Colorado Owners on the East Texas Oilfield

The East Texas Oilfield — the Black Giant — discovered October 1930 by Dad Joiner — covering five East Texas counties — has been producing oil continuously for 95+ years. Many of today's mineral interests are owned by Colorado residents who inherited them from a parent or grandparent. Some current Colorado-resident interest holders are 4th- or 5th-generation heirs of original 1930-1932 lessors who signed the original East Texas leases.

If you live in Colorado and receive monthly royalty checks from a Texas operator on an East Texas Oilfield lease, this guide is for you.

What You Likely Own

Colorado-resident heirs of East Texas Oilfield interests typically hold one or more of:

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

Non-producing mineral interest — fee mineral ownership in a section currently between producing wells

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

Non-participating royalty interest (NPRI) — a royalty interest with no leasing or development rights, usually carved out by a previous owner during a sale

Producing Counties to Look For

Your division order or check stub will identify the county. East Texas Oilfield producing counties are:

Rusk, Gregg, Smith, Upshur, and Cherokee (East Texas).

Producing formations are the Cretaceous Woodbine Sandstone, plus selective horizontal Eagle Ford Shale activity in some sections.

Selling Remotely from Colorado

Out-of-state mineral sales are routine in the East Texas Oilfield 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.