US EditionArkansas Oil and Gas Commission Approves First Lithium Royalty Rate
- On Wednesday in Magnolia, Arkansas, the state regulatory panel unanimously approved a 2.5% lithium royalty rate for Standard Lithium's Reynolds Unit project.
- The approval followed a multi-year dispute involving Standard Lithium, landowners in Columbia and Lafayette counties, and earlier rejected royalty proposals due to fairness concerns.
- The South West Arkansas project plans commercial production starting in 2028, with estimated capacity of 22,500 tonnes of battery-grade lithium carbonate annually and $1.5 billion invested.
- Commissioner Wohlford described the rate as “fair, consistent and competitive,” while Standard Lithium emphasized the royalties plus brine fees equate to about 3%, supporting landowner compensation and economic growth.
- This first lithium royalty rate decision sets a precedent for Arkansas, enabling Standard Lithium to continue development amid national strategic interest in domestic critical mineral production.
11 Articles
11 Articles
State Approves Standard Lithium's 2.5% Royalty Rate Proposal
The push to produce commercial lithium from Arkansas’ underground brines took a big step forward Wednesday when regulators set a royalty rate for landowners. The Arkansas Oil & Gas Commission unanimously set a 2.5% royalty for mineral rights holders, disappointing many who had hoped for a bigger percentage. The ruling, which came during a four-hour hearing at Southern Arkansas University in Magnolia, favored Standard Lithium. The Canadian compan…
arkansasadvocate.com
KTLO LLCArkansas Oil and Gas Commission approves first lithium royalty rate
AOGC Chairman Jerry Langley (center) and Administrative Law Judge Charles Moulton (right) listen to testimony at a May 28, 2025 hearing in Magnolia on lithium royalties. (Ainsley Platt/Arkansas Advocate)MAGNOLIA, Ark. — After a third attempt, a lithium royalty has been set for the first time in Arkansas. The Arkansas Oil and Gas Commission voted unanimously on Wednesday to approve an application by SWA Lithium, a joint venture between Canada-bas…
New Hamburg independent
Smackover Lithium’s South West Arkansas Project Receives Royalty Rate Approval From the Arkansas Oil and Gas Commission
LEWISVILLE, Ark., May 29, 2025 (GLOBE NEWSWIRE) -- Smackover Lithium, a Joint Venture (“JV”) between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV:SLI) (NYSE:A:SLI) and Equinor, is pleased to announce that the Arkansas Oil and Gas Commission (“AOGC”) has…
Standard Lithium wins battle over lithium extraction royalty after Oil & Gas Commission unanimously approves proposal | Northwest Arkansas Democrat-Gazette
Mineral rights and landowners in southern Arkansas will receive a 2.5% royalty for lithium extracted from brine on their property after the Arkansas Oil and Gas Commission voted 9-0 on Wednesday to approve the payment rate.
Pantera boosted by Arkansas royalty framework decision
Pantera Lithium (ASX:PFE) believes its Smackover project will be significantly derisked by the Arkansas Oil and Gas Commission endorsing a lithium royalty structure for brine-based lithium projects within a geological unit of the same name. Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more. The royalty will first be applied to the Standard Lith…
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