Replies to This Discussion

Permalink Reply by Crunchy on July 29, 2010 at 15:33

It usually is sold by the barrel. I have been hearing around .35 per barrel lately. It depends how scarce water is.

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Permalink Reply by Chad E Ellis on July 30, 2010 at 1:40

How close are they to needing the water? They will negotiate more if they are closer to fracing as opposed to just starting the pad. Also, 2 to 3 miles out is not too far for them to pipe water so be aware of your neighbors ability to undercut you. That being said, $.35 to $.50 a barrel is reasonable. If you have any improvements to the ponds or your land that you would like done you may try and exchange this for water. Most operators would rather perform some type of work in conjunction with a low "selling" price for water. This is an internal accounting decision and is based on what can be expensed or stated as a capital improvement. One other point to consider is if this well is in your section and you are a royalty owner. Don't push too hard if it will delay/minimize a larger payment down the road. Good luck as you are in a win/win situation. You are selling something that cost you little or nothing to aquire and will naturally refill itself after a few rains!

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Permalink Reply by Pelican on July 30, 2010 at 9:00

2 pads were just completed last week and this week. I am in both sections and have the only water in both sections and have 4 decent size ponds. They used water from me for the pads and road. Chk & EnCana. Now they are asking for pit water now and frac water later if there is enough. Not sure I have that much. They said they would pay me .25/barrell for the pad and road. I agreed to that since it wasn't that much water. Although the road was 2 miles cemented.

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Permalink Reply by alleyboy on July 30, 2010 at 2:08

I have three acres in an urban area that is a low-lying easement for a very large area. I'm sure if it had a damn , it would completely fill in one or two heavy rains. I was wondering if maybe Chesapeake, which is the main lease holder inn the section would consider building the damn ..I tried calling twin cities and the number they have listed onn the 'internet 'is no longer working' Any suggestions would be muchly appreciated.

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Permalink Reply by Chad E Ellis on July 30, 2010 at 5:00

The urban area classification may hamper your efforts. There may be covenants or other restrictions that will hamper you. Also, you may become liable for any flooding that you may inadvertantly cause to your neighbors. If you can procede then you may want to talk to your neighbors to see if they have been approched by any water-landmen. Most operators use a seperate land service to procure their water. I am not familiar with CHK so I cannot provide you with any names. Prehaps someone on this sight has a water contact for CHK. Good luck.

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