Research Library

Center for Energy Studies



Valuation of Groundwater In Place at a Texas Frac Water Supplier

Valuation of Groundwater In Place at a Texas Frac Water Supplier.

To either close deals or resolve disputes, parties and courts must be able to attach a credible economic value to water that may still be underground in the aquifer. In this brief, fellow Gabriel Collins proposes a means of estimating this value that opens the door for a direct comparison of the implied price paid for groundwater in a land purchase transaction and the price paid for an explicit agreement to acquire only the groundwater estate beneath a tract.