re: Diving deeper on Standard Lithium?

Just finished watching the royalty pre hearing. Seems to have gone pretty well overall.

Here’s the biggest remaining hang up I’m seeing.

One of Standard’s motions was for the judge to quash the subpoena requiring Standard to provide to the commission sensitive, competitive info. Standard says that the info would open up antitrust issues and would be bad for all lithium producers. To provide this info in this pre hearing or in the Nov hearing is to make it all public info.

Judge says he understands but thinks the commission will want this info (they did want it at the Dec 23 hearing.) Says that Standard has the option to refuse the subpoena at the Nov hearing. The commission doesn’t have power to enforce subpoenas so would have to take subpoena enforcement to circuit court if they insist. Circuit court could provide sensitive info protection that these hearing agencies cannot. Standard’s lawyer clearly said today that they won’t be providing the sensitive info subpoena or not.

So sounds like Standard and oppo lawyer will try to get together and compromise on what info Standard will provide. If oppo doesn’t budge on the info he has subpoenaed then Standard will show up to the Nov 4 hearing without the subpoenaed info. If that happens the commission has to decide if they can move forward without that info. If so, great. If not, it’ll be another wasted hearing and there might be a circuit court production in our future.

(Amateur take, not a lawyer)

Finally back in the green!!

Im concerned about this! Surely Arkansas is going to settle this. I think it should be fair, but 12% and 1.8% is a huge diff. This means to much to the state of Arkansas. Also land owners deserve a cut, but 12% is stupid crazy! Hope they don’t F this up!

quote:

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it will probably open at $2.50 come Monday

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Prophetic

Good lord some small positions want out really bad this morning.

The pre-hearing judge's final recommendations are in. Some favorable, but 5 is a problem because of 5b. 5b is why this wasn't decided in December 2023.

There were two objectors, the Hickey objectors and the SAMA objectors.

1. Hickey objects three different ways. Judge recommends in Standard's favor on all three.

2. SAMA objects that the application constitutes rulemaking (not good). Judge recommends in Standard's favor.

3. SAMA objects that royalty has to be determined on a unit-by-unit basis, not for the entire Smackover Formation as Standard wants. Judge recommends that Standard and friends amend their application before Nov 4 hearing to include their existing brine units along with the Smackover Formation, to give the Commission options.

4. SAMA objects that Albemarle does not have standing and should be removed from the Application. Judge's recommendation can go either way, depending on if AOGC sees a "brine unit" and a Albemarle's brine "operational area" as synonymous. If so, Albemarle has standing and can stay. If not, Albemarle does not have standing and should be dismissed.

5. SAMA objects that it must be proven that lithium can be profitably extracted (that Standard has to disclose a bunch of financial info) before determining a lithium royalty. Judge recommends that the law does require that the AOGC find that profitable extraction of lithium can be achieved before issuing a royalty rate. Judge does not know what evidence the AOGC will need to determine profitable extraction.

5a. Standard and co filed a motion to quash subpoenas for the Nov 4 hearing that would require each of them to produce a witness to testify regarding the following topics: "(a) brine leasing activity…in south Arkansas, northeast Texas, including highest and best bonus and royalty rates, royalty structures, lithium royalty rates, and lease provisions; (b) current status and results of any feasibility study or analysis pertaining to the resulting profitability of lithium resources from brine; and (c) with respect to the subpoena issued to TETRA, assignments and related contracts with SWA regarding brine leases or lease rights."
5b. The applicants believe this info is sensitive, confidential, and proprietary. That it would cause federal antitrust issues. That it is irrelevant and unnecessary considering the already publicly available info.
Judge recommends not to quash any of the subpoenas since he can't decide what's relevant or not without seeing the info himself.

USGS study of SW Ark Smackover. USGS Smackover

"Using a combination of water testing and machine learning, a U.S. Geological Survey-led study estimated between 5 and 19 million tons of lithium reserves are located beneath southwestern Arkansas. If commercially recoverable, the amount of lithium present would meet projected 2030 world demand for lithium in car batteries nine times over. "

Front page of fox news Feeling Foxy

The landowners are stupid for not understanding how much their land could appreciate once this takes off. Most inherited their land and wealth and aren't that smart. Checkers players. It's frustrating as hell to deal with. The largest landowners I know of are all old and don't need the money. The 1.86% or so they're getting now being doubled is more than fair. That's where I got my 3.5% I proposed and most seemed fine with. Too many are looking at the value of the end product and not how little a single barrel of brine is worth. I think we end up with a favorable number, and landowners can choose not to participate. shite's gonna come out from under their land anyway.