Water Sales

Anyone selling water to oil companeis for drilling and fracking purposes? I'm interested to hear what rates you are getting if you are willing to share. Thanks.

I cant give you any info on water rates but there is much talk in terry about the water and the lack of water for drilling.

That is interesting. I did not know that there is a lack of water for drilling. You have Mound Lake and Rich Lake areas there, both with gyp water, and I thought that the aquifer ran the entire distance throughout the county.

e dubose said:

I cant give you any info on water rates but there is much talk in terry about the water and the lack of water for drilling.

Dear Mr. Elmore,

For vertical wells, I used to use the formula of $1.50 per foot of wellbore drilled, with the right to pull the pump and leave the well to the surface owner.

Most of my transactions lately have been in the nature of severed minerals, where the surface owner is pretty much at the generosity of the Operator. However, we completed a huge transaction (6200+) acres in a shale area where they are going to do horizontal drilling. The minerals have not been severed and we reserved all the groundwater in order to retain all negotiating position, both for drilling wells and SWD wells.


Every water rate I've ever seen from a well was based on volume (gallons or barrels) of water used. Just so I understand, does the $1.50 per foot refer to a daily rate? In other words, if you have a 300 foot water well, does that amount to $450/day? If so, sign me up.

I've also sold water from rivers and creeks, and that usually has a daily rate with no specified volume.

I'm thinking about the Ogallala Aquifer in West Texas and the Panhandle. A new 250 foot well would cost on the order of $25000 to drill, case, and equip. You could get, for example, 150 gallons per minute.

I just think the specifics of the area may dictate what rate you want to ask.

Dear Mr. Anderson,

As to the $1.50 per foot, that is per wellbore foot on vertical wells.

For example, a 10,000 measured depth vertical or extended reach well would require a payment of $15,000.00.

As to the horizontal wells, I have not personally priced those throughout the areas where horizontal drilling takes place, but it would definitely be on $/bbl.

I hope someone who has had hard experience with horizontal drilling water rates would chime in. I am as curious as a cat.

you speak of water in west texas I drilled wells and serviced water house and ag wells many years ago (40 plus) the rule of thumb is all over the amount of water and quality of cost to drill prep of well .some places wind mill water as it was spoken of was as little as 3gallons per minute at 800 feet.where they drill in terry county tex I just watches oil co buld ten acres tank I refer to as frack tank water and drill well put a 0ne inch pump in it if they get 50 gallons a minute I will be suprised maybe 25per minute the oil co have been given the drilled wells to the land owners when they are through drilling.water just as big Question as Oil.

I know in the Eagle Ford water is going for as high as $.65 per barrel, so just curious what it was out west in the permian shale plays.

Does the water have to be potable or can it be gyp water?

I own surface with a water well in Hockley Co., I was recently approached by energy company to purchase 1,000 BBL fresh water on a daily basis. Energy company stated needs for secondary recovery unit. Energy company offer was less than 10 cents per BBL. The well on my surface recently tested in excess of 250 gallons per minute, the water well driller said with some clean up it would be capable of 500 gallons per minute. Back to question for drilling or fracturing operations I have not been approached for water use.

The surface in on the northe edge of Levelland, Texas

Change subject; I own leased and unleased mineral in south central Hockley County with no surface rights.

If you look at the math, 1000 bbl per day is the same as 30 gallons per minute.

If your well makes 250 gallons per minute, it is an excellent well for the area. 500 gallons per minute is almost unheard of anymore because of the declines in the aquifer....I would believe it when I see it. These wells also decline throughout the summer pumping season, especially August. Nonetheless, you have a fine well.

Also, 10 cents per barrel works out to $36,500 per year. You many be able to negotiate more, but even at that, that is far more than a landowner could make on a quarter section of good farmland. Personally, I would try to negotiate higher, but no matter how you figure it, the money would be hard to turn down. With that kind of money, you could drill another well (assuming you have open locations) with the money after less than a year.