You Inherited Mineral Rights. Now What?

Every year, thousands of landowners inherit an interest in oil, gas, and mineral rights from a parent, grandparent, or other relative — often with little context for what those rights are worth or what a fair deal looks like. If a landman has since come calling, or you're staring at probate paperwork trying to figure out what you own, start here.

Two separate estates

Land ownership can be split into two legal "estates": the surface estate (the dirt itself — farming, ranching, building) and the mineral estate (everything underground). These can be owned by entirely different people. It's entirely possible to inherit only the minerals under land you'll never see and don't own the surface of. That's normal, and it doesn't reduce the value of what you own.

Within the mineral estate

There are also different types of interests, and it's worth knowing which one you hold:

• Mineral interest — outright ownership of the minerals, including the right to lease them and collect a royalty if a well is drilled.
• Royalty interest — a share of production revenue, without the right to lease or make drilling decisions.
• Non-participating royalty interest (NPRI) — a royalty interest with no say in leasing decisions at all.

Before negotiating anything, confirm which of these you hold and your fractional share (your "net mineral acres"). This usually comes from probate documents, a deed, or a title opinion.

Get your title straight first

Make sure the probate or estate transfer that gave you these minerals has been properly documented and recorded in the county where the minerals sit. An unclean title can delay a lease, or hold up royalty payments entirely, once production starts — which is worth resolving before you sign anything, not after.

Have an offer like this in hand?

Start the Oil & Gas Intake — about three minutes, no payment required to begin.