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Permalink Reply by ur dern tootin' on November 4, 2009 at 16:51

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!

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Permalink Reply by Missy on November 4, 2009 at 17:03

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?

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Permalink Reply by Randy on November 4, 2009 at 17:28

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.

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Permalink Reply by lanadan Ds3 on November 4, 2009 at 23:54

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.

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Permalink Reply by The_Baron on November 5, 2009 at 3:51

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?

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Permalink Reply by Randy on November 5, 2009 at 5:32

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.

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Permalink Reply by jffree1 on November 5, 2009 at 5:35

Well finally! That would be my first question: Commercial or private?

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Permalink Reply by The_Baron on November 5, 2009 at 8:41

If they are willing to pay $50k, I would bet on a commercial well.

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Permalink Reply by jffree1 on November 5, 2009 at 9:18

Probably so.

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Permalink Reply by Missy on November 10, 2009 at 9:05

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

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Permalink Reply by The_Baron on November 10, 2009 at 10:28

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,

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Permalink Reply by Missy on November 10, 2009 at 14:12

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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