Selling water to drilling companies

Has anyone out there agreed to sell water on their property to drilling companies? If you have can you let me know how it works as far as the contract. How much water a well requires and how big of a water source you own. Any information would be greatly appreciated. Thanks.

Views: 3401

▶ Reply to This

Replies to This Discussion

Permalink Reply by JK on July 27, 2011 at 2:27pm
I would like to hear this feedback too.  This adds another twist to the subject.
Permalink Reply by redbank on July 27, 2011 at 3:39pm
I tried to do this when I was negotiating my situation. It did not work. Maybe I didn't go about it right? They pretty much didn't want my water, and they had to go through allot of permitting to take my water (so they said). I tried to at least sell from a pond that is useless to me. Although, do you realize how much water they need? Our well pad has a 3.2 and a 2.5 million gallon pond, add that together and that's allot of water. I have a couple ponds on my farm and they would be lucky to be 2 acres together, they would be dry in no time and would not recover in time for them to keep using it, especially in this dry weather. They need a much more reliable/plentiful source than what I could offer. Go stand beside the gas well ponds and you will quickly see how much water that is. Hey, maybe you can do it. And you better have the Allegheny River running through your property
Permalink Reply by James Harber on August 1, 2011 at 10:32pm
FYI, the going rate is 1 penny a gallon or $10.00 a thousand., although several cities that I know of sell water for as little as $4.00-$6.00 per thousand gallons. Everybody is cash strapped and need revenue from whatever source that they can get it.  Water is a resource that no one ever dreamed could make up the shortfalls of a ailing economy, but its true and becoming a reality before your eyes everyday from here on out for the next 10-15 years. Do the math, 5,000,000 gallons of water at a penny a gallon is $50,000. per well drilled. Your water source needs to be able to supply a min of 250,000 gallons a day and more is better. Energy companies contract with vendors that they have a working relationship with, usually providing multiple support services to them. They are not interested and doing any "mom and pop" deals just too much liability. If you have land, a 20 acre lake with 10 ft depth would be a marketable water source, or drill 4 wells that produce a min of 100 gallons a minute.
Permalink Reply by william on August 2, 2011 at 1:34am

James,

if I'm not mistaken, doesn't the state limit your pond/lake size to less than 5 acres in Ohio?

Permalink Reply by Jim Litwinowicz on July 27, 2011 at 3:33pm

A strange anomaly in Pa is that you do not own the water on your property such as well water, ponds, lakes, rivers or streams. All water is property of the state...sorta like the deer on your land don't belong to you.

 

But you own the right to limit access to water on your property and can sell the right to access the water so that it can be taken.  You can charge by a fee per truckload but I don't know how to do it if they use a pipeline. Perhaps figure the capacity of a specific sized pipeline and then charge them a daily rate.

Permalink Reply by jb379 on July 28, 2011 at 3:05am

Interesting....thanks for your input.

 

JB

Permalink Reply by James R. Daley, PMP on July 28, 2011 at 4:48am

William:

 

A well stimulation (frac) job uses about 1 million gallons of water per 1,000 foot of horizontal length.  Therefore, a total frac job may use from 3.5 to 5 million gallons of water per well.  A multi-well site uses this quantity of water for each well.

 

The company must file a water management plan with the DEP and if they location is within the Susquehanna River Basin, the SRBC.  The DRBC is not issuing withdrawal permits for drainage there.  The Ohio River Basin Commission is not yet involved in withdrawal permitting or discharge quality but is looking at both.  So indeed the drilling or stimulation companies must go through some permitting hoops to withdraw water from any source.

Permalink Reply by Paul Martinelli on July 28, 2011 at 5:46am
So.....anyone have an idea of what the going rate is to be charged for water access?
Permalink Reply by Marc on July 28, 2011 at 9:37am
Apparently, some local governments are getting 5 cents per 10,000 gallons.
Permalink Reply by Paul Martinelli on July 28, 2011 at 9:52am
for  5 cents   I wouldn't sign/sell.
Permalink Reply by monty deruyter on July 28, 2011 at 11:02am
I heard a rumor that a water source in summitville oh. is getting 10 cents a gallon , I have no idea if it is true though.
Permalink Reply by Marc on July 28, 2011 at 4:51pm
Pardon me, I meant 5 dollars per 1,000 gallons, which works out to 5 cents/gallon, so half of what Monty said.  I have heard rumors of private landowners being offered 10 cents/gallon (10 dollars per 1,000 gallons) but, unlike the public deals, I have not been able to confirm those deals.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service