Oil & Gas Commission OKs 2.5% Royalty for Tetra Facility in Lafayette County
The Arkansas Oil & Gas Commission last week approved a third company — Tetra Technologies Inc. of The Woodlands, Texas — for a 2.5% royalty rate on lithium extracted from brine.
Tetra joined two other companies operated by ExxonMobil of Houston and a partnership between Standard Lithium Ltd. of Vancouver and Equinor of Stavanger, Norway, that have received approval for 2.5% royalties on lithium extracted at South Arkansas production units.
In a statement, Commission Chairman Jerry Langley said the latest approval “proves that the Commission is committed to fairness and consistency for lithium production in new areas of the state.”
Limited Opposition
According to the Arkansas Democrat-Gazette, one company — BRP LLC of Huntington, West Virginia, which leases about 2,600 acres within Tetra’s Evergreen production unit — raised objections to the Tetra application, saying Tetra didn’t provide enough information to know whether the rate would be fair.
What’s Next
Tetra is building a $500 million bromine production facility at the Evergreen unit south of Stamps, in Lafayette County. It completed the first phase of construction, which includes a bromine tower, in December.
More: Coverage of the royalty decision by the Magnolia Reporter, Arkansas Democrat-Gazette and the Magnolia Banner-News.
Plus:The Magnolia Reporter has the latest on Tetra’s bromine plant construction project near Stamps.
Previously: With One Royalty Approved, ExxonMobil Proposes Its Own(June 6, 2025)
