CALIFORNIA MINERAL OWNERS GUIDE
You just discovered you've inherited mineral rights in Texas, Oklahoma, or another state. Now what?
The letter arrives from a law firm in Texas or an oil company in Oklahoma. You've inherited mineral rights from a relative—maybe a grandparent you barely knew, or a distant cousin. You live in California and have never set foot on the property. What does this actually mean?
You're not alone. Thousands of California residents own mineral rights in other states, usually through inheritance. This guide explains what you need to know.
Mineral rights are property rights to the oil, gas, and other minerals beneath the surface of land. In most oil-producing states, these rights can be separated from surface ownership. Your ancestor may have owned land that was later sold, but retained the mineral rights—passing them down through generations.
Key things to understand:
You don't own the land—just the minerals beneath it
You have the right to lease your minerals to oil companies or sell them
If minerals are leased and producing, you receive royalty payments
Mineral rights can be highly fractional (you might own 0.001234 of the minerals)
The most common scenarios for California residents inheriting out-of-state minerals:
Your grandparents or great-grandparents lived in Texas, Oklahoma, or North Dakota. They owned land or purchased minerals. As family members passed, ownership divided among heirs and eventually reached you—even though you've never visited.
In Oklahoma, the Land Run of 1889 and subsequent allotments distributed land to many families. In Texas, early homesteading and land grants created mineral ownership that has passed through generations.
A relative may have purchased mineral rights as an investment decades ago. These were often small interests in producing areas that generated modest income.
Collect everything related to the minerals: death certificates, probate documents, any deeds or assignments, royalty statements, lease documents, and division orders. Even if you don't understand them, these documents are important.
This can be tricky. You need to understand:
Where the minerals are located (county, state, legal description)
Your ownership fraction (this could be a small decimal)
Whether the minerals are currently leased
Whether there are producing wells
You have options:
Hold: Continue receiving royalties if producing, or wait for future development
Sell: Convert to a lump sum cash payment now
Partial sale: Sell some of your interest while keeping some
Owning out-of-state minerals from California presents specific challenges:
Distance: You can't easily visit or understand the property
Multi-state taxes: You may owe taxes to both states (with California taxing worldwide income)
Unfamiliar industry: Oil and gas terminology can be confusing
Small interests: Highly fractionated ownership generates small checks but equal paperwork
No oversight: Difficult to verify you're being paid correctly
Many California residents choose to sell inherited minerals because:
The hassle outweighs the income received
They want to simplify their financial life
They need cash for immediate purposes
They want to diversify out of oil and gas
They don't want to burden their own heirs with distant minerals
If you've inherited minerals and want to understand their value, we offer free, no-obligation valuations. We research your ownership, production status, and market conditions to provide a fair offer. The entire process can be completed remotely from California.
Get a free valuation to understand your options. No obligation, no pressure.
Get Your Free ValuationSelling Inherited Mineral Rights: A Guide for California Families
Disclaimer: This information is for educational purposes only and should not be considered legal, tax, or financial advice. Consult with qualified professionals for specific questions about your situation.