Arkansas Lithium negotiations may have impact in Cass County

Note from Shawn Larson

Publisher for the Journal-Sun

In the article printed below with permission from the Arkansas Times, the Arkansas Oil and Gas Commission continues to wrestle with the big players in the industry over royalty rates. In the article, it mentions that the companies are offering landowners 1.82 percent, with the landowners seeking 12.5 percent. As the challenges continue over royalty rates, Cass County and other areas in Northeast Texas will no doubt be affected by the negotiations.

The article also mentions that “Standard Lithium Chief Operating Officer Dr. Andy Robinson, a geoscientist, cautioned the commission that Standard Lithium may leave Arkansas without a favorable royalty rate, saying they may look to invest their capital instead in east Texas, another region with lithium-rich brine.”

Based on communications between the Journal-Sun and landowners, it appears that landowners in Northeast Texas are negotiating with land companies for brine rights at an approximate rate of 10%. It will be interesting to see how this trend impacts negotiations in Arkansas and the nearby Cass County area. Local officials are still recommending that before landowners sign any contracts regarding land rights they read over the paperwork and find an attorney that specializes in land rights to protect their interests.

According to a source at the Times, the process may stretch out to the summer.