this is a commercial SWD, then you may consider a percentage of the skim oil sales or per bbl of skim oil or the total revenues. This would be a SWD where the operator is a water company and charging oil companies to dispose of water from area wells. If this is a SWD operated by your mineral lessee and limited to water from your operator’s wells, then you may only be paid per bbl. As always, the written contract terms are very important and you should consult an attorney who is experienced with SWD wells and contracts. NIcholas Miller at Graves Dougherty law firm in Austin works in this area.
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Thank you for your input