(AP/Rodrigo Abd)
Dozens of landowners and businesses in Arkansas are putting up a fight against a 1.82% royalty on lithium in the state.
Reports indicated at least 74 owners and firms filed objections with the Arkansas Oil and Gas Commission. They want the regulators to throw out five lithium companies’ joint application to establish a royalty rate on extracting lithium-rich brine in south Arkansas, arguing that the companies’ proposal would illegally skirt the state’s rulemaking process, according to the Arkansas Times.
It was late July when five major companies, Albemarle Corporation, ExxonMobil, Standard Lithium, Lanxess and Tetra Technologies Inc. asked the Oil and Gas Commission to set the royalty rate at 1.82%. But the property owners want more and are clashing with the companies.
Until a settlement is reached, the companies cannot make progress with lithium extraction for profit. The Arkansas Times reported earlier this month that when two of the ocmpanies suggested a rate of 1.235-1.67%, landowners responded with a 12.5% rate. The firms later joined the three other majors and asked regulators to set a standard rate for all operators and all leased lands.
The request prompted landowners to ask regulators to throw out all of the applications.
