Has anyone had any recent experience negotiating the sale of water? The oil company we have a lease with wants to buy water from us for a unit we are included in but I don’t know if the price they are offering is fair. This well is just East of Kenedy, TX. Any information would be appreciated.
Price will likely be just a little less than where they are getting there water now....Or, just less than the cost of getting water from far away, driving it in, pumping it from a distance, etc.
Ask them to make an offer. It will be low. Then you might consider calling an oil/gas attorney. We use attorney Wade Caldwell in San Antonio. you can tell him Duncan Adams suggested him.
Click Here: (http://www.beclaw.com/core/PracticeAreas/OilAndGas.asp).
He would know or be able to find out the going rate. Plus any docs you sign need to be reviewed by an oil/gas attorney.
Hope this helps.
Duncan Adams
Attorney at Law