There are four types of water wells: 1) exploratory, 2) monitoring, 3) production, and 4) commercial. An exploratory well determines where water is available and may be converted to a production well. A monitoring well produces no water and is usually required of the oil and gas companies by the Oil Conservation Division. A production well produces water only for the benefit of the easement holder and may turn into a commercial well if the easement holder no longer needs the water but others continue to need it. A commercial well produces water for sale to persons other than the easement holder. A water easement consists of the lease of a small parcel of land for the location of a water well.
There are four types of water easements: 1) “WM” for a monitoring well, 2) “W” for a production well, 3) “WR” for a royalty well, and 4) “BL/W” Water Rights Agreement (the right to place a well on State Trust Lands is included in a separate Business Lease issued by the SLO Commercial Division).
Water Exploration Permit: Applicant does not know where they want to place the well; therefore, only. a permit to drill exploratory wells is needed If the applicant does know where they want the well, then they will start with an Application for Water Easement.
The use of water on State Trust Lands is allowed by means of a lease. The types of wells include exploratory, production, commercial, monitoring, and temporary. A 90 day renewal letter is sent when an easement is coming up for renewal. Water related issues are handled by the Office of the State Engineer, Water Rights Division: (505) 827-5789.
Salt Water Disposal Easements
Salt water easements are issued for up to 2.50 acres for up to 5 years with a preference right of renewal. New applicants and existing easement holders must be bonded. Bond types include:
- $25,000.00 Megabond
- $10,000.00 Single Easement Surety
- $10,000.00 Cash Bond
There is a $250.00 non-refundable application fee.