Does anyone have experience with G2 Land Services? They are contacting mineral owners about leasing in Bowie County along the Sulphur river. Just trying to find out more before anything is signed. What are good vs bad terms?
Bowie County is in the Smackover region, where lithium brine has been found. Find a good mineral rights attorney to write language into a lease that protects your rights with lithium brine, and to review the contract in general, as standard boilerplate contracts don’t protect you.
Search “lithium” in the search bar for more information - this came up in Cass County earlier this year.
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Take a look at this thread for additional information.
Thanks so much for that link. My offer looked a lot like that one. I’m also looking for a lawyer to review the lease and terms. These calls came out of the blue - I thought it was a scam at first as well.
I don’t know much about G2 other than we were contacted same as you. I think we are going to try and find a lawyer around Texarkana and maybe go down there. This forum has helped more than any thing else I have found.
What royalty and bonus did G2 offer y’all in Bowie county for Lithium? Are they also wanting to lease the Oil too?
To answer your other question, they list:
oil, gas and other minerals, including, without limitation, hydrocarbon substances, non-hydrocarbon substances, dissolved and undissolved minerals, helium, sulfur, brine, bromine, uranium, lithium, hydrogen, carbon dioxide, carbon black, zinc or any other products produced, recovered or manufactured from any gas or liquid (collectively, the “Leased Substances”),
here is the offer:
Option Term: 1 year
Option Payment: $25/ acre
Primary Term: 5 year including option term
Primary Term Balance: $225/acre
Extension Term: 5 years
Extension Payment: $250/acre
Royalty: 3/16
The option covers the first year of the lease in which we will pay 10% (Option Payment) of the Bonus payment. Prior to the expiration of Option Agreement, we are required to pay remaining balance of 90% (Primary Term Balance) for the lease to continue for the remainder of the Primary Term. If such payment is not received, the lease will terminate and become null and void. Prior to the expiration of the Primary Term, there is an option to extend for an additional term of 5 years, but the full extension payment will be due at the exercise of such extension.
The laws may need to catch up to lithium leasing. In many states, any brine aquifers belong to the surface owner. Water that comes back out of the hole with oil and gas may be owned by the mineral owner or the operator and may vary by state. Enter this new situation with caution and a good attorney. You may need a separate lease for lithium and a different one for oil and gas. When they add that many substances into an oil and gas lease, I will not lease with them or will get an attorney’s opinion for the other non hyydrocarbon substances.
I will not do an option lease, only fully paid up and only for three years or less. I will also not do an extention at all. And I always ask for what they are offering at 1/5th or 1/4th to see if they have that option.
When I asked to separate the lithium from the oil and gas, they mentioned that TX has ambiguity in the laws as to who owns the groundwater (surface or mineral owner). They also think the TX supreme court will have to make the final decision. Does anyone know anything about that? They told me the better way to defend the mineral owner’s interest is if they are in the same lease.
Do not take legal advice from a leasing landman. His job is to get your signature as fast as possible. If you lease lithium or other substances you do not own, having it in the same lease with the minerals you do own, does not give you title to or make your claim for the lithium any more defensible. I would also not lease any of those other non-hydrocarbon substances in an oil and gas lease. Listen to M Barnes about the terms and go get legal advice.
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We had the same conversation with G2. We spoke with a lawyer in Texarkan,that was a great help.
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