RE: watervike, you sound eminently more versed in the oilbiz.
i gotta ask though as you write...They'll likely dispose of the saline water by drilling an offsetting disposal well or by using the L-71 (if it is indeed non-economic to produce) for disposal.
isn't it alot easier to shut in the watercutting zone and not risk parafilming....or whatever they call wax problems.