I’m trying to understand how this all works. Lithium leases and horizontal drilling. At least two leasing entities leasing minerals in same area. One producer is beginning production but doesn’t have exclusive leases where they are drilling. How is a lessor paid if their lessee isn’t the producer pumping yet? I have been told lithium brine essentially flows like water so producer is pulling brine from everyone’s lease whether they have the minerals leased or not. I’m pretty sure producers have this all worked out but no one will explain it. How does this work?
Works the same in oil & gas. You better sign a lease or you run the chance of getting drained!
I have signed lease but not with producer that has started pulling brine. I’m just wondering how this all works with competing producers pulling from adjoining leases from each other. I guess it all works out during the division process? (Another mystery that hasn’t been fully explained to me).
Your state agency will have jurisdiction over the wells and requirements. You need to look at the agency regulations to see acreage, off-set footage, and other requirements which may affected by depths or formations. Look at the permit(s). If there are multiple leases on the same acreage, then the non-operating lessees may have joined in the well with the operator. If you post more specific information (state, county, operator, and tract info) then someone can give you better answers.
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sorry my oversight. Franklin County Texas. Not sure which operator well belongs to right now. Standard originally drilled exploratory well(only 1/4 mile from me). Company called GeoFrame has leased a lot of acreage around me and rumor mill says they have bought that well, but that’s just a rumor. My lease is with Standard. I’m just trying to figure out how they determine royalties when both operators have a checkerboard of leases around well. Right now neither company is real good about being forth coming with information but that may be the nature of the beast. i figured there is some process that works all this out. Just was wondering how it’s done.
Presently they are hauling brine out on tanker trucks. Must be for evaluating brine? - that can’t be a sustainable business model.
Here is permit for geothermal test well with depth to 11,200 feet. You can open the attachements to see plat and other filing, being drilled on 75 acres. And links to RRC requirements and article that heat owned by surface and is not minerals. Geothermal wells are often for heating and cooling and idea may be for an industrial use. No idea if any lithium is an issue here. https://webapps2.rrc.texas.gov/EWA/drillingPermitDetailAction.do?methodToCall=searchByUniversalDocNo&universalDocNo=498339730&rrcActionMan=H4sIAAAAAAAAAM1Qu27DMAz8mnQ0RNly04GDUaQd-wqawcig2IIjwLYMSu4D8MeXclCgdTMXGQQdj-TheBMIgXICAQhXRFVRBev654rqUuxx5t_NQQ-Dlwm3k2A-tE8a97ZKiyxLeUDiSt5tdgXDNMKabNvavnk01Nngn0ZDnyfVpHY8lGFnwtHVW3er25YJhWTCSP3WvRhN1ZGpNYo_Zko_dwtqfDJo0t2rbkcze2RNUDcRKDyYxvZ-Z0PUETnebx4iWP9ugFzUi0WZI_At8Ukh5zOvcR0rdaLUwh_8W1j-O6QcB90Y-hHG2eRgXy7noleESSKIKWWQoZgU_3z0me3Lyv0LL8OyTrECAAA Geothermal https://repositories.lib.utexas.edu/server/api/core/bitstreams/b793efab-df3d-478f-8936-ae4c7c2c3f00/content
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There are 3 link so each will appear if you tap in correct spot
That permit is for a well GeoFrame is doing to power their processing facility they plan to build. The well I’m looking at is in the William Lane survey. GeoFrame is leasing all minerals and geothermal and Standard is leasing lithium brine only. It was drilled about a 1 1/2 years ago.
Post well details - API number and original permit operator and well name. Geoframe did not permit any other wells in Franklin County. If you need to, go to RRC GIS viewer for info. No one can answer without information.
I understand that. What I was originally wondering is if say Standard pulls brine out of GeoFrame leases, how is that squared up with property owners? Is Standard obligated to pay GeoFrame lessors or if the other way around if GeoFrame pulls brine are they obligated to pay Standard lessors. Just trying to understand how that is worked out. This whole area looks like checker board of different lessees but GeoFrame and Standard have the bulk of the leases but nobody has a solid block as I understand.
This is not specific question. These companies may exchange leases or work together or sell out before anything happens. Have you signed a lithium only lease or a brine only lease and was that as surface or mineral owner. Or are you speculating about an oil and gas lease, which would be separate from a brine lease? Or are you thinking about what happens to produced water from an oil and gas well - this water will be owned by operator who has problem to dispose of? Speculative area at this time. You can start some research here. The Lithium "Boom" in Northeast Texas — Texas Oil and Gas Attorney Blog — June 1, 2024 and Ownership of Lithium in Water Reservoirs May Hinge on Texas Law | Thought Leadership | Baker Botts
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Can an oil and gas lease that doesn’t have provisions for lithium or brine where they are being produced be a means for a company to HBP the mineral interest if no oil and gas is no longer being produced?