Injection approval catches up

When you buy a property, make sure you transfer its water flood or disposal approval -- not just its well and facility licences. It's really important. In this unusual case, the disposal approval was not transferred to the new owner and now that owner finds itself in noncompliance problems -- 21 years later. We found this using AppIntel.

It's a surprisingly convoluted story embracing false identities and ownership, regulatory compulsion upon the wrong party.

• Company N sold a property to Company B including some disposal wells.
• The regulator mistakenly transferred the disposal scheme approval (but not the wells) to Company C several years later.
• The regulator unilaterally changed the disposal scheme to a water flood scheme and invoked a VRR clause, but only told Company C.
• Now, 21 years later, Company B is finally aware that they are significantly over-injected and are facing noncompliance measures.

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Would you like to see what other operators in your areas are thinking about seismic, multifractured wells, polymer schemes and recovery? AppIntel can help.

Subscribers can view this application by pasting the following link into their browser after logging into AppIntel. app.appintel.info/AOW.php?pxnrg=48316n38353236333631377x38

Tags: Disposal, Flood, Compliance, Acquisitions

Granger Low  1 Mar 2016

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