Income from well water

Good evening,

Anyone with experience in renting out water wells for an extra income. I got a heads up from a friend that a mineral surface mining group wants to use my well for a new gravel pit. Although the extra cash would always be welcomed, I’ve relied on my water well as an emergency water source at times. I have no clue as to what would be a fair price for renting it out especially if there is a possibility of them pumping it dry. Any input you all have is greatly appreciated.

I've never rented out a well but I am a geologist and mining engineer and if you have relied on that well then I personally wouldn't rent it out because The mining company will rent your water from you at a wholesale price, if you have to buy in water from else where in an emergency you will pay a premium price.
Even if they don't pump the aquifer dry they can pump it hard enough to cause a 'draw down come' meaning a new well would need to be sunk.
European mining companies these days are heavily regulated and mostly  well behaved (There a couple of bigglobal  companies known for shady practice).                  
Unfortunately in the states you guys seem to have less regulation on mining and water use and many more, smaller mining operations and smaller companies don't have the huge budgets for PR departments that care about public relations  24/7.                  
Basically find other people they rent Wells off and ask about their experiences and get a very good lawyer to make sure any contract you enter into covers you properly.

Myself, I would not be too concerned about it, but it depends on what they are going to be using it for.

I make the assumption that they are going to need water for dust control, or for wash water, and with a well being located nearby, it just makes sense to use one that is already drilled instead of drilling a new one. IF you do not rely on I for everyday water, it could net you some income from something you are not using.

Of all the different types of mining, gravel pit operations are the least pollutive.

Oscar Brantley wrote:Good evening,

Anyone with experience in renting out water wells for an extra income. I got a heads up from a friend that a mineral surface mining group wants to use my well for a new gravel pit. Although the extra cash would always be welcomed, I’ve relied on my water well as an emergency water source at times. I have no clue as to what would be a fair price for renting it out especially if there is a possibility of them pumping it dry. Any input you all have is greatly appreciated.

As a former well driller, I have a few questions before I try to steer you in the right direction. What area are you in? How deep is your well? What kind of well is it(Rock, Sand)? What size casing do you have? What size pump?

Chances are, if they don't rent your well, they will drill their own. If they drill their own and draw the aquifer down, it's your loss. If they rent yours and draw the aquifer down, you can have a fancy lawyer write up a contract stating they would re-drill the well.

Hamilton Betchman wrote:

Oscar Brantley wrote:Good evening,

Anyone with experience in renting out water wells for an extra income. I got a heads up from a friend that a mineral surface mining group wants to use my well for a new gravel pit. Although the extra cash would always be welcomed, I’ve relied on my water well as an emergency water source at times. I have no clue as to what would be a fair price for renting it out especially if there is a possibility of them pumping it dry. Any input you all have is greatly appreciated.

As a former well driller, I have a few questions before I try to steer you in the right direction. What area are you in? How deep is your well? What kind of well is it(Rock, Sand)? What size casing do you have? What size pump?

Chances are, if they don't rent your well, they will drill their own. If they drill their own and draw the aquifer down, it's your loss. If they rent yours and draw the aquifer down, you can have a fancy lawyer write up a contract stating they would re-drill the well.

I live in rural Mississippi and the well is about 40 feet deep from what I was told as a child. Being that they mine for sand and gravel on adjacent property I’m sure they will use it to wash. No pump is installed, we’ve always hand drawn water on demand. Not really being used much outside of curiosity and occasional frozen pipe emergencies. The mining operation would at closest be several acres away from my well, so my guess is they would pipe into it and install their own pumps

Travis Johnson wrote:Myself, I would not be too concerned about it, but it depends on what they are going to be using it for.

I make the assumption that they are going to need water for dust control, or for wash water, and with a well being located nearby, it just makes sense to use one that is already drilled instead of drilling a new one. IF you do not rely on I for everyday water, it could net you some income from something you are not using.

Of all the different types of mining, gravel pit operations are the least pollutive.

I believe they just need it for wash water. It is rarely used but still it gives us a piece of mind that it’s there as a backup water source if we ever did need one.

It depends a lot on your water rights.  

We own the land, but we don't own the water that is underneath it.  If I sell the water (or access to that water), then I have to pay the government for every litre - or at least I'm supposed to.  There are a few loopholes but they are being patched right now, so in about two years, I'll have to pay the government fore every litre I take out of the ground for my own use.  There are a few people in our city that sell bottled well water and they are facing huge retroactive fines once the loophole is closed because they didn't have water rights to that property.  

But it would be the same for gold or oil, as I don't have the mineral rights on this land either.  

Lots of farmers with irrigation wells here sold water for fracking. The State started looking at metering irrigation wells because of it. Nothing devastating has happened here, that we are aware of. I'd be nervous of it just because water, particularly underground water, is our most precious resource in my State.

Oscar Brantley wrote:

Hamilton Betchman wrote:

Oscar Brantley wrote:Good evening,

Anyone with experience in renting out water wells for an extra income. I got a heads up from a friend that a mineral surface mining group wants to use my well for a new gravel pit. Although the extra cash would always be welcomed, I’ve relied on my water well as an emergency water source at times. I have no clue as to what would be a fair price for renting it out especially if there is a possibility of them pumping it dry. Any input you all have is greatly appreciated.

As a former well driller, I have a few questions before I try to steer you in the right direction. What area are you in? How deep is your well? What kind of well is it(Rock, Sand)? What size casing do you have? What size pump?

Chances are, if they don't rent your well, they will drill their own. If they drill their own and draw the aquifer down, it's your loss. If they rent yours and draw the aquifer down, you can have a fancy lawyer write up a contract stating they would re-drill the well.

I live in rural Mississippi and the well is about 40 feet deep from what I was told as a child. Being that they mine for sand and gravel on adjacent property I’m sure they will use it to wash. No pump is installed, we’ve always hand drawn water on demand. Not really being used much outside of curiosity and occasional frozen pipe emergencies. The mining operation would at closest be several acres away from my well, so my guess is they would pipe into it and install their own pumps

OK, so honestly, the well you have would only cost about 1500 to drill where I live. The idea that they are several hundred yards away from the well makes me think that for them, renting your well is a bad solution. It sounds like much more hassle than it is worth.

Hamilton Betchman wrote:

Oscar Brantley wrote:

Hamilton Betchman wrote:

Oscar Brantley wrote:Good evening,

Anyone with experience in renting out water wells for an extra income. I got a heads up from a friend that a mineral surface mining group wants to use my well for a new gravel pit. Although the extra cash would always be welcomed, I’ve relied on my water well as an emergency water source at times. I have no clue as to what would be a fair price for renting it out especially if there is a possibility of them pumping it dry. Any input you all have is greatly appreciated.

As a former well driller, I have a few questions before I try to steer you in the right direction. What area are you in? How deep is your well? What kind of well is it(Rock, Sand)? What size casing do you have? What size pump?

Chances are, if they don't rent your well, they will drill their own. If they drill their own and draw the aquifer down, it's your loss. If they rent yours and draw the aquifer down, you can have a fancy lawyer write up a contract stating they would re-drill the well.

I live in rural Mississippi and the well is about 40 feet deep from what I was told as a child. Being that they mine for sand and gravel on adjacent property I’m sure they will use it to wash. No pump is installed, we’ve always hand drawn water on demand. Not really being used much outside of curiosity and occasional frozen pipe emergencies. The mining operation would at closest be several acres away from my well, so my guess is they would pipe into it and install their own pumps

OK, so honestly, the well you have would only cost about 1500 to drill where I live. The idea that they are several hundred yards away from the well makes me think that for them, renting your well is a bad solution. It sounds like much more hassle than it is worth.

Yeah but residential wells here cost 15k to drill.

It could be that they would have difficulty getting a permit for a new well, so using yours is easier, it could also be their PR trying to be useful to the neighbours so they(you) don't complain about dust/noise

Lots of good input here.  My thought is are they responsible for wear and tear on your well?  What if your pump goes out?  Can they squeeze pennies out of you for not having access to the water you promised them?  Or are they liable for a portion of that well pump to help get it replaced?  Same with it running dry; who is liable to who.  I think the fine print of the contract could make or break the situation.

elle sagenev wrote:

Hamilton Betchman wrote:

Oscar Brantley wrote:

Hamilton Betchman wrote:

Oscar Brantley wrote:Good evening,

Anyone with experience in renting out water wells for an extra income. I got a heads up from a friend that a mineral surface mining group wants to use my well for a new gravel pit. Although the extra cash would always be welcomed, I’ve relied on my water well as an emergency water source at times. I have no clue as to what would be a fair price for renting it out especially if there is a possibility of them pumping it dry. Any input you all have is greatly appreciated.

As a former well driller, I have a few questions before I try to steer you in the right direction. What area are you in? How deep is your well? What kind of well is it(Rock, Sand)? What size casing do you have? What size pump?

Chances are, if they don't rent your well, they will drill their own. If they drill their own and draw the aquifer down, it's your loss. If they rent yours and draw the aquifer down, you can have a fancy lawyer write up a contract stating they would re-drill the well.

I live in rural Mississippi and the well is about 40 feet deep from what I was told as a child. Being that they mine for sand and gravel on adjacent property I’m sure they will use it to wash. No pump is installed, we’ve always hand drawn water on demand. Not really being used much outside of curiosity and occasional frozen pipe emergencies. The mining operation would at closest be several acres away from my well, so my guess is they would pipe into it and install their own pumps

OK, so honestly, the well you have would only cost about 1500 to drill where I live. The idea that they are several hundred yards away from the well makes me think that for them, renting your well is a bad solution. It sounds like much more hassle than it is worth.

Yeah but residential wells here cost 15k to drill.

Ouch, sounds like a rock well.