Colorado Well Costs Update


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.

Colorado Well Drilled and Capped

We have thirty-five acres in southern Colorado, which we bought a couple of years ago. Some of the photos we have posted here on the site are from that land. It is absolutely beautiful and is where we plan to spend free time once we have finished building the homestead in southeastern NM.

The acreage in Colorado has a trout stream running through one corner of the property, so water was available already. However, when we bought the land, the previous owner had already applied for and been granted a homestead well permit for the property. We decided to go ahead and make use of the permit and get a well dug and capped for future building.

Obviously, we are not currently in urgent need of the well, so we told the well-digger to put us on his schedule when it worked best for him and sort of put it to the back of our minds.

This morning he called and told us the great news: We have a well!

Originally, when we talked to him about the job, he told us that other wells in the general area were drilled from 100-180 feet in depth to get a good supply of water, so we had prepared ourselves for that cost (hoping it wouldn’t go much more than 100 feet). At $36/foot for the drilling cost (not including a pump or any accessories — just the digging and capping) in the area, we were expecting a hefty bill to be due.

We got a wonderful surprise… the well only needed to be drilled to 40 feet in depth. He said the water level is only 8-10 feet below the surface, so we are very happy. Instead of a potential cost of $6480, we think the cost will be about $1440.

(with all the bulldozer purchases, we need all the savings we can get!)

With only 40 feet in depth, we have a lot more options available to us on the type of pump we use. Even a hand pump (like the photo) would work for this well. We have a wide range of choices… manual pump ($99 – $1000, depending on quality and features — the Bison pumps are pricey), solar pump and tank (investigation still needed). We don’t plan to have the pump left on-site when we aren’t there for the time being. Too much temptation for a would-be pump thief.