Old Midland ResourcesMidland, Texas

Frequently asked questions

Straight answers about selling minerals

Most of what follows is the same advice we would give a friend, including the parts that argue against selling. If your question is not here, ask us and we will answer it plainly.

How much are my mineral rights worth?

It depends on how much the wells produce, how much of that production you own, who operates them, and what oil and gas are selling for. A producing royalty interest is usually valued as a multiple of its recent monthly income, adjusted for how quickly those wells are declining and whether more drilling is likely. Anyone who quotes you a per-acre number without looking at your production history is guessing.

Do I have to pay anything to get an offer?

No. There is no cost to request an offer, no listing agreement, and no commission taken out of your proceeds. We buy for our own account rather than marketing your interest to other buyers.

What documents do I need to sell my mineral rights?

A recent check stub or division order is usually enough to start. It shows the operator, the well or lease, and your decimal interest. If you have never received a check, the county and the legal description of the property will let us research it. For closing we confirm title through county records.

How are taxes handled when I sell mineral rights?

A sale is generally treated as the sale of a capital asset, and if you have held the interest longer than a year the gain is usually long-term. Inherited interests often receive a stepped-up basis as of the date of death, which can reduce the taxable gain substantially. Royalty income, by contrast, is ordinary income. This is general information and not tax advice; talk to your CPA about your situation.

I inherited mineral rights and never received anything. Can I still sell?

Usually yes. It is common for an interest to sit in a deceased relative’s name for years while royalties accumulate in suspense with the operator. Selling generally requires establishing the chain of title through probate or an affidavit of heirship. We deal with this regularly and can tell you what your situation would need.

How long does it take to sell mineral rights?

From accepting an offer to funds in hand is commonly two to four weeks, most of which is title verification in county records. Clean title on a producing interest can close faster. An interest that needs probate or heirship work takes longer, and that timeline depends on the county and the family, not on us.

Do I have to sell all of my minerals?

No. Owners frequently sell part of an interest and keep the rest, or sell the interest under one lease while retaining others. Selling a portion is a reasonable way to take some value off the table without giving up your position entirely.

Is your offer binding, and am I obligated to accept it?

You are never obligated. Our written offer is a non-binding invitation to present an offer for discussion purposes only, subject to final title confirmation, due diligence, and verification of revenue interest. You are free to shop it, sit on it, or decline.

Who pays the closing costs?

We do. We prepare the mineral deed, cover the county recording fee and the notary, and pay you the agreed amount. Nothing is deducted from your proceeds for our costs.

Should I sell my mineral rights at all?

Often the answer is no, and we will tell you so. If your interest produces meaningful income, you do not need the money, and you are comfortable holding an asset tied to commodity prices, keeping it is entirely defensible. Selling makes more sense when the checks are small relative to the administrative burden, when an estate needs to be divided, or when you have a specific use for the proceeds.

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