Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 9, 2025 at 6:12

Lisa, I'm unsure what you are asking as to continuous acreage rules.  Being surrounded by lands leased to Standard Lithium may not be a problem.  If the TRRC uses the existing pooling rules for O&G units all mineral interests would be force pooled into the unit and share in production based on their acreage and lease royalty.  Only if T5 Smackover were to not consent to unit integration might you have a problem.  This is all conjecture since the TX legislature and the TRRC have not published the regulations for brine related development.  T5 Smackover may be a flipper so do some research and ask questions.  If Standard Lithium would apply to form a production unit that includes your acreage they would likely offer you a lease.

Permalink Reply by Lisa on December 9, 2025 at 8:02

We have lease offers in hand from both SL and T5, very different offers. I want to understand the already-leased property around me— and learn the rules of when a property is truly landlocked.

Permalink Reply by Lisa on December 9, 2025 at 8:04

So I want to know the rules for access— but also know where to look to see leased property status.

Permalink Reply by Skip Peel - Mineral Consultant on December 9, 2025 at 8:13

In Texas the mineral estate is superior to the surface estate.  That does not play a part in horizontal wells where surface locations can be off the unit acres being drilled and produced but may to some extent in vertical brine wells.  With sufficient formation permeability there wouldn't necessarily be a need to have a well on your property.  Any brine unit operator would have to honor the terms of your lease no matter who you lease to.  So after conferring with a experienced attorney, I would that the lease with the best terms.

Permalink Reply by Lisa on December 9, 2025 at 8:17

We have surface and mineral — land in family over 100 years.

So a landowner could have a lithium lease with company A even if all surrounding neighbors have leases either company B? That’s the rule I’m looking for.

Permalink Reply by Lisa on December 9, 2025 at 8:19

Correction:
. . . even if all surrounding neighbors have leases with company B.

Permalink Reply by Skip Peel - Mineral Consultant on December 9, 2025 at 8:25

Very few drilling units contain leases to one company.  The norm is for their to be multiple lessees and that is why force pooling came into being.  Lisa, please note that I am giving opinions based on O&G and it is possible but I think improbable that Texas will treat brine units much differently.

Permalink Reply by Lisa on December 13, 2025 at 12:45

I got an energy lawyer’s advice on this. From what I understood, even though surrounded by one company’s leases, we are free to sign with another. Whew!

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2025 at 13:00

I agree with that advice.  I hope it gives you some peace of mind.  The terms of a lease for O&G or for lithium or other elements in brine would be legally binding on whatever company would eventually drill wells and develop the resource.  I should add the caveat that in Texas the question of brine ownership is not settled at this time.  For those that own their land in fee that is a moot question.

Permalink Reply by Lisa on December 14, 2025 at 13:17

Thankfully we are dealing with over-a-century-old family land. Minerals intact!

Permalink Reply by mss on December 14, 2025 at 16:02

 From what I’ve seen, T5 backs up what they say and actually has a rig on location, which suggests they are serious about development. Their management team also seems to have a successful track record in other ventures.

Permalink Reply by Skip Peel - Mineral Consultant on December 14, 2025 at 16:15

mss, is that rig a lithium appraisal well or a geothermal well?  The relationship between lithium and other brine elements and geothermal is not well defined on the company website.

https://www.t5smackover.com/

• ‹ Previous
• 1
• 2
• Next ›
• Page