A North Dakota Salt Water Disposal Well Agreement between a Surface Owner and an Off-Premises Operator is a legally binding contract that outlines the terms and conditions regarding the use and operation of a salt water disposal well located on the surface owner's property. The agreement is specific to North Dakota, where the oil and gas industry is booming. As part of the extraction process, large amounts of salt water referred to as "produced water" are generated and need to be managed properly. Salt water disposal wells provide a solution for the safe disposal of this water, which is unfit for any other use due to its high salt content. The agreement establishes a partnership between the surface owner and the off-premises operator, who is typically an oil and gas company specializing in the management of salt water disposal operations. The document defines the rights and responsibilities of both parties, protecting the interests of the surface owner while granting the operator the necessary permissions to access, construct, and operate the well. The agreement covers various important aspects, including but not limited to: 1. Definitions: Clearly defining key terms such as "surface owner," "off-premises operator," "salt water disposal well," and "produced water" to avoid any ambiguity. 2. Grant of Rights: Specifying the surface owner's grant of rights to the off-premises operator to access the property and construct the salt water disposal well. This section will outline the permitted activities, such as drilling, maintenance, and gathering of produced water. 3. Term and Termination: Establishing the initial term of the agreement and the conditions under which either party can terminate the contract. This may include default or breach of terms, sale of the property, or changes in regulations. 4. Compensation and Royalties: Detailing the financial aspects of the agreement, including the compensation or consideration that the operator will provide to the surface owner for the use of their land. This can be a fixed fee, a percentage of the operator's revenues, or a combination of both. 5. Surface Owner Rights and Protections: Enforcing the surface owner's rights to monitor the operator's activities, ensuring compliance with environmental regulations, safety protocols, and maintenance standards. The agreement may also include provisions for remediation or reparation in case of damage to the land or property caused by the operator's actions. 6. Insurance and Indemnification: Outlining the insurance requirements that the off-premises operator must maintain, including liability coverage, environmental pollution insurance, and workers' compensation insurance. The agreement will also clarify the operator's duty to indemnify the surface owner against any claims arising from the operation of the salt water disposal well. Different types of North Dakota Salt Water Disposal Well Agreements may exist depending on the specific circumstances and negotiations between the surface owner and the off-premises operator. For instance, variations may occur regarding compensation structures, termination clauses, regulatory compliance obligations, or unique contractual provisions aimed at addressing specific concerns. In conclusion, a well-drafted North Dakota Salt Water Disposal Well Agreement between a Surface Owner and an Off-Premises Operator serves as a crucial legal instrument to ensure a mutually beneficial and compliant operation of a salt water disposal well on the surface owner's property. It provides clarity, protection, and transparency for all involved parties while safeguarding the environment and the community.
North Dakota Salt Water Disposal Well Agreement Between Surface Owner and off Premises Operator
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FAQ
Disposal wells inject saltwater into underground formations, often over a mile in depth, into sub-surface zones that already contain naturally occurring saltwater. In contrast, wells that supply fresh water can vary in depth throughout the state, but generally range from no deeper than a few hundred to a thousand feet.
How Saltwater Disposal Works. Saltwater is typically ejected from the wells into natural underground formations sealed within an impenetrable rock to prevent the saltwater from escaping into surrounding soil and groundwater.
Saltwater, or produced water, is a byproduct of natural gas and oil production. This water is heavily polluted with salt, hydrocarbons, and industrial compounds, making it hazardous to the environment. A Saltwater Disposal Well (SWD) injects the saltwater deep into the ground.
A disposal well is often a depleted oil or gas well, into which waste fluids can be injected for safe disposal. A by-product of oil and gas production is water that was either trapped in the same deep formations, was injected to stimulate a formation (hydraulic fracturing), or was injected to enhance oil recovery.
Disposal Agreement means any agreement for the assignment or outright sale or disposition, in whole or in part, of intellectual property rights in the Deferred Consideration Product.
Saltwater is often found in the same formations as oil because it was trapped in layers of sediment millions of years ago. For every barrel of oil produced, approximately 10 barrels of saltwater are also produced and require disposal.