Inherited Mineral Rights in Texas: What to Do Next

Every year, thousands of Texans inherit mineral rights from parents, grandparents, or other relatives — and most have no idea what to do next. If you’ve recently inherited Texas mineral rights, you’re probably wondering: What are these worth? Am I receiving royalties? Should I sell? This guide answers the most common questions from newly inherited mineral rights owners.

Step 1: Figure Out What You Actually Inherited

Before anything else, you need to understand what was passed to you. Mineral rights can be complex — here’s what you need to find out:

What Minerals Do You Own?

Pull the deed from the county where the land is located. You can search county deed records online through the county appraisal district or county clerk’s website. The deed will describe the property and what mineral interest was conveyed. Look for language like “including all oil, gas, and other minerals” or a specific fraction of mineral ownership.

What County Is the Property In?

This matters enormously for value. Mineral rights in Midland County (Permian Basin) are worth a completely different amount than minerals in an inactive county. Once you know the county, you can start researching the current market.

How Many Net Mineral Acres Do You Own?

If the decedent owned 100% of the mineral rights under 40 acres, you inherited 40 net mineral acres. If they owned a 25% interest in 80 acres, you inherited 20 net mineral acres (assuming you’re the sole heir — if the minerals are split among siblings, divide further). Understanding your net mineral acres is essential for any valuation.

Step 2: Determine If the Minerals Are Leased and Producing

Check whether there’s an existing oil and gas lease on your minerals. You can search for this at the Railroad Commission of Texas (RRC) website — it tracks all well permits and production in Texas. Look up the property location and see if there are any nearby wells associated with your acreage.

If there are producing wells, you should be receiving royalty payments. These payments may have been going to the deceased’s estate — contact the operating company to update the payee information. You’ll typically need to provide a copy of the will, probate documents, and an affidavit of heirship (for small estates).

Step 3: Get the Title Into Your Name

Mineral rights pass through an estate just like any other real property. How they transfer depends on whether there was a will and whether the estate went through probate. Common paths include:

Probated will: The executor will transfer the mineral rights per the will’s instructions. The deed of distribution is recorded in the county where the minerals are located.
Intestate succession (no will): Texas intestate succession law determines who inherits. An attorney can help navigate this.
Affidavit of Heirship: For smaller estates or when probate wasn’t filed, an Affidavit of Heirship recorded in the county can establish your ownership. Oil companies will often accept this to update royalty payments.
Muniment of Title: A simplified probate option in Texas that can transfer title without appointing an executor.

Getting the title properly in your name is important before you can sell, and it also ensures you receive any royalty payments owed to you.

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Step 4: Understand What Your Inherited Minerals Are Worth

Once you know what you own, you’ll want to understand the value. Inherited mineral rights often have a “stepped-up” basis for tax purposes — meaning your cost basis is the fair market value at the date of death, not the original purchase price. This can significantly reduce capital gains tax if you sell.

This website does not calculate a current value or provide an appraisal. A qualified independent professional can assess the specific interest using ownership, lease, production and current market evidence. You may use the information tool to organize your county, acreage and lease details.

Step 5: Decide: Sell, Lease, or Hold?

This is the big decision, and there’s no universally right answer. Here’s how to think about it:

Sell If:

You need liquidity and the minerals represent a meaningful asset
The minerals are in a high-demand area and you’d rather take the money now than wait for future development
Managing the paperwork, title updates, and royalty monitoring isn’t worth your time
The mineral interest is a small fractional share that generates minimal royalty income

Hold If:

The minerals are in an active producing area and generating meaningful monthly royalty income
You believe the area has significant future drilling potential
You’d like to pass the asset to your own heirs (discuss the tax consequences with a qualified professional)
Current commodity prices are depressed and you expect recovery

Lease If:

Your minerals are currently unleased and you’re approached by an operator
You want some immediate income (bonus payment) while retaining ownership of the minerals
The area is active and you’re confident a well will be drilled during the lease term

Don’t Leave Money on the Table

Inherited mineral rights owners are prime targets for unsolicited offers from buyers who know they’re dealing with people unfamiliar with the market. If you receive an offer in the mail or by phone before you’ve done your research, do not accept it without getting an independent estimate first.