Standard Lithium extraction royalty to Arkansas landowners approved
Today, the Arkansas Oil and Gas Commission approved Standard Lithium’s additional extraction royalty rate of 2.5% to landowners for its Southwest Arkansas Project, as reported by the Arkansas Democrat-Gazette. Smackover Lithium (SWA), a joint venture between Standard Lithium and Equinor, submitted an application May 6, 2025, concerning lithium to be produced from the Reynolds Brine Production Unit, which encompasses more than 20,000 acres in south Arkansas. SWA’s application requested the Commission approve an additional lithium payment of 2.5% of the lithium carbonate equivalent in addition to a brine fee already established by law.
“Working with landowners and the AOGC to establish a fair and equitable royalty is key to the SWA Project’s success,” said Standard Lithium’s CEO, David Park, in a news release. “The proposed royalty generously compensates brine owners, is fair for industry, and encourages development of the Smackover resource. The royalty is only the beginning of the economic impact this project will have for South Arkansas and the rest of the state.”
“Lithium brine extraction in Arkansas is unique - it enables Arkansas to unleash its energy and critical mineral potential in a way that results in minimal surface impact to the Natural State,” said Arkansas Oil and Gas Commission Secretary Shane Khoury in a news release. “The Commission’s approval of SWA’s proposal as fair and equitable compensation signifies a huge step forward for Arkansas’s lithium industry.”
Arkansas’s lithium will be extracted from brine located in the Smackover Formation in south Arkansas. In October 2024, the Commission’s Office of State Geologist and the United States Geological Survey released a survey estimating lithium concentrations in south Arkansas at 5 to 19 million tons.
Located 15 miles west of the City of Magnolia in southwestern Arkansas within the Smackover Formation, the Southwest Arkansas Project boasts one of the highest-grade lithium brine resources in North America, with a maximum concentration of 597 mg/L and an average of 437 mg/L. The joint venture is structured with Standard Lithium maintaining a 55% interest and Equinor holding a 45% interest.