Colorado Owners on the Austin Chalk

The Austin Chalk — an Upper Cretaceous fractured carbonate that arcs across central and south Texas — has produced through the original 1960 Giddings field discovery, the 1970s vertical boom, the 1990s short-lateral horizontal era, and the modern 2018+ long-lateral renaissance. Many of today's mineral interests are owned by Colorado residents who inherited them from a parent or grandparent who lived in or worked in central or south Texas during the original Giddings boom of the 1970s.

If you live in Colorado and receive monthly royalty checks from a Texas operator on a Giddings-trend or south Texas Austin Chalk lease, this guide is for you.

What You Likely Own

Colorado-resident heirs of Austin Chalk interests typically hold one or more of:

Producing royalty interest — a fractional share of a producing well's revenue, paid monthly by the operator

Non-producing mineral interest — fee mineral ownership in a section that hasn't been drilled or where prior production has ceased

Stacked-pay lease interest — many Austin Chalk leases also cover the underlying Eagle Ford Shale, giving the owner exposure to both plays

Overriding royalty interest (ORRI) — a royalty carved out of a working interest, usually as compensation to a landman, broker, or family member

Producing Counties to Look For

Your division order or check stub will identify the county. Austin Chalk producing counties include:

Brazos, Grimes, Burleson, Washington, Lee, and Fayette (Giddings trend) plus Karnes, DeWitt, Live Oak, McMullen, Webb, Dimmit, La Salle (south Texas extensions).

Producing formations are the Austin Chalk and the underlying Eagle Ford Shale.

Selling Remotely from Colorado

Out-of-state mineral sales are routine in the Austin Chalk producing region. Buckhead Energy handles every step remotely:

Submit your information by email — county, legal description, and a copy of your most recent check stub if you have one

Receive a free written offer by email — no in-person meeting required

Sign the mineral deed and PSA in front of a Colorado notary

Receive funds via wire transfer — proceeds typically wired the day the deed is recorded with the Texas county clerk

Colorado Tax Considerations

Federal capital gains tax applies to the sale of mineral rights. Colorado state income tax treatment varies — consult a qualified Colorado CPA for guidance specific to your situation. Inherited mineral interests typically receive a stepped-up basis to fair market value at the date of death, which can substantially reduce taxable gain on a near-term sale.