Arkansas Mineral Rights

Learn about mineral rights in Ohio, including the best counties, how to find your wells on a map, valuations, transferring ownership, paying taxes, and more.

Request an Offer:

Arkansas Mineral Rights

WV ranks #19 in the United States natural oil production and #12 for natural gas production.

Top Producing Oil & Gas Counties in Arkansas

25Arkansas has 75 counties, and 18 of them produce some amount of oil and gas.  However, the vast majority of gas is extracted from just 4 counties. Is your county one of them?

Value of Arkansas Mineral Rights

The value of mineral rights in Arkansas depends on a variety of factors, including location, production status, decimal interest, production volume, commodity price, lease development, lease terms, and the operator.

How to Locate Your Arkansas Mineral Rights

Most states have interactive maps that help mineral owners find their wells.  However, Arkansas produces very little oil and gas relative to other states, so it’s not surprising that they do not have an interactive map.

Transferring Ownership of Arkansas Mineral Rights

It’s best to have an attorney help you transfer the ownership of AR mineral rights.  Learn why.

Find Your AR Mineral Deed

Looking for proof that you own mineral rights?  Follow these steps to search the deed records.

Sell Your Arkansas Mineral Rights

Get an offer for your Arkansas mineral rights.  There is no obligation to sell, and it won’t cost you anything.

arkansas natural gas map

Top Oil & Gas Producing Counties in Arkansas

Arkansas produces significantly more natural gas than oil.  Ban Vuren, White, Cleburne, and Conway are are the top producing counties for natural gas.

Minerals in the central and southern part of the state have the most prolific wells, but we will buy minerals anywhere in Arkansas as long as they have producing wells.  These are the top-producing counties:

  • Van Buren
  • White
  • Cleburne
  • Conway
  • Columbia
  • Union
  • Falkner
  • Logan
  • Ouachita
  • Lafyette

NOTE: It is important to realize that, even in the top counties, there are areas of the county that produce more natural gas than others (and some produce none at all).  The location is very so important!

Top Producing AR Counties

Arkansas produces very little natural gas relative to other states, such as Texas, New Mexico, Ohio, West Virginia, and many more. However, it still produces enough to contribute to the overall energy production in the United States.  

A

Van Buren County

Van Buren County ranks #1 in Arkansas gas production and #197 nationwide.  Natural gas production peaked in 2014 and has since been declining.  Five companies operate the state’s 1,900 wells.  

A

Utica Shale

White County ranks #2 in Arkansas gas production and #207 nationwide.  Natural gas production peaked in 2011 and has since been declining.  Five companies operate the state’s 1,600 wells.

A

Cleburne County

Cleburne County ranks #3 in Arkansas gas production and #213 nationwide.  Natural gas production peaked in 2014 and has since been declining.  Three companies operate the state’s 1,300 wells.

A

Conway County

Conway County ranks #4 in Arkansas gas production and #214 nationwide.  Natural gas production peaked in 2014 and has since been declining.  Three companies operate the state’s 1,500 wells.

AR gas production by county

Image Description:   Map of the Marcellus Shale formation overlapping Ohio, West Virginia, and Pennsylvania.

Arkansas Mineral Rights Value

 

Arkansas’s oil and gas royalties and mineral rights are valued differently if they are producing vs. non-producing.

Producing Mineral Rights Value

Producing minerals are mineral rights with an active oil or gas well that is producing economically viable quantities of oil or gas.

Modern Valuation Method

Modern valuation methods use data from royalty statements and public data sources to model future revenue based on recent and predicted future pricing scenarios. This method takes into account your decimal interest, production volumes, decline, deductions, and commodity prices. Most mineral buyers use this valuation method.

In the past, they used to use the Rule of Thumb, which is roughly 30 – 60 months of royalty revenue based on a variety of factors. This method is not suitable for new horazontal wells typically found in Western Ohio.

Non-Producing Mineral Rights Value

Non-producing minerals do not have a producing oil or gas well. Because there are no wells, there will be no royalty revenue.

Typically, non-producing minerals are valued based on a multiple of the expected lease bonus.

For example, if the going lease bonus in the county ranges from $100-$200, you can expect to sell your mineral rights for the lease bonus times the number of net mineral acres (NMA) you own.

The value of non-producing minerals is usually stated as a price per net mineral acre. The price per net mineral acre varies from state to state, county to county, and even within a county.

Interested in learning more about the value of your mineral rights?  Check out this guide on 7 Factors That Influence the Value of Mineral Rights or this video about why Location is Everything (via YouTube).

simple redacted deed

Transferring Ownership in Arkansas

The proper way to transfer title is by deed or court order (including probate).  In some cases, Arkansas mineral rights may be transferred with an Affidavit of Heirship (AOH), which allows the next generation to get into pay status with the operator, but can cause problems down the road if the title is not “marketable”.

You always want to have a “marketable title” to your mineral rights, so it’s worth doing the transfer correctly.  It’s best to consult an Ohio oil and gas attorney and get professional advice on transferring mineral rights.

Not sure where to find a AR attorney?  Google, “AR oil and gas attorney.”

I have a Deed. What next?

Once you have a legal document conveying the mineral rights from the previous generation to you, you’ll need to have it recorded with the county clerk (in the county where the minerals are located). The mineral rights are not really owned until the deed is recorded, so don’t leave it in a drawer – do it right away!

Notifying Operators

Once the document has been recorded, send a copy to each operator.  More than likely, the operator will send you a division order and put you into pay status.

Need more help (transferring before/after death, after a divorce, or into/out of a trust)?  Our detailed guide to Transferring Mineral Rights may help.

An alternative to transferring ownership is to sell your Ohio mineral rights, which might make sense if the interest is relatively small or the next generation is not interested in managing them.

 

Searching Arkansas Deed Records

 

The first step in being a responsible mineral owner is the know what you own so that it can be properly managed.  There will come a time, when the minerals will need to be transferred to the next generation or sold.

It’s a good idea to keep a copy of your mineral deed (and the previous deeds) in your files.  Non-producing minerals tend to be “out of sight, out of mind” and are easily forgotten.  Having a copy of your deed will help prevent this from happening.

Fortunately, it’s easy to locate most mineral deeds and other title documents related to your mineral rights.

Google search: [County Name] + “deed search”

Example: Van Buren County AR Deed Search

One of the top results should take you to the county’s Register of Deeds and there will probably be a link to their online deed records.  

Simply search the county records for your name and the names of the people from whom you inherited the mineral rights.  Most of the time, you can search for free, and documents can be purchased for a few dollars.

You might find conveyances, deeds, assignments, affidavits of heirship, lease memos, and other relevant documents.

If you’re thinking about your estate plan, you might find our guide, Four Things Older Mineral Owners Should Consider,” to be thought-provoking.

van buren deed search

Image Description: Screenshot of Harrison County’s online deed search.

Paying Taxes for Mineral Taxes in Arkansas

All Ohio oil and gas royalty owners pay federal income taxes on their royalty revenue.  The IRS allows royalty owners to deduct a 15% depletion on Federal taxes.

State Taxes

Royalty income is typically considered ordinary income for tax purposes. It is subject to Arkansas’ graduated income tax rate ranging from 2% to 5.99% on individual taxpayers, depending on their income level.

Property Taxes

Ad Valorem Taxes are county taxes levied on producing mineral rights. Non-producing mineral rights are not generally subject to property taxes.

If you don’t pay your mineral property taxes, the county will auction your mineral rights! So, be sure to keep your address current with both your operators and the counties where the mineral rights are located (even if you are on direct deposit).

oil well illustration

Image Description: Illustration of an oil pumpjack used on conventional (vertical) oil wells.

Arkansas Mineral Right FAQs

Browse these frequently asked questions about OH minerals.

How do I know if I own mineral rights in Arkansas?

This is a complex question, and there are many answers.  All property starts off as fee simple (the surface and the minerals are owned by the same person).  Sometimes, mineral rights are severed from the surface, creating two separate chains of title.  

Let’s go over a couple of scenarios:

You purchased a home with 2 acres of land

Most real property is sold through a standard real estate transaction which requires a title company to review the history of land.  The title company probably knows if you own the mineral rights under your property.  You can ask them (or it might be in your documents).

You now own the farm that has been in your family for generations.

You may or may not own the mineral rights.  There is a significant chance that you do own the mineral rights, but you would have to do a title search to verify this. Trace the land ownership back to the original land patent, then trace it forward and look for any reservations or conveyances of mineral rights.  Most people do not have the skills to do this, so you may need to hire a landman or an attorney.

What happens to dormant minerals in Arkansas?

In Arkansas, the treatment of dormant mineral rights—that is, mineral rights that have not been actively mined, drilled, or otherwise used for a period of time—does not follow a uniform state-wide statute for automatic reversion to the surface owner, as seen in some other states. Instead, the approach to dormant mineral rights is largely governed by the specific terms of the mineral deed or lease and general property laws.

Key considerations for dormant mineral rights in Arkansas include:

  1. No Automatic Reversion Law: Arkansas does not have a specific “dormant mineral” law that automatically reverts unused mineral rights to the surface owner after a period of inactivity. Unlike states with such statutes, in Arkansas, the ownership and control of dormant mineral rights remain with the mineral rights holder unless otherwise stipulated in the original deed or a subsequent legal agreement.

  2. Statute of Limitations for Adverse Possession: While Arkansas does not have a statute specifically addressing the abandonment of mineral rights, there are general statutes of limitations that might affect claims over property, including adverse possession claims. However, claiming mineral rights through adverse possession can be complex and is less straightforward than surface rights due to the hidden nature of subsurface assets.

I just inherited mineral rights. What should I do first?

Congratulations!  Welcome to the club of 12 million mineral owners. The United States is the only country where mineral rights are owned by individuals, so it’s a special club.

The first thing you need to do is make sure the mineral rights have been transferred to your name.  This process is not necessarily automatic, you may need to hire an attorney to probate an estate or draft mineral deeds.

If you have producing minerals (there are one or more wells on the property), you need to send your proof of ownership (usually a deed, divorce decree, or recorded probate documents) to the operator and ask them to transfer the ownership.

The operator will do their research, and if everything checks out, they will transfer the ownership to you.  They may send a division order to make sure that both of you agree about the amount of interest you own.

Be sure you keep copies of all your mineral documents – they will come in handy later and help you effectively manage your mineral rights.

How do I sell Arkansas mineral rights?

It’s easy to sell your AR mineral rights and it doesn’t cost you anything.  Here is the basic process:

1.  Request an offer.  We’ll need to see your latest royalty statements. If you have more documents, such as deeds or 1099s, that’s great, but don’t worry if you have limited info.

2.  We will give you an offer. You can decide if you want to accept it, look for competing offers, or reject it.  Requesting an offer doesn’t obligate you to sell.

3.  If you want to proceed with the sale, we will do a title search and draft the closing documents.

4.  We will coordinate the closing process to meet both of our schedules. It is usually done remotely, but if you are in the DFW area, we can close in-person if you want.

 

 

ohio oil gas wells screenshot

Image Description: Conventional and unconventional (horizontal) oil and gas wells in Ohio.

Where We Buy Mineral Rights

We buy both producing and non-producing minerals in all oil and gas states. However, we are especially interested in Texas, Oklahoma, and Kansas mineral rights.

We even buy minerals in more obscure states, such as Michigan and Illinois, which produce a very little oil and gas compared to other states.

How We Value Mineral Rights

There are many factors that play into the value of mineral rights. These include location, producing vs. non-producing properties, current oil and gas prices, well production figures, lease terms, and even the operator of the well or wells. We also look at the risks of buying and owning minerals that you are interested in selling.

Location

Minerals in the hottest shale plays are more valuable than those in older fields with conventional wells.

Producing vs. Non-Producing

Producing minerals are often worth more than non-producing minerals because they are generating revenue.

Oil & Gas Prices

When oil and gas prices drop, revenue drops, and sometimes operators are unable to continue operating the well.

Production

Highly productive wells (and off-set wells) can increase the value of your minerals.

Lease Terms

Favorable lease terms (such as a 25% royalty reservation) positively impact the value of the leased minerals.

Operator

A small number of operators are unethical, and their reputation automatically devalues your minerals.

Why Sell?

People sell mineral rights for a variety of reasons. As a mineral owner, you are fortunate to own an asset that can be quickly converted to cash. It is advisable to sell while you are still receiving royalties – after all, oil and gas are finite resources, and all well eventually run dry. It’s better to sell early and maximize the value.

Why People Sell Their Mineral Rights

I am putting my affairs in order. I don’t want to burden my kids with the hassle of transferring ownership and managing small mineral rights. When my sister passed away, my niece and nephew had to hire an attorney to help them with the minerals. I don’t want my kids to go through that.

Lynn E.

I inherited my mineral rights so they were sentimental, but I don’t really want to bother with managing them and filing extra tax returns. I decided to sell and use the money as a down payment on my house.

Elizabeth R.

I had no idea how fast the oil production would decline. My checks are only 20% of what they were a few years ago. I should have sold my mineral rights when the wells were brand new and still generating huge royalties.

Miguel F.

My oil wells have been producing for decades and the reserves are almost depleted. Once the wells are plugged, the value will be significantly lower. I’d rather cash out now.

Raymond R.

I inherited mineral rights, but don’t want to be involved with fracking and fossil fuels. I would prefer to support renewable energy and do my part to reverse climate change.

Pam H.

Request an Offer: