Keeping your mineral rights is a perfectly valid choice. Here's what to expect if you decide to hold onto your minerals rather than sell.
Not selling your mineral rights is a completely reasonable choice. Many mineral owners hold their interests for years or even generations without ever selling. If you choose not to sell, your minerals remain your property, and you continue to receive any royalty income they generate.
Key point: There's no deadline or pressure to sell. Mineral rights don't expire. Your ownership continues indefinitely until you choose to sell or pass them to your heirs.
Owning mineral rights comes with some ongoing tasks, though they're generally not burdensome:
Tracking royalties: Monitoring payments for accuracy
Division orders: Signing new orders when operators change
Lease offers: Reviewing and responding to lease proposals
Contact updates: Keeping your address current with operators
Record keeping: Maintaining ownership documentation
Income reporting: Including royalties in annual filings
Multi-state filings: If minerals are in different states than your residence
State reports: Some states require annual mineral interest reports
Note: Ignoring correspondence from operators could result in suspended royalties or complications with your ownership records.
If you own minerals with active production, here's what you can expect over time:
Production volumes: All wells decline naturally over time
Royalty amounts: Checks get smaller as production drops
Well activity: Mature wells may be shut-in if uneconomic
New wells: Additional drilling could boost income
Commodity prices: Higher prices mean higher royalties
New formations: Technology may unlock deeper zones
Other changes: Operators may sell their interests or merge with other companies. When this happens, you'll receive division orders from the new operator but your ownership remains unchanged.
If your minerals aren't currently producing, your ownership continues but generates no income:
Lease offers: You may periodically receive offers to lease your minerals
Development uncertainty: Your area may or may not be developed in the future
Market fluctuations: Development depends on commodity prices and drilling economics
Nearby activity: Drilling on neighboring properties may increase interest in yours
Reality check: Some mineral interests remain undeveloped indefinitely. There's no guarantee that holding will result in future production or increased value.
When you pass away, your mineral rights transfer to your heirs. Here's what happens generationally:
Minerals pass through your estate per your will
If no will, state intestacy laws determine heirs
Title must be updated to reflect new owners
Division orders must be signed by heirs
Ownership becomes more fractional each generation
More owners means more coordination required
Family members may disagree on decisions
Tracking down all owners becomes difficult
Generation 1: You own 100% of 10 net mineral acres
Generation 2: Your 3 children each inherit 3.33 net acres
Generation 3: Each grandchild inherits 1.11 net acres (if 3 children each)
Generation 4: Great-grandchildren inherit 0.37 net acres each
Whether you sell or hold, the value of your minerals will fluctuate:
Commodity prices: Oil and gas prices affect both royalty income and sale values
Development activity: New drilling in your area can increase (or decrease) interest
Production trends: Declining production reduces both income and sale value
Buyer interest: Market demand for minerals fluctuates with industry conditions
Waiting to sell doesn't guarantee a higher price. Values can go down as easily as up. Many factors—production decline, commodity prices, operator activity—affect value regardless of whether you sell or hold.
Keeping minerals is perfectly fine if it suits your situation and goals
Consider the management required and whether it fits your lifestyle
Think about your heirs: Would they prefer inherited minerals or inherited cash?
There's no urgency: You can always sell later if your situation changes
Know your options: Understanding your minerals' value helps you make informed decisions
Your mineral rights remain your property for life and then transfer to your heirs when you pass away. During your lifetime, you continue receiving any royalty income from production and remain responsible for managing your ownership interest.
Mineral rights rarely become completely worthless. Producing minerals continue generating income (though it declines over time), and non-producing minerals retain value based on development potential. However, the value can decrease significantly as production declines or if development potential diminishes.
Unlike surface property, mineral rights don't require active maintenance. However, you should respond to correspondence from operators, keep your contact information current, and file any required state reports. Ignoring these responsibilities could result in suspended royalties.
Mineral rights pass to your heirs through your estate. If you have a will, it determines who inherits. Without a will, state laws determine the distribution. Each generation of inheritance typically creates more fractional owners, which can complicate future management and sales.
In most states, mineral rights cannot be taken simply for non-use. However, some states have dormant mineral acts that may affect mineral interests unused for extended periods (often 20+ years). Responding to operator correspondence helps protect your ownership.
Whether you're considering selling or just want to understand your options, a free evaluation helps you make informed decisions. No obligation, no pressure.
Get Your Free EvaluationOr call us at (817) 778-9532
Disclaimer: This information is provided for educational purposes only and does not constitute financial, legal, or tax advice. Every situation is unique. Consult with qualified professionals for advice specific to your circumstances.