Pipeline, Water and Injection Well Pricing Needed...ASAP

1)  A water company wants to purchase my water ?  what is the going rate per 1000 gallons ?

2)  A pipeline company wants to cross me for $25 /ft  and 13k for each additional line up to 4.  Is that good ?

3)  An injection well company wants to use 3 acre of my land for a inj. well.  What is that worth ?

 

all this happened in the last 7 days....  all info would be helpful..

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Permalink Reply by JK on November 28, 2012 at 12:41pm

Robert,

The pipeline price sound good. It would be good to specify where YOU want the line placed on your property.

Around the edge of the property instead of right through the middle for pipeline placement.

Water - I would check with the water bottling companies to see what they pay for water.

Injection well - be careful on this one.  There is info on GMS about this so do a search.

Permalink Reply by Kathleen on November 28, 2012 at 2:36pm
Some counties have water agreements with some co.'s. Try them for prices too. If you do a search in the salem paper online you may get a hit about who entered into agreements and they did list the prices per gallon. I read one entered into an agreement but so far no water was drawn which they seemed surprised about. I wonder if the co.'s found better pricing from landowners or better locations to water sources near the wells. The salem paper or east Liverpool review seems to have a better search engine than the morning journal even though they are all run by the same parent co.
I'm so curious where you are located, of course not your address just a general area if you have a min.
Permalink Reply by Rob Rotz on November 29, 2012 at 2:50am

kathleen,

im in guernsey county in millwood township.  seems like there will be lots of activity in that area very soon.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on November 28, 2012 at 3:25pm

RJR,  If someone is in a hurry you need to slow them down by collecting their contracts and taking them to a lawyer. If you sign a contract from a source other than your own lawyer, you have made a mistake that no one will be able to bail you out of. The rule is never sign a contract that someone else has produced, it will be full of pitfalls and greif for you. High pressure tactics are a sure sign you are about to be taken. Since you only get one chance do it right and know what you are getting in to.  

There will be plenty of pipelines in the future. Search this website for Ron Hale for past Replies.

I would think an injection well would prevent your land from being drilled for oil or gas later, you need to check on that. How will it affect a current lease on your land?  

Remember:  "Money Brings Out The Worst In People" (Your money, their actions to try and take it). 

Good Luck.  Ron

Permalink Reply by TheMap on November 29, 2012 at 4:09am

Regarding an injection well - be prepared for protest at your property and probably a long public battle.  I live near a proposed (and approved) injection well site in PA.  The battle has been going on for years.  Do you really want your property to be a waste dump.  It may also prevent any future drilling since it would bring up the waste also.  There would be a lot of truck traffic hauling in the waste from possibly hundreds of miles away (unless they pipe it in).  I am all for drilling and fracking, but waste injection wells present too many problems for me.  There has to be a better way to treat the backflow.

Permalink Reply by Kathleen on November 29, 2012 at 4:29am
I am not one to want an injection will near me for many reasons but stopping further drilling I'm pretty sure is not true. They store the waste at a different level (strata).
On the other hand I was old almost any of these Utica or Marcellus wells could one day turn into a injection well. If that happened they would have to feel confident they got all they wanted out of that well.
Permalink Reply by Tim Tarr on November 29, 2012 at 7:19am

  What do you use water for now? You don't want to sell it than "need" it later, say during a long hot dry spell.

  $25 a foot depends on where you are and whats around you and width of ROW. I'll use $25 per as starting point. The $25 should be broken into 2 parts (different companies use different %'s) one for granting ROW $7.50 (30%) per and one as damages $17.50 (70%) that damages part should be tax free, ask your tax advisor. I required that $17.50 as damages for each additional line. They wanted to pay me less. Also got all my addendums (over 10) and $ for legal fees at signing.

 look at proposed route and give them your preference.Seems they usually want to go right up the middle of the property. So I gave them different prices on different routes.That route up the middle of property was $100 per. Only way I could get them to drop that route, real fast. They came up with another route almost as bad so I said $75. Finally got the route I liked ( told them from start) and said  OK. Had lawyer look it over and signed.  Remember this ROW is forever.

    As for disposal well(s) had that removed from lease along with storage rights. If they have disposal rights the best you can do is get as much as possible for well site and access. If they don't have disposal rights I would want the same amount for them as the land and improvements would sell for on current market without O&G rights.

Permalink Reply by Rob Rotz on November 29, 2012 at 8:33am

Tim,

i have a great water well for my house.  The 3acre lake is fed by five springs that run non stop.  the only thing i use the lake for is fishing twice a year with my kids.  The flow was measured and it would fill as fast as they pump.  this is a no brainer....

 

the pipe line would be 3000 feet from my house on the backside of a hill i cannot see.  there is already a columbia gas easment back there.  they want to give me $15/ft  for a 75' ROW. and $10/ft for each of four pipes.  sounds cheap to me.  What do you think of this.  I want  $50/ft for the ROW and $50/ft for the first pipe, and thats it for now.  The other three pipes can be negociated at the time they want to install them.  why would i agree to a price for a pipe that might not go in for a few years when rates could be at $150/ft ?  ill see if they will agree with that.

 

Some oil wells now drill disposal wells on the same pad, so it cannot interfear with oil/gas production, plus 10-15k a month is not too bad.

Permalink Reply by Hunter on November 29, 2012 at 8:58am
I would contact your neighbors and form a group as far as the ROW is concerned. Markwest has paid 50.00 for 1St pipeline in Jefferson county. If they want a multiple line deal they should pay for each line and have a timeframe for install of all lines ie 60 months. If not they might come back in 15 years to put line in
Permalink Reply by Rob Rotz on November 29, 2012 at 9:41am

i have talked with neighbors and it is markwest.  i am happy to see that 50.00 number also.

Permalink Reply by Tim Tarr on December 3, 2012 at 9:03am

Robert,

   Sounds like you already have good grasp of the facts. That offer is pretty much MWE (MarkWest) standard offer. Rather than haggel back and forth I told them how much a foot (very little difference) and that was it. No sense wasting their time and mine! Also made them agree to pay my estimate of legal fees at signing. Than got into the weeds about about all my changes (Addendum) to the agreement, They make that all confidental along with $ per foot.

   On an injection well get a very good water damage and indemnity clause with a baseline water test for your well and springs. I would not want one but that money sounds awful tempting.

Permalink Reply by Keith Mauck (Site Publisher) on November 29, 2012 at 8:18am

Robert, here is a discussion on water purchasing on our sister site - http://www.gohaynesvilleshale.com/forum/topics/current-frac-water-p...

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