# Brine Minerals and Produced Water Royalties in Texas

## TL;DR

Brine minerals—lithium, bromine, iodine, and other dissolved substances in oil and gas produced water—represent emerging value streams that may or may not belong to mineral owners. Texas Senate Bill 1186 (2019) assigns ownership of produced water and its dissolved minerals to the operator unless the lease explicitly reserves those rights to the mineral owner. Mineral owners in brine-rich basins, especially East Texas Smackover counties, should review existing leases and negotiate protective language in future agreements.

## Key Takeaways

- **Brine minerals** are dissolved substances (lithium, bromine, iodine, potash, magnesium, etc.) carried in produced water from oil and gas wells, and certain formations—particularly the Smackover in East Texas and Arkansas—contain commercially significant concentrations.
- **Texas SB 1186** (effective 2019) assigns ownership of produced water and dissolved minerals to the operator by default, not to the mineral owner, unless the lease explicitly reserves those rights.
- **Pre-2019 leases** typically do not reserve brine mineral rights, meaning potential lithium or bromine revenue from those acres may accrue entirely to the operator, not the mineral owner.
- **Protective lease language** commonly includes reservations of helium, hydrogen, lithium, bromine, iodine, non-hydrocarbon substances, geothermal energy, and separate royalty rates for non-hydrocarbon production.
- **East Texas Smackover counties**—Cass, Bowie, Marion, Morris, Camp, Upshur, Harrison, and Panola—have the highest exposure to lithium brine development and warrant lease review by a qualified Texas oil and gas attorney.
- **New lease negotiations** should address ownership and royalty treatment of all non-hydrocarbon substances, with specific reference to dissolved minerals in produced water and formation brine.
- **Selling mineral rights** in brine-exposed areas requires evaluation of whether brine mineral rights are included or severed, as this materially affects valuation.

## Page Highlights

**What Are Brine Minerals?**  
Produced water (formation brine) from oil and gas wells contains dissolved minerals at concentrations that can be commercially extracted. Lithium from Smackover brines in East Texas, Arkansas, Louisiana, Mississippi, and Alabama is the most economically significant; bromine from Smackover brines has long been produced commercially in Arkansas; iodine from Anadarko Morrow brines in Oklahoma; and secondary constituents include potash, magnesium, manganese, and boron.

**Texas SB 1186—Critical Statute for Texas Mineral Owners**  
Enacted in 2019, SB 1186 establishes that produced water and dissolved substances belong to the operator unless the lease explicitly reserves them to the mineral owner. The statute applies prospectively to operations, meaning older leases without specific reservations likely grant brine mineral rights to the operator. Texas mineral owners in Smackover counties should have leases reviewed by a qualified attorney before signing new agreements or amendments.

**Recommended Lease Reservation Language**  
New Texas leases commonly reserve rights to helium, hydrogen, lithium, bromine, iodine, potash, magnesium, manganese, boron, and any commercially recoverable substances in produced water or formation brine; geothermal energy; and separate royalty rates for non-hydrocarbon substances. These reservations are subject to negotiation and require legal review.

**Selling Mineral Rights with Brine Mineral Exposure**  
Buckhead Energy purchases mineral interests in counties with active brine mineral and lithium development, and valuation depends on whether brine rights are included or severed from the mineral estate.

## Related Topics

- [How to Sell Mineral Rights](https://www.buckheadenergy.com/how-to-sell-mineral-rights)
- [What Are My Minerals Worth?](https://www.buckheadenergy.com/what-are-my-minerals-worth)
- [Should I Sell My Mineral Rights?](https://www.buckheadenergy.com/should-i-sell-my-mineral-rights)
- [Beginner's Guide to Mineral Rights](https://www.buckheadenergy.com/mineral-rights-guide)
- [Getting a Fair Price for Mineral Rights](https://www.buckheadenergy.com/getting-a-fair-price)
- [US Drilling Activity Index](https://www.buckheadenergy.com/us-drilling-activity-index)
- [Oil & Gas Market Data Hub](https://www.buckheadenergy.com/oil-gas-market-data)

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