An owner's guide to mineral rights on the SACROC Unit — operated by Kinder Morgan CO2 Company on the Kelly-Snyder (SACROC) field in the Permian Basin (Eastern Shelf).
Quick answer
County: Scurry County, Texas
Field: Kelly-Snyder (SACROC)
RRC District: 08
Operator: Kinder Morgan CO2 Company
Approximate well count: 500+
First production: 1948
Recent monthly oil production: 1,250,000+ bbl
Recovery method: CO2 EOR (largest in Texas)
SACROC is one of the most famous oil units in the world and the longest-running CO2 enhanced oil recovery (EOR) operation in the United States. CO2 injection has been continuous since 1972, sourced via the Cortez and other West Texas CO2 pipelines. The unit accounts for a substantial portion of Texas onshore CO2 EOR production.
The SACROC Unit is operated by Kinder Morgan CO2 Company as one of the long-tenured unitized oil operations in the Permian Basin (Eastern Shelf). With first production dating to 1948 and recent monthly oil output of 1,250,000+ barrels, the unit demonstrates the long-tail production profile that characterizes mature unitized operations in the region.
The Kelly-Snyder (SACROC) field produces from the Cisco / Canyon Reef reservoir. Modern operating consolidation under the SACROC Unit framework has stabilized field-level production through co2 eor (largest in texas).
For broader context on the Permian Basin (Eastern Shelf) producing region, see our Permian Basin mineral rights guide.
Mineral interests in the SACROC Unit typically take one of these forms:
Producing royalty interest — your tract's contribution to the unit's monthly revenue, paid by the operator
Non-producing mineral interest — fee mineral ownership in a tract currently outside active producing zones
Overriding royalty interest (ORRI) — a royalty carved out of a working interest
Non-participating royalty interest (NPRI) — a royalty interest with no leasing or development rights
Many SACROC Unit interests are inherited multiple generations deep, with original lease bonus paid in the early discovery era. Current SACROC Unit mineral owners frequently include heirs spread across multiple states.
Direct buyers value SACROC Unit mineral interests using a discounted cash flow approach with these key inputs:
Decline rate — slow, typical of long-life unitized waterflood / EOR wells
Remaining reserve life — long on actively-maintained units
Operator quality — Kinder Morgan CO2 Company is an established operator in the Permian Basin (Eastern Shelf)
EOR upside — CO2 EOR (largest in Texas) operations can extend ultimate recovery beyond primary depletion estimates
Discount rate — market-based, reflecting stable unitized cash flows
Buckhead Energy buys mineral rights and royalty interests on the SACROC Unit. Out-of-state owners are common — many interests are inherited multiple generations deep. We handle the entire process remotely: free written offer by email, deed signed before a notary in your state, recorded with the Scurry County clerk, and proceeds paid by check or wire once the deed is recorded.
The Kelly-Snyder / SACROC Discovery of 1948 — Pennsylvanian Reef CO₂-Flood Pioneer (Historical)
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