I have an oil well in Kansas that's not producing and the drilling company wants to convert it to a disposal well for the salt water that comes from nearby wells. What are the issues I need to be concerned about and what is the compensation structure for this?
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Answer:
There are many things which should be of concern to you, including: Will this contaminate my well water/property and what remediation steps (if any) will the company take if this occurs? Same question as No, 1 but this time asking about your neighbors? Is the company going to indemnify you against any accidents which occur on your property? How much and to what degree? What experience does this company have doing this and can they provide details of this experience? What is this company's record with the EPA/OSHA, the state of Kansas,etc? Who insures this company and what is their standing with that company? How solid is this insurance company? Do you have to sign away any ownership rights and ,if so, will the compensation for this be worth its value to you? Will the company provide a detailed geological survey of your property before they do this? At their cost? How do your children or anyone who stands to inherit this property feel about this? Have you consulted them? I would strongly advise seeking the counsel of an attorney experienced in this area. Listen carefully to what they say and, if they advise against doing this, I would suggest that you seriously think about listening to them. It was brought to my attention that I avoided the compensation structure for this. I would suggest that you have the company provide you with list of satisfied former customers who you can call and discuss their feelings. If they are happy about their compensation, you might factor that "happiness" into your decision on whether or not to undertake this. Most companies care about their bottom lines more so than anything else. Unless you are proactive about protecting your rights, you may find out for yourself how true and how unpleasant a situation that will prove to be.
Jon Mixon at Quora Visit the source
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