Looking for advice on the market rates for the sale of water for drilling, completion and fracing as well as any advice on terms to include in a water sale agreement. Thank you.
See page 4 of Leasing Help on October 12 for a discussion on this topic.
Bob:
You didn’t specify where your property is located and this is important as water in some areas is more valuable than others. I have read the water sells for $1.25 per foot depending on the depth of the well. One clause in your contract regarding water should be that a water well has to be drilled and no surface water can be utilized in the drilling process. I live in an area that has experienced a severe drought this year and a well(s) will deplete the surface water very quickly. Someone else might add additional hints on this matter but hope this helps.
My property is in Noble and Logan County and it’s surface water in a very deep pond. Most of the pond water in my area has dried up because of the drought. I don’t know of any good well water in my area as we all have to be on rural water in order to have enough for a normal household.
Would you please provide a link. I would like to see the discussion too but I am not sure where to look. Thank you.
6th Generation Texan said:
See page 4 of Leasing Help on October 12 for a discussion on this topic.
DM:
I believe if you will go to the top of the page to “Forums”; click on “Oil and Gas Leasing Help” which is the first topic; go to page 31; you will find a discussion of “VALUE OF A BARREL OF WATER IN TEXAS O&G LEASES.” I think this might be what you’re looking for.
DM said:
Would you please provide a link. I would like to see the discussion too but I am not sure where to look. Thank you.
6th Generation Texan said:
See page 4 of Leasing Help on October 12 for a discussion on this topic.