i have been approached by an operator in my area, to build a lake on my property. the lake would be about six acres, and would be a water storage facility for their ongoing operations. the operator stated they would be ramping up drilling operations in the upcoming year and had to have a dependable supply of water. i understand all of that and wouldnt mide a small lake on my place. the down side i think would be the nusiance of the truck traffic in and out 24-7 during operations. if i am not mistaken, they plan to buy water from a neighboring lake, store it on my place, and use it when and where they need it.
at this point i am asking myself one thing..... how bad do they need it? water, as we all know is an essential part of drilling and frac operations. they HAVE to have it. i think that will be the key to negioating succesfully. i want to get the most money i can, but i am aware if i shoot too high they may move on down the road. outside of the traffic i cant think of any other real down sides. can any of you? has anyone run across this before? i am clueless as to what type of compensation to ask for. also i dont have any idea of what type of protections to put in place for myself. i have just never had to consider anything like this before.
thanks in advance for all responses.
kj

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If the agreement is for fresh-water use only, then it's regulated by environmental regulations.

Which of course is why you have someone competent review the finalized document. Do want to make sure there isn't any language that allows recycled water or other 'stuff' to be used without your understanding.
It is against the law to dispose of salt water or produced waters (including used frac water) into a freshwater pond.
i just spoke to someone in my area and i was informed there are two existing frac ponds very near me. i was told one was about two acres and the other around four. these are operated by another operator.
i was thinking about trying to put a clause in the agreement where my property would get drilled in a timely manner. i am already HPD , but they have permitted an H well with a very nice latteral. it would be nice, i think, to be assured that they would get back to me quickly. IMHO i dont think its too much to ask, considering the benefit the company will realize by utilizing my property as a water storage facility.
the plan is for them to buy water from a nearby lake and store it on my property. while constructing the lake, if they tap into a natural spring, they would be getting free water from me...
i dont think i want that. that will probably fall under the one time damages agreement. just a little more bargining power for me.
kj
king john: if they tap into a natural spring, how would that 'free' water be yours? just wondering how a natural spring, which is fed by nature, would be deemed to be yours? you may find yourself in a battle from those downstream on this natural spring. That's happened in another state. Company started pulling water out of a small creek; then dammed the little creek to form a lake. Folks downstream saw their little natural spring dry up and went lawyering for who 'stole their water'. Got messy as it usually does when neighbors start to fighting! knife fights are bad; lawyer fights are worse!

One other thing: if they build a lake and it starts raining, then the company won't have to buy as much water to keep the lake filled. Will that rain water also be yours and will they have to pay you for that too? Lots of things to think about in the water business. This is a soon to be really big issue the world over as fresh water starts to be an issue.
Mmmarkkk, my philosophy about the spring water being mine is that the springs are underground, just like my gas. they are all over my farm. mostly on the hills. i am envisioning they will pick a place between two large hills where they can take advantage of the natural run off. i had not thought of charging them for the run off, but thats a great idea!!! lol my point is while they are digging a 15-18 foot deep lake ,they could tap into a natural underground spring. this would reduce their need to buy water and should be of some value to the operator i would think.
kj
I think that water rights are legally very different from other mineral rights, even if springs or wells are involved.
Sounds like a winner. My worry really had to do with aobve ground creeks. As they move downstream, they tend to get to be an issue if all of a sudden, they are no longer there!!

If these are underground springs, it may be difficult to track if they are tied into one or not. Seems like if they are digging, there's a good chance they might either hit one or tie in to a system whereby one might drain into the new lake. Keeping an eye on that will be interesting. I guess if they are putting 1 barrel in and pulling 3 barrels out, and the lake level is staying even, then they're re-charging from somewhere! They'll attribute it to rain most likely!! I'd stick with the fish stocking! Have them build you a wharf or something! And a nice big stainless steel natural gas B-B-Q grill!
Another problem, is there salvina in the neighboring lake? If so your little lake will be choked up with this stuff in a short period of time. Ask if they are going to pay to have it controled or removed if it is in the other lake. Because if it is you are going to have it in your lake possibly the first time they pump from the other lake to yours.
good point red, i had thought about that, and yes it does. i wonder if there would some sort of filter in place to prevent the exchange of the plant from one lake to the other? i would think salvina would not be good for there operations. seems they would want to eliminate it as much or more than me.
kj
Where are you located? I have head that the Shelby County area is very hot. I have land in that area and it appears that they probably would be needing something there. Make sure you know what you are signing and
please if an attorney gets involved, you sure should know what you are signing.
yes amigo, the area of intrest is in shelby county. more specifically, the mount herman area. lake pinkston.
kj
I don't think they can filter it out, not sure but all it takes is one little piece for it to get started.

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