We own 223 hectares in Atascosa County. In May, we were approached by O-G Gas Co on a SWD 4000 bpd take-off well that hasn`t worked for two years. They wanted to use it again. We signed a contract of 0.10 per barrel. They also said they would clean up existing facilities, the tank battery, cattle keepers, etc. Our place has been neglected by them for the past 20 years. We found out that the case was bad on the well. That doesn`t look promising. All work has been stopped, including cleaning. My question is: why come to us now? Up to two years, they made good use of elimination.
We have never received any income. Is it worth doing that? Every piece of advice is very much appreciated. These can be small, complex agreements and, as you have already learned, keeping the facilities painted and in order, without waste, etc., can be an important part of the agreement. A termination clause is a good idea. The location of tanks or unloading stations is important for your enjoyment of the surface. We didn`t have a contract. I have received all the CRA disposal files. It`s the same oil company. At that time, because the well is not discarded, there are trucks that come all day to collect salt water that is injected into other fields.
Until then tidy, there is a bubble on one of the rusty tanks, the fence lines must be cleared. Trucks go up and down a kilometre from the main road. It looks like a huge injury. The resort is closer to the main road and it looks very old. These are two small buildings that have been demolished, but never demolished. If we build our house, it will have a direct side view of the facility. It`s just a big eye sore.charles s mallory says: . Did you get a contract for this SWD during the period it was used? Has it been operated by the same or different companies? It`s up to you to follow the past, but good luck. Have your statements about site clean-up, installation and refuelling batteries, on-site polution or the strong vegetation of the tank battery made? If these conditions are met, the site will need to be verified by a CRR field inspector, as there are national rules that address both issues. As I said, you can contact the Texas Railroad Commission with respect to installation, installation and refueling batteries to have a field inspector who visually identifies violations of national rules (pollution, etc.). The end of the contract will most likely be a legal matter, while legal assistance will be required. Valentina said: Commercial swd wells can be real money makers for the landowner.
A Atascocia Cty. I don`t know what the transportation costs are, but they could be $2.00 per bbl, or more. USD 0.50 per bbl for an existing SWD well would be a real gale for you. . Nothing yet. We`ve heard rumors that they`re breaking into another Swd next to each other.