How do facilities operate?

What are the barriers to entry?
November 9, 2016
Is a royalty paid to the land mineral owners?
November 9, 2016

How do facilities operate?

There are different sized facilities depending on the location and number of producing wells in the area. The larger disposal facilities have at least seven 1,000 barrel water storage tanks. There are normally six downloading stations at a larger facility. High volume centrifugal pumps at each station can unload a 130 bbl water truck in seven minutes. The speed is important because time = money. Most disposal well firms bid projects by the barrel, so the faster they can download without waiting, the more money they make. It is important to have enough capacity and available off loading lanes to keep things moving during peak periods. If the storage tanks at the facility fill up faster than the injection pumps can pump the water down the well, a flashing red light comes on and signals the truckers that the facility is full and they must wait for the tanks to be pumped down. They will usually go to the next facility because there is no way to tell how long the wait might be. 7,000 bbls of storage is usually enough to keep the red light off. The injection pumps can move about 10,000 bbls of water per day into the well. Each facility is monitored with numerous cameras. Each driver and company has an ID card similar to a credit card. Each driver must use his ID card in order to gain access to the facility. The card reader monitors the time, driver, company and amount of liquid that is off-loaded. A field attendant is monitoring the well operations during the day.