My wife has recently been in contact with a firm about a lithium royalty lease in Hopkins county. It looks like there was some previous discussions in the forum but they were all closed within 90 days for no activity. We are curious as to the going royalty rates and bonus payments. We are somewhat familiar with oil and gas leases but have no experience with lithium. Any comments would be appreciated.
Lithium royalty rates are much lower than oil and gas and vary from state to state. The market is fairly fluid on them right now as the technology and companies working on it are still emerging. The first draft leases that I have seen were not very good (in my opinion). The wording looked like it had been copied and pasted from various oil and gas leases and was contradictory from paragraph to paragraph, so be very careful. Would suggest that an experienced oil and gas or surface attorney review any lease. Various state legislations are working on bills regarding lithium.
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