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.
My family has recently (this year) been selling some water, but I'm not involved personally in the negotiations. Someone else does that; my job for the family is to keep track of what we own and how titled, the type of interest (mineral/surface/etc), what is already leased vs. available for lease, and property taxes).
I pulled up the agreement and it shows that we made a temporary deal to sell water for 60cents per 42 gallon barrel. I don't have any other information.
This is a very interesting topic Our property–south of I10 and 8 miles east of Balmorhea is not leased–but, from the farming days in the 60s and the 70s I know we have lots of water. Interesting times
David,
I sent you a friend request
David Bawden said:
My family has recently (this year) been selling some water, but I'm not involved personally in the negotiations. Someone else does that; my job for the family is to keep track of what we own and how titled, the type of interest (mineral/surface/etc), what is already leased vs. available for lease, and property taxes).
I pulled up the agreement and it shows that we made a temporary deal to sell water for 60cents per 42 gallon barrel. I don't have any other information.
I checked the records again and have a few more tidbits.
This relates to land where we own only the surface, not any minerals (nor is it mineral classified). We signed a Surface Protection and Damages Agreement with the oil company that is operating a well in that section that deals primarily with compensation for roadway and location damages and permission for construction, electric lines, etc., but also has a provision where we agree to let them use existing water wells for $.60 per 42 gallon barrel.
Then a few months later the same company who is operating another well near (but not on) our land came to us and asked for permission to temporarily use one of our water wells on our land a few sections over for 6-weeks at the same rate ($.60 per barrel) in order to fill a frac pit.
Folks...
given the current drought conditions, what would be a good price for water? We are trying to hold out for 75 cents a barrel. Are we asking too much?
thanks again,
Bill
I don't know whether or not that's too high. As stated in an earlier post, my family sold some water for 60cents/barrel earlier this year, though I wasn't personally involved in the negotiations (my family has a relative who still lives in Texas and I think he handled that)
However, you might be interested to know that some months later a different company asked us to sell them water too, and when we told the first company about it they paid us NOT to sell the water to the other company and to give them exclusive rights to purchase our water. That sort of makes me think 75 cents/gallon is perhaps not asking too much.
Now that's funny!
David Bawden said:
I don't know whether or not that's too high. As stated in an earlier post, my family sold some water for 60cents/barrel earlier this year, though I wasn't personally involved in the negotiations (my family has a relative who still lives in Texas and I think he handled that)
However, you might be interested to know that some months later a different company asked us to sell them water too, and when we told the first company about it they paid us NOT to sell the water to the other company and to give them exclusive rights to purchase our water. That sort of makes me think 75 cents/gallon is perhaps not asking too much.