Smackover Lithium submits royalty application to Arkansas Oil

Smackover Lithium, a Joint Venture between Standard Lithium (SLI) and Equinor (EQNR), announced that SWA Lithium has submitted an application to the Arkansas Oil and Gas Commission to establish a fair and equitable lithium royalty for the Reynolds Unit for Phase I of its South West Arkansas, SWA, Project in Lafayette and Columbia Counties, Arkansas. The application proposes a quarterly gross royalty of 2.5% that will be based on the total amount of lithium produced and the average FastMarkets North American Index Price for technical grade lithium carbonate, which is higher than comparable projects globally on a lithium carbonate equivalent, LCE, basis. The lithium royalty will be paid to brine owners in addition to the brine fee, also referred to as the “in lieu bromine royalty,” of $65.05 per acre per year, making the total proposed royalty compensation approximately 3% based on current lithium prices.