Water Sales-Texas

Is it unreasonable to require an Oil/Gas company to drill  a water well to help replenish water from ponds used for fracking jobs?   How do you negotiate this and still be reasonable?  Thanks.

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Permalink Reply by Skip Peel - Mineral Consultant on April 13, 2018 at 8:59

O&G companies have been drilling water wells on their surface locations for decades, long before fracking became a much larger requirement for water.  All that drilling mud used during drilling operations arrives dry in bags.  A water source is required to make it "mud".  Just ask, but be aware that not every location is a good one for a water well.

Permalink Reply by JHH on April 13, 2018 at 9:26

Thanks Skip.  A company just recently leased with us wants to buy water from our four ponds... but they do not want to drill water wells to  replenish the ponds once they reach a certain low level. 

Permalink Reply by Skip Peel - Mineral Consultant on April 13, 2018 at 9:42

Then you are referring to a "water company", not an "O&G" company.  Simply get a quote for a well, if indeed a water well company affirms that your location would make a good well and then add that to your compensation for the pond water.  O&G companies have sub-contractors that drill water wells, the water company may not.

Permalink Reply by JHH on April 13, 2018 at 10:19

No, it's an oil and gas company we leased with.  They surveyed our four ponds... and determined how much water we have for use in their drilling activities.  Comstock.  

Permalink Reply by Skip Peel - Mineral Consultant on April 13, 2018 at 10:20

You can have your own water well drilled regardless.

Permalink Reply by JHH on April 13, 2018 at 10:22

10-4.  I was just wondering if it was unreasonable to have them drill the well as part of water purchase agreement.  would that necessarily be a deal breaker?

Permalink Reply by Skip Peel - Mineral Consultant on April 13, 2018 at 10:28

I wouldn't think so.  I expect Comstock has several water well contractors that they employ from time to time.  Now how you get the water from the well to the pond may be on your nickel.

Permalink Reply by JHH on April 13, 2018 at 10:32

10-4 thanks. they've agreed not to allow the water level to get so low it kills all our bass and crappie and some perch and catfish.   mmmmm good.

Permalink Reply by Skip Peel - Mineral Consultant on April 13, 2018 at 10:36

I know what you mean.  LOL!

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