Monthly Archives: October 2013

SWD Permits Market

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 Disposal Wells, Oil Development, and Force-Pooling Action

Introduction: The concept of pooling all mineral interests in a spacing unit is well established in many oil and gas producing states. A valid operator can propose a new well and force the election of all the mineral owners or existing lessees within the unit; after election the operator is granted a certain number of days in which to perform. Performance is variously interpreted to mean spudding the well or breaking ground in preparation for the drilling. Some would argue that the drilling of a Salt Water Disposal Well on the lease will also satisfy the definition of performance.

History of Force Pooling: The vehicle of force pooling has existed for more than 60 years on… Continue reading