Surface and Salt Water Disposal Lease Well to Be Drilled by Lessee For Disposal of Water Produced by Others

While some particularly arid regions allow for disposal via evaporation from large holding pits, most salt water is disposed of at specialty disposal sites where the salt water is injected by way of a disposal well (salt water disposal, or SWD wells) into natural underground formations.

A salt water disposal (SWD) well is a disposal site for water produced as a result of the oil and gas extraction process. Produced water, also referred to as salt water, contains particulate which can cause problems for the pump bringing water into the well.

Disposal wells inject saltwater into underground formations, often over a mile in depth, into sub-surface zones that already contain naturally occurring saltwater. In contrast, wells that supply fresh water can vary in depth throughout the state, but generally range from no deeper than a few hundred to a thousand feet.

In Texas, and most other states, the ownership of the mineral estate can be separated (severed) from the surface estate. Put another way, one person may own the rights to use the surface of a piece of property while another person has the right to use the minerals underneath the property.

How Saltwater Disposal Works. Saltwater is typically ejected from the wells into natural underground formations sealed within an impenetrable rock to prevent the saltwater from escaping into surrounding soil and groundwater.

1. n. Well Completions A well, often a depleted oil or gas well, into which waste fluids can be injected for safe disposal. Disposal wells typically are subject to regulatory requirements to avoid the contamination of freshwater aquifers.

While drilling costs can vary markedly based on the site geology, the target zone, and well depth, the total facility cost can easily reach $3 million to $4 million even if the facility offers no produced water transportation via pipeline.