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Welcome to the sail ring a podcast dedicated

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to state brokers, agents and America's top option

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years that keep the markets moving. Join your

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host, Sean and Tri as they talk with

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most success full realtors, marketing and technology experts,

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investors and influencers.

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Welcome

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to the sail ring.

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Alright. So we're back

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in the Sail ring studio. We've got

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a gentleman with us out of Texas today.

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We're gonna talk about

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the oil and gas industry, but something that

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can be very viable, very useful for property

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owners and

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realtors,

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their clients, you know, anybody that's moving property,

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we wanna introduce, mister Blake Scott.

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Blake, are you with us?

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I surely am Sean. Yeah. So, Blake, thank

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you. First off for being here.

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Blake represents a company,

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waste analytics

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Llc and more importantly to what we're gonna

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talk about on the podcast show today is

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well fax

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reports, property reports that

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they refer to as well fax

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reports, and we'll get into that and explain

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what those are. But

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Blake, we we wanna thank you for taking

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the time to be with us on the

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podcast show. And if you wouldn't mind, just

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tell us a bit about Blake Scott?

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Sure. Thanks for first of all, thanks for

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having me.

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You know, some background on me and and

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what led up to this. In 19 93,

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I started an oil field service company calls

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Scott Environmental services.

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And it mainly dealt with the drilling waste.

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We focused on drilling waste because it's the

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largest solid waste generated bio upstream oil and

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gas.

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And it usually,

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you know, the drilling waste is disposed on

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the surface as opposed to being injected like

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produced water or something like that.

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And this means that the drilling waste has

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the potential to impact soil and groundwater. Mh.

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So once we determine that that we were

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gonna focus on drilling waste, we began to

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look at how it was being specifically disposed.

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And those methods consisted of,

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some pretty kinda down and dirty things like

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burial, land spreading and rope spreading. And and

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some of that still goes on the day

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you're a lot of that but actually.

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But based upon the contaminants in the waist,

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which are salt, heavy metals and hydrocarbons, we

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thought there's gotta be a better way to

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deal with it.

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So,

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we started doing some research with some people

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at Texas a and M, and we focused

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on a technology call simplification and stabilization.

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And, we realized that

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really through that research, we could recycle the

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cutting to build each roads and drilling pads

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and that was different than anything being offered

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by anybody else. And so we applied for

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a patent on the process, which we later

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received.

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But we also had to get permits in

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each state in which we operated. So through

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all of that, I I learned a lot

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about their types of drilling waste, like saltwater

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drill cutting, and diesel based drill cutting.

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And the volumes of drilling waste, that's being

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generated and what was in it,

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and the different disposal methods used for it.

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With our with our recycling method, we we

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actually processed hundreds of thousands keeping yards drilling

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waste and built hundreds of locations and tens

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of miles of road.

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But, you know, the 20 15 comes around

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and

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the oil and gas downturn is kinda beginning

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to be in full play. So I started

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looking at other areas to apply what I

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hadn't learned.

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And I I realized there's no national repository

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of drilling waste data. So in other words,

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there was no place to go and and

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actually,

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look at what was being generated.

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In fact, most states don't even track it.

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Therefore, I started another company, call waste analytics,

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which is what we're talking about today,

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that began collecting and driving data on drilling

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waste that was being generated in the Us.

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And through that process, I became familiar with

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the forms and reporting methods of various oil

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and gas information.

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That each company reports the state regulatory

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agencies. We also work with an academic on

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looking at the causes of well plug failures,

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which kinda at the time didn't quite fit,

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but later on,

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as we'll talk about it actually does.

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The result

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of all that was a wealth and knowledge

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on collecting oil and gas information and information

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on potential issues that might arise

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from oil and gas operations.

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So in short, from Scott, environmental and working

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at waste analytics, I developed a deep background

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in oil and gas waste, oil and gas

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reporting and data collection and potential issues both

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past and present.

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Blake, but before you move on,

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explain just for the listeners, what, a well

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plug failure. May give us give us an

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example. Sure. Yeah. Sure. So,

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you know, when you first of all, you

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drilled a well and and you have to

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do well construction,

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which basically is how the the well is

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engineered.

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And then you produce the well, and then

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at some point, the well becomes une economic

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to produce.

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And so by law, you have to you

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have to seal that well off, and that's

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done

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by various methods.

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But, usually,

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cement is it's mainly used and and all

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of that process to seal it back off

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is called plugging.

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And so

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You know, if you think about it, the

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well construction

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and the well plug,

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that's all engineered, and and the

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Practices for doing that, the engineering principles for

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that have evolved over time and the rules

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that each state has to do that have

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evolved.

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But you're still using for the plug and

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a lot times for the construction of the

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wheel itself.

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Cement to be able to hold in any

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type of

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you know, production, material like oil or natural

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gas. From coming to the surface and impacting

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the surface or impacting groundwater.

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But since Cement is 1 of the main

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things that used,

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if you think about it,

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you know, cement being a a part of

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concrete,

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concrete cracks will so does need cement. Yeah.

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And so, you know, a failure can be

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that you develop issues where those production fluids

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and gases can actually migrate back to the

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surface and breach that plug, and that's a

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well plug failure.

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Very good. Very good. And we'll we'll get

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into more of of why that's important as

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1 example of where, a report of where

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those

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because those plugs aren't always visible. So, you

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know, as we get into this show, I

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just... I I wanted you

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to explain that because that's gonna become very

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relevant in this conversation.

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Oh, Absolutely, Sean. I mean, and the reason

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they're not built visible, it is because when

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you do plug that well, you cut the

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you cut the visible part of the well

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off below grade. So, you know, it's really

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can be and typically as 5 feet or

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more below the surface of the ground.

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So you don't know that you don't see

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it. It's not visible.

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Yes, sir.

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So will facts is,

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you talked about the downturn in the oil

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and gas market and maybe looking at other

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other provisions, other services that could be provided

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as an offs shoot of,

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what you were currently doing at the time.

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Yeah. I think it's kinda interesting. You know,

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at the same time, I was building Scott

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and then waste Analytics. I I began buying

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land around my family's farm east Texas.

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And through acquiring that land, and then, of

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course, you know, my background and oil and

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gas. I noticed that plug wells were not

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entitled work and not shown on surveys.

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Because as we just talk about, you know,

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their... The plug wells aren't invisible.

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And therefore, I began to think that information

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on the wells was something that was really

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needed by real estate buyers.

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In areas of oil and oil and gas

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production. So

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I begin to research various aspects of what

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a real estate buyer might need to know

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about that activity.

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And, you know, if the issue was even

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widespread enough to to be concerned about. So

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I first,

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began to

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look at, you know, how how widespread is

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it. And and I found that there are

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over 3 and a half million wells

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that have been drilled onshore in the Us.

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And these wells are not just in traditional

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states, You know you think about like, Texas,

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Oklahoma, etcetera, but

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They're also

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in other states that probably shock people, Michigan,

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Illinois, Washington, Florida,

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And so the geographic extent of past and

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present oil and gas wells was far greater

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than what I thought.

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For reference,

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the the Us energy information administration lists 34

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states that produce oil and gas.

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That doesn't include the states where drilling occurred,

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but production is no longer active. So really,

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what that means is there are wells and

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the majority of states in the Us. And

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and a lot of people just aren't aware

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of that.

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To look at that a little bit more

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in depth, and this is kind of a,

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you know, something that's really important. Of the

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3 and a half million plus wells been

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drilled.

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Only about 40 percent have been plugged.

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In contrast, in 20 22,

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there were about 912000

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producing wells.

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But of those,

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658000

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we're producing less than 10 barrels of oil

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per day.

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Which means that 72 percent of producing wells

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are producing less than 10 barrels per day.

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So they're getting close to the end of

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that economic pie. Yes, sir. Right. Yeah. So

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if you... You know, you added the plugged

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wells and the producing wells

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together that still means there's still another million

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plus wells

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that are idle

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on top of that, meaning they're not doing

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anything. They're just sitting there.

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So, you know, all of that together, if

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you look at all that in in total,

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you know, there are a lot of plug

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wells and wells that'll need to be plugged

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in near future.

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And that's kinda of the genesis of looking

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at well, okay. This is a widespread issue.

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And these are going to be

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increasing

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in the number of wells that have to

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be plugged or that have been and there's

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issues with them. And the other side of

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that equation is as we're on a huge

275
00:10:42,300 --> 00:10:44,853
growth boom in the housing industry right now.

276
00:10:45,012 --> 00:10:47,506
We're raw land and developmental land

277
00:10:48,362 --> 00:10:50,889
is absorbing more and more of that prop

278
00:10:51,486 --> 00:10:53,952
requiring more of that property. The question is

279
00:10:53,952 --> 00:10:57,134
what's immediately underneath the surface that you don't

280
00:10:57,134 --> 00:10:59,692
know about. Out there. You don't wanna find

281
00:10:59,692 --> 00:11:01,997
later that's accidentally. You wanna you don't wanna

282
00:11:01,997 --> 00:11:03,824
build a house over the top or something

283
00:11:03,824 --> 00:11:05,119
say, well, I would have never

284
00:11:05,589 --> 00:11:07,507
develop this or built my home here had

285
00:11:07,587 --> 00:11:09,905
I know in that. So, yeah. There's Yeah.

286
00:11:10,304 --> 00:11:11,583
It's it's perfect timing.

287
00:11:12,222 --> 00:11:14,220
Yeah. That... That's right. And, I mean,

288
00:11:15,671 --> 00:11:17,980
also, you know, from my oil field service

289
00:11:17,980 --> 00:11:20,370
days, I knew that the the vast majority

290
00:11:20,370 --> 00:11:22,600
of oil and gas waste is exempt from

291
00:11:22,600 --> 00:11:23,715
hazardous waste rule.

292
00:11:25,166 --> 00:11:27,559
And interestingly, which I'll talk about in just

293
00:11:27,559 --> 00:11:29,973
a little bit further a minute, but petroleum

294
00:11:30,031 --> 00:11:32,663
products are excluded from the federal super fund

295
00:11:32,663 --> 00:11:32,823
law.

296
00:11:34,034 --> 00:11:36,348
So what that means is that it doesn't

297
00:11:36,348 --> 00:11:38,263
mean the waste is not harmful. It just

298
00:11:38,263 --> 00:11:40,417
means that it's governed by another set of

299
00:11:40,417 --> 00:11:40,736
rules.

300
00:11:41,548 --> 00:11:43,777
And those rules typically are state rules.

301
00:11:45,448 --> 00:11:46,346
And so,

302
00:11:47,040 --> 00:11:48,472
you know, when you start thinking about that,

303
00:11:48,631 --> 00:11:50,462
Okay. We got all these wells and all

304
00:11:50,462 --> 00:11:53,192
these different... States and they're they're being governed

305
00:11:53,192 --> 00:11:55,130
by state rules. So you have a patchwork

306
00:11:55,190 --> 00:11:55,930
of rules

307
00:11:56,628 --> 00:11:58,546
that are kind of governing this stuff, which

308
00:11:58,546 --> 00:12:00,005
makes it a little bit more difficult

309
00:12:00,399 --> 00:12:02,874
to try and understand the impacts of that.

310
00:12:03,273 --> 00:12:03,512
Right?

311
00:12:04,869 --> 00:12:06,487
Another thing I looked at was

312
00:12:06,865 --> 00:12:09,441
I knew that the mineral estate is often

313
00:12:09,594 --> 00:12:11,342
separated from the surface state.

314
00:12:12,217 --> 00:12:14,760
And basically, that means that the owner owner

315
00:12:14,760 --> 00:12:16,986
of the surface is usually different than the

316
00:12:16,986 --> 00:12:18,257
owner the minerals. Right.

317
00:12:19,550 --> 00:12:21,790
So at this point, it kind of became

318
00:12:21,790 --> 00:12:22,290
clear

319
00:12:22,910 --> 00:12:24,750
that there are a lot of wells with

320
00:12:24,750 --> 00:12:27,083
many being plugged idle. A lot of potential

321
00:12:27,083 --> 00:12:29,880
for contamination issues and the surface is where

322
00:12:29,880 --> 00:12:31,318
potential contamination would appear.

323
00:12:32,117 --> 00:12:32,617
So

324
00:12:34,367 --> 00:12:37,315
the... If if you dis distilled that, the

325
00:12:37,315 --> 00:12:39,068
result of all this is that the surface

326
00:12:39,068 --> 00:12:41,639
owners are the ones that bear the burden

327
00:12:41,777 --> 00:12:43,290
of dealing with contamination.

328
00:12:44,338 --> 00:12:46,163
And this is kinda of where the most

329
00:12:46,163 --> 00:12:48,941
alarm points is a property owner because if

330
00:12:48,941 --> 00:12:49,894
you own the surface,

331
00:12:51,258 --> 00:12:51,974
and no minerals,

332
00:12:52,531 --> 00:12:54,837
you got virtually no money from the mineral

333
00:12:54,837 --> 00:12:56,984
estate, but take all the risk on damage

334
00:12:56,984 --> 00:12:58,972
to your asset being the property,

335
00:12:59,623 --> 00:13:00,123
if

336
00:13:00,497 --> 00:13:03,618
contamination arises. Yeah. Well stated. Well stated. So

337
00:13:03,674 --> 00:13:06,240
you basically are getting none of the benefit

338
00:13:06,375 --> 00:13:07,647
and and in...

339
00:13:08,696 --> 00:13:10,629
But all you're getting all of the risk

340
00:13:10,686 --> 00:13:13,393
in in the... Yeah. Yeah. Well... So it...

341
00:13:13,632 --> 00:13:15,702
Okay. So that's a wonderful... That's that's a...

342
00:13:15,861 --> 00:13:18,338
That's great job. A great segue to how

343
00:13:18,338 --> 00:13:20,879
how do we mitigate that risk? Mh. Yeah.

344
00:13:21,118 --> 00:13:23,023
And and, you know, 1 of the first

345
00:13:23,023 --> 00:13:25,008
things I I looked at from that point

346
00:13:25,008 --> 00:13:25,508
was

347
00:13:25,898 --> 00:13:26,216
you know,

348
00:13:26,933 --> 00:13:29,799
insurance because that's a risk mitigation method. Right.

349
00:13:30,515 --> 00:13:32,665
And that's usually like a line of defense

350
00:13:32,665 --> 00:13:35,788
for issues that arise, and I discovered that

351
00:13:35,788 --> 00:13:38,659
homeowner insurance in normal general liability on our

352
00:13:38,659 --> 00:13:39,058
property.

353
00:13:39,696 --> 00:13:40,675
Doesn't cover

354
00:13:41,052 --> 00:13:43,046
contamination or issues from plug oil and gas

355
00:13:43,046 --> 00:13:43,285
wells.

356
00:13:43,938 --> 00:13:44,438
So

357
00:13:44,815 --> 00:13:46,410
all of a sudden, that means there's even

358
00:13:46,410 --> 00:13:48,484
more liability that the surface owner may have,

359
00:13:48,963 --> 00:13:51,377
and it would be difficult to to transfer

360
00:13:51,435 --> 00:13:53,110
some of that liability to insurance.

361
00:13:54,085 --> 00:13:55,205
So, you know,

362
00:13:56,804 --> 00:13:58,804
that that all led me to think okay.

363
00:13:59,125 --> 00:14:00,904
That there there's something here

364
00:14:01,697 --> 00:14:04,084
that really needs to be looked at, but

365
00:14:04,084 --> 00:14:06,550
is this occurring very often, you know, any

366
00:14:06,550 --> 00:14:06,788
issues.

367
00:14:07,584 --> 00:14:08,084
And

368
00:14:08,714 --> 00:14:10,948
What I found was to put it bluntly,

369
00:14:11,267 --> 00:14:13,502
their plug well failures and issues with old

370
00:14:13,502 --> 00:14:15,497
pits that have been and are occurring all

371
00:14:15,497 --> 00:14:16,215
over the Us.

372
00:14:17,746 --> 00:14:19,023
And so with that in mind,

373
00:14:19,581 --> 00:14:21,177
that was the genesis of Will facts.

374
00:14:21,975 --> 00:14:22,214
Right.

375
00:14:25,493 --> 00:14:27,557
So I guess 1 of the questions I

376
00:14:27,557 --> 00:14:28,431
would have is,

377
00:14:29,066 --> 00:14:31,980
if I'm a listener right now is what

378
00:14:32,178 --> 00:14:34,638
what are you looking for in in Wealth

379
00:14:34,638 --> 00:14:37,813
fax, Like specific data that most of the

380
00:14:37,813 --> 00:14:39,027
clients find valuable

381
00:14:39,893 --> 00:14:42,364
Sure. Things that are are found in these

382
00:14:42,364 --> 00:14:45,234
well fax reports that hopefully, you get a

383
00:14:45,234 --> 00:14:46,908
clean Bell of health. You know, there's there's

384
00:14:46,908 --> 00:14:49,474
not much there. But when there is, what

385
00:14:49,474 --> 00:14:52,185
typically pops up that is of concern.

386
00:14:53,222 --> 00:14:54,019
Well, you know,

387
00:14:54,816 --> 00:14:56,592
that's a fantastic question

388
00:14:56,984 --> 00:14:59,294
you know, as with any asset, including real

389
00:14:59,294 --> 00:15:00,591
estate, the buyer

390
00:15:01,127 --> 00:15:03,915
and owner wanna know the risks. So what

391
00:15:03,915 --> 00:15:05,509
are the risks and how do you manage

392
00:15:05,509 --> 00:15:05,668
it?

393
00:15:06,639 --> 00:15:09,272
Who put simply risk is something that creates

394
00:15:09,272 --> 00:15:11,905
or suggests a hazard and risk management is

395
00:15:11,905 --> 00:15:13,660
either how to avoid it, reduce it.

396
00:15:14,471 --> 00:15:16,695
Transfer it or accept it. K.

397
00:15:17,330 --> 00:15:17,830
And,

398
00:15:18,204 --> 00:15:19,951
you know, I have some people that think

399
00:15:19,951 --> 00:15:22,016
that just getting the locations of the wells,

400
00:15:22,175 --> 00:15:23,207
all they need to know.

401
00:15:23,779 --> 00:15:25,134
And then they can find out where the

402
00:15:25,134 --> 00:15:27,526
wells are on state regulatory Gi maps.

403
00:15:28,483 --> 00:15:30,396
I find that kinda interesting because you need

404
00:15:30,396 --> 00:15:31,672
far more than just that,

405
00:15:32,643 --> 00:15:35,192
than no 1 just the location. And also

406
00:15:35,192 --> 00:15:38,937
regarding a location, most state Gi maps have

407
00:15:38,937 --> 00:15:41,779
approximate locations because the vast majority of where

408
00:15:41,819 --> 00:15:43,332
of wells are old,

409
00:15:43,889 --> 00:15:46,356
and they didn't use latitude and long for

410
00:15:46,356 --> 00:15:47,311
location when they were drilled.

411
00:15:48,028 --> 00:15:49,938
The locations were from survey lines,

412
00:15:50,495 --> 00:15:51,371
so they could be off.

413
00:15:52,184 --> 00:15:54,101
But even if you assume that the well

414
00:15:54,101 --> 00:15:54,900
locations correct,

415
00:15:55,699 --> 00:15:58,815
that's only the beginning. So using an analogy,

416
00:15:59,229 --> 00:16:00,979
the well location would be like, going to

417
00:16:00,979 --> 00:16:02,331
the doctor and saying, I I have a

418
00:16:02,331 --> 00:16:04,240
lump under my and having the doctor check

419
00:16:04,240 --> 00:16:05,672
it and say, yeah, you do.

420
00:16:06,483 --> 00:16:08,636
Well, and nobody nobody's gonna stop at anymore.

421
00:16:08,795 --> 00:16:09,593
Yeah. Yeah.

422
00:16:10,470 --> 00:16:11,209
The the

423
00:16:11,905 --> 00:16:14,456
is. Yeah. You know same applies to oil

424
00:16:14,456 --> 00:16:17,344
the gas. Your know reason suggest that you

425
00:16:17,344 --> 00:16:19,019
need to know a great deal more about

426
00:16:19,019 --> 00:16:20,536
oil and gas wells, so you know the

427
00:16:20,536 --> 00:16:22,291
risks and how to manage the issues.

428
00:16:23,184 --> 00:16:26,085
To address the risk, customers really want need

429
00:16:26,144 --> 00:16:28,544
detailed information about the wells themselves,

430
00:16:29,105 --> 00:16:31,264
any pipelines for Oil and gas that are

431
00:16:31,264 --> 00:16:31,424
there,

432
00:16:32,872 --> 00:16:35,176
about all this oil and gas activity. So

433
00:16:35,176 --> 00:16:37,082
that is where well fax comes into play.

434
00:16:38,274 --> 00:16:41,134
All of the data, we report extremely valuable,

435
00:16:41,293 --> 00:16:43,162
but what's critical to know

436
00:16:43,698 --> 00:16:46,968
is information about the wells themselves, including the

437
00:16:46,968 --> 00:16:49,599
location. Right. But information on the well, like,

438
00:16:49,838 --> 00:16:52,403
when was it drilled Mh. The status of

439
00:16:52,403 --> 00:16:52,881
the well?

440
00:16:53,438 --> 00:16:55,110
You know, was is it active? Is it

441
00:16:55,110 --> 00:16:57,658
plugged? Is it idle? Well, tyler. Let me

442
00:16:57,658 --> 00:16:59,902
let me break in real quick. So the

443
00:16:59,902 --> 00:17:02,947
time period could be very critical because technology

444
00:17:03,163 --> 00:17:05,948
has advanced and changed a lot. And maybe

445
00:17:05,948 --> 00:17:06,448
this

446
00:17:06,758 --> 00:17:08,987
plugging procedures, and the way they cap those

447
00:17:08,987 --> 00:17:11,774
wells off and closed them in was different,

448
00:17:11,933 --> 00:17:14,003
you know, 50 years ago than it is

449
00:17:14,003 --> 00:17:14,242
today.

450
00:17:14,974 --> 00:17:16,892
So I I would think that that time

451
00:17:16,892 --> 00:17:19,448
period would be very relevant as far as

452
00:17:19,448 --> 00:17:21,226
the potential for leakage or.

453
00:17:22,575 --> 00:17:24,959
That is that is absolutely right. You know,

454
00:17:25,117 --> 00:17:26,468
as an example, I

455
00:17:27,421 --> 00:17:28,295
I did a report

456
00:17:29,169 --> 00:17:29,963
several weeks ago,

457
00:17:30,694 --> 00:17:31,811
for somebody that

458
00:17:33,167 --> 00:17:34,067
they had

459
00:17:34,763 --> 00:17:37,636
a piece of property that... And they they

460
00:17:37,636 --> 00:17:41,001
wanted to have a 100 foot perimeter view

461
00:17:41,001 --> 00:17:41,480
as well.

462
00:17:42,197 --> 00:17:44,271
And so there were 3 wells on the

463
00:17:44,271 --> 00:17:46,265
proper on the property and hundred foot perimeter.

464
00:17:46,505 --> 00:17:47,781
2 of the wells you're

465
00:17:48,912 --> 00:17:50,586
drilled. 1 of the well... 1 of the

466
00:17:50,586 --> 00:17:52,578
wells was was on the property line and

467
00:17:52,578 --> 00:17:54,890
the other 2 wells were within the 100

468
00:17:54,890 --> 00:17:55,528
foot perimeter.

469
00:17:56,739 --> 00:17:59,153
2 the wells were drilled in 19 33

470
00:17:59,211 --> 00:18:00,726
and 1 in 19 34,

471
00:18:01,364 --> 00:18:03,437
and the company that drilled the wells had

472
00:18:03,437 --> 00:18:05,591
sold them to another operator who had plugged

473
00:18:05,591 --> 00:18:08,309
them. All 3 wells were plugged in 19

474
00:18:08,309 --> 00:18:08,786
58.

475
00:18:09,581 --> 00:18:11,965
So the wells themselves were not visible on

476
00:18:11,965 --> 00:18:13,237
the surface since they were plugged.

477
00:18:14,209 --> 00:18:15,887
When we looked at the wells further, they

478
00:18:15,887 --> 00:18:18,364
were clearly constructed to a very old standard.

479
00:18:19,083 --> 00:18:20,681
And they were also plugged to an old

480
00:18:20,681 --> 00:18:21,080
standard.

481
00:18:22,134 --> 00:18:22,614
Also,

482
00:18:23,253 --> 00:18:25,490
neither the company that drilled the wells or

483
00:18:25,490 --> 00:18:27,647
had plugged and was still an active operator.

484
00:18:27,967 --> 00:18:29,485
Yeah. And that that helps. Yeah.

485
00:18:30,538 --> 00:18:32,297
She have. Yeah. So you can you it

486
00:18:32,297 --> 00:18:34,714
that. So the responsible party's is not around

487
00:18:34,774 --> 00:18:36,772
anymore either. Yeah. That's right. So that... They

488
00:18:36,772 --> 00:18:39,264
know, that's another layer of risk. So that

489
00:18:39,264 --> 00:18:41,581
meant that the buyer, you know, should be

490
00:18:41,581 --> 00:18:43,819
concerned about potential plug failure due to the

491
00:18:43,819 --> 00:18:45,896
age of the wells and the age of

492
00:18:45,896 --> 00:18:46,375
the plugs.

493
00:18:47,588 --> 00:18:48,723
And then also

494
00:18:49,415 --> 00:18:52,276
who to call? Yeah. So in a case

495
00:18:52,276 --> 00:18:54,660
like that, where there is no longer an

496
00:18:54,660 --> 00:18:55,535
active operator.

497
00:18:57,780 --> 00:19:00,093
Especially like in a plug well case, you

498
00:19:00,093 --> 00:19:02,566
know, in as an example in Texas,

499
00:19:03,603 --> 00:19:05,916
whoever plugs the well is responsible for that

500
00:19:05,916 --> 00:19:07,680
plug in. Perpetuity. But if they go out

501
00:19:07,680 --> 00:19:09,269
of business, who do you call.

502
00:19:10,063 --> 00:19:12,208
In that case, that turns to the state.

503
00:19:12,446 --> 00:19:15,575
So the state would be responsible for any

504
00:19:15,575 --> 00:19:16,214
plug failure.

505
00:19:17,095 --> 00:19:20,054
And then if you address it, if it

506
00:19:20,054 --> 00:19:20,554
causes

507
00:19:21,015 --> 00:19:23,757
contamination, the state would also become involved in

508
00:19:23,892 --> 00:19:26,352
contamination issues. But those types of things,

509
00:19:27,859 --> 00:19:28,732
you can imagine,

510
00:19:30,413 --> 00:19:33,188
change if you have an operator involved that,

511
00:19:33,585 --> 00:19:35,171
is responsible to have to come in and

512
00:19:35,171 --> 00:19:37,232
and look at that versus the state because

513
00:19:37,232 --> 00:19:38,050
the state

514
00:19:38,439 --> 00:19:41,070
maybe slower about addressing that and say an

515
00:19:41,070 --> 00:19:42,586
operator might have to be. No way.

516
00:19:43,304 --> 00:19:45,617
States are slow at responding to things. Yeah.

517
00:19:46,015 --> 00:19:47,850
Who would figured Yeah. Who would thought. Right.

518
00:19:48,263 --> 00:19:50,412
Blake, let's let's back up a step further

519
00:19:50,412 --> 00:19:53,220
though is there there have to be

520
00:19:54,073 --> 00:19:55,640
homes or or

521
00:19:56,079 --> 00:19:57,138
constructed properties

522
00:19:58,476 --> 00:19:59,674
built over,

523
00:20:01,511 --> 00:20:02,710
closed wells. Mh.

524
00:20:03,205 --> 00:20:05,545
Plugged abandoned whales, plugged wells

525
00:20:05,924 --> 00:20:06,325
that

526
00:20:06,884 --> 00:20:09,605
they just... They have no idea. What's underneath

527
00:20:09,605 --> 00:20:12,997
of them. So it all starts with even

528
00:20:13,216 --> 00:20:15,293
identifying that there's an issue. If you're getting...

529
00:20:15,693 --> 00:20:18,663
If you're not utilizing your groundwater. Like, for

530
00:20:18,663 --> 00:20:20,737
your drinking water, you know, and you you

531
00:20:20,737 --> 00:20:21,056
haven't...

532
00:20:22,013 --> 00:20:23,370
I'm I'm trying to think of, you know,

533
00:20:23,529 --> 00:20:24,827
some of these these old,

534
00:20:25,459 --> 00:20:28,585
movies and court cases that derived from

535
00:20:29,518 --> 00:20:30,018
environmental

536
00:20:30,393 --> 00:20:32,644
impact, you know, something a hazardous

537
00:20:33,353 --> 00:20:35,108
materials have gotten the water system or whatever.

538
00:20:35,587 --> 00:20:37,421
But let's say you're on the outside of

539
00:20:37,421 --> 00:20:40,133
city, you're you're you're on city, water. Mh.

540
00:20:40,691 --> 00:20:43,970
You don't really know that the soil that

541
00:20:43,970 --> 00:20:47,299
there's contaminants around you because, they didn't go

542
00:20:47,299 --> 00:20:49,280
through this process. So they didn't have, you

543
00:20:49,280 --> 00:20:51,845
know, a well fax port, they didn't identify...

544
00:20:52,005 --> 00:20:53,125
Well, you know there used to be an

545
00:20:53,125 --> 00:20:55,284
oil field right underneath of you. And right

546
00:20:55,284 --> 00:20:58,085
beside you. And if you dig a well

547
00:20:58,085 --> 00:21:00,578
out here or you're utilizing ground water.

548
00:21:01,376 --> 00:21:03,928
You may wanna pay special attention to that.

549
00:21:04,885 --> 00:21:06,959
So... We know I mean, a common sense

550
00:21:06,959 --> 00:21:08,953
would tell you that that's currently going on

551
00:21:08,953 --> 00:21:10,721
in America today. Right?

552
00:21:11,435 --> 00:21:13,262
Oh, it it is. And I have examples

553
00:21:13,262 --> 00:21:15,088
of that where where that has occurred and

554
00:21:15,088 --> 00:21:15,644
his occurring.

555
00:21:16,279 --> 00:21:17,708
It's really it's really fascinating

556
00:21:18,582 --> 00:21:19,082
there

557
00:21:19,789 --> 00:21:21,627
Yeah. So can I ask you real quick

558
00:21:21,627 --> 00:21:23,944
before you move on? How would you determine,

559
00:21:24,023 --> 00:21:26,500
like, what is if I initially approach you?

560
00:21:26,660 --> 00:21:28,347
And I said, I've got a property I'd

561
00:21:28,347 --> 00:21:30,495
be interested in having you scope out for

562
00:21:30,495 --> 00:21:30,574
me.

563
00:21:32,324 --> 00:21:34,233
How how do you take maybe that... What

564
00:21:34,233 --> 00:21:35,528
is the geographic

565
00:21:35,839 --> 00:21:38,337
you know, approach to saying

566
00:21:38,796 --> 00:21:42,173
there's nothing in this area, or it actually

567
00:21:42,951 --> 00:21:45,064
deserves more attention. There was,

568
00:21:45,519 --> 00:21:48,144
historically a well filled. Because 1 of the

569
00:21:48,144 --> 00:21:49,816
questions I was gonna ask you early on

570
00:21:49,816 --> 00:21:51,725
is, like, what geographic areas do you serve,

571
00:21:51,884 --> 00:21:54,525
but I think more importantly is as you

572
00:21:54,525 --> 00:21:56,219
approach, you know, an initial

573
00:21:57,310 --> 00:21:58,344
consultation with a client,

574
00:21:58,981 --> 00:22:02,102
how do you start reeling in whether your

575
00:22:02,102 --> 00:22:04,496
services need to be applied to that area

576
00:22:04,496 --> 00:22:07,449
or if maybe that area just in your,

577
00:22:07,528 --> 00:22:10,098
you know, cursor research, it said there's really

578
00:22:10,098 --> 00:22:11,236
nothing has ever

579
00:22:11,694 --> 00:22:13,450
transpired here. Because there are parts of the

580
00:22:13,450 --> 00:22:15,148
country where there's been no

581
00:22:15,606 --> 00:22:18,001
E p work, you know, historically ever done.

582
00:22:18,160 --> 00:22:20,795
And Yeah. You said the 34 states had

583
00:22:20,795 --> 00:22:23,413
oil production history, and that means there states

584
00:22:23,413 --> 00:22:25,158
out there out of the 50 that, you

585
00:22:25,158 --> 00:22:27,564
know, aren't on that. So. Yeah. That's right.

586
00:22:28,681 --> 00:22:29,957
Well, that that's interesting.

587
00:22:31,074 --> 00:22:32,771
1 of the things that

588
00:22:33,162 --> 00:22:34,297
that we have

589
00:22:34,671 --> 00:22:36,679
really are just about to

590
00:22:37,132 --> 00:22:38,109
implement again

591
00:22:38,720 --> 00:22:40,570
is looking at,

592
00:22:41,516 --> 00:22:43,902
offering, right now, we have 2 reports and

593
00:22:43,902 --> 00:22:45,334
we'll get in talking about those in a

594
00:22:45,334 --> 00:22:48,373
second and what they're geared towards. But We

595
00:22:48,373 --> 00:22:49,113
were also,

596
00:22:50,449 --> 00:22:52,683
beginning to offer a service that

597
00:22:53,402 --> 00:22:55,397
just identifies as kind of by Zip code,

598
00:22:55,716 --> 00:22:58,279
whether or not there's activity or not. Yeah.

599
00:22:58,517 --> 00:23:00,267
Whether or not you should even perk up

600
00:23:00,267 --> 00:23:01,698
and think about it or not. Yeah.

601
00:23:02,414 --> 00:23:04,584
Yeah. And so, you know, if you

602
00:23:05,213 --> 00:23:07,605
if you gave us Zip code that you

603
00:23:07,605 --> 00:23:11,112
were interested in, We would just reply with,

604
00:23:11,192 --> 00:23:13,127
you know, there... There's no activity

605
00:23:13,678 --> 00:23:16,462
there's low activity, There's medium activity or there's

606
00:23:16,462 --> 00:23:19,905
high activity. Yeah. And so from that perspective,

607
00:23:20,932 --> 00:23:22,922
you know, you would be able to determine.

608
00:23:23,400 --> 00:23:23,559
Okay.

609
00:23:24,355 --> 00:23:24,674
I,

610
00:23:25,549 --> 00:23:27,540
I know I'm in an area that doesn't

611
00:23:27,540 --> 00:23:28,415
have any activity.

612
00:23:30,024 --> 00:23:30,741
But then...

613
00:23:31,617 --> 00:23:33,631
And you could just move on and and

614
00:23:33,848 --> 00:23:36,636
not requesting anything else. If you had a

615
00:23:36,716 --> 00:23:38,172
Zip code that

616
00:23:38,483 --> 00:23:40,869
had low medium or high activity at that

617
00:23:40,869 --> 00:23:43,834
point, then you could proceed to either choosing

618
00:23:44,050 --> 00:23:45,561
1 or the other of the second reports

619
00:23:45,561 --> 00:23:47,487
that we have. I mean, you know, as

620
00:23:47,487 --> 00:23:48,125
an example,

621
00:23:48,763 --> 00:23:49,162
homes,

622
00:23:50,358 --> 00:23:52,990
definitely that falls into when you start getting

623
00:23:52,990 --> 00:23:55,064
into a rural property. Mh. That's a little

624
00:23:55,064 --> 00:23:55,702
bit different.

625
00:23:56,753 --> 00:23:59,055
And and I'll address that with our second

626
00:23:59,055 --> 00:24:00,508
report in minute. But

627
00:24:01,040 --> 00:24:02,865
if you think about, say,

628
00:24:03,500 --> 00:24:04,556
agriculture, I

629
00:24:06,214 --> 00:24:07,429
agriculture is fascinating

630
00:24:07,882 --> 00:24:09,097
when it comes to

631
00:24:09,708 --> 00:24:12,646
well facts because there are really only certain

632
00:24:12,646 --> 00:24:14,473
areas that agriculture is going on.

633
00:24:15,283 --> 00:24:15,783
And

634
00:24:16,400 --> 00:24:18,951
it says though you can't avoid if oil

635
00:24:18,951 --> 00:24:21,184
and gas activity has occurred in those areas,

636
00:24:21,662 --> 00:24:23,438
you can't avoid being

637
00:24:25,578 --> 00:24:27,802
involved in having to address what may be

638
00:24:27,802 --> 00:24:30,503
on that property because that that property may

639
00:24:30,503 --> 00:24:32,464
be in some of the most productive ag

640
00:24:32,981 --> 00:24:35,760
areas there are. Yeah. And it's kind of

641
00:24:35,760 --> 00:24:38,221
a situation in those situation... And then those

642
00:24:38,221 --> 00:24:41,160
issues where it's where ag colliding with oil

643
00:24:41,160 --> 00:24:43,554
and gas. And you also have areas where

644
00:24:43,554 --> 00:24:45,140
homes are colliding with oil. Yes.

645
00:24:45,932 --> 00:24:47,439
But then as you pointed out, there are

646
00:24:47,439 --> 00:24:49,524
other areas where that's not, and

647
00:24:50,315 --> 00:24:52,475
I think that somebody we wanna take take

648
00:24:52,475 --> 00:24:54,315
advantage of our other service we're about to

649
00:24:54,315 --> 00:24:56,795
come out with that you can just ask

650
00:24:56,795 --> 00:24:59,329
about, a, Zip code, and then we can

651
00:24:59,528 --> 00:25:01,358
let you know whether or not the level

652
00:25:01,358 --> 00:25:03,108
of activity and you can decide how to

653
00:25:03,108 --> 00:25:03,346
proceed.

654
00:25:04,460 --> 00:25:06,345
Clarification on on this question. So if you're

655
00:25:06,464 --> 00:25:08,694
1 of those areas that's very heavy egg

656
00:25:08,694 --> 00:25:11,026
and, obviously, there may be some

657
00:25:11,402 --> 00:25:11,902
agricultural,

658
00:25:13,314 --> 00:25:16,196
you know, if, like, fertilizer chemical runoff off

659
00:25:16,196 --> 00:25:16,992
things like that.

660
00:25:18,027 --> 00:25:20,416
Does... Your well fax reports and stuff, is

661
00:25:20,416 --> 00:25:23,122
it strictly in oil and gas research and

662
00:25:23,122 --> 00:25:26,263
data or do you delve into agricultural

663
00:25:27,433 --> 00:25:30,138
anything to to do with ag related properties?

664
00:25:31,028 --> 00:25:32,958
We do not delve into anything

665
00:25:33,411 --> 00:25:35,818
other than we provide

666
00:25:36,907 --> 00:25:38,973
just generally what the soils are in the

667
00:25:38,973 --> 00:25:41,722
area. And the reason why we do that

668
00:25:42,261 --> 00:25:44,598
is because the soils are important

669
00:25:45,136 --> 00:25:46,175
if you have a leak.

670
00:25:47,307 --> 00:25:49,381
And what I mean by that is if

671
00:25:49,381 --> 00:25:51,375
you have a very heavy clay oil,

672
00:25:52,571 --> 00:25:53,071
your

673
00:25:53,688 --> 00:25:55,943
contamination is going to move horizontally.

674
00:25:57,210 --> 00:25:59,993
Because it can't infiltrate the soil profile very

675
00:25:59,993 --> 00:26:00,391
easily.

676
00:26:01,663 --> 00:26:03,594
So you're gonna have more of a lateral

677
00:26:03,889 --> 00:26:04,128
extent.

678
00:26:04,938 --> 00:26:07,727
If you have a very sandy soil, it's

679
00:26:07,727 --> 00:26:09,798
gonna move down through the profiles, you're gonna

680
00:26:09,798 --> 00:26:11,232
have more of a vertical issue.

681
00:26:12,364 --> 00:26:13,483
That makes perfect sense.

682
00:26:15,880 --> 00:26:17,399
So, you know, I mean, those are the...

683
00:26:18,118 --> 00:26:20,516
Even though, you know, going back to the

684
00:26:20,516 --> 00:26:24,143
geographic issue. We we serve every state

685
00:26:24,600 --> 00:26:26,217
in the Us. And

686
00:26:26,753 --> 00:26:29,088
it's important for somebody really

687
00:26:29,625 --> 00:26:30,981
regardless of where they are.

688
00:26:31,713 --> 00:26:32,213
To

689
00:26:32,749 --> 00:26:35,377
take advantage of our services, including what we're

690
00:26:35,377 --> 00:26:37,788
about to roll out regarding Zip codes because

691
00:26:37,846 --> 00:26:39,757
that way, you can feel comfortable about whether

692
00:26:39,757 --> 00:26:40,155
or not.

693
00:26:41,130 --> 00:26:43,210
You know, there's something you need to address

694
00:26:43,210 --> 00:26:45,369
or not with 1 of our other reports.

695
00:26:45,849 --> 00:26:48,730
Right. Blake, this is great information.

696
00:26:49,463 --> 00:26:51,696
There's a couple of different reports of there

697
00:26:51,776 --> 00:26:54,488
Wealth fax Prime, Wealth fax Pro. I'd like

698
00:26:54,488 --> 00:26:56,322
to get into that. I know you've got

699
00:26:56,322 --> 00:26:58,635
some great case studies and things to talk

700
00:26:58,635 --> 00:27:00,970
about Let's hear from our sponsors real quick.

701
00:27:01,130 --> 00:27:02,830
We'll come back in just a few minutes

702
00:27:02,890 --> 00:27:05,210
with more from Blake Scott and Well fax.

703
00:27:08,419 --> 00:27:11,516
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709
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711
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712
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713
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718
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719
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720
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721
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722
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728
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731
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733
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734
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745
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746
00:29:03,481 --> 00:29:06,260
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747
00:29:06,260 --> 00:29:09,835
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748
00:29:09,835 --> 00:29:10,731
gas marketplace.

749
00:29:15,342 --> 00:29:17,278
While we were on break, we were talking

750
00:29:17,736 --> 00:29:18,634
with Blake

751
00:29:19,012 --> 00:29:19,512
about

752
00:29:20,224 --> 00:29:20,863
phase one's,

753
00:29:21,581 --> 00:29:23,039
phase 1 and environmental

754
00:29:24,215 --> 00:29:25,114
reports. Blake

755
00:29:25,731 --> 00:29:27,966
elaborate a little bit on that because I

756
00:29:27,966 --> 00:29:30,131
know that's got play into this conversation.

757
00:29:31,086 --> 00:29:33,154
And in some instances in a big way,

758
00:29:33,393 --> 00:29:34,983
That would be the next logical step.

759
00:29:36,113 --> 00:29:39,543
Yeah. That's that's a a really interesting point

760
00:29:39,543 --> 00:29:40,043
because,

761
00:29:40,660 --> 00:29:42,494
you know, I I know people get phase

762
00:29:42,494 --> 00:29:44,488
ones, especially like on a commercial piece of

763
00:29:44,488 --> 00:29:45,546
property. And

764
00:29:46,017 --> 00:29:48,243
the genesis of a Phase 1 had to

765
00:29:48,243 --> 00:29:50,947
do with the federal super fund law. Mh.

766
00:29:51,185 --> 00:29:51,503
And,

767
00:29:52,378 --> 00:29:52,878
Ast

768
00:29:53,491 --> 00:29:55,970
developed a a methodology to deal do that.

769
00:29:56,207 --> 00:30:00,356
And these ones really are addressing as a

770
00:30:00,412 --> 00:30:01,943
a list of environmental

771
00:30:02,887 --> 00:30:05,275
issues that might arise and actually it comes

772
00:30:05,275 --> 00:30:07,367
from a checklist from the Ast

773
00:30:07,822 --> 00:30:08,220
methodology.

774
00:30:08,936 --> 00:30:11,085
And even though they get into a lot

775
00:30:11,085 --> 00:30:12,771
of things other than oil gas.

776
00:30:14,201 --> 00:30:16,188
They don't provide the depth of oil and

777
00:30:16,188 --> 00:30:18,254
get gas information that we do.

778
00:30:19,128 --> 00:30:20,756
And you know, that's a

779
00:30:21,209 --> 00:30:23,594
that's kind of interesting because what we're trying

780
00:30:23,594 --> 00:30:25,660
to address or what the real risks are.

781
00:30:26,296 --> 00:30:28,384
And that's not to not phase ones because

782
00:30:28,384 --> 00:30:30,884
they're fantastic for what they do. But

783
00:30:31,985 --> 00:30:33,985
from the perspective of Oil and gas, they

784
00:30:33,985 --> 00:30:36,465
may or may not identify wells, both old

785
00:30:36,465 --> 00:30:39,035
and new. But regardless, they won't tell you

786
00:30:39,035 --> 00:30:40,950
about anything. They won't tell you anything about

787
00:30:40,950 --> 00:30:43,206
the wells other than possibly

788
00:30:43,663 --> 00:30:45,121
the status because

789
00:30:45,513 --> 00:30:49,195
phase one's follow a checklist, and there's nothing

790
00:30:49,570 --> 00:30:52,276
from that Ast checklist that says what must

791
00:30:52,276 --> 00:30:54,026
be reported about oil Gas. So if you

792
00:30:54,026 --> 00:30:55,318
go back thinking about risk.

793
00:30:56,517 --> 00:30:58,835
There's nothing there that's specific for them to

794
00:30:58,835 --> 00:31:01,392
say about what their risk is. So that's

795
00:31:01,392 --> 00:31:03,390
why our customers find that what we provide

796
00:31:03,390 --> 00:31:06,192
on what patients that oil and gas activity

797
00:31:06,192 --> 00:31:07,727
and knowledge about the wells

798
00:31:08,102 --> 00:31:11,286
is what helps determine present and future risk.

799
00:31:11,699 --> 00:31:13,768
And phase ones just don't get to that

800
00:31:13,768 --> 00:31:13,927
point.

801
00:31:15,599 --> 00:31:18,146
Is... This is so the phase 1, and

802
00:31:18,146 --> 00:31:20,390
then I know that that moves a little

803
00:31:20,390 --> 00:31:22,301
bit if... And and if you can, if

804
00:31:22,301 --> 00:31:23,176
you could clarify,

805
00:31:23,654 --> 00:31:26,042
the differences maybe just real quick, like phase

806
00:31:26,042 --> 00:31:27,418
1 phase 2

807
00:31:28,527 --> 00:31:30,702
because my my understanding phase 1

808
00:31:31,557 --> 00:31:32,536
and environmental

809
00:31:34,508 --> 00:31:36,742
report, a phase 1 report is more of

810
00:31:36,742 --> 00:31:37,242
just

811
00:31:38,034 --> 00:31:40,751
almost cursor. It's it's visual. It's looking and

812
00:31:40,751 --> 00:31:43,867
saying, is there is there something here that

813
00:31:43,867 --> 00:31:45,166
warrants more

814
00:31:45,705 --> 00:31:47,075
attention? Is that accurate?

815
00:31:47,711 --> 00:31:48,905
That that is accurate.

816
00:31:49,781 --> 00:31:51,077
Phase one's do

817
00:31:52,169 --> 00:31:54,572
even though they are cursor,

818
00:31:54,971 --> 00:31:56,268
really what they do

819
00:31:57,124 --> 00:31:59,356
is look at... They do the leg work

820
00:31:59,356 --> 00:32:00,733
on looking at

821
00:32:01,111 --> 00:32:01,611
various

822
00:32:02,067 --> 00:32:02,567
databases

823
00:32:03,199 --> 00:32:05,272
to determine if there has been some type

824
00:32:05,272 --> 00:32:07,346
of environmental issue on that property.

825
00:32:08,463 --> 00:32:11,595
So if there had been a hazardous waste

826
00:32:11,653 --> 00:32:12,610
issue on that property.

827
00:32:13,344 --> 00:32:15,821
A phase one's going to identify that.

828
00:32:16,700 --> 00:32:17,200
And

829
00:32:18,298 --> 00:32:20,296
it... Then they do... They go out and

830
00:32:20,296 --> 00:32:21,495
do a visual inspection.

831
00:32:22,788 --> 00:32:24,646
And they also talk to

832
00:32:25,345 --> 00:32:28,860
the current owner and any, like adjacent landowners

833
00:32:28,860 --> 00:32:29,100
owners.

834
00:32:29,911 --> 00:32:30,411
But

835
00:32:31,181 --> 00:32:34,460
but it's specific to a certain set of

836
00:32:35,390 --> 00:32:37,319
standards or what's in the Ast

837
00:32:37,931 --> 00:32:38,431
methodology

838
00:32:39,298 --> 00:32:39,798
that

839
00:32:40,174 --> 00:32:42,964
was based on trying to address many of

840
00:32:42,964 --> 00:32:44,341
these things that

841
00:32:44,798 --> 00:32:46,950
come up in in federal super fund law.

842
00:32:47,204 --> 00:32:49,518
So that somebody is not liable in the

843
00:32:49,518 --> 00:32:51,854
future so that the the the buyer

844
00:32:52,312 --> 00:32:54,328
can be relieved of liability

845
00:32:54,706 --> 00:32:55,939
because a

846
00:32:56,316 --> 00:32:59,448
past review was done. So it's critical. But

847
00:32:59,746 --> 00:33:01,123
if they find something

848
00:33:01,820 --> 00:33:04,053
that might be of concern, that's where you

849
00:33:04,053 --> 00:33:05,982
go and get into something like a phase

850
00:33:05,982 --> 00:33:09,494
2 or you start taking soil samples, etcetera,

851
00:33:09,653 --> 00:33:13,026
to determine if if there actually is some

852
00:33:13,418 --> 00:33:14,555
some type of

853
00:33:15,249 --> 00:33:16,045
contamination on the property.

854
00:33:17,637 --> 00:33:20,502
Very good. Well, now now we're talking about,

855
00:33:20,582 --> 00:33:22,944
you know, phase 1 phase 2 and in

856
00:33:23,381 --> 00:33:25,548
researching well facts and in our previous

857
00:33:26,158 --> 00:33:29,491
conversation, there's some variations of the reports that

858
00:33:29,491 --> 00:33:30,150
you generate,

859
00:33:30,841 --> 00:33:33,809
and and report on Well fax prime, well

860
00:33:33,809 --> 00:33:36,609
fax Pro. Maybe you could elaborate on the

861
00:33:36,609 --> 00:33:38,130
differences between those reports.

862
00:33:39,089 --> 00:33:39,329
Sure.

863
00:33:40,143 --> 00:33:43,346
To start, both of our reports provide detailed

864
00:33:43,481 --> 00:33:46,104
information on well locations with maps and the

865
00:33:46,104 --> 00:33:48,886
well types because there's differences between a natural

866
00:33:48,886 --> 00:33:50,813
gas well and and an oil well.

867
00:33:51,849 --> 00:33:53,067
The well status

868
00:33:54,638 --> 00:33:56,892
information about the last operator

869
00:33:57,204 --> 00:34:00,475
the operator status and production dates, that's all

870
00:34:00,475 --> 00:34:01,672
very critical and important.

871
00:34:02,709 --> 00:34:04,087
And then potential risks

872
00:34:04,558 --> 00:34:06,701
But... And then our more detailed report also

873
00:34:06,701 --> 00:34:09,399
gets into information about well construction, which I

874
00:34:09,557 --> 00:34:11,462
I talked about earlier and then well plugging.

875
00:34:13,072 --> 00:34:14,609
Groundwater information, soil

876
00:34:14,987 --> 00:34:15,147
information,

877
00:34:15,945 --> 00:34:18,441
and drilling waste information, and then also

878
00:34:18,819 --> 00:34:21,076
mentions potential risks and and

879
00:34:21,467 --> 00:34:22,502
potential mitigation methods.

880
00:34:23,615 --> 00:34:24,115
Prime

881
00:34:24,888 --> 00:34:25,945
is specifically

882
00:34:26,559 --> 00:34:27,911
geared towards home virus.

883
00:34:29,038 --> 00:34:30,730
Usually, a a home buyer

884
00:34:31,262 --> 00:34:33,169
is looking at Wealth fax to screen a

885
00:34:33,169 --> 00:34:33,566
property.

886
00:34:34,043 --> 00:34:36,370
So therefore, you know, they wanna know

887
00:34:36,919 --> 00:34:38,058
if the property

888
00:34:38,677 --> 00:34:40,434
or within a certain perimeter has oil and

889
00:34:40,434 --> 00:34:41,233
gas activity.

890
00:34:41,952 --> 00:34:44,283
So for that, we include a map tag

891
00:34:44,283 --> 00:34:46,354
to the parcel Id and then information on

892
00:34:46,354 --> 00:34:49,880
the well type status, last production date, and

893
00:34:49,938 --> 00:34:51,769
information on the operator and any pipelines,

894
00:34:53,219 --> 00:34:54,016
And, you know,

895
00:34:54,893 --> 00:34:57,445
prime starts at a hundred and 99 dollars

896
00:34:57,445 --> 00:34:59,279
for a 2 acre or less watt.

897
00:34:59,838 --> 00:35:01,831
And then we also offer because we know

898
00:35:01,831 --> 00:35:04,154
it's used. For... To to review a property,

899
00:35:04,711 --> 00:35:06,541
we offer a 20 percent discount on a

900
00:35:06,541 --> 00:35:08,450
second report if it's ordered at the same

901
00:35:08,450 --> 00:35:10,598
time so you can compare 2 different properties.

902
00:35:11,728 --> 00:35:14,522
And, you know, I mean, to to illustrate

903
00:35:14,522 --> 00:35:15,559
why that's important,

904
00:35:16,358 --> 00:35:19,231
it if you happen to you got a

905
00:35:19,231 --> 00:35:19,550
mortgage.

906
00:35:20,679 --> 00:35:23,542
And on a home, and there's a plug

907
00:35:23,542 --> 00:35:24,815
well there and it leaks.

908
00:35:25,848 --> 00:35:27,382
It's gonna cause you

909
00:35:27,757 --> 00:35:30,640
considerable monetary damage even if the oil company

910
00:35:30,640 --> 00:35:32,320
is is still around and they come back

911
00:35:32,320 --> 00:35:34,320
and plug well. Right. Because you're gonna have

912
00:35:34,320 --> 00:35:36,640
to deal with all of that. The interesting

913
00:35:36,640 --> 00:35:39,059
part about that, though, and this is where

914
00:35:39,372 --> 00:35:42,860
Well fax prime really pays for itself. The

915
00:35:42,860 --> 00:35:44,763
bank still gonna require you to pay the

916
00:35:44,763 --> 00:35:46,507
mortgage even if the home is damaged,

917
00:35:46,999 --> 00:35:50,190
Mh. And you gotta remember homeowners insurance won't

918
00:35:50,190 --> 00:35:51,625
help you with any of that damage if

919
00:35:51,625 --> 00:35:52,582
it's from a plug well.

920
00:35:53,380 --> 00:35:55,932
Right. Yeah. Those are 2 separate concerns for

921
00:35:55,932 --> 00:35:58,992
sure. You can have, you know, your environmental

922
00:35:59,127 --> 00:36:01,906
thing going on and and litigation or it's

923
00:36:01,906 --> 00:36:04,820
it's no different than a homeowners policy and

924
00:36:05,019 --> 00:36:07,017
somebody breaks their leg on your property and

925
00:36:07,017 --> 00:36:08,615
you're dealing with that off to the side.

926
00:36:09,255 --> 00:36:11,412
That doesn't affect the bank getting paid their

927
00:36:11,412 --> 00:36:13,490
money back. They they want their mortgage pay.

928
00:36:14,143 --> 00:36:15,892
That's a great point. Yeah.

929
00:36:16,608 --> 00:36:19,707
Now pro, our other report. It's geared towards

930
00:36:19,707 --> 00:36:21,240
land buyers and landowners.

931
00:36:22,670 --> 00:36:25,069
You know, often when property buyers are looking

932
00:36:25,069 --> 00:36:26,750
for the land, it may be difficult to

933
00:36:26,750 --> 00:36:27,569
find something

934
00:36:27,949 --> 00:36:30,349
that hasn't had oil and gas activity in

935
00:36:30,349 --> 00:36:32,125
the area that to again, you know, like,

936
00:36:33,485 --> 00:36:35,085
as we were talking about earlier in ag

937
00:36:35,085 --> 00:36:35,405
area.

938
00:36:36,605 --> 00:36:39,724
Therefore, the buyer needs to know information that

939
00:36:39,724 --> 00:36:42,377
gets very Pacific about how the well was

940
00:36:42,377 --> 00:36:42,777
constructed,

941
00:36:43,576 --> 00:36:45,194
meaning those engineering practices

942
00:36:46,372 --> 00:36:47,971
that were used to drill the well, and

943
00:36:47,971 --> 00:36:50,690
then maps tagged to the Parcel Id and

944
00:36:50,690 --> 00:36:51,190
also

945
00:36:51,802 --> 00:36:54,185
historic maps of the area that show old

946
00:36:54,185 --> 00:36:54,582
activity.

947
00:36:55,694 --> 00:36:58,021
Information on how the wells plugged and

948
00:36:58,887 --> 00:37:01,355
information on drilling waste because I'll give you

949
00:37:01,355 --> 00:37:03,742
an example about why that's an issue. And

950
00:37:03,742 --> 00:37:07,347
then possible old production pits, groundwater protection data

951
00:37:07,563 --> 00:37:09,407
potential risk. And mitigation options.

952
00:37:11,315 --> 00:37:11,554
Pro,

953
00:37:12,587 --> 00:37:15,529
also, like to mentioned, pro starts at 349

954
00:37:15,529 --> 00:37:17,278
dollars for a 2 acre or less property.

955
00:37:18,089 --> 00:37:18,489
And

956
00:37:19,529 --> 00:37:20,329
as with Prime,

957
00:37:21,049 --> 00:37:23,130
all of the the pricing depends upon the

958
00:37:23,130 --> 00:37:24,010
size of the property.

959
00:37:24,809 --> 00:37:26,429
And Pro really

960
00:37:27,063 --> 00:37:29,951
the uses for it are for negotiating leverage

961
00:37:30,008 --> 00:37:31,998
and future monitoring so that you don't have

962
00:37:31,998 --> 00:37:34,249
to pay for the cleanup. Right. So

963
00:37:34,878 --> 00:37:36,625
To be clear, you know, both Prime and

964
00:37:36,784 --> 00:37:40,040
Pro provide information that can be used for

965
00:37:40,040 --> 00:37:40,540
risk

966
00:37:40,914 --> 00:37:43,932
identification and assessment, but also for negotiating leverage.

967
00:37:44,664 --> 00:37:45,882
And that's very similar

968
00:37:46,339 --> 00:37:48,833
to how a home buyer uses a home

969
00:37:48,892 --> 00:37:49,052
inspection.

970
00:37:50,408 --> 00:37:51,206
Right. Yeah.

971
00:37:51,939 --> 00:37:55,136
Well, that's... So just to clarify, so the

972
00:37:55,136 --> 00:37:56,015
reports generally,

973
00:37:56,734 --> 00:37:58,892
the price and the cost of the approach

974
00:37:58,892 --> 00:38:01,130
of the reports work off of the acreage.

975
00:38:01,623 --> 00:38:03,932
Count. And not, that's a well count on

976
00:38:03,932 --> 00:38:04,568
the property.

977
00:38:05,205 --> 00:38:05,683
That's correct.

978
00:38:06,717 --> 00:38:08,548
And that's, you know, in certain parts of

979
00:38:08,548 --> 00:38:10,379
the country, that can be very relevant. I

980
00:38:10,379 --> 00:38:13,267
have right now, we have a a 72

981
00:38:13,267 --> 00:38:16,064
or 3 acre farm listed. It has 23

982
00:38:16,064 --> 00:38:18,541
wells. Wow It's it's in 1 of those

983
00:38:18,541 --> 00:38:19,041
shallow

984
00:38:20,154 --> 00:38:21,752
you know, 1 and a half 2 acre

985
00:38:21,752 --> 00:38:25,269
spacing, you know, areas where, the the density

986
00:38:25,269 --> 00:38:27,927
of those wells is is much higher. So

987
00:38:28,306 --> 00:38:28,545
Mh.

988
00:38:29,599 --> 00:38:32,077
And these are these are operating wells, but

989
00:38:32,077 --> 00:38:32,237
again,

990
00:38:32,956 --> 00:38:35,513
at some point, they won't be. Right. And

991
00:38:35,993 --> 00:38:39,110
if that infrastructure is not is not taken

992
00:38:39,110 --> 00:38:39,190
out,

993
00:38:40,158 --> 00:38:41,929
even if it is. Even if the surface

994
00:38:42,143 --> 00:38:43,494
infrastructure is all taken out, those...

995
00:38:44,446 --> 00:38:46,511
They're, you know, they're gonna they're gonna cap

996
00:38:46,511 --> 00:38:48,496
those. They're gonna plug those wells and and

997
00:38:48,496 --> 00:38:50,528
they'll be there'll be some

998
00:38:50,907 --> 00:38:51,866
residue left there.

999
00:38:52,905 --> 00:38:55,461
Absolutely. And and, you know, there's there's no

1000
00:38:55,461 --> 00:38:56,980
way to get rid of that well bore.

1001
00:38:57,874 --> 00:38:59,652
And there's the real risk

1002
00:39:00,431 --> 00:39:02,610
because the the real risks

1003
00:39:02,989 --> 00:39:04,667
can be kind of broken down into about

1004
00:39:04,667 --> 00:39:06,825
3 different buckets. 1 is the well bore

1005
00:39:06,825 --> 00:39:06,985
itself.

1006
00:39:07,635 --> 00:39:10,094
And that includes both how it was constructed

1007
00:39:10,094 --> 00:39:10,887
and the plug.

1008
00:39:12,236 --> 00:39:14,957
But you can have an active well

1009
00:39:15,583 --> 00:39:18,076
that had a very old construction

1010
00:39:18,851 --> 00:39:19,351
practice

1011
00:39:19,728 --> 00:39:22,597
that's leaking while it's being produced. Right.

1012
00:39:23,329 --> 00:39:25,250
The other bucket is drilling waste.

1013
00:39:25,809 --> 00:39:26,529
Drilling waste,

1014
00:39:28,849 --> 00:39:29,349
oftentimes

1015
00:39:29,809 --> 00:39:30,929
was buried on sight.

1016
00:39:31,503 --> 00:39:33,645
And because it contains contaminants,

1017
00:39:34,201 --> 00:39:35,947
that can affect your soil and groundwater.

1018
00:39:37,296 --> 00:39:38,510
And then the other 1 is

1019
00:39:38,979 --> 00:39:41,610
is production and gathering lines, and that's a

1020
00:39:41,610 --> 00:39:44,262
really other fascinating area about all of this

1021
00:39:44,320 --> 00:39:44,820
because,

1022
00:39:45,197 --> 00:39:46,552
as an example in Texas,

1023
00:39:47,603 --> 00:39:48,103
you

1024
00:39:48,560 --> 00:39:51,052
don't have to... They don't have to report

1025
00:39:51,110 --> 00:39:53,682
where the gathering line from a well is

1026
00:39:54,218 --> 00:39:56,305
until the point of 4 first metering. So

1027
00:39:56,305 --> 00:39:58,137
let's say you have a central tank battery,

1028
00:39:59,173 --> 00:40:01,882
and there are 5 different wells on a

1029
00:40:01,882 --> 00:40:03,635
piece of property coming to that tank battery,

1030
00:40:03,795 --> 00:40:04,773
but the meter

1031
00:40:05,640 --> 00:40:08,023
for to to determine how much is being

1032
00:40:08,023 --> 00:40:10,565
produced is at the central tank battery. So

1033
00:40:10,565 --> 00:40:12,710
the gathering lines from each well to the

1034
00:40:12,710 --> 00:40:13,449
tank battery

1035
00:40:13,758 --> 00:40:14,473
is not marked.

1036
00:40:17,888 --> 00:40:18,285
Interesting.

1037
00:40:20,430 --> 00:40:23,094
This is... Is there a fair amount of

1038
00:40:23,315 --> 00:40:25,155
competition in the marketplace you're in right now?

1039
00:40:25,954 --> 00:40:28,034
No. It's no you're the only... We're the

1040
00:40:28,034 --> 00:40:31,156
only people that provide this. That's crazy. Yeah.

1041
00:40:31,552 --> 00:40:34,009
Yeah. Yeah. Based on everything that we're hearing

1042
00:40:34,009 --> 00:40:36,783
right now because the service is very relevant.

1043
00:40:37,753 --> 00:40:40,144
Yeah. And as expansion outside of the. You

1044
00:40:40,144 --> 00:40:41,818
at the same time, but that's crazy.

1045
00:40:42,615 --> 00:40:44,688
And as we expand outside of these urban

1046
00:40:44,688 --> 00:40:47,972
corridors and move more and more into non

1047
00:40:47,972 --> 00:40:50,204
urban America into rural properties. Yeah.

1048
00:40:51,160 --> 00:40:53,494
I just... It it seems like

1049
00:40:54,684 --> 00:40:57,325
you you are, you know, at the epicenter

1050
00:40:57,325 --> 00:41:00,045
of something that's gonna become very relevant in

1051
00:41:00,045 --> 00:41:01,325
the future in this country.

1052
00:41:02,217 --> 00:41:04,204
Well, I I hope so. You know, I...

1053
00:41:04,363 --> 00:41:06,668
That's kind of going back to... When I

1054
00:41:06,668 --> 00:41:08,734
started looking at this. That was 1 of

1055
00:41:08,734 --> 00:41:10,823
the things I started looking at was

1056
00:41:12,242 --> 00:41:14,701
why how how big of an issue is

1057
00:41:14,701 --> 00:41:17,714
this? And when you start really looking at

1058
00:41:17,714 --> 00:41:18,690
it and then

1059
00:41:19,320 --> 00:41:21,239
realizing that it's not in entitled work.

1060
00:41:21,800 --> 00:41:23,800
Yeah. It's... You know, And I... A way

1061
00:41:23,800 --> 00:41:25,160
to find out unless you... Yeah.

1062
00:41:26,280 --> 00:41:28,848
And And, you know, I mean, yes, state

1063
00:41:28,848 --> 00:41:29,587
state regulatory

1064
00:41:30,124 --> 00:41:31,560
agencies have data.

1065
00:41:32,198 --> 00:41:32,698
But

1066
00:41:33,474 --> 00:41:35,968
in order to truly understand what the risks

1067
00:41:36,026 --> 00:41:36,526
are

1068
00:41:36,919 --> 00:41:38,837
you have to get somebody who understands oil

1069
00:41:38,837 --> 00:41:40,376
and gas tell you

1070
00:41:40,994 --> 00:41:43,472
this is what's gone on. Yeah. Somebody needs

1071
00:41:43,472 --> 00:41:46,599
to decipher that data, and dis it, Like,

1072
00:41:46,759 --> 00:41:49,946
that... Yeah. Generate generate a report where it's

1073
00:41:49,946 --> 00:41:51,938
understandable, Maybe. You know where I see this

1074
00:41:51,938 --> 00:41:52,438
really

1075
00:41:53,386 --> 00:41:55,318
starting to take hold is in the finance

1076
00:41:55,614 --> 00:41:57,524
industry. Mh. And the banking industry,

1077
00:41:58,399 --> 00:41:59,217
and targeting

1078
00:41:59,593 --> 00:42:00,093
certain

1079
00:42:00,484 --> 00:42:02,020
geo areas, certain

1080
00:42:02,795 --> 00:42:06,382
geographical areas where there has been historic production.

1081
00:42:07,020 --> 00:42:07,897
It's non existent.

1082
00:42:08,787 --> 00:42:10,454
Just to mitigate risk.

1083
00:42:11,804 --> 00:42:13,472
And and saying, well, we're getting ready to

1084
00:42:13,472 --> 00:42:15,242
dump a bunch of money into this

1085
00:42:15,615 --> 00:42:17,123
portion of the county out here.

1086
00:42:17,854 --> 00:42:20,007
We want these reports ran. Right. You know,

1087
00:42:20,087 --> 00:42:21,225
on on loans

1088
00:42:21,682 --> 00:42:22,719
before we go in and buy,

1089
00:42:23,437 --> 00:42:25,750
allow somebody to use our funds to buy

1090
00:42:25,750 --> 00:42:28,077
these, these plots of land. Right.

1091
00:42:29,110 --> 00:42:30,166
That's a really

1092
00:42:30,778 --> 00:42:33,401
very interesting area to to discuss, Sean.

1093
00:42:34,434 --> 00:42:35,229
You know, I...

1094
00:42:36,834 --> 00:42:37,733
When I first

1095
00:42:38,110 --> 00:42:39,068
had this idea,

1096
00:42:39,945 --> 00:42:41,621
I spoke with,

1097
00:42:42,579 --> 00:42:43,137
several banks.

1098
00:42:44,349 --> 00:42:44,849
And

1099
00:42:45,546 --> 00:42:48,260
what you're talking about falls on the side

1100
00:42:48,260 --> 00:42:48,760
of

1101
00:42:50,335 --> 00:42:51,074
commercial loans

1102
00:42:51,532 --> 00:42:52,032
because

1103
00:42:53,141 --> 00:42:55,130
and it should be falling on mortgages, but

1104
00:42:55,289 --> 00:42:57,995
Right. It really kinda falls at least on

1105
00:42:57,995 --> 00:43:00,564
from a a bank perspective on commercial loans

1106
00:43:00,860 --> 00:43:01,360
because

1107
00:43:02,789 --> 00:43:05,989
oftentimes they'll retain those rather than selling them

1108
00:43:05,989 --> 00:43:07,670
as quickly on the secondary market.

1109
00:43:08,390 --> 00:43:08,890
So

1110
00:43:09,203 --> 00:43:12,333
they... They... They're they're more concerned about

1111
00:43:12,948 --> 00:43:15,817
making sure that the borrower has the ability

1112
00:43:15,817 --> 00:43:18,547
to repay. So if if a plug fails

1113
00:43:19,178 --> 00:43:20,532
and it harms the property,

1114
00:43:21,170 --> 00:43:23,560
then the borrower order is gonna be under

1115
00:43:23,560 --> 00:43:25,893
financial stress, which then would cause

1116
00:43:26,925 --> 00:43:29,405
being able to service the loan problematic. So

1117
00:43:29,405 --> 00:43:31,005
that that is definitely an the area. Right.

1118
00:43:31,164 --> 00:43:33,164
But when you start talking about mortgages,

1119
00:43:34,204 --> 00:43:35,505
really most banks

1120
00:43:36,219 --> 00:43:39,808
are really just loan origin. Mh. And they

1121
00:43:39,808 --> 00:43:42,679
turn around and and they're they're just... Since

1122
00:43:42,679 --> 00:43:45,231
they are, they're just following federal guidance.

1123
00:43:46,044 --> 00:43:48,277
On what to look at and federal guidance

1124
00:43:48,277 --> 00:43:49,472
does not talk about this.

1125
00:43:50,270 --> 00:43:52,661
Other than you can't have a home at

1126
00:43:52,661 --> 00:43:54,437
at some federal agencies

1127
00:43:54,909 --> 00:43:56,587
you can't have a home within a certain

1128
00:43:56,587 --> 00:43:58,585
distance of an active well. It doesn't talk

1129
00:43:58,585 --> 00:44:02,201
about flood wells. Yeah. So the bank knowing

1130
00:44:02,673 --> 00:44:04,662
that they're just an origin and they're gonna

1131
00:44:04,662 --> 00:44:07,128
turn around and sell the sell the alone

1132
00:44:07,128 --> 00:44:09,219
on the secondary market rather quickly

1133
00:44:09,769 --> 00:44:11,367
They're just passing a risk on down the

1134
00:44:11,367 --> 00:44:13,684
market. Right. Yeah. They're just pushing it off

1135
00:44:13,684 --> 00:44:15,842
to the next guy. That's right. But you

1136
00:44:15,842 --> 00:44:17,040
know the the basis.

1137
00:44:17,694 --> 00:44:19,872
Of, of most regulatory,

1138
00:44:22,169 --> 00:44:22,989
most regulatory

1139
00:44:24,486 --> 00:44:25,626
laws and

1140
00:44:26,497 --> 00:44:28,807
things that have been enacted in this country

1141
00:44:28,807 --> 00:44:32,232
are centered around consumer protection. Right. Yes. And

1142
00:44:32,232 --> 00:44:34,303
there's nothing of that sort going on for

1143
00:44:34,303 --> 00:44:36,710
this at all. Well, and I I mean,

1144
00:44:36,789 --> 00:44:38,624
they do, You know, in in some Yeah

1145
00:44:38,624 --> 00:44:40,698
like, what he just... What Blake just said

1146
00:44:40,698 --> 00:44:42,532
about you can't build a home within a

1147
00:44:42,532 --> 00:44:44,686
certain distance of an active well out there.

1148
00:44:45,338 --> 00:44:47,167
It just looks to me like Blake you

1149
00:44:47,167 --> 00:44:47,667
are

1150
00:44:48,359 --> 00:44:50,824
your maybe out front, you're you're still a

1151
00:44:50,824 --> 00:44:53,448
little bit ahead of where we need to

1152
00:44:53,448 --> 00:44:53,686
be.

1153
00:44:55,453 --> 00:44:57,925
When we talk about consumer protection and being

1154
00:44:57,925 --> 00:44:58,723
able to

1155
00:44:59,521 --> 00:45:01,057
to have some security

1156
00:45:01,434 --> 00:45:03,588
and and where we're going to build our

1157
00:45:03,588 --> 00:45:04,646
home and and

1158
00:45:05,039 --> 00:45:07,904
and and establish, you know, our our our

1159
00:45:07,904 --> 00:45:10,928
our family and our livelihood possibly pulled groundwater

1160
00:45:10,928 --> 00:45:12,932
out of the ground and stuff is this

1161
00:45:12,932 --> 00:45:15,237
is just this is buying you a bit

1162
00:45:15,237 --> 00:45:17,940
more insurance. A bit more security out there

1163
00:45:17,940 --> 00:45:20,006
that the property has been vetted out and

1164
00:45:20,006 --> 00:45:20,983
it it passes

1165
00:45:22,009 --> 00:45:23,763
it it kinda passes that

1166
00:45:24,560 --> 00:45:25,039
that hurdle.

1167
00:45:25,756 --> 00:45:28,068
That that's right. That's right. And I mean,

1168
00:45:28,228 --> 00:45:30,061
there's multiple examples of...

1169
00:45:30,954 --> 00:45:32,952
That, you know, failures having occurred,

1170
00:45:34,150 --> 00:45:36,547
you know, for instance, in in 2007,

1171
00:45:36,787 --> 00:45:38,945
a man was building a home in Colorado,

1172
00:45:39,184 --> 00:45:40,878
and he didn't know that an oil plugged

1173
00:45:40,878 --> 00:45:43,514
well existed under the house. He was building,

1174
00:45:44,393 --> 00:45:47,030
the well was leaking methane, which natural gas.

1175
00:45:47,764 --> 00:45:48,961
And it began to build within in the

1176
00:45:48,961 --> 00:45:50,477
house in the house exploded.

1177
00:45:51,993 --> 00:45:53,849
And, you know, thankfully,

1178
00:45:54,387 --> 00:45:54,786
he didn't.

1179
00:45:55,439 --> 00:45:57,037
Nobody was... Nobody was killed.

1180
00:45:58,395 --> 00:45:58,875
But yet,

1181
00:45:59,514 --> 00:46:00,653
what he had been building

1182
00:46:01,831 --> 00:46:03,844
was destroyed. I don't know whether or not

1183
00:46:03,844 --> 00:46:05,204
he had a... If he had gotten a

1184
00:46:05,444 --> 00:46:07,125
you know, construction loan on that home him

1185
00:46:07,125 --> 00:46:08,885
or not, but if he did, you know,

1186
00:46:09,045 --> 00:46:10,885
he still stuck with a construction loan, but

1187
00:46:10,885 --> 00:46:11,444
yet is gone.

1188
00:46:13,454 --> 00:46:13,954
And,

1189
00:46:14,331 --> 00:46:16,643
you know, another example talk about what I

1190
00:46:16,643 --> 00:46:19,113
mentioned the earlier that I mentioned something about

1191
00:46:19,113 --> 00:46:19,671
drilling waste.

1192
00:46:20,404 --> 00:46:22,642
Last summer, a man in Santa Barbara,

1193
00:46:23,361 --> 00:46:25,599
a Santa Barbara area. But he won a

1194
00:46:25,599 --> 00:46:27,597
lawsuit to get Chevron because he had built

1195
00:46:27,597 --> 00:46:29,275
his home on an old drilling pit, and

1196
00:46:29,275 --> 00:46:29,914
he didn't know it.

1197
00:46:30,809 --> 00:46:32,487
And the pit had been part of an

1198
00:46:32,487 --> 00:46:34,085
old field that had been shut down in

1199
00:46:34,085 --> 00:46:35,443
the land soul to a developer.

1200
00:46:36,082 --> 00:46:37,680
And the man built his home on the

1201
00:46:37,680 --> 00:46:37,920
lot,

1202
00:46:38,731 --> 00:46:40,797
and had the unknown pit, and he lived

1203
00:46:40,797 --> 00:46:42,703
there for 41 years and he got cancer.

1204
00:46:43,259 --> 00:46:44,769
And then he later when he was trying

1205
00:46:44,769 --> 00:46:46,278
to figure out what had going on and

1206
00:46:46,278 --> 00:46:47,646
what caused it because it was a a

1207
00:46:47,646 --> 00:46:48,522
rare kind of cancer.

1208
00:46:49,159 --> 00:46:50,753
He discovered he'd been living on top of

1209
00:46:50,753 --> 00:46:52,346
that old pit where they were contaminants.

1210
00:46:53,222 --> 00:46:54,735
And just for the listeners that are on

1211
00:46:54,735 --> 00:46:56,978
here because there are some... That are not

1212
00:46:56,978 --> 00:46:59,203
familiar with the oil and gas industry, a

1213
00:46:59,203 --> 00:47:00,180
drilling pit

1214
00:47:00,634 --> 00:47:02,246
as a pit that's created

1215
00:47:02,859 --> 00:47:05,257
beside imagine the tall oil wells that we've

1216
00:47:05,257 --> 00:47:08,516
all seen on television before. They're drilling thousands

1217
00:47:08,516 --> 00:47:10,186
of feet in the ground and they're pulling

1218
00:47:10,186 --> 00:47:12,650
things that are underground that are not meant

1219
00:47:12,650 --> 00:47:15,389
to be above ground. We've Yeah. You, radioactive

1220
00:47:15,841 --> 00:47:16,896
materials and

1221
00:47:17,268 --> 00:47:18,324
and and different

1222
00:47:18,934 --> 00:47:20,680
types of materials coming up out of the

1223
00:47:20,680 --> 00:47:23,635
ground. Yeah that solid waste is held in

1224
00:47:23,635 --> 00:47:25,861
that pit out there, and that is what

1225
00:47:26,020 --> 00:47:29,439
Blake referred to earlier as it's it would

1226
00:47:29,439 --> 00:47:30,496
be very difficult

1227
00:47:31,282 --> 00:47:33,666
if not impossible to inject most of that

1228
00:47:33,666 --> 00:47:35,652
back end of the ground, that stuff is

1229
00:47:35,652 --> 00:47:39,167
disposed of above ground. Yeah. So if it's

1230
00:47:39,167 --> 00:47:41,161
just leveled out, and it becomes part of

1231
00:47:41,161 --> 00:47:43,635
the soil, a few years later, you have

1232
00:47:43,635 --> 00:47:46,437
no idea that this is an drilling pit

1233
00:47:46,437 --> 00:47:48,023
right here and you build your house on

1234
00:47:48,023 --> 00:47:49,609
top of it, and your kids go out

1235
00:47:49,609 --> 00:47:51,592
and play in the dirt and you're pumping

1236
00:47:51,592 --> 00:47:54,067
your your water, you know household water out

1237
00:47:54,067 --> 00:47:55,820
of a well that's going right through that

1238
00:47:55,820 --> 00:47:56,936
stuff. It

1239
00:47:57,493 --> 00:48:00,361
that there is a great cut case study

1240
00:48:00,361 --> 00:48:02,672
as to why these reports could be relevant.

1241
00:48:03,150 --> 00:48:05,982
Water That's right. I mean, and and talking

1242
00:48:06,041 --> 00:48:07,240
talking about that very thing.

1243
00:48:08,199 --> 00:48:10,037
A housing addition in an area in North

1244
00:48:10,117 --> 00:48:12,288
Oak Oklahoma city around Edmonton. It was built

1245
00:48:12,288 --> 00:48:14,760
on top of the old field and homeowners

1246
00:48:14,760 --> 00:48:16,993
didn't know it. They later drill some water

1247
00:48:16,993 --> 00:48:17,950
wells. Mh.

1248
00:48:18,668 --> 00:48:21,195
To water their yards and unbeknownst to them

1249
00:48:21,315 --> 00:48:23,313
they drilled through old saltwater pits.

1250
00:48:24,112 --> 00:48:26,349
And the water became salty and kill or

1251
00:48:26,349 --> 00:48:27,948
grass, and that's when they begin to, you

1252
00:48:27,948 --> 00:48:29,706
know, investigate well, what in the world is

1253
00:48:29,706 --> 00:48:31,717
going on here or something is something has

1254
00:48:31,717 --> 00:48:33,490
happened. And they discovered

1255
00:48:33,945 --> 00:48:35,878
that they had been living on

1256
00:48:36,253 --> 00:48:38,243
top of this old field and there were

1257
00:48:38,243 --> 00:48:40,153
plugged wells around them and these old buried

1258
00:48:40,153 --> 00:48:40,392
pits.

1259
00:48:42,075 --> 00:48:45,010
And so at first, the the operator of

1260
00:48:45,010 --> 00:48:46,596
the old field, which was Con,

1261
00:48:46,993 --> 00:48:49,787
they tried to claim statute limitation. So, yeah.

1262
00:48:50,027 --> 00:48:53,136
Oh, yeah. Not. No. Not a problem. Sorry.

1263
00:48:53,934 --> 00:48:54,173
Yeah.

1264
00:48:54,970 --> 00:48:57,043
However, Con finally settled with them in in

1265
00:48:57,043 --> 00:48:59,211
that particular case. So Well, blake, I'm not

1266
00:48:59,211 --> 00:49:00,966
a scientist, but I'm gonna take a shot

1267
00:49:00,966 --> 00:49:02,401
in the dark here and say that if

1268
00:49:02,401 --> 00:49:03,278
the water is,

1269
00:49:04,395 --> 00:49:06,469
if it'll kill the grass, it's not gonna

1270
00:49:06,469 --> 00:49:08,639
do a human being any good. Right. That

1271
00:49:08,639 --> 00:49:11,440
is exactly right. That's exactly right. That's probably

1272
00:49:11,440 --> 00:49:13,519
a pretty the pretty good mustard test. If

1273
00:49:13,519 --> 00:49:14,799
you spray it on your lawn in your

1274
00:49:14,799 --> 00:49:17,855
lawn dies, don't drink it. Yeah. Yeah. That's

1275
00:49:17,855 --> 00:49:19,614
that's exactly. And he said that was in

1276
00:49:19,934 --> 00:49:21,454
Oklahoma too so who would have thought there

1277
00:49:21,454 --> 00:49:23,295
was, you know, saltwater water and the groundwater

1278
00:49:23,295 --> 00:49:24,414
there at all. You know?

1279
00:49:25,055 --> 00:49:27,385
Oh crazy. Tri tri, there was a a

1280
00:49:27,385 --> 00:49:27,625
case.

1281
00:49:28,503 --> 00:49:30,577
This wasn't as much for for

1282
00:49:31,375 --> 00:49:33,050
oil and gas production, but it was...

1283
00:49:33,943 --> 00:49:34,981
From storage,

1284
00:49:35,939 --> 00:49:37,057
even though there's a lot of oil and

1285
00:49:37,057 --> 00:49:39,452
gas production in in Los Angeles, but there

1286
00:49:39,452 --> 00:49:41,847
was a storage facility that I think shale

1287
00:49:41,847 --> 00:49:42,166
owned,

1288
00:49:42,978 --> 00:49:44,410
and they had a lot of tank bottoms.

1289
00:49:44,569 --> 00:49:46,160
They would clean out from the tanks, and

1290
00:49:46,160 --> 00:49:47,376
they've spread it out

1291
00:49:48,387 --> 00:49:50,001
around Long beach. And

1292
00:49:51,664 --> 00:49:54,775
later on, that storage area was taken down

1293
00:49:54,775 --> 00:49:57,088
and a housing development was put on it.

1294
00:49:58,284 --> 00:50:01,369
And these people started having issues with their

1295
00:50:02,768 --> 00:50:04,926
sewage, you know, flat coming from their

1296
00:50:05,485 --> 00:50:08,282
their sink. Yeah. Then. It was backing up,

1297
00:50:08,522 --> 00:50:10,360
etcetera. And so they call some plumbers out

1298
00:50:10,360 --> 00:50:10,600
there.

1299
00:50:11,255 --> 00:50:13,494
And it turned out these homes had been

1300
00:50:13,494 --> 00:50:14,855
a little bit older and it was before

1301
00:50:15,014 --> 00:50:17,655
Pvc was really being used. So some cast

1302
00:50:17,655 --> 00:50:18,694
iron pipes were there.

1303
00:50:19,349 --> 00:50:20,888
And that'll... Those old

1304
00:50:21,266 --> 00:50:23,524
tank bottoms had actually eaten

1305
00:50:24,302 --> 00:50:25,660
the cast iron pipes,

1306
00:50:26,794 --> 00:50:29,350
coming from their sinks and and from their

1307
00:50:29,350 --> 00:50:29,850
toilets

1308
00:50:30,229 --> 00:50:32,146
and all that was just settling under their

1309
00:50:32,146 --> 00:50:32,466
house.

1310
00:50:35,275 --> 00:50:37,351
Nice little pool under their house of Yeah.

1311
00:50:37,510 --> 00:50:40,565
Right. Okay. Right. And I mean, you also

1312
00:50:40,623 --> 00:50:43,109
mentioned that just the wells themselves like the

1313
00:50:43,109 --> 00:50:43,927
capped wells

1314
00:50:44,381 --> 00:50:46,526
are are may only be, like, 5 feet

1315
00:50:46,526 --> 00:50:48,672
down. I mean, my pools deeper than that,

1316
00:50:48,910 --> 00:50:51,311
You know, like, I guarantee. I didn't call

1317
00:50:51,311 --> 00:50:53,777
anybody to build a pool that knew anything

1318
00:50:53,777 --> 00:50:55,606
about a well in my backyard at any

1319
00:50:55,606 --> 00:50:57,834
point in time. Promise you had happen because

1320
00:50:57,913 --> 00:50:59,601
I did it my... Elf and that didn't

1321
00:50:59,601 --> 00:51:00,318
alpha. And so...

1322
00:51:01,275 --> 00:51:03,188
Well, you know, I think that's funny. Say

1323
00:51:03,268 --> 00:51:04,862
Something I'm about cool. I I think that

1324
00:51:04,862 --> 00:51:06,058
there was a development,

1325
00:51:06,776 --> 00:51:08,868
not it hasn't been too long ago that

1326
00:51:08,868 --> 00:51:11,824
was released for development in the Houston area

1327
00:51:11,824 --> 00:51:12,144
that

1328
00:51:12,943 --> 00:51:15,501
1 of the majors had owned and the

1329
00:51:15,501 --> 00:51:18,473
deed restriction because There's no deed restrictions on

1330
00:51:18,473 --> 00:51:20,251
any of these things unless somebody

1331
00:51:20,790 --> 00:51:23,827
puts puts that on the property. Right. Unless

1332
00:51:23,827 --> 00:51:25,825
somebody report it. Yeah. Yeah. Yeah.

1333
00:51:26,399 --> 00:51:26,879
And

1334
00:51:27,678 --> 00:51:30,576
the... This operator actually did put a deep

1335
00:51:30,635 --> 00:51:32,473
restriction that you could not put swimming pools

1336
00:51:32,473 --> 00:51:34,471
on there, and it was because there were

1337
00:51:34,471 --> 00:51:35,430
pits out there. Yeah.

1338
00:51:36,638 --> 00:51:38,144
So I mean, that's smart on his part,

1339
00:51:38,303 --> 00:51:39,492
I guess, but... Yeah. Yeah.

1340
00:51:40,522 --> 00:51:40,680
Yeah.

1341
00:51:41,869 --> 00:51:42,265
Wow.

1342
00:51:42,979 --> 00:51:43,217
Blake.

1343
00:51:44,028 --> 00:51:47,219
Great information. It's it's a great program, the

1344
00:51:47,219 --> 00:51:47,459
reports.

1345
00:51:48,576 --> 00:51:50,890
I I think, we have proven on this

1346
00:51:50,890 --> 00:51:53,625
pod. Cast that they're not only relevant.

1347
00:51:54,105 --> 00:51:56,905
In many cases in many locations across the

1348
00:51:57,065 --> 00:51:57,704
United States,

1349
00:51:58,664 --> 00:51:59,065
it

1350
00:51:59,959 --> 00:52:02,596
it would mitigate a lot of risk if

1351
00:52:02,596 --> 00:52:03,336
you preemptively

1352
00:52:03,875 --> 00:52:06,272
thought about doing a little deeper study on

1353
00:52:06,272 --> 00:52:08,430
the property that you're getting ready to build

1354
00:52:08,430 --> 00:52:08,590
on,

1355
00:52:09,643 --> 00:52:11,721
or if you're buying just acquiring land and

1356
00:52:11,721 --> 00:52:13,559
you wanna know, you know, what's the history

1357
00:52:13,559 --> 00:52:15,636
of this property? We may do something in

1358
00:52:15,636 --> 00:52:16,275
the future,

1359
00:52:16,929 --> 00:52:19,087
it's never too late to start gathering that

1360
00:52:19,087 --> 00:52:21,963
data, have that in a resource file, and

1361
00:52:21,963 --> 00:52:24,121
then, whether you keep it and develop it

1362
00:52:24,121 --> 00:52:26,454
or you decide to sell it. You're making

1363
00:52:26,454 --> 00:52:28,851
that property even more valuable to the next

1364
00:52:28,851 --> 00:52:31,968
owner because you have taken the time to

1365
00:52:31,968 --> 00:52:34,685
engage with Blake Scott with well facts and

1366
00:52:34,685 --> 00:52:37,018
to have that... Port generated, you can pass

1367
00:52:37,018 --> 00:52:39,015
that on to the next individual also.

1368
00:52:40,134 --> 00:52:42,132
That's exactly right. I mean, it's...

1369
00:52:42,851 --> 00:52:43,570
All of this...

1370
00:52:44,463 --> 00:52:47,012
Can be used so many different ways, not

1371
00:52:47,012 --> 00:52:49,902
just for risk assessment, but for mitigation

1372
00:52:50,676 --> 00:52:52,747
negotiation. I'm, at so many things. It's very

1373
00:52:52,747 --> 00:52:53,247
similar

1374
00:52:53,797 --> 00:52:56,264
to getting a car factory report on the

1375
00:52:56,264 --> 00:52:58,889
car. Yeah. It allows you to know what's

1376
00:52:58,889 --> 00:53:00,343
gone on to assess

1377
00:53:01,049 --> 00:53:03,190
Whether or not you think the risk for

1378
00:53:03,190 --> 00:53:04,935
that car is worth what you're paying for.

1379
00:53:05,173 --> 00:53:07,631
Now, what's the history? Yeah. That's right. What's

1380
00:53:07,631 --> 00:53:08,107
the history?

1381
00:53:08,679 --> 00:53:10,751
Blake if the listeners wanna reach out to

1382
00:53:10,751 --> 00:53:14,178
you at waste analytics or well fax and

1383
00:53:14,178 --> 00:53:17,064
and, begin the conversation around a what's a

1384
00:53:17,064 --> 00:53:18,502
great waveform to get a hold of you?

1385
00:53:19,221 --> 00:53:21,617
There are there are several ways. 1, if

1386
00:53:21,617 --> 00:53:23,715
you wanna report, you know you wanna report

1387
00:53:23,948 --> 00:53:26,805
go to our website at waste analytics llc

1388
00:53:26,805 --> 00:53:29,980
dot com and fill out and submit the

1389
00:53:29,980 --> 00:53:31,012
customer request form,

1390
00:53:31,664 --> 00:53:33,102
or you you just wanna talk to us,

1391
00:53:33,262 --> 00:53:34,161
You can contact

1392
00:53:34,621 --> 00:53:37,838
contact us at info waste analytics dot com

1393
00:53:37,897 --> 00:53:41,340
or email email me directly at jb b

1394
00:53:41,340 --> 00:53:44,359
Scott at waste analytics llc dot com, or

1395
00:53:44,359 --> 00:53:46,504
you can also call us at 09:03

1396
00:53:46,504 --> 00:53:48,545
6638640

1397
00:53:48,822 --> 00:53:51,921
Nice Folks we're on their website, waste analytics

1398
00:53:51,921 --> 00:53:53,827
is very easy to find on the web.

1399
00:53:55,416 --> 00:53:57,183
The ports are right up there on the

1400
00:53:57,183 --> 00:53:59,653
top and the heading, and, Blake, we wanna

1401
00:53:59,653 --> 00:54:01,246
thank you so much for joining us on

1402
00:54:01,246 --> 00:54:02,282
the podcast show.

1403
00:54:03,637 --> 00:54:04,911
We we welcome this

1404
00:54:05,484 --> 00:54:07,242
this information that you gave us. I know

1405
00:54:07,242 --> 00:54:09,320
it's gonna be valuable to the listeners, especially

1406
00:54:09,320 --> 00:54:11,717
in the industries that we serve, and we

1407
00:54:11,717 --> 00:54:13,235
wanna thank you for your time on here.

1408
00:54:14,287 --> 00:54:16,117
Thanks, Shawn, and Tri F and so ring.

1409
00:54:16,276 --> 00:54:18,504
I really appreciate it I've enjoyed. You bet

1410
00:54:18,504 --> 00:54:20,732
ladies and gentlemen, that's it for this episode.

1411
00:54:21,224 --> 00:54:23,085
We look forward to seeing you next time

1412
00:54:23,224 --> 00:54:24,025
inside the sail ring.

1413
00:54:29,797 --> 00:54:31,951
Thank you for joining us for today's show

1414
00:54:32,110 --> 00:54:34,663
To access all resources and links mentioned in

1415
00:54:34,663 --> 00:54:37,215
today's show. Head over to WWW

1416
00:54:37,215 --> 00:54:40,259
dot sail ring dot com now. We appreciate

1417
00:54:40,259 --> 00:54:42,487
your feedback and encourage you to share the

1418
00:54:42,487 --> 00:54:45,192
show with other industry pros like yourself. Join

1419
00:54:45,192 --> 00:54:47,920
this next time. As we meet you inside

1420
00:54:48,057 --> 00:54:49,129
the l.

1421
00:54:53,800 --> 00:54:53,845
L