Fracing with saltwater
Newbie here. I have land in RRP. The section or unit well has just been drilled by Encana, and fracing operations are next. My cousin owns the land where the drill pad is located, and they are asking him for permission to frac with saltwater and to sign some type of affidavit concerning that. Are there any red flags associated with this request?
Views: 73
Replies to This Discussion
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Permalink Reply by Mac Davis on
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The idea that you need to sign anything seems highly suspicious to me. I'm really surprised that they don't have the right to do it however they want if you're leased.
Be REALLY careful. Scam contracts that trick you into giving up more than you think you are seem to be standard operation procedure in the O&G business.
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Permalink Reply by Les Bamburg on -
Mac, operators like EnCana are not known to "scam" people and are not part of standard operation procedure in the O&G business. I would view Individuals that utilize such tactics to be renegades and subject to termination if a direct employee of the O&G company.
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Permalink Reply by Mac Davis on
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Every lease offer I've ever seen has terms that I consider to be scams. They are trying to trick the country rubes into agreeing to unfair conditions that they have no idea what they mean. Most of the O&G legal documents I've seen are similarly designed with what I consider to be scam terms.
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Permalink Reply by Jack Blake on
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Jack does not look at the O & G contracts as scams, they are business dealings and O & G knows alot more than "Jack landowner" knows. The landowners must learn as much as possible, and put your own terms in their contracts to get a better deal for yourself. Itr is your responsibility.
If you want to look at it as scams, then try to scam them while they are trying to scam you.
Power to ther landowners howled jack Blake!
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Permalink Reply by Big Daddy, bcnr on
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Saltwater is very toxic Clint. Try adding a strong brine solution to your lawn. Let me now how many years it takes for growth to start. Seriously, I'm with Mac, never heard of this. They are re-using treated saltwater for frcing perhaps that what your cousin is refering to. I'd let an OG attorney read it before you sign it.
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Permalink Reply by Les Bamburg on
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Clint, it is common to frac with fresh water or saltwater. Some operators are starting to look for alternative sources of frac water such as produced water or recycled frac water that could be classified as saltwater. The affidavit could be a precaution since they would be handling saltwater on the well location. Given the design of the well pads I see limited risk in the use of saltwater.
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Permalink Reply by Randy on
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I'd just make sure they have liability for any damages due to release of saltwater. Strike any language that limits their liability to the 'fair market value of the land' or something that effect.
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Permalink Reply by clint adcock on
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Thanks to everyone for your comments. Great blog.
Clint
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Permalink Reply by Jack Blake on
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Poor cement jobs cause contamination of aquifers............bad cement jobs also caused the BP explosion, deaths and spill is what Jack Blake sees in his crystal ball.
hhhhmmmmm.................................
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