New Mexico Nonexclusive Salt Water Disposal Lease Between Surface Owner and Operator

• Category: Oil Gas and Minerals - Water
• State: Multi-State
• Control #: US-OG-161
• Format: Word; Rich Text

Description

This form is a salt water disposal lease. It is nonexclusive and provides for payments to be made to the lessor for each barrel of water injected. A New Mexico Nonexclusive Salt Water Disposal Lease Between Surface Owner and Operator is a legally binding agreement that regulates the management and removal of saltwater produced during oil and gas operations. This lease type is common in the state of New Mexico, where saltwater disposal is necessary to handle the large volumes of wastewater generated in drilling activities. In this lease agreement, the surface owner grants the operator the right to construct and operate a saltwater disposal facility on the surface estate. The operator is responsible for disposing of the saltwater in a safe and environmentally sound manner, ensuring compliance with all applicable laws and regulations. The terms and conditions of the lease vary depending on the specific agreement, but they typically cover the following key aspects: 1. Legal Framework: The lease will outline the legal framework governing the disposal activities, referencing state laws and regulations related to saltwater disposal in New Mexico. 2. Specific Location: The agreement will identify the specific location on the surface estate where the saltwater disposal facility will be constructed and operated. 3. Facility Construction: The lease will detail the responsibilities of the operator regarding the construction, maintenance, and operation of the saltwater disposal facility. This encompasses the design, engineering, and installation of the necessary infrastructure such as tanks, pits, pipelines, pumps, and other equipment. 4. Disposal Procedures: The lease will define the proper procedures for collecting, transporting, and disposing of saltwater, ensuring they are in accordance with environmental best practices and regulatory requirements. 5. Royalty Payments: The surface owner may be entitled to receive royalty payments based on the volume of saltwater disposed of by the operator. The lease will specify the percentage of the royalty, payment frequencies, and any adjustments or deductions that may apply. 6. Environmental Protection: The lease will emphasize the operator's obligation to comply with all environmental laws and regulations, including monitoring and reporting requirements. It may also address liability and indemnification obligations in case of any environmental damage. 7. Duration and Termination: The lease will specify the initial term of the agreement and any renewal options. It may also outline conditions for termination, such as breach of contract, non-payment, or mutually agreed-upon circumstances. Different types of New Mexico Nonexclusive Salt Water Disposal Leases can exist, such as those specific to public lands or different operators. Each lease may have slight variations in terms and conditions based on the parties involved, the location, and state regulations. It's essential for operators and surface owners to carefully negotiate the terms to protect their respective interests and ensure compliance with applicable laws.

A New Mexico Nonexclusive Salt Water Disposal Lease Between Surface Owner and Operator is a legally binding agreement that regulates the management and removal of saltwater produced during oil and gas operations. This lease type is common in the state of New Mexico, where saltwater disposal is necessary to handle the large volumes of wastewater generated in drilling activities. In this lease agreement, the surface owner grants the operator the right to construct and operate a saltwater disposal facility on the surface estate. The operator is responsible for disposing of the saltwater in a safe and environmentally sound manner, ensuring compliance with all applicable laws and regulations. The terms and conditions of the lease vary depending on the specific agreement, but they typically cover the following key aspects: 1. Legal Framework: The lease will outline the legal framework governing the disposal activities, referencing state laws and regulations related to saltwater disposal in New Mexico. 2. Specific Location: The agreement will identify the specific location on the surface estate where the saltwater disposal facility will be constructed and operated. 3. Facility Construction: The lease will detail the responsibilities of the operator regarding the construction, maintenance, and operation of the saltwater disposal facility. This encompasses the design, engineering, and installation of the necessary infrastructure such as tanks, pits, pipelines, pumps, and other equipment. 4. Disposal Procedures: The lease will define the proper procedures for collecting, transporting, and disposing of saltwater, ensuring they are in accordance with environmental best practices and regulatory requirements. 5. Royalty Payments: The surface owner may be entitled to receive royalty payments based on the volume of saltwater disposed of by the operator. The lease will specify the percentage of the royalty, payment frequencies, and any adjustments or deductions that may apply. 6. Environmental Protection: The lease will emphasize the operator's obligation to comply with all environmental laws and regulations, including monitoring and reporting requirements. It may also address liability and indemnification obligations in case of any environmental damage. 7. Duration and Termination: The lease will specify the initial term of the agreement and any renewal options. It may also outline conditions for termination, such as breach of contract, non-payment, or mutually agreed-upon circumstances. Different types of New Mexico Nonexclusive Salt Water Disposal Leases can exist, such as those specific to public lands or different operators. Each lease may have slight variations in terms and conditions based on the parties involved, the location, and state regulations. It's essential for operators and surface owners to carefully negotiate the terms to protect their respective interests and ensure compliance with applicable laws.