COST UPDATE: After talking with the driller, we found out that all the drillers in the region have a minimum fee for drilling that is about $2500. Apparently, even though it was not quoted to us, it is the going price for the work involved in hauling out all the equipment, setting up, etc. We are still thrilled with the fact that the well came in at only 40 feet, but would caution folks to ask what the minimum charge will be in a case of this sort so that they are not surprised.
Based on my research online, this seems to be quite a bit higher than some areas (it ended up being $62.50/foot). I don’t understand it, but based on the results we had of talking to several other drillers in the local area, it seems to be standard. Since we just had a well drilled in New Mexico not long before, in a similar situation and region, we were surprised.
I know in New Mexico the quote we received was done differently. The fixed costs were charged as separate line items (mobilization (if charged), gravel pack, cement surface seal (if required by state law), well cap, steel surface liner (if required due to formations), permit), and the cost per foot varied at a lower rate including drilling and casing. The cost for drilling and casing in NM was $21/foot, with the other costs being fixed. I think this is a much more fair way to quote without surprises.
In Colorado they all seem to quote at the standard $34-$36/foot, regardless of depth. They have a minimum which tends to make the break-even point at about 75 feet. After that depth, they make a lot of profit.
Example 1: Based on a 300 foot well:
NM rates for a 300 foot well:
Drilling/casing @ $21/foot $6300.00
Gravel pack, surface seal, cap, steel surface liner $797.50
Total cost: $7097.50 (not including tax)
Colorado rates: $34/foot including everything: $10,200.
Example 2: Based on a 40 foot well:
NM rates for a 40 foot well:
Drilling/casing @ $21/foot $840.00
Gravel pack, surface seal, cap, steel surface liner $797.50
Total cost: $1637.50 (not including tax)
Colorado rates: minimum charge: $2,500.
In both states, the permit charge was about $125 from the state.
Knowing what we do now, I’d probably ask for the quotation to be done differently for the Colorado well. (As they say, hindsight is 20/20). It appears to me that the Colorado drillers are overcharging a bit. (Or, at least, I haven’t been convinced that the pricing is fair). It does seem to be standard in the area so far. In all fairness, our driller wasn’t charging much more than the others in the region. He even matched the lowest minimum price for us.
The driller we worked with was Scott Heersink, out of Alamosa, Colorado.