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Permalink Reply by Skip Peel - Mineral Consultant yesterday

Curious, I use Lake Hearne with the firm Davidson, Summers, Hearne, Martin and Powell in Shreveport.  Lake is admitted to practice in Texas and Louisiana.  You may reach him at 318-424-4342 or lhearne@davidsonsummers.com.  Please let him know that I referred you.

Please be aware that there is still much that we don't know about the lease terms in either state.  We do know what the royalty is now in Arkansas.  Texas has just had a Supreme Court decision that the mineral estate holds ownership to the brine from which the lithium is extracted.  Operators are attempting to keep a tight lid on information about the play.  I wouldn't get in a rush to execute a lease as production, and thus royalty, will not commence until 2027 or 2028.  Good luck.

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Permalink Reply by Curious Will yesterday

Thank you for your prompt reply, Skip, and your suggestion..  Unfortunately, I believe I need someone who is licensed in Arkansas now as this is where I have the current offer. Whether I accept or not depends on a lot of factors and for that reason I am trying to be extremely careful.  I was hoping to find someone licensed in both Arkansas and Texas in case I do have an opportunity in Texas down the road.  

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Permalink Reply by Skip Peel - Mineral Consultant yesterday

In that case you need Grant Summers.  Grant is the senior attorney at the Davidson, Summers firm and is licensed to practice in Arkansas.  Since the preponderance of legal work performed by the firm is mineral focused, they cover all three states.  Not surprising given the history of the oil industry in Shreveport.  In the first half of the 20th Century there were about 30 major oil fields discovered in north Louisiana, south Arkansas and east Texas.  Shreveport was the the source of the majority of supplies and services that enabled those fields to be developed.

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Permalink Reply by Skip Peel - Mineral Consultant 14 hours ago

I think it only fair to add that even experienced O&G/Mineral law firms can be hesitant about assisting with brine leases.  For the most part they may only have a little more information than the general public about what is possible in the way of lease terms.  They do know case law regarding minerals in the states in which they practice and can make educated guesses about what should be included in lease clauses with good input from mineral clients but there is still much we don't know.  What are reasonable terms?  What terms in leases are likely to end up being litigated by courts?  There is little or no case law at this time outside of possibly Arkansas because of their fifty year history with bromine extracted from brine.

This is early in a developing "play" with much yet to be learned.  I have no problem with those who decide to lease now as long as they have professional help.  I also don't see a problem for most mineral owners in waiting until we know more.

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