Arkansas Oil & Gas Commission denies royalty rate for Lithium

Arkansas Mineral Rights
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For those of you watching the Lithium issue in Arkansas.

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Fantastic thanks for sharing! Hopefully this companies will get it worked out soon! Have a great Christmas!

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Thanks for sharing! Is there an opportunity to buy mineral rights there even with the lithium royalties being so low?

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The whole Smackover trend is interesting for its regular oil and gas rights and now its lithium. Keep in mind that lithium from saline aquifers usually belongs to the surface owner (in most states) because they own the pore space. Lithium extracted as part of the oil and gas stream may belong to the operator since the water is considered “waste”. In some states, mineral owners have to specifically put lithium (and other minerals) by name in their oil and gas lease before drilling commences.

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@M_Barnes It would be interesting to have some other professional chime in on Lithium since this is such a new recognized value. Including lithium in the OGL will be best practice. I would think looking to other States that had unconsidered mineral production, such as sulphur, may provide some guidance.

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Hope more folks do chime in. I work mostly in OK, where they are talking lithium, bromide, sulphur, hydrogen, helium and more. There was a great attorney speaker at the National Association of Royalty Owners US meeting in October. He gave a quick run through of various states and what their basic laws were pertaining to pore space and who owned it.

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Thanks for the Lithium update. My family live in El Dorado. Its important to all land owners in the area to stay updated on this issue.

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One of the companies who was a party to this application in Arkansas stated his company is actively exploring in Northeast Texas and has seen very good results there - so this is a much larger topic than Arkansas alone.

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