Replies to This Discussion

Permalink Reply by Big Daddy, bcnr on September 8, 2011 at 4:32

Saltwater disposal is the reason for the increase in pipeline activity. I would suggest you include strong environmental language in your servitude agreement. And everything is negotiable. Expropriation is not a factor with these pipelines but ask for too much and they may go around you if possible.

Permalink Reply by Skip Peel - Mineral Consultant on September 8, 2011 at 9:29

Though frac water can be termed salty, Haynesville wells generate almost no "produced water".  What Heckman is dealing with is "flowback water" from the fracing operations.  I believe they are laying additional lines for frac water recycling at a centrally located facility.  If I remember correctly Heckman also took over the EXCO contracts with the paper mill for their waste water.  Owing to the drought, water for frac operations is getting harder to come by.  There have been spills associated with these pipelines so it is a good idea to have a right-of-way agreement with strong damage protection language.

Permalink Reply by BlueLonghorn on February 21, 2012 at 10:39

Skip,

Any updates on what Heckmann's activities are like given all of the rig movement away from the Haynesville? Do you have any idea if the pricing has fallen apart at all over the last few months?

Permalink Reply by Skip Peel - Mineral Consultant on February 21, 2012 at 10:44

I doubt there has been little change over the last five months as drilling of alternate unit wells allows each rig to drill more wells.  The recently announced curtailment of drilling programs hasn't taken full hold as yet but will likely do so soon.

Permalink Reply by David Blaine on September 8, 2011 at 9:41

Skip it seems like i read somewhere that Select bought the water from the papermill from Exco.

Permalink Reply by Skip Peel - Mineral Consultant on September 8, 2011 at 9:45

You may be correct, David.  I do recall that EXCO sold their contract to a water management company.

Excerpt from Heckman Corp. webpage:

Heckmann Corporation (NYSE: HEK) was created to buy and build companies in the water sector. On January 30, 2010, we completed our 50-mile water disposal pipeline in the Haynesville Shale which can treat and dispose up to 100,000 barrels of water per day. The new pipeline and our network of disposal wells are operated as wholly-owned subsidiary, Heckmann Water Resources Corporation. The completion of the pipeline makes us one of the largest handlers of produced water in North America.

 

Excerpt from shreveporttimes.com:

 

Houston-based Select Energy Services LLC hopes to lessen oil and gas companies' dependence on ground and service water through its acquisition last week of an underground water pipeline.

 Select closed Wednesday on the purchase of the 12-mile industrial pipeline installed last year by EXCO Water Resources. It delivers processed water from International Paper Co.'s Mansfield Mill to EXCO's Holly Field northeast of Mansfield. 

Select plans to market the water to other operators working in the Haynesville Shale region.

Permalink Reply by ray schmidt on September 10, 2011 at 4:17

I am curious when Heckmann contacted you about a 3rd pipeline.  They just completed a second pipeline running through my property back in May.  I hadn't heard anything about any additional pipelines in the future.  What section are you located in and when did they put the first two pipelines across your property?

Permalink Reply by Jay Rossi on September 11, 2011 at 3:57

can you provide the section, township and range of your property? I have a tract in 27-12-16 just off hwy 5 in logansport by the highschool. I was contacted by Heckman for a second line several months ago, they decided to go around me for the second line. I was told one line would be carrying fresh water and the other would be carrying salt water. In addition, I was told the existing line would be carrying fresh water and the new line would be carrying saltwater. After they decided to go around I began wondering if their original agreement was still valid because it specifically states that the line would be used for saltwater, not fresh water. does anyone have an opinion?