This form is used when Lessor grants, leases, and lets to Lessee the exclusive right to use the surface of the lands described below for the installation and operation of a salt water disposal well on the lands. Grantee shall have the right of ingress and egress and the right to construct, install, operate and maintain equipment and appurtenances, including pipelines, electric power lines, poles, guide wires and anchors necessary to gather, store, transport, process, and otherwise handle salt water from an oil/gas well or wells owned or operated, in whole or in part, by Lessee, whether located on the lands that are the subject of this Lease, or on other lands.
Surface Lease For Salt Water Disposal Well For Operator to Dispose of Its Water, Produced on Or off the Lands Subject to the Lease
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US-OG-416
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FAQ
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.
Texas courts have long held that the mineral estate is the dominant estate, and that the mineral owner, or the owner's lessee, has an implied easement to use the surface in a manner that is reasonably necessary to develop the minerals.
Surface rights are subservient to mineral rights, which means the owner of a mineral servitude will be able to access and use the surface to extract the minerals from underneath.
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.
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.
Surface rights are, as the name implies, the rights to the surface area of a piece of land. This includes any structures on the property, as well as the rights to farm the land or exploit aboveground resources such as trees, plants, or water according to local laws and ordinances.
The specific provisions of the laws vary from state to state, but drillers are generally allowed to extract minerals from a large area or "pool"--in most states a minimum of 640 acres--if leases have been negotiated for a certain percentage of that land. The company can then harvest gas from the entire area.
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.