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(World Oil) – Utilizing scientific and engineering analysis, the Railroad Commission of Texas has issued new guidelines that further strengthen permitting of disposalwells in the Permian basin. They apply to new and amended permit applications for deep and shallow disposalwells.
(Oil Price) – As if WTI oil prices in the low $60s per barrel aren’t enough to slow production growth at America’s top producing shale basin, the Permian, new guidelines for permitting saltwater disposalwells could raise the costs for operators, especially smaller producers with limited resources.
In this case, the court noted that the Oklahoma Corporation Commission (“OCC”) is vested with exclusive authority to regulate injection/disposalwells. In a nutshell, this doctrine allows for dismissal where the exercise of federal jurisdiction would interfere with the proceedings or orders of state administrative agencies.
If that water cannot be injected back into the disposalwells, where is it all going to go? Well, hold your literal and metaphorical horses. Ira Yates, president and Founder of Friends of the Pecos River (more at: friendsofthepecosriver.org) recently said during an interview, Well, the water has to be clean.
Most of this water goes back into the producing formations via injection wells as part of IOR and EOR programs to get more production from ageing fields. Historically, excess PW not needed for sweeping producing formations has been disposed of in Class II Saltwater Disposalwells (SWD).
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