For East Texas mineral owners
I just inherited mineral rights in East Texas. Now what?
Most of the people who call us did not buy their minerals. A parent or grandparent left them, and now there is a letter from an oil company, or a small check, or nothing at all and a line in a will. Here is how we would work through it if it were our family.
First, you probably own something different than you think
Mineral rights in East Texas have been passed down for generations. Every time an owner dies, the interest gets split among the heirs. A grandfather who owned all the minerals under 80 acres may have left them to five children, who each left their share to their own children. By the time it reaches you, the deed may still say 80 acres, but your piece of it can be a small fraction.
The opposite also happens. Families forget about minerals entirely, especially when nothing has produced in decades. We talk with people every month who did not know they owned anything until a landman called or a check showed up.
So the first job is not deciding what to do. It is finding out exactly what you have.
Find out what you own
Mineral ownership in Texas is public record. You do not need to pay anyone to start looking. These are the places we check, and you can check them too:
- The county clerk. Deeds, wills that were recorded, affidavits of heirship and old leases are filed with the county clerk in the county where the land sits. Many East Texas counties have their records searchable online. Start with the name of the person you inherited from.
- The appraisal district. Producing mineral interests in Texas are appraised and taxed by the county appraisal district. If your family has been getting a small tax bill on minerals, that is a strong clue. The appraisal roll lists owners and often the lease or well the interest is tied to.
- The Texas Railroad Commission. The RRC regulates oil and gas in Texas and keeps public well, permit and production records. Once you know the county and roughly where the land is, you can see what wells have been drilled nearby and who operates them.
- The operator. If there is a producing well, the company that runs it has a record of every owner it pays, including people it cannot find. Their owner relations department can tell you whether your relative was on their books.
- Unclaimed property. When an operator cannot find an owner, the money eventually goes to the Texas Comptroller as unclaimed property. Search your relative's name at ClaimItTexas.org. It takes two minutes.
If the land is in one of our counties, like Rusk County, Panola County or Nacogdoches County, you can also just call or text (936) 289-3438. We look these up every day and we will tell you what we find for free, whether or not you ever sell to us.
Get it in your name
An operator will not pay you until the records show the interest belongs to you. In Texas that usually happens one of two ways.
Probate. If there was a will and it went through probate, the court order and will get recorded in the county where the minerals are. That is the cleanest path, and if it already happened, you may just need to record a certified copy in the right county.
Affidavit of heirship. When there was no probate, Texas families often use an affidavit of heirship. It is a sworn statement, usually signed by people who knew the family but do not inherit, that lays out who the heirs are. It gets recorded with the county clerk. Many operators accept it, especially for smaller interests.
Which one fits depends on the family, the size of the interest and whether there was a will. This is where you should talk to an attorney. A short consultation with someone who does Texas probate work is worth it, and they can tell you which route makes sense.
Start getting paid
Once your ownership is recorded, contact the operator. They will usually send you a division order, a document that states the decimal interest they believe you own in a well and asks you to confirm it. Read it carefully. The decimal is how they calculate your check, and mistakes do happen. If the number looks wrong, ask them how they got it before you sign.
They will also want a W-9 for tax reporting. If money was held while ownership was sorted out, ask whether there is a suspense balance owed to you. There often is.
Keep, lease or sell
There is no right answer for everyone. Here is how we would think about it.
Reasons people keep their minerals. The check is steady and they like having it. There is real drilling nearby and they want to see what happens. It is family land and it matters to them. All good reasons.
Reasons people sell. The interest is split among many heirs and nobody wants to manage it. The check is small and the paperwork is not worth it. The money would do more good paying off a debt, helping a child or settling an estate. Or they simply want one clean number instead of a check that goes down every year.
If it is not producing. Unleased minerals in an area with no activity may not have much value today, and that is okay to hear. Minerals in a county where operators are leasing and permitting can be worth more than people expect. A county like San Augustine County or Shelby County, with Haynesville activity, is very different from a quiet one.
Taxes matter here too. How a sale is taxed depends on your situation, so talk to your accountant before you decide anything.
What not to do
- Do not sign anything that arrives in the mail with a check attached until you understand it. Some of those are offers to buy your minerals, not leases.
- Do not take the first offer without a second opinion. Get at least two written numbers.
- Do not assume it is worthless because nobody mentioned it. Look it up.
- Do not assume it is worth a fortune because a landman called. Look that up too.
We will look it up with you
If your minerals are in East Texas, call or text (936) 289-3438, or send us the basics through the form on our home page. Tell us the county and the name of the person you inherited from. We will find what is there, explain it in plain English, and if you want an offer, we will show you how we got to it. If keeping it is the better move, we will tell you that too.
This article is general information, not legal or tax advice. Talk to your own attorney or accountant about your situation.