Texas Smackover Lithium Play
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.
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Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant
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Others have said Standard Lithium is leasing in East Texas and early in 2024 a map was published that covered brine leasing in East Texas - Cass, Morris, Titus and Franklin counties. Since then Hopkins County has been confirmed as having brine leasing. Standard Lithium or a land company representing the company has offered leases in Cass, Titus and Franklin. East Texas Natural Resources (ETNR) has been confirmed as leasing in Cass and Morris. The map is now dated and it makes sense that other leasing companies and counties may be part of the competition for brine leases in East Texas. I uploaded the attached map in mid March.
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Permalink Reply by Lisa -
The guy talking to us stated the company he is representing, but I can’t remember it— probably because of my assumption it was all for SL.
I’ll ask him the next time he calls.
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Permalink Reply by Skip Peel - Mineral Consultant
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It is getting about time for companies to begin recording memorandums of lease in the public records of the counties where leasing is ongoing. Those memorandums will be filed of record in order to hide as much of the detail as possible that appears in the lease so there will be no record of bonus paid or royalty. In the Smackover (SMK) what is important is the location of the minerals that are leased. We need to keep in mind that this is a conventional reservoir play so the "sweet spots" are important to know. A sweet spot will be a location with commercial concentrations of lithium (the higher the better) and a sufficient volume of brine. If anyone lives in reasonable proximity to the county seats, please consider a trip to the clerk of courts record room to see what has been filed.
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Permalink Reply by Lisa
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I talked to the guy who approached us. They are indirectly representing Standard Lithium. The offer is indeed a great starting place. We’ll be meeting with an O&G attorney soon. Recommendations welcome!!!!
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Permalink Reply by Skip Peel - Mineral Consultant
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For Texas O&G and mineral work, I use Lake Hearne Jr. at the Davidson, Summers, Hearne, Powell and Martin firm in Shreveport. Lake is admitted to practice in Texas and does a good bit of work for Texas mineral owners. He has been keeping up with the SMK brine play.
https://www.davidsonsummers.com/attorneys/william-lake-hearne-jr/
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Permalink Reply by Lisa
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Thanks!! I’ll share that with my relatives. I’ll be sharing the attorney expenses with two others, and they prefer someone in Texas, maybe in Tyler area or DFW. Any extra names there?
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Permalink Reply by Skip Peel - Mineral Consultant
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There may be some qualified attorneys in Tyler but I don't know any. Location is of less importance than O&G and mineral knowledge. In these cases, not any attorney will do. You want a firm whose primary legal focus in O&G and mineral rights. You also want to communicate by email so that there is a permanent record of questions, answers and legal opinions. All O&G attorneys with reputable firms will offer a no charge initial interview/discussion to understand the implications of a potential lease, discuss options and estimate cost based on what the client wishes to accomplish. Be advised that regardless of who you choose, there is little hard evidence to go by in E TX at this time and it may take another year to have inputs that can inform what are fair market lease terms for lithium and other brine related substances of value. There are also environmental concerns especially as they relate to H2S and surface spills. Brine leases as with O&G leases should not give away rights to surface use. Although surface use may be limited in the acres involved, there is value in allowing surface use and lessee/operators should pay fair market for that also.
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Permalink Reply by Lisa
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Do I understand this correctly:
In visiting with the land man that’s been pursuing us, it will be in our lease that they can not enter our property or use the surface in anyway for drilling without explicit permission. This lease is just granting access under the surface.
If they wanted to set up the drilling on my land to pull brine water from an area, that would be another negotiating— likely with more money involved.
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Permalink Reply by Skip Peel - Mineral Consultant
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All leases, whether O&G or Brine, should contain a clause for No Surface Use. I advise land owners that this is important in two respects. First, it gives the surface owner the opportunity to grant limit surface use in return for compensation. Secondly, if the fee owner ever sells the surface that clause will be important for the new owner of the surface who does not own the mineral rights. No one wishes to acquire a surface estate that they do not fully control.
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Permalink Reply by Sam Goodman
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Does anyone know man named Jacob Warnock? He use to be with Delago Resources and is now with Silver Creek Resources? I came across his name and info but I can't seem to connect the dots.
Thanks!
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Permalink Reply by Skip Peel - Mineral Consultant
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Sam, I'm not sure just what dots you are looking to connect. Silver Creek Resources is a mineral company. They have a website.
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