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Permalink Reply by dbob on August 5, 2012 at 7:02

Texas Gal -

Not knowing exactly where you are, generally in speaking, in Texas and Louisiana, the operator does not pay the surface owner for water used during drilling - period.  some times, transfer of the water well used during drilling can be negotiated, but thats about it.

fracing is more complex - 0.30 to 0.50 per bbl is common, if the landowner is supplying a pond and /or water wells for the effort.  If operator is building pond and drilling wells, payment tends to be lower, and often times may not occur at all.  Now if they want to use that same pond and water for something off lease or out of unit, 0.30 to .50/bbl is more common.  

Finally, water pricing tends to be higher in the Eagle Ford, but I have no good hard values to share.  

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Permalink Reply by Andrew on August 7, 2012 at 2:39

It's all about location, location, location. How much water is available in an area and how much drilling activity is taking place will determine the prices. The range you mentioned is a pretty good one in most plays, but a little on the low end if you are in a high-activity play or in a really dry area.

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Permalink Reply by sonny coody on August 8, 2012 at 1:23

eagleford is .50-.60 no less for private investors dilling 4800' wells inti the carrizo aquifer. This becomes more popular as majors buy up leases. they are very reluctant to spend budgeted money to drill wells for ranchers. many then prefer to have private firms select area for wells on lease land, drill well and provide to operators in field. water concepts,llc. san antonio provides this type off investor water supply.

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Permalink Reply by RR on August 8, 2012 at 14:49

Some O@G companies will refuse to buy frac water from pond owners who fill their ponds with well water. Others are not as environmentally sensitive. I'm sure as Andrew stated, location and need for water in dry areas may change their minds.

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