Rates for a freshwater line

Does anybody know the going rate in Reeves County for a 10" poly underground freshwater line?

Dear Mr. Roman,

There is a little more information needed.

Is water sourced from an aquifer which is Imported onto and/or Exported from your property?

There are several things that must be known. First, is the water for wells that are on your land or lands pooled with them? If not, then the question really becomes one of negotiation.

One way to go is a regular pipeline easement. I might suggest a multiple of the minimum required by the State of Texas School Lands Damage Schedule.

Another direction is whether you own the water being transported. You might want to consider a per barrel charge for each barrel taken and removed.

Has an offer been made on your lands? Was the offer from an oil company or another entity?

Best,

Buddy Cotten

Thanks Buddy_Cotten for your response. This is my situation, the company is trying to connect two freshwater pits for drilling up to 8 oil wells. Their water pipeline has to go through my land to connect both pits and have no other way to go. I don’t own the water only the property and they have offered me $100 per rod from a 3rd party for a right-of-way easement.

Dear Mr. Roman,

The price sounds modest to me.

If they have no other way to go, you have a lot of leverage. I have personally seen fresh water ROW’s go for over $1000 per rod for a 5 year term, renewable with a CPI escalation clause.

The technical term is that you are sitting pretty in the catbird seat. :slight_smile:

Best,

Buddy Cotten

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