I've been approached about selling water for $0.25/barrel from an existing pond for one particular frac job. The agreement seems too open ended to me-doesn't specify amount and time frame, though I've been told the amount and approximate dates. I won't sign that agreement.
Are there other pitfalls to be aware of? Supposed to be no trucks to damage roads etc, but I know the devil's in the details.
The price you can get for your pond water would be up to you and the purchaser. Nothing illegal about selling your pond water for fracing -in fact, this is the best thing that can be done to protect and preserve the freshwater aquifers. But what happens when your pond is emptied? Are you OK with an empty pond? There may be an issue with the regulators if you wanted to refill your pond with aquifer water using a water well. You need permission to do this. But if you let the pond fill naturally (from rainwater, etc), there should be no problem. Just make sure you have a well written contract that has all of the provisions that you want. Remember, it's your water and nobody is forcing you to sell. Good luck.
lee, that seems like a pretty fair price for the water. thats $5.95 per 1000 gallons. not a bad deal for captured rain water. i would consider telling the buyer they must not "drain" the pond thus leaving some measurable amont of water in the pond. for example, if you have a 1 acre pond that is on average 10 feet deep consider telling them you would be willing to sell them 5 acre feet of water. at this price an acre foot of water is worth about $1900. 5 x 1900 is a pretty good payday, and five feet of water left in your pond, is a good thing too . BTW... 5 acre feet of water is 1,624,240 gallons.
Thanks King John and Ur Dern Tootin' for the advice. I've been burned before by inadequate leases and being HBP from 1950's leases (not my fault), so know to be careful. I'll proceed and share my experience if I learn anything new. BTW, this is a spring fed pond and is used for cattle also. I'm promised no backwash to pollute the water.
lee, a couple things i thought of...
1) have a firm start and finish time, a thirty day window perhaphs
2) one time deal
3) damages upfront
4) minimuln pond level allowed
the fact that your pond is spring fed is a plus, however, depending on what state you are in, could have consequences. good luck and let us know how things go... the water market is going to become much more valuable over time and the more information we water farmers can share the better. the TRC calls water the next oil, in terms of value.
I sold water from a farm pond to Chesapeake through Cude Operating. Cude hand carried the joints of pipe across my pastures so as not to rut them up. I loaned them a four-wheeler to ride to the pond to start and stop the pump as needed. I let them pump it as dry as they could because I'm building the pond bigger. They came to my hunting lease and hand delivered my check yesterday. Its easy money if you have the water. RR.
The first thing to consider is the correct liquid volume in a barrel. There are several misconceptions about what constitutes a barrel; 55 gallons is not a barrel but a drum, 42 gallons is the standard for oil not water.
The US Bureau of Standards does not give a specific gallonage for a barrel, they do give a range from 26 to 32 gallons according to product i.e., beer wine etc. Here again no mention of water.
The American Customary unit of measure for a liquid barrel is 31.5 gallons or 117.2 liters.
In any legal document that I made concerning the sale of water I would state "American Customary barrel" and demand that the water be metered in gallons and reported to me in gallons. At which time I would divide the gallonage by 31.5 and demand payment based on American customary barrels.
I suspect the O and G operators or their contractors have been using the drum or oil barrel as the standard, thus cheating many landowners.
Do your research, Google " US Bureau of Standards" and "gallons in a barrel".,
Oil and gas operators have "always" used 42 gallons of oil equals one barrel. Commonly (probably without exception) 42 gallons also equals one barrel when referring to Haynesville frack water. But to simplify "water usage" to the common man, most industry people are now referring to volume of water in "gallons". Get a life - nobody is trying to cheat you.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More