Replies to This Discussion

Permalink Reply by Joe B. Lovelace on August 17, 2022 at 9:08

Edited San Luis Energy Brine, Oil & Gas Lease.  

Attachments:

• Edited San Luis Brine O & G Lease.pdf, 148 KB

Permalink Reply by Skip Peel - Mineral Consultant on August 17, 2022 at 9:13

Thanks, Joe.  I will ask my O&G attorney to take a look at this when I have lunch with him next week.

Permalink Reply by Skip Peel - Mineral Consultant on August 17, 2022 at 9:30

I just did a quick skim through the standard form lease.  There is no way I would sign this lease without an attached Exhibit A drafted by an experienced O&G attorney.  It's about as one sided of a lease form as I have seen.  Anyone who would sign something like this without seeking professional help could be in for some very unpleasant surprises in addition to receiving a below fair market bonus and royalty.  An Exhibit A could negate a lot of the draw backs but I would start off with a No Surface Use clause.  If asked, I'd say I would consider surface use but I want to have the final say on it and I want to be fairly compensated for it.  Lessors beware.

Permalink Reply by Joe B. Lovelace on August 17, 2022 at 9:48

Understand I've signed nothing and agree with you Skip the lease has many pitfalls even if the bonus and royalty demands I made were met.  Cass County is becoming the "brine" wild, wild west.

Permalink Reply by Joe B. Lovelace on September 19, 2022 at 11:21

For those who are following Brine Lease activity in Cass County, Cass County Brine, LLC has filed with the Cass County Clerk several Memorandum of Option to Purchase a Brine Lease. You can search Online at the following link and entering Cass County Brine in the party name https://cc.co.cass.tx.us/

Permalink Reply by Skip Peel - Mineral Consultant on September 19, 2022 at 14:16

Good advise, Joe.  Thanks.

Permalink Reply by Joe B. Lovelace on September 20, 2022 at 10:26

For the benefit of the group, my research shows Cass County Brine LLC is registered in the State of Texas as a foreign limited liability company with its principal office in Vancouver, British Columbia.  A March 2022 SEC filing by Standard Lithium states, "On July 19, 2021 Company (Standard Lithium) incorporated its wholly owned subsidiary 1093905 LLC in the State of Delaware and subsequently changed its name to Cass County Brine LLC on December 16, 2021.

Permalink Reply by Rock Man on September 20, 2022 at 10:29

No surprise seeing Canadian entities heading to US for rare minerals!

Look under "projects" on link below - Arkansas.

Cass Co just an extension of the trend.

Standard Lithium Ltd. (SLI)

Permalink Reply by Joe B. Lovelace on February 23, 2023 at 12:38

For those in Texas following "Brine Leases" for direct lithium extraction, HB 1318 filed in the current Texas Legislative Session appears to grant permitting authority to the Texas Railroad Commission.  Bill progress can be followed at Texas Legislature Online https://capitol.texas.gov/Home.aspx

Attachments:

• HB 1318.pdf, 116 KB

Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2023 at 12:46

Thanks, Joe.

Permalink Reply by Joe B. Lovelace on March 28, 2023 at 5:18

Below is a link issued today by Standard Lithium regarding its activities in the East Texas Smackover. 

Although the location of the well is not identified, one would assume it to be in the area they have been leasing in east Cass County.

HB 1318 (Brine Permitting) is scheduled for a hearing next Monday in the Texas House Energy Resources Committee.  I will be submitting testimony in support of it.

Joe Lovelace

2023-03-28_Standard_Lithium_Drills_and_Samples_Highest_137.pdf

Permalink Reply by Skip Peel - Mineral Consultant on March 28, 2023 at 5:31

Thanks, Joe.  I think the time has come to make this a main page discussion topic.  I can do it if you prefer but you are the lead on this turn of events and I think it should be more widely known.  Just let me know.

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