Texas Smackover Lithium Play

by Skip Peel - Mineral Consultant

Feb 27, 2024

As the Smackover (SMK) Lithium (Li) play picks up steam we need to acknowledge that from regulatory and legal standpoints, there will be significant differences between the play in South Arkansas and in East Texas.  Very soon we expect to know more about royalty provisions and regulatory guidelines.  From past experience with dissimilarities between Texas and Louisiana mineral laws and regulatory statutes governing the Haynesville Shale, we hope to limit confusion and make it easier to access the information that will be pertinent to land and mineral owners.

In order to help members and quests to the website and to avoid confusion, we will start two new discussions, one for Texas and one for Arkansas.  There is an abundance of information in the original SMK Lithium discussion threads and members may want to click on them and then save them to their computer bookmarks/favorites to be able to access them in the future as they will eventually rotate off the main page.  After 24 hours, comments in those discussions will be closed but the replies will remain available in the website archive.   Archived discussions are available by using the search box in the upper right corner of all website pages.

GoHaynesvilleShale.com was one of the first resources for mineral owners to learn basics, share information and generally provide a place where mineral owners could become more informed managers of their mineral assets in the age of the Internet.  The website is pleased to continue to provide those services to those who will benefit from the SMK Lithium Play.  Please keep in mind two things.  You are a key part of the on the ground intelligence network by letting your friends and neighbors know about GoHaynesvilleShale.com and encouraging them to participate in site discussions.  And since GoHaynesvilleShale.com is free for all to use, please consider a donation to help keep the website online.

https://gohaynesvilleshale.com/donate

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    Joe B. Lovelace

    I have been neglectful in posting the comments made to the Texas Railroad Commission (TRRC) Rule to implement SB 1186 by Senator Bryan Hughes from the 2023 Texas Legislative Session. 

    The proposed rule, posted October 15, 2024, clarified that the TRRC's jurisdiction over brine mining includes the authority to regulate brine production wells and brine injection wells (“spent brine return injection wells”) used for lithium mining, which requires re-injecting naturally occurring brines into the formation from which they were produced after the extraction of minerals.

    The posted comments to the Rule have been posted at this link under TRRC Proposed Rules (cut and paste in your web browser) or click here

    https://www.rrc.texas.gov/general-counsel/rules/proposed-rules/comm...

    All the comments are enlightening including those by and Oil & Gas Law Firm - Coghlan Crowson - that includes this sentence that would indicate further legislation will be filed in the Texas Legislative Session that begins in January 2025.

    Due to our law firm’s extensive exposure to the brine mining rush, leasing, DLE development, and the activity being in our back yard, we contacted and are working with Senator Bryan Hughes’ of State Senate District 1 on potential legislation to address continued questions in the law concerning brine minerals and ownership that impacts his constituents and our clients in Northeast Texas.

    Dec 17, 2024

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      Joe B. Lovelace

      Filed in the Texas Legislature yesterday (February 28, 2025) by Senator Bryan Hughes is SB 1763 (attached) with the following language:

      DEFINITION.  In this chapter, "brine minerals" means the interstitial particles and solutes suspended, dissolved, or otherwise contained in brine, including bromine, magnesium, potassium, lithium, boron, chlorine, iodine, calcium, strontium, sodium, sulfur, barium, sodium chloride, and other minerals, chemical elements, compounds, or products produced with or extracted from brine.
      Sec. 124.002.  OWNERSHIP OF BRINE MINERALS.  Except as otherwise expressly provided by a conveyance, contract, deed, reservation, exception, limitation, lease, assignment, or other binding obligation, the owner of the mineral estate of the land owns the brine minerals below the surface of the land as real property and is responsible for protecting the correlative rights of other owners.
      Recall that Senator Hughes in the 2023 Texas Legislative Session authored SB 1186 authorizing the Texas Railroad Commission to pass rules to regulate extraction of fluid from brine aquifers in Texas.  The Commission adopted new rules to implement the provisions of Senate Bill 1186.
       
      The progress of SB 1763 can be tracked at Texas Legislature Online  https://capitol.texas.gov/Home.aspx

      Mar 1

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        Joe B. Lovelace

        From Press Release issued by Standard Lithium March 26, 2025 

        https://www.standardlithium.com/investors/news-events/press-release...

        • The first ETX project area of approximately 67,000 acres has been identified. This project area is centered on Franklin County, and the Company has previously drilled three exploratory boreholes in and adjacent to this project area and reported the highest known lithium in brine grades in North America (maximum lithium grade of 806 mg/L reported). Some of the existing wells will be resampled during Q2 and Q3 of this year, and it is expected that a maiden Inferred Resource Report for this highly prospective lithium resource will be published in Q3 of this year;
        16

        Mar 27

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