Value of a Barrel of Water in Texas O&G Leases

6th Generation Texan · 2011-10-07T06:29:01Z

It is my understanding that it takes a lot of water for fracing, and the cost for Lessee to haul water in is pretty expensive. Since water in Texas seems to be becoming a more rare and valuable commodity with the severe drought we are experiencing, what would be a good price to negotiate (when leasing) to be paid per barrel of water used by Lessee in its drilling and fracing operations (from a metered water well drilled by Lessee on Lessor's land where the drilling location is situated)?

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