Contracts and Salvage Estimates

Section 610 Section 610.430  Contracts and Salvage Estimates a)         Based on the nature of the Salvage Plugging or Restoration Project, the information available regarding the wells to be plugged or well site equipment to be removed, the estimated value of the salvage production equipment, and all other relevant criteria, the Department may enter into a no cost contract to plug a well or group of wells on a lease or part of a unit on the basis of the total cost to plug the well or wells or to remove the well site equipment and clean up the well site to be offset by the value of the salvage production equipment.  The Department will transfer control of the abandoned salvage equipment at the time a contract is signed. b)         The estimated salvage value of the well site equipment shall be determined by the Department but shall not be less than the following: 1) Pumping unit $100 each 2) Steel tank $75 each 3) Fiberglass $100 each 4) Gunbarrel $50 each 5) Heater treater $75 each 6) Injection pump $100 each 7) Reusable shed/outbuildings $1 per square foot 8) Salable hydrocarbons per barrel price at time of sale