Canadians Set to Extract Arkansas Lithium From Saltwater Sea - GoHaynesvilleShale.com2024-03-29T10:41:23Zhttps://gohaynesvilleshale.com/forum/topics/canadians-set-to-extract-arkansas-lithium-from-saltwater-sea?groupUrl=columbia-county-arkansas&xg_source=activity&feed=yes&xn_auth=noA bonus of $2000 or of $2000…tag:gohaynesvilleshale.com,2020-11-06:2117179:Comment:39453342020-11-06T16:07:01.533ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>A bonus of $2000 or of $2000 per acre? Not clear but also not the most important lease term. A specific description of products to be paid royalty on and the royalty fraction for all or each Is the prime consideration. After other beneficial and protective lease clause. Bonus is the least important term although I understand that it is a term easy for mineral owners to focus on. That bonus payment will be spent and gone early in the life of any producing wells drilled under the lease. …</p>
<p>A bonus of $2000 or of $2000 per acre? Not clear but also not the most important lease term. A specific description of products to be paid royalty on and the royalty fraction for all or each Is the prime consideration. After other beneficial and protective lease clause. Bonus is the least important term although I understand that it is a term easy for mineral owners to focus on. That bonus payment will be spent and gone early in the life of any producing wells drilled under the lease. The continuing royalty payments are where the real, long term money will be. And you or your heirs will live with the terms of that lease potentially for decades. Lessor beware. Do your homework. Don't wing it on your on. A few hundred dollars spent on the advice of an experienced O&G attorney could repay itself thousands of times over the life of the lease.</p>
<p></p> The lease is for 5 years at 2…tag:gohaynesvilleshale.com,2020-11-06:2117179:Comment:39453312020-11-06T15:44:42.958Ziwana nipperhttps://gohaynesvilleshale.com/profile/iwanacoon
<p>The lease is for 5 years at 2000.00 as I stated.</p>
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<p>The lease is for 5 years at 2000.00 as I stated.</p>
<p></p> I think that the AOGC may be…tag:gohaynesvilleshale.com,2020-11-06:2117179:Comment:39453232020-11-06T12:46:25.903ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I think that the AOGC may be of some help but what is needed is an attorney familiar with the existing leases for producing brine wells. For a minimal investment, potentially shared among a group of mineral owners receiving these lease offers, you can get the advise you need to make an informed decision. If I was faced with this decision I would want an experienced attorney to not only assist with the protective and beneficial lease language that could be used to modify the lease with an…</p>
<p>I think that the AOGC may be of some help but what is needed is an attorney familiar with the existing leases for producing brine wells. For a minimal investment, potentially shared among a group of mineral owners receiving these lease offers, you can get the advise you need to make an informed decision. If I was faced with this decision I would want an experienced attorney to not only assist with the protective and beneficial lease language that could be used to modify the lease with an Exhibit A addendum, I would want to know how AR force pooling laws may come into play. You may have your brine produced without a lease under common force pooling statutes if they are applicable in this instance in AR .</p>
<p></p> We got a brine lease from Sal…tag:gohaynesvilleshale.com,2020-11-06:2117179:Comment:39454652020-11-06T03:13:11.580ZPolly Ann Footehttps://gohaynesvilleshale.com/profile/PollyAnnFoote
<p>We got a brine lease from Saltwerx out of Siloam Springs Ar. and I specifically asked if they were interested in lithium. He said that right now they are only interest in the brine. I am dubious. It is the exact same lease as the one TWG sent last year prepared by Charles Morgan, Texarkana. I looked Saltwerx up on the internet and it said the company was formed December 6, 2019. I wonder if it was set up to specifically buy these brine leases. Are they buying these leases for some…</p>
<p>We got a brine lease from Saltwerx out of Siloam Springs Ar. and I specifically asked if they were interested in lithium. He said that right now they are only interest in the brine. I am dubious. It is the exact same lease as the one TWG sent last year prepared by Charles Morgan, Texarkana. I looked Saltwerx up on the internet and it said the company was formed December 6, 2019. I wonder if it was set up to specifically buy these brine leases. Are they buying these leases for some other company or are they buying them for themselves thinking they can resell them later for a greater amount? AS to your question about the oil, gas an other minerals, paragraph 18 in the lease I received states that should they find oil or gas, I would be paid 3/16ths. The amounts they are paying for these leases, except for the initial payment, are the amounts set out in the 1970's. Plus this is a 25 year lease and it too states no payments for products extracted from the brine. We need to ask the AOGC if lessors who sign this lease would be entitled to lithium payments even though they sign a lease that states that there will be no payments paid for other products or other minerals extracted. I have already indicated I will not sign as the lease is currently worded. It is not worth the risk.</p> Like so many water wells, the…tag:gohaynesvilleshale.com,2020-11-06:2117179:Comment:39453072020-11-06T00:31:48.387ZRock Manhttps://gohaynesvilleshale.com/profile/MarkP
<p>Like so many water wells, there can be minor oil presence associated with the produced fluid. As well as gas.</p>
<p>To guard against missing out on some O&G revenues, I would want a lease that grants a royalty for O&G production that is sold to sales. .</p>
<p>Plus some sort of royalty to the product of the produced water (i.e. Lithium or bromine or other mineral product).</p>
<p>Like so many water wells, there can be minor oil presence associated with the produced fluid. As well as gas.</p>
<p>To guard against missing out on some O&G revenues, I would want a lease that grants a royalty for O&G production that is sold to sales. .</p>
<p>Plus some sort of royalty to the product of the produced water (i.e. Lithium or bromine or other mineral product).</p> I don't understand your comme…tag:gohaynesvilleshale.com,2020-11-06:2117179:Comment:39451552020-11-06T00:23:56.458ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I don't understand your comment, "scrim off the oil and only get $200/year. If this is a brine well, I 'm not sure there is any recoverable, economic oil. And where did the $200 come from? Mineral lessors are not liable for damages associated with the well operator.</p>
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<p>I don't understand your comment, "scrim off the oil and only get $200/year. If this is a brine well, I 'm not sure there is any recoverable, economic oil. And where did the $200 come from? Mineral lessors are not liable for damages associated with the well operator.</p>
<p></p> We got a lease from Saltworx…tag:gohaynesvilleshale.com,2020-11-06:2117179:Comment:39453762020-11-06T00:19:31.944Ziwana nipperhttps://gohaynesvilleshale.com/profile/iwanacoon
<p>We got a lease from Saltworx out of Texarkana, HQR Utah, wanting to lease 80 acres for 5 yrs at 2000.00 This would be on acreage we no longer own but we did retain the mineral rights. We got this letter about 2 weeks ago. Our mineral rights is on property based in Magnolia, Arkansas which I think there are houses on now. What I worry about, is if they damage these peoples property, can we be sued??? And as I found out from a well known oil tycoon, they can scrim off oil, etc also and will be…</p>
<p>We got a lease from Saltworx out of Texarkana, HQR Utah, wanting to lease 80 acres for 5 yrs at 2000.00 This would be on acreage we no longer own but we did retain the mineral rights. We got this letter about 2 weeks ago. Our mineral rights is on property based in Magnolia, Arkansas which I think there are houses on now. What I worry about, is if they damage these peoples property, can we be sued??? And as I found out from a well known oil tycoon, they can scrim off oil, etc also and will be making money off that but yet we only get 200.00 per year??? Help me out here. Sign or no sign.</p>
<p></p> As we always say, the money…tag:gohaynesvilleshale.com,2020-04-30:2117179:Comment:39033232020-04-30T12:41:11.219ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>As we always say, the money is in the royalty. The bonus per acre is a lease term of much lesser importance unless someone is dealing with a large acreage and has a need for quick cash. As long as this brine play is largely unproven, as to economic locations, and there is no competition for leases, expect bonus offers to be $100 to $200/acre. Delaying a decision to lease is always an option. For most, losing say $1000 in bonus money wouldn't be the end of the world. If delay results in…</p>
<p>As we always say, the money is in the royalty. The bonus per acre is a lease term of much lesser importance unless someone is dealing with a large acreage and has a need for quick cash. As long as this brine play is largely unproven, as to economic locations, and there is no competition for leases, expect bonus offers to be $100 to $200/acre. Delaying a decision to lease is always an option. For most, losing say $1000 in bonus money wouldn't be the end of the world. If delay results in a proven, economic brine play, lease offers will improve somewhat depending on specifics unknowable at this point. Long after a bonus is spent and gone, royalty revenue remains. And lessors will take comfort in knowing that they did all they could to get fair and beneficial terms for the rest of the lease contract.</p>
<p></p> I will not lease if the lease…tag:gohaynesvilleshale.com,2020-04-30:2117179:Comment:39032332020-04-30T04:15:07.912ZPolly Ann Footehttps://gohaynesvilleshale.com/profile/PollyAnnFoote
<p>I will not lease if the lease does not say that I will be paid for the lithium if it is proven to be commercially viable and royalties are required by the Arkansas Oil and Gas Commission. Of course, this means that if I do not lease now, and it is not proven to be commercially viable, I lose this lease money. In the Union county discussions, someone was just offered $100/acre for an oil and gas lease. This lease gives them the rights to oil and gas if they find it while seeking the…</p>
<p>I will not lease if the lease does not say that I will be paid for the lithium if it is proven to be commercially viable and royalties are required by the Arkansas Oil and Gas Commission. Of course, this means that if I do not lease now, and it is not proven to be commercially viable, I lose this lease money. In the Union county discussions, someone was just offered $100/acre for an oil and gas lease. This lease gives them the rights to oil and gas if they find it while seeking the brine. In effect, they have leased the brine, oil and gas and possibly lithium for a pittance.</p> Thanks Skip for passing that…tag:gohaynesvilleshale.com,2020-04-30:2117179:Comment:39032292020-04-30T00:00:17.459Zchattykbhttps://gohaynesvilleshale.com/profile/chattykb
<p>Thanks Skip for passing that along!!</p>
<p>~Kathy</p>
<p>Thanks Skip for passing that along!!</p>
<p>~Kathy</p>