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
Joe Heaton
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.”…
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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. …
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E-Discovery Update: Louisiana Third Circuit Affirms Defendant’s Authority to Govern Its Own E-Discovery Protocols
The Louisiana Third Circuit recently affirmed a trial court discovery ruling that allowed the defendant to design its own e-discovery protocol without input from plaintiffs. In doing so, the Third Circuit bolstered the longstanding principle that trial courts have considerable discretion over discovery issues. …
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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…
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…
Louisiana Supreme Court Holds That Payment of Mineral Royalties Judgment Against LDNR is a Matter of Legislative Discretion, Reversing Grant of Mandamus
In Crooks v. State of Louisiana through the Department of Natural Resources, 22-0625 (La. 1/1/23), ___ So. 3d ___, 2023 WL 526075, the Louisiana Supreme Court rejected a writ of mandamus that would have compelled the LDNR to satisfy a $4.7 million judgment for reimbursement of mineral royalties. In doing so, the Court further…
Louisiana Third Circuit Affirms that LDNR Can Only Recover Emergency Response Costs Under La. R.S. 30:93(A)(4) from the Operator of Record and its Working Interest Owners
In Litel Explorations, LLC v. Aegis Development Co., LLC, 21-0741 (La. App. 3 Cir. 4/6/22), –So. 3d–, the Louisiana Third Circuit denied the LDNR’s claims for recovery of over 6.3 million dollars in emergency costs from prior operators of an orphaned well. The Court held that, when the LDNR spends monies from the Oilfield…
Proposed Louisiana Senate Bills Could Secure Up To $200M In Federal Funds For Orphan Well Restoration
Congress has dedicated $4.7 billion to orphan well plugging, remediation, and restoration activities nationwide through the Infrastructure Investment and Jobs Act (“IIJA”). A substantial portion of this money will be apportioned to the various states based on each state’s capacity and ability to effectively utilize the funds to plug orphan wells. Louisiana Senate Bills 23…