Any 411 on selling water to the gas folks- I have a lake on my property

Do private landowners with large amounts of water on their property 'sell' water to the gas folks for fracking, drilling, etc .. ?  I'm in Southwest Beaver County, PA and have a 6 acre pond-lake on my property...  Any thirsty drillers around... Any 411 on the possibility would be great.

Clueless with a lake !

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Permalink Reply by Ben Elmore on April 26, 2012 at 3:58am

If the companies are in need of it, yes.  In Texas at least, they are selling it for upwards of $0.50 per barrel.

Permalink Reply by Greg Smith on April 18, 2013 at 6:34am

Adding to Ben...in the Eagleford shale play area SE of San Antonio (by 60-70 miles), an operator would offer to build the pond, drill the water well, and after they had recouped their expenses (estimated) via measured water, they would turn the water well back over to you. In their view, they built a convenient water source for fracking (mostly) and then left you with an 'improvement' to your property. I saw deals as low as 20 cents/barrel but landowners were driving the price up last summer so I'm not sure of it's price now. One land owner negotiated a pier and, also, for some brush to be laid before filling it so it created fish habitat.

Permalink Reply by craig on April 26, 2012 at 5:07am

Call X L Sand and Gravel just across the border in Ohio near Negley, they have sold water to Chesapeake.

Permalink Reply by Tyler Durden on April 26, 2012 at 8:23am

Companies in PA have to submit water managment plans to the PA DEP detailing all sources for their drilling/fracing water.  That includes water withdrawls from  bodies of water, water wells,  recycled water and purchased water.  You would probably have to look into if you would need some type of permit to withdraw the water (maybe a GP-4 Intake Structure Permit) since you would be selling it for profit.

 

Permalink Reply by Kathleen on April 26, 2012 at 10:50am
Hi,

I found the article I read a while ago. I don't think this will help you on how to sell water just how they are pricing the sale of water to the drillers.
http://www.reviewonline.com/page/content.detail/id/554389/Salem-loo...
I forgot to say you have a very pretty lake.
Permalink Reply by Shocked at SHELL on April 30, 2012 at 4:09pm

So does everyone else. Sorry you dont go to them they come to you.

Permalink Reply by lr on April 30, 2012 at 4:41pm

Decided to sell the pie instead of the piece. Besides I need the green quicker then looking for thirsty gmen out there. Next owner can do that routine. 

Permalink Reply by craig on May 1, 2012 at 1:41am

Sometimes yes, sometimes NO.

They aren't quite the 'Big Shots' you make them out to be, although the drillers want you to think that way.

Permalink Reply by jb379 on May 1, 2012 at 2:28am

Craig,

 

Don't kid yourself, if there is something the "big shots" want bad enough, they'll find a way to get it.  It may be via plan b, c, or d....but rest assured they'll find a way.

 

JB

Permalink Reply by craig on May 1, 2012 at 6:41am

You are mostly right jb, only because they usually are dealing with uninformed folks with smaller acreage. They have deep pockets for when all else fails.

Personal experience tells me different, IF you have a good amount of acreage....they may work with you instead of against you. They won't be happy, but they will be back to the table at some time.

It is just a shame that these so called 'big shots' have to hide behind so many layers of protection....which is typical of these types of operations.

After some of my experiences with CHK it is almost comical to think I still want them to drill, but I do. I just wish they would stop taking advantage of way to many folks....hopefully it will come back to bite them someday.

Permalink Reply by lr on May 4, 2012 at 5:12am

I did get a follow up from Range about possible use of the pond-lake water. PA DEP has recently made it very difficult for the industry to use pond or lake water, even on private land, if there is any pond-lake water that flows out of the lake on private property into any type of watershed.  So unless the body of water is entirely captive, the gas companies are focusing on municipal deals or private 100% captive water sources in the keystone state. 

Permalink Reply by Lisa on April 16, 2013 at 7:12am

How can you sell water in PA if you aren't a utility?  There are water rights but no one owns the water so how can you sell what you don't own?  I heard that if you want to provide the water service to drilling companies that you are regulated by the Pennsylvania Utility Commission.  Is anyone out there a PA water rights/utility attorney that would know what is involved?  Are there people selling water illegally even though they have received a permit from PADEP?

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