Water Disposal Contracts
Provisions in University Lands' standard oil and gas lease agreement allow a single
operator to utilize a well on an actively producing lease for the purpose of disposing
of water produced on that lease without requiring specific approval from University
Lands. Any other use of a well for disposal purposes does require the approval of
University Lands in the form of a Produced Water Disposal Contract. There are four
classes of disposal contracts issued to oil and gas operators producing on University
Lands. The particular class of contract applicable to an individual well depends
on the specific circumstances of the operator and lease or leases involved.
University Lands also has two classes of produced water disposal contracts available
to those interested in conducting commercial disposal operations. All contracts
require an annual rental payment, and a payment of additional rentals based on the
operator's choice of a fixed amount per producing well on all leases involved or
a per-barrel fee for all water injected into the disposal well.
Contact: Jim Buice at ude.metsystu@eciubj