Fill and Sign the Texas Oil and Gas Leasing a Primer Form

SALT WATER DISPOSAL AGREEMENT(Using Existing Well) State: County: Lessor: (Name and Address) Lessee: (Name and Address) Effective Date: For adequate consideration, Lessor, named above, grants and conveys to Lessee, named above, the right to inject water, salt water, and other substances that may be produc ed with oil and/or gas into the (Name of Well) (the "Well"), located on the following lands (the "Lands") in the county and state named above, on the terms provided for in this Agreement: (Description of Lands on which Well is Located) 1. This Agreement is entered into for the purpose of allowing Lessee to dispose of water, salt water, and other substances (collectively "Water") that may be produced with oil and/or gas from wells located on the Lands and other lands or leases adjoining or near the Lands, whe ther the Water is produced from lands owned by Lessor or others. Lessor also grants and conveys to Lessee the unrestricted right-of-way and easement in, over, and across the Lands, and adjoini ng lands which Lessor owns, to lay, repair, maintain, and operate pipelines, and to construct and use tank batteries, power stations, power lines, roads and other structures and equipment necessary or convenient to save, take care of, treat, store, transport, measure and dispose of Water. L essee shall have the right of ingress and egress to and from the Well and the surface area a round the Well necessary or convenient to conduct Lessee's operations. Lessee will consult with L essor on routes to be taken by and the locations of any roads, pipelines, and power lines, constructed under authority of the easement granted in this Agreement. 2. This Agreement is for an initial term of ____ (____) years, beginning on the Effective Date stated above, unless earlier terminated or abandoned. Lessee has the exclusive right to renew this Agreement for an additional ____ (____) year term, at a price to be agreed upon by Lessor and Lessee and/or their successors or assigns, ____ (____) days before the end of the initial term. If Lessee, or its successors, elect to terminate this Agreement for any reason prior to the end of the initial term, or any subsequent term, Lessee must notify Lessor of the sel ected termination date ____ (____) days prior to the termination of the Agreement. 3. Lessee agrees to pay Lessor, as rental for the use of the Well and Lands, on a monthl y basis, ____ cents (____¢) per barrel for each barrel of water injected into the Well. L essee shall keep accurate records of the number of barrels of water produced from wells and disposed of into the Well, or otherwise provide for metering the volume of water injected into the Well. All payments shall be tendered by check to Lessor, at the address set out above, monthly, on or before the ____ day of each month for the number of barrels of water injected into the well the previous month. The monthly rental rate shall be deemed full consideration for Lessee's right to inject Water into the Well. 4. Lessee agrees to protect and hold Lessor harmless from and against any and all cla ims, liability, and loss or damage to persons or property which may be occasioned by or which may arise in whole or in part out of Lessee's disposal operations and/or other operations under the terms of this Agreement. 5. Lessee agrees to comply with all laws, rules, and regulations of governmental authori ties having jurisdiction over the operations which Lessee conducts under this Agreement. Lessee agrees to exercise its rights under this Agreement in such a manner so as to protect the surface and subsurface of the Lands from, and prevent injury to, fresh water strata and the surface of the Lands around the Well. 6. This Agreement and all of its rights and obligations may be assigned, either in whole or in part, by Lessor or Lessee; provided, however, Lessor must approve, in writing, any assignment of all of Lessee's rights, which approval will not be unreasonably withheld. Upon an assignment or any change in Lessor's ownership, Lessee shall not be responsible for payments to Lessor's successors until written evidence of the assignment or transfer is furnished to Lessee. Nonpayment of monthly rental may cause cancellation and forfeiture of this Agreem ent only when the Lessee fails or refuses to pay any amounts due within ____ (____) days after the due date. Any forfeiture or cancellation of this Agreement shall not relieve or remove t he obligations of Lessee arising prior to the termination, forfeiture, or cancellation. This Agree ment, the rights granted, and obligations provided are deemed covenants running with the Lands and shall inure to the benefit of and be binding on the Lessor and Lessee, and their respective heirs, l egal representatives, successors, and assigns. 7. Notices and payments to Lessor or Lessee shall be mailed to the addresses stat ed above. Notices and payments shall be deemed given when deposited with the United State s Postal Service in a properly addressed postage paid envelope. 8. Upon termination of this Agreement, Lessor shall have the option, exercisable by delivery of written notice to Lessee within ____ (____) days after termination, to either re tain the Well with all downhole equipment intact, or require Lessee to plug and abandon the Well in compliance with applicable governmental rules and regulations, and restore the surface of the Lands. Lessor's failure to exercise this option shall be conclusively presumed to be an election by Lessor to require Lessee to plug and abandon the Well and restore the surface. In any e vent, Lessee shall have a reasonable amount of time after the forfeiture, cancellati on, or termination of this Agreement in which to remove all property, equipment, fixtures and facilities, i ncluding pipelines, placed on the Lands by Lessee. 9. This Agreement shall in no way affect ownership of the oil, gas, or other minerals in, on or under the Lands. This Agreement is for the sole purpose of allowing Lessee to dispose of Water. This Agreement is signed by Lessor and Lessee as of the date of the acknowledgment of their signatures below, but is effective for all purposes as of the Effective Date stated above. Lessor Lessee