As previously described in The Energy Law Blog, Arkansas is unlike several of its neighboring states in that it already has a robust body of law governing the extraction of minerals from brine. The Arkansas Oil and Gas Commission oversees brine production and sets the applicable royalty rates to which landowners are entitled.
Continue Reading Smackover Lithium Update: Arkansas Oil and Gas Commission Sets Hearing to Fix Lithium Royalty Rate
Louisiana Mineral Law
Proposed Law Would Create Louisiana Sales Tax Rebate for Lithium Recovery Projects
Louisiana Senate Bill 268, one of a pair of lithium-focused bills filed by senator Stewart Cathey Jr., would establish a state sales tax rebate program for Louisiana lithium projects. This rebate would apply to sales tax paid for “all equipment, machinery, materials, improvements, and other items purchased in connection with the development, production, operation, storage, processing, or transportation of lithium or lithium refined products in connection with a qualified lithium recovery project.”…
Continue Reading Proposed Law Would Create Louisiana Sales Tax Rebate for Lithium Recovery Projects
Proposed Brine Legislation May Pave the Way for Louisiana Lithium Projects
We are now seeing the Louisiana legislature address some of these uncertainties head on with Senate Bill 285, which was filed on March 1, 2024 by Louisiana senator Stewart Cathey, Jr. Namely, SB285 would grant authority to the Office of Conservation to establish units for brine production. Furthermore, the proposed legislation would revise the Mineral Code to expressly include brine among the substances to which the Mineral Code applies. …
Continue Reading Proposed Brine Legislation May Pave the Way for Louisiana Lithium Projects
Louisiana State Mineral Board to Consider Retaining Third Party Counsel to Pursue Underpayment of Royalty Claims Associated with Natural Gas Production on State Lands and Waterbottoms
Louisiana State Mineral and Energy Board to Consider Retaining Outside Counsel to Pursue Claims Against Louisiana Mineral Lessees and Well Operators for Failure to Correctly or Timely Pay Royalties. …
Continue Reading Louisiana State Mineral Board to Consider Retaining Third Party Counsel to Pursue Underpayment of Royalty Claims Associated with Natural Gas Production on State Lands and Waterbottoms
The Smackover Formation: Unveiling the Lithium Potential
The pursuit of alternative energy sources has become increasingly important in our quest for a sustainable future. Lithium, a key component in rechargeable batteries, has emerged as a vital element for powering electric vehicles and storing renewable energy. The rising demand for lithium, combined with Federal tax credits for lithium production, has intensified lithium exploration…
Louisiana Legislature to Consider Amendments to Forced Pooling Regime Requiring Operators to Pay Lessors of Nonparticipating Working Interest Owners Directly
On Friday, March 31, 2023, Representative Larry Bagley of Louisiana’s District 7 proposed amendments to Louisiana Revised Statutes § 30:10. The bill, HB 590, extends a prior substantive change in the law that was affected by the 2012 amendments to La. R.S. 30:10. In the 2012 amendment, operators of force-pooled drilling units were required…
Louisiana Senator Proposes Statutory Framework Governing Rights and Obligations of Parties to Renewable Energy Leases
The Louisiana Legislature’s 2023 Regular Session begins on April 10th, and last Friday, Louisiana Senator Allain of District 21 filed SB 154 proposing to enact a statutory framework directly governing the rights and obligations of parties to renewable energy leases.
The bill defines a “renewable energy lease” as a lease entered into for the purpose…
Lithium Extraction May Soon Turn Produced Water Into Produced Profits
As a key component of most batteries, lithium is ubiquitous in our daily lives. From the moment your alarm on your cell phone goes off in the morning, to using your battery-powered toothbrush, to reading this blog post on your laptop or tablet, lithium makes it all work. Thus, it shouldn’t surprise you to hear…
The Western District of Louisiana Holds that the Federal Energy Regulatory Commission’s Shipper Must Have Title Policy Creates No Private Right of Action
In a unique twist on a common challenge to the deductibility of post-production expenses, plaintiffs in Grayson L.L.C. (Of Louisiana), et al. v. BPX Operating Co., et al. sued the unit operator for breach of contract to recover transportation costs incurred as a result of alleged regulatory violations of the Federal Energy Regulatory Commission’s (“FERC”)…
Future Of Federal Offshore Oil And Gas Leasing: Department Of Interior Releases Proposed Five-Year Program For 2023-2028
Last week, the U.S. Department of the Interior released its proposed Outer Continental Shelf (OCS) five-year program for offshore oil and gas leasing. The Outer Continental Shelf Lands Act (OCSLA) requires the Secretary of the Department of the Interior to “prepare and periodically revise and maintain an oil and gas leasing program” (i.e., a five-year…