Thanks to Joe Lovelace for bringing this to the members' attention.  Much of the brine leases in south Arkansas were taken years ago when the demand and value of the by products was considerably less than currently.  Although there are other by products of worth, Lithium is the focus of efforts to increase brine extraction.  Help get the word out and provide some details to help members get up to speed.

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Thanks.  It would be helpful if you were comfortable with sharing the terms of the lease offers.

Or ask others who have had offers to join this site and discussion. The more info, the better. I am sure that others would benefit from some discussions about this topic.

Joe, do you mind sharing the terms of your lease offer?  

I did not work on the boilerplate language of the Brine Lease which I viewed as a "cut & paste" of the Arkansas format.  My offer limited the term to a 2 year option with the right to exercise a 5 year Brine Lease.  Bonus for option and lease were similar per acre but less than a Lessor would receive in an O&G Lease.  Royalty for the "brine" produced or removed from leased land was offered as a % of the gross value received on "brine", including any product, products or elements extracted therefrom, without deduction for post-production cost.  I also inserted a "no warranty" clause as it appears issues in Texas regarding a "brine lease" are undecided including regulatory oversight by the Texas Railroad Commission.

That helps.  Thanks, Joe.  I was curious if any existing data showed lithium potential from brine produced in Cass.  Considering the 2 year option, the answer is likely "no" or that whatever may exist is inconclusive at this time.  The only way this would seem to be an attractive investment for the investor would be to get rights on the front end as cheaply as possible before running any modern tests which would necessitate drilling multiple test wells.

Thanks Joe!  I should be receiving a packet from them in the mail soon with their lease offer.  I'm sure it will be same as yours.  

I was contacted by Jeremiah Mikel as well.    My O&G attorney looked at the lease and saw several problems with it .I looked at her fees, and didn't think the lease would cover those costs, even with negotiations. So I've pretty much decided not to accept the offer. 

I've been reading up on the brine leasing and this is all very helpful to know. What were the monetary values associated with the offers to lease? (signing bonus / royalty rate)

Does anyone know if brine production has specific field rules similar to O&G production? Assuming the RRC is the regulatory agency. 

Cass County Brine Lease Update - I am aware of two companies recently seeking Brine leases co-joined with Oil & Gas leases - Gulf Atlantic Resources LLC, an Alabama Corporation and San Luis Energy, LLC, a Texas Corporation located in Houston.  The area of interest is Northwest of Atlanta.

Thanks, Joe.  I think it would be helpful for someone to upload a copy of the brine leases for review and discussion if possible.  Specific language and terminology are important in addition to the questions that prospective lessees will have about bonus and royalty.  The fact that these are leases for brine and oil & gas requires some due diligence.  I have never run across a "hybrid" lease like that.

Will try to upload the San Luis Energy lease soon.

That would be appreciated, Joe.  Let me know if you need any help.

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