Arkansas 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 Rock Man
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Interesting development - but not surprising.
Looks like the "rejuvenation" material is a lithium salt compound - which I am sure can be extracted from lithium carbonate (DLE product)
I may have missed it in the article, but I wonder how long this "injection" works on a depleted lithium battery. As well as if this is only a one-time event or something that can be done over and over again.
Technology marches on!
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Permalink Reply by Rock Man
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You bring up a good point about "additional deductions".
Comparing this to an O&G lease where - unless one has a "cost free lease" - one sees various costs associated with transportation, compression, gathering, etc. deducted from any royalty revenue (along with taxes)
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Permalink Reply by Skip Peel - Mineral Consultant
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I'd have to go back and review the language in the brine leases I have but I suspect that the terms allow for deductions of operating costs, transportation costs, spent brine disposal costs, and severance taxes. If they are like O&G leases they probably allow for deductions for cutting the grass, paper for the copy machine, coffee for the break room, etc, etc, in other words any expense the operator decides to pass along to the mineral owners. This is the way big business works and how asset owners perform little due diligence and get screwed because they didn't get any professional assistance to protect them from getting pencil whipped. Most mineral lessors do not understand the eight digit decimal fraction that defines what they are paid. It is unclear what it means and they simply accept what they receive. Here is an example of decimal interest for someone who owns 100 acres in a lithium unit that encompasses 10,000 acres. Member can extrapolate the calculation for the size of their unit and the number of acres they own.
10/10,000 = 0.001 x .025 = 0.000025. 25 millionths less deductions.
The price of lithium will hopefully be around $1,000,000 a pound!
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GoHaynesvilleShale.com (GHS) was launched in 2008 during a pivotal moment in the energy industry, when the Haynesville Shale formation—a massive natural gas reserve lying beneath parts of northwest Louisiana, east Texas, and southwest Arkansas—was beginning to attract national attention. The website was the brainchild of Keith Mauck, a landowner and entrepreneur who recognized a pressing need: landowners in the region had little access to…
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