Hello all, I have an offer for horizontal wells in Richland County, Montana. My question is about adding language to the lease for a royalty on lithium, if lithium is to be extracted from brine during this operation.
What kind of language has anyone seen, been using, or maybe been advised to use for leasing in that Jurisdiction? Thanks in advance.
Geo, CMM
Sir you can add a cause on your lease to include brine ! Good luck
Best to get legal advice on leasing language. In general, brine in an aquifer belongs to the surface owner in many states. Saltwater that comes out of the hydrocarbon stream often belongs to the operator. In some states, it can be claimed if put into the lease language. Must abide by the statues of the state your tract is in.
Thanks Mrs. Barnes and Jimmy. Looking forward to the national meeting.
Lithium royalty rates are typically much less than O&G. Lots of unknowns in the lithium space, it’s so new and interesting but as someone who worked on a lithium project I can honestly say no one really knows what any this is worth. Lots of hypotheticals! I’d wait them out for a couple months, try to get a better bonus and royalty then demand a favored nations clause.