Our oil company who leased us asked to use the water in our tank (pond) to frack. Any compensation should we ask for? They are adding water to the tank as they use it so it will not dry out.
I charge .50 per bbl.
Buddy Cotten
Make sure they don't take too much of your water and you have nothing left for yourself. Fracs take a LOT of water!! I'd even charge them for the use of your tank. This is simply business. Good luck.
Bob Malone, Oil and Gas Auditor
On my ongoing lease negotiations, I did not give the operator the right to take any water located on the premises, i.e., wells, tanks, ponds, etc. Instead, I inserted a contingency clause, which partially states that IF I consent to a new water well, they will pay .50 per 40 gallon bbl. Operator accepted my "IF" but countered with the current market rate per barrel used, and agreed to install, calibrate and operate a meter to measure such water used.
So, how is the operator going to know what the current market rate is for my groundwater? I would be at their mercy to accept any crumbs they throw my way for my precious water.
California Dreamin'
Pat
Ms. Pat Malone said:
On my ongoing lease negotiations, I did not give the operator the right to take any water located on the premises, i.e., wells, tanks, ponds, etc. Instead, I inserted a contingency clause, which partially states that IF I consent to a new water well, they will pay .50 per 40 gallon bbl. Operator accepted my "IF" but countered with the current market rate per barrel used, and agreed to install, calibrate and operate a meter to measure such water used.
So, how is the operator going to know what the current market rate is for my groundwater? I would be at their mercy to accept any crumbs they throw my way for my precious water.
California Dreamin'
Pat
my neighbor received$25k each time they used his tank,and they did 7 wells.
Again,they are not pumping it dry, they are also pumping water into it from a water well three miles away. So should we still ask for $$$? They say that I am helping with the faster fracing and I am on the pool. Only 8 acres out of my 70 but still on it.
they also drilled a well on my neighbors property,so they could fill it back up.he also told of a guy in covington that got 50k to supply water for one well.It has to be worth aleast $25K?
Most likely, my IF will turn into a NO, if and when the time comes, because, like the landman "alluded," if they need water, they can pump it in. They can drain groundwater from beneath a neighbor's land without liability.
I am not anxious to supply any operator with my water, as water is getting too precious. According to Texas A&M Real Estate Center, owners are now reserving groundwater rights (like reserving minerals) when selling the land. I respect the land and the future it holds for me. They are making more people, but not more land. I may be a futuristic thinker, but these are my feelings and thoughts on this subject.
Thank you.
Pat