Could someone let me know how the SDW functions. What are some of the things to be concerned with if I have one on the property. I saw an agreement for one and it offered $50,000
Would this be considered a good offer? Thanks for any advice.

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SWD's are recognized as an acceptable and safe way to dispose of produced salt water into underground permeable sands located far below all existing fresh water aquifers. These wells are highly regulated by the state oil and gas regulatory agencies of both Louisiana and Texas. Landowners are commonly paid in order to allow salt water to be disposed into wells located on their property. 50 grand sounds grand!
How much property do they require? Will this create alot of big truck traffic? Are they likely to be used for many years to come, and how are they treated when they are no longer needed?
Lots of traffic, not much bigger than a regular well pad, just need room to get trucks in and out. Although I haven't been on many SWD sites myself.

I would say it would be in use for quite some time. This is a long term agreement. You'll be having tanker trucks coming at all hours all the time. Not something you want near your backdoor. But if you have some acreage that is secluded, no problem.
Missy,
If you got the time, take a Sunday driver across the bridge over Sabine River at Logansport into east Texas. Look left and right and you will see SWD operatios. NO small going-ons, I promise you ! Like Randy said, trucks will be in and out 24/7. Your make the call.
Some questions to ask:

1) is there an annual rental, if not how long is the agreement good for?

2) How will water be brought to the SWD?, flowlines or trucks? if it is by flowlines, you may even forget the SWD is there at all, but yuou will see the trucks. If by truck, Hours of operation?
By the way, I've heard of people starting their own SWD wells and allowing companies to dump, and making over a million a year from it. It's big business. So if it's not an operator asking to do this, they need to cut you in the deal somehow.
Well finally! That would be my first question: Commercial or private?
If they are willing to pay $50k, I would bet on a commercial well.
Probably so.
jjfree1, By private, do you mean owned by a landowner as opposed to the operator? or can you explain the difference between private and commercial as it relates to these wells? Thanks
A private well is a SWD that is designed to service well in one or a few units, typically by one operator. Their generally is no per barrel or use fee, as the well is omly used to dispose of a single operators water.

A commercial well is a well operated for a profit. A commercial SWD operator will accept salt water from anyone willing to pay the fee, usually a per barrel amount.

You will typically see higher volumes at a commercial well, since the more they handle, the more $$$ they make.

Also a private well is typically tied into producing wells by underground flowlines, whereas a commercial well will usually have substantial truck traffic,
Thank you Baron for that nice explanation. I still am not sure what their intent is. It sounds commercial to me. They want to be able to dispose of SW from any fields inwhich they have an interest, but other enties operate. This sounds like the other enties would have to pay to dispose of SW.

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