SMACKOVER LITHIUM GROUP – TEXAS

Lithium from brine is an evolving energy play based on Direct Lithium Extraction (DLE).  The DLE process for extracting lithium and other elements with value from Smackover (SMK) formation water is becoming the most economic and environmentally friendly means of sourcing domestic lithium for use in modern battery technologies.  Leasing is ongoing and extraction plants are in the design/development stage.  Different states will have somewhat different regulatory and legal frameworks.

Note that lithium concentrations in the Smackover section can be highly variable plus reservoir quality for an effective water source can be equally inconsistent. As a result, not all areas may be prospective for lithium mining (DLE). One also needs to keep in mind that variable H2S concentrations are a normal product associated with the Smackover reservoir and any produced fluids.

The counties in Texas that are prospective for Smackover lithium production are Cass, Morris, Titus, Franklin, Hopkins, Hunt, Camp, Marion, Rains, Navarro, Wood, Van Zandt, Kaufman, Limestone and Upshur Counties.

T5 Smackover - Continuous acreage

Our land is pretty much surrounded by Standard Lithium— in fact, I think I’m landlocked.

A new-to-me company in our area is offering me a lease and saying they can get to my property in creative ways. Where can I find the TRRC rules on continuous acreage?
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    Skip Peel - Mineral Consultant

    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.

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    Lisa

    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!
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      mss

       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.

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