I am in the sale process and concerned with language excluding water rights if anyone has advice to share..? The buyer wants use of water for drilling purposes. I was told it’s very deep water and won’t affect drinking water or deplete aquafers or my ability to sell the water rights. Here’s the language- retains all rights and title to in, under and above *that are not associated with, produced with or commingled with the oil, gas and or other minerals herein conveyed. When I saw what similar sites used in drilling it’s 1,000’s of gallons. Is water typically included in mineral deals?
You need to have a Colorado attorney review the language in light of state law and cases. Is buyer trying to keep produced water that comes up with oil and gas? Or right to drill water wells? Many states allow oil company lessee to use water for drilling unless restricted in oil and gas lease terms. So unless you retain the deep water and restrict drilling or oil and gas use in the deed, then you may have no control. Is this a large tract where you own and are retaining 100% of surface? If so, you should consider surface location and use locations (such as pipeline route). If you only own a portion, then you may not be able to enforce as you cannot override rights of others mineral owners. This can be complex.
There are no other owners on 18 acres, I own the water, oil, gas and minerals. They can’t drill a water well without my permitting it. They’re primarily wanting use of deep water for drilling. I’m okay with that, just don’t want the aquafers I’m in being depleted and protecting what I own should I want to sell down the road. Thank you!
Hmmm, not so sure they want deep water for drilling an oil and gas well. Deep water is very salty and operators have to be very careful about the salinity of water they use for drilling as they do not want scaling to decrease the porosity over time. Definitely get an attorney to review the lease.
Here in east Texas if they want just the deep water they are probably looking for lithium. That’s a big deal here and brine water will be debated for a long while. Being the trusting soul I’ve become in the past 2 years maybe they know something you don’t about deep water there.
It’s Colorado in Adams County, there are water divisions and the state is starting to restrict how and how much is used in drilling. In Colorado you can own water rights. Thanks!