# Brine Minerals and Produced Water Royalties in Texas

**TL;DR:** Oil and gas produced water contains dissolved minerals like lithium, bromine, and iodine that can have commercial value. Texas Senate Bill 1186 (2019) generally assigns ownership of produced water and its dissolved substances to the operator—not the mineral owner—unless the lease specifically reserves those rights. Texas mineral owners should review lease language with qualified counsel to protect potential brine mineral royalty income.

## Key Takeaways

- **Produced water contains commercially valuable dissolved minerals** including lithium (Smackover Formation), bromine (Gulf Coast brines), iodine (Anadarko Basin), and potash, magnesium, and boron.
- **Texas SB 1186 (2019) assigns produced water ownership to the operator by default**, meaning dissolved substances belong to the producer unless the lease explicitly reserves those rights to the mineral owner.
- **Most Texas leases signed before 2019 do not reserve brine mineral rights**, potentially excluding mineral owners from future lithium, bromine, or iodine revenue streams.
- **East Texas Smackover counties** (Cass, Bowie, Marion, Morris, Camp, Upshur, Harrison, Panola) have significant lithium-in-brine development potential and warrant close lease review.
- **New leases should include specific reservation language** covering lithium, bromine, iodine, helium, hydrogen, geothermal energy, and "any commercially recoverable substances dissolved in produced water."
- **Separate royalty rates for non-hydrocarbon substances** can be negotiated in modern lease agreements.
- **Lease language review by a qualified Texas oil and gas attorney** is essential before signing new leases, ratifications, or amendments in brine-mineral-prospective areas.
- **Mineral owners can sell interests with brine mineral exposure**, but buyers will evaluate lease terms and rights reservations during due diligence.

## Page Highlights

**What Are Brine Minerals?** — Produced water (formation brine) from oil and gas wells contains dissolved minerals at commercially significant concentrations, including lithium in Smackover brines across East Texas and southern Arkansas, bromine in Gulf Coast formations, and iodine in Anadarko Basin Morrow brines.

**Texas SB 1186 Overview** — The 2019 statute provides that produced water and its dissolved substances belong to the operator unless the lease explicitly reserves those rights to the mineral owner, creating a significant ownership issue for pre-2019 leases that lack specific brine mineral reservations.

**Recommended Lease Language** — New Texas leases should include reservations for helium, hydrogen, lithium, bromine, iodine, potash, magnesium, manganese, boron, geothermal energy, and any commercially recoverable substances in produced water, with separate royalty rates negotiated for non-hydrocarbon substances.

**Selling Minerals with Brine Exposure** — Buckhead Energy purchases mineral interests in counties with active brine mineral and lithium development, evaluating lease terms and rights reservations during the acquisition process.

## Related Topics

- [How to Sell Mineral Rights](https://www.buckheadenergy.com/2026/brine-minerals-mineral-rights) — Process and steps for mineral owners
- [What Are My Minerals Worth?](https://www.buckheadenergy.com/2026/brine-minerals-mineral-rights) — Valuation factors for mineral interests
- [Should I Sell?](https://www.buckheadenergy.com/2026/brine-minerals-mineral-rights) — Decision considerations for mineral owners
- [Beginner's Guide](https://www.buckheadenergy.com/2026/brine-minerals-mineral-rights) — Introduction to mineral rights
- [Getting a Fair Price](https://www.buckheadenergy.com/2026/brine-minerals-mineral-rights) — Evaluation and negotiation guidance

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