Texas Mineral Rights
Learn about Texas mineral rights, the best locations, how to find your wells on a map, the value, transferring ownership, paying taxes, and more.
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Texas Mineral Rights
Texas is the top oil and gas-producing state in the county and is home to some of the most valuable mineral rights. Texas contains both older oil and gas fields with vertical wells and the four most prolific shale basins, including the Permian, Eagle Ford, Haynesville, and Barnett. It’s also one of the best states in which to own mineral rights.
About Texas Mineral Rights
As a Texas mineral owner, you may find the following topics informative and relevant to your mineral rights.
Top Producing Oil & Gas Counties in Texas
Texas has 255 counties, and almost all of them produce some amount of oil and gas. However, there are more than 70 counties that produce a significant amount of hydrocarbons. Is your county one of them?
How to Locate Your Texas Mineral Rights
Locating your Texas mineral rights on an interactive map is quite easy. We’ll walk you through the steps.
Texas Mineral Rights Value
The value of Texas mineral rights depends on a variety of factors, including location, production status, production volume, commodity price, lease development, lease terms, and the operator.
Find Your Texas Mineral Deed
Texas Mineral Taxes
Texas mineral owners pay several types of taxes, including Ad Valorem taxes. Learn how to find your tax info and what happens if you don’t pay!
Sell Your Texas Mineral Rights
Get an offer for your Texas mineral rights. There is no obligation to sell, and it won’t cost you anything.
Image Description: Top oil and gas producing counties by production volume. Darker counties represent higher oil and gas production.
Top Texas Oil & Gas Producing Counties
We buy mineral rights throughout Texas. Minerals in the shale basins have the most prolific wells, but we will buy minerals anywhere in Texas. These are the top-producing counties in Texas:
NOTE: It is important to realize that, even in the top counties, there are areas of the county that produce vast amounts of oil and gas but other areas that produce none. Location is very important!
Texas Shale Basins
There are four main shale basins in Texas. Each has its own characteristics and has been developed at differing rates. Here is a breakdown of each shale basin.
The Permian Basin is the largest oilfield in the United States. It contains the Delaware Basin, Midland Basin, and Central Uplift Platform. The Permian covers parts of West Texas and Southeast New Mexico. This area contains multiple stacked shale formations.
The Eagle Ford shale is located in South Texas and has been heavily developed (drilled). Infill drilling is taking place, but there are very few new leases.
The Barnett shale was the first of the shale basins to be developed and ignited the Shale Boom with horizontal drilling an hydraulic fracturing techniques.
The Haynesville shale produces natural gas. Due to underground pressure, the wells are prolific during the first few months of production but quickly decline. The Haynesville is also in close proximity to Liquid Natural Gas (LNG) terminals in South Texas.
Locating Your Texas Mineral Rights
Your oil or gas well might seem abstract. You probably inherited it, and your family hasn’t lived in the area for generations.
When you see your mineral rights on a map, they become less abstract. You also have access to a lot more information about the wells on your property and in the vicinity. For example, you can view historical production volumes or become aware of newly permitted wells.
All you need is your legal description. This can be found on your property deed or oil and gas lease.
In Texas, a legal description looks something like this:
Section 20, Block C6, Public School Lands Survey, A-4892, Reeves County, Texas
Once you have the legal description, follow the video directions to locate your property.
Texas Mineral Rights Value
Texas mineral rights are valued differently if they are producing vs. non-producing.
Producing Texas 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 sources to model future revenue based on various pricing scenarios. This method takes into account the 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.
Non-Producing Texas 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 payments.
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-$500 dollars, you can expect to sell your mineral rights for the lease bonus times the number of net mineral acres (NMA) that you own.
The value of non-producing minerals is usually stated as a price per acre. The price per 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).
Finding Your Mineral Deed
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, either before your die or after, 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, TexasFile makes it easy to locate your mineral deed and other title documents related to your mineral rights. Simply create an account, and 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 only cost $1 per page to download.
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.
Paying Texas Mineral Taxes
Texas mineral owners have to pay Federal Income taxes on their royalty revenue, but there are state income taxes in Texas.
Ad Valorem Taxes are county taxes that are paid on producing Texas mineral rights. If you don’t pay your Ad Valorem taxes, the county will auction your royalty interest! So, you want to keep your address current with both your operator and the county where the mineral rights are located (even if you are on direct deposit).
How do you check on your Texas property taxes?
Each county has a Central Appraisal District (CAD), so simply google:
[Your Mineral County] + “CAD”
For example, if your mineral rights are in Ward County, Google “Ward CAD.”
You should be able to find yourself in their online search results. If you are a new mineral owner, check the names of the person you inherited the minerals from.
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 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.
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.
Highly productive wells (and off-set wells) can increase the value of your minerals.
Favorable lease terms (such as a 25% royalty reservation) positively impact the value of the leased minerals.
A small number of operators are unethical, and their reputation automatically devalues your minerals.
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.
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.
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.
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.
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.