Before you can make any decisions about your inherited mineral rights, it helps to understand what mineral ownership actually means.

Owning mineral rights gives you the legal ownership of the oil, gas, and other minerals that exist beneath the surface of a property.

It is separate from surface ownership. The person who owns the land above may not own what is below. If you inherited mineral rights, you now own the underground resources and may have the right to lease or sell those mineral rights.

Mineral rights typically fall into one of three main phases. Knowing which phase applies to your situation will help you understand your income potential and next steps.

Non-Leased and Non-Producing

If your mineral rights are not currently leased to an oil and gas company, and there is no drilling or production activity, you own what is called a “non-leased and non-producing” interest. These rights have little to no value in many cases.

A good sign you have non-leased / non-producing ownership is when you find a document that shows your family owned mineral rights.  However, there are no payments, no leases, and the document is from a long time ago and no one knows much about it.

It is common to inherit mineral rights that are not leased and not producing.

Leased but Not Producing

In this phase, your minerals have been leased to an oil and gas company, but no wells are actively producing yet. The company has the right to explore and possibly drill, but you will not receive royalty payments until production begins. Reviewing your lease agreement will show who holds the lease and when it expires if no production occurs.

It’s uncommon to inherited leased mineral rights that are not producing.  The reason is that leases are only active for 3 to 5 years in many cases.  The person you inherited from would have recently signed a lease agreement.

To determine if the person you inherited from leased the mineral rights search, search their name here:

In Texas:  www.TexasFile.com

In Oklahoma:  www.OKCountyRecords.com

In other states, you will likely find the records at the county level.  For example, type in “Weld County Colorado Recorder” and find the website where you can search the county records.

You will see a memo for lease or lease agreement filed attached to the name of the person you inherited from if they recently leased the mineral rights and have an active lease.

Producing

If your minerals are producing, that means there is active oil or gas extraction taking place.

You should be receiving royalty checks based on the production from your wells. If you’re not sure whether you’re producing, contact the operator listed in your records or search state production data online. You can also check your mail for royalty statements or 1099 tax forms, which are usually issued each year to mineral owners receiving payments.

To determine if there is royalty income being produced, you’ll want to look at bank records from the person you inherited from to see if they were getting any payments from an oil and gas operator.  In many cases, the family member knows the person they inherited from was receiving some money from royalty income.

Understanding which phase you are in helps you know whether your mineral rights are simply an asset on paper or an active source of income. Once you know this, you can make informed decisions about transferring ownership, selling, or holding on for future value.

Once you understand what type of mineral rights you’ve inherited, the next step is to make sure everything is properly updated and recorded in your name. This ensures you can be contacted, receive payments, and protect your ownership moving forward.

The specific steps you’ll take depend on what phase your mineral rights are in.

If Your Minerals Are Non-Leased and Non-Producing

If your minerals are not currently leased or producing, you’ll want to make sure your ownership is clearly recorded in county records. Work with an attorney or title professional to file the appropriate document that shows you as the current owner. This might be an affidavit of heirship, deed transfer, or another type of ownership filing depending on your situation.

Recording this document in the county where the minerals are located is important. It ensures your contact information is easy to find for any company interested in leasing or developing your minerals in the future.

If Your Minerals Are Leased but Not Producing

If your minerals are leased, contact the oil or gas company listed on the lease. Let them know about the change in ownership and provide any legal documentation they request, such as probate records or an affidavit of heirship.

Updating your ownership information helps ensure that you receive notices, lease extension offers, or other communication directly. Companies will not always know about an ownership change unless you reach out first.

If Your Minerals Are Producing

For producing mineral rights, there are two key actions to take right away.

First, notify the operator or company paying royalty income about the ownership change. They will usually require legal documents to update their records, and they may hold royalty payments until your information is verified.

Second, check the property tax records in the county where the minerals are located. Make sure your name appears on the tax roll and that there are no past-due taxes owed. If there are, pay them promptly. Unpaid taxes can lead to penalties or even a loss of ownership over time.

Taking these steps early ensures your ownership is properly recognized, your contact information is current, and your income and tax records stay in good standing.

One of the first questions most mineral owners have is simple. What are my inherited mineral rights worth?

The truth is that mineral rights value depends on several factors, including location, whether the minerals are leased or producing, and what activity is happening nearby. While every situation is unique, there are some general guidelines that can help you understand what you might be working with.

Non-Leased and Non-Producing Minerals

If your minerals are not currently leased and there is no production, they usually have limited market value. In many parts of the country, non-leased, non-producing minerals may be worth anywhere from $0 to $500 per acre. The lower end often applies to areas with little or no drilling activity, while the higher end may apply in regions where leasing or exploration is starting to pick up.

Leased Minerals

If your minerals are under lease, that usually means an oil and gas company has already shown interest in your property. Leased minerals typically sell for two to three times the lease bonus payment per acre. For example, if the company paid a $500 lease bonus per acre, your leased mineral rights might be worth $1,000 to $1,500 per acre.

Producing Minerals

Producing mineral rights tend to be the most valuable. These are the rights that generate monthly royalty income from active oil or gas wells.

A simple way to estimate their value is to multiply your current yearly royalty income by three to six years. For example, if your royalties total $10,000 per year, your producing minerals might be worth $30,000 to $60,000.

These are only general estimates. Market conditions, production levels, and future drilling plans can all affect value.

If you would like a more accurate picture of what your minerals might be worth, contact us for a free analysis and value estimate. We can help you understand the fair market range and your options for selling or holding your interest.

If you are thinking about selling your inherited mineral rights, it is important to take your time and understand what you are selling before making a decision.

Many heirs receive letters or offers in the mail soon after their inheritance becomes public record. These offers often sound appealing, but they are rarely the best deal available.

Selling mineral rights is not like selling a house. There is no single listing service or price chart that tells you exactly what your minerals are worth. Every mineral buyer values properties differently based on location, nearby production, and their own investment goals. Because of that, the first offer you receive is usually one of the lowest.

Work with a Mineral Rights Broker

A mineral rights broker can help you navigate the process and make sure you get fair market value. Brokers specialize in marketing mineral rights to multiple qualified buyers at once, which helps create competition and drive up offers. They also help review offers, explain terms, and handle the paperwork so the process runs smoothly.

Working with a broker gives you more control, better information, and often a higher selling price. They understand the market, know what comparable sales look like, and can help you avoid deals that undervalue your property.

Avoid Common Selling Mistakes

One of the biggest mistakes mineral owners make is accepting the first offer they receive in the mail. These offers are often sent in bulk and designed to catch owners who are unsure of their rights or eager to sell quickly. Selling without guidance can mean walking away from thousands of dollars in potential value.

Before you sell, take time to learn about your minerals, confirm their value, and talk with a trusted professional who can represent your interests.

If you are considering selling, we can connect you with a mineral rights broker who can help you understand your options and make sure you get a fair offer.  Contact us and we can help get you pointed in the right direction.

If you understand mineral rights taxes, it can put you ahead of other mineral owners.  Many mineral owners ignore taxes because it’s boring, but if you understand them you can save a fortune in taxes.

One of the biggest benefits of inheriting mineral rights is something called a step-up in basis. This is an important tax rule that can save you a significant amount of money when selling.

When someone passes away, the value of their assets, including mineral rights, is “stepped up” to the fair market value on the date of their death. This means your cost basis for tax purposes becomes the current market value, not what the original owner paid or invested years ago.

Here’s why that matters.

If you decide to sell your inherited mineral rights soon after inheriting them, the sale price is usually close to that stepped-up value. Because of this, there is little to no gain to report for tax purposes. In many cases, this can mean paying zero capital gains tax on the sale.

For example, imagine your inherited mineral rights are worth $100,000 on the date of inheritance. If you sell them a few months later for about the same amount, there is no taxable gain, so you owe no taxes on the sale.

By comparison, if you keep those rights and start receiving royalty income, that money is taxed each year as ordinary income, which often falls into higher tax brackets. Depending on your income level, this could mean paying 22%, 24%, or even more on each dollar earned.

Selling shortly after inheritance can therefore be a smart financial move, especially if the property is not producing or if you prefer to avoid ongoing management and tax reporting.

Every situation is different, so it’s always wise to speak with a tax professional before making a decision. However, understanding the step-up in basis can help you make a more informed choice about whether to sell now or hold for future income.

Many mineral owners are surprised to learn that royalty payments, lease bonuses, or even mineral rights themselves can be turned over to the state if they go unclaimed. This process is called escheatment, and it exists in every state.

Escheatment happens when funds like royalty checks or lease payments cannot be delivered because the owner’s contact information is missing or outdated. When that occurs, the company holding the money is required by law to send it to the state after a certain period of time. Once it is turned over, the funds are held in the state’s unclaimed property program until the rightful owner claims them.

This often happens after a death, especially when heirs are unaware that mineral rights exist or when ownership records are out of date. If the operator or the state cannot locate the current owner, the funds simply sit unclaimed.

To avoid this, make sure your ownership records are current with both the operator and the county. Keep your mailing address, email, and phone number up to date with any company that manages your wells or lease.

If you suspect there may be unclaimed royalties or payments owed to you or a family member, you can search your state’s unclaimed property database. Claiming these funds is usually free and can be done online with proof of identity and ownership.

Staying proactive about escheatment helps protect your inheritance and ensures that no money tied to your mineral rights is left unclaimed.

Unclaimed Property Search Links

Here are direct links to check for unclaimed mineral funds in key oil and gas states:

• Texas: https://claimittexas.gov
• Oklahoma: https://www.ok.gov/treasurer/Unclaimed_Property
• New Mexico: https://nmclaims.unclaimedproperty.com/en/
• Louisiana:  https://louisiana.findyourunclaimedproperty.com/app/claim-search
• Colorado: https://colorado.findyourunclaimedproperty.com
• North Dakota: https://unclaimedproperty.nd.gov/app/claim-search

Inheriting mineral rights can feel complicated, especially if you are new to the process. Between understanding ownership, handling paperwork, and deciding whether to sell or keep your interest, there are a lot of moving parts.

You do not have to figure it out alone. Taking the right steps early can help you protect your inheritance, avoid costly mistakes, and make confident decisions about your family’s mineral assets.

Our team works with mineral owners every day to help them understand what they own, estimate value, and explore all available options. Whether you want to sell, hold, or simply learn more about your property, we can guide you through each step.

If you recently inherited mineral rights and are not sure where to start, contact us today for a free consultation and property review. We can help you gain clarity, understand your rights, and make the most of your mineral ownership.