How much are my mineral rights worth?

The value of mineral rights depends on several factors including location, production history, proven reserves, current market prices, and lease terms. Our experienced team provides free mineral rights appraisal using industry-leading valuation methods. Factors we consider include nearby well production, geological surveys, and current commodity prices.

How do I sell my mineral rights?

Selling mineral rights involves several steps: 1) Contact a reputable mineral rights buyer, 2) Review your deed and title, 3) Receive a transparent valuation explaining the offer, 4) Negotiate terms and closing timeline, 5) Complete title work and documentation, 6) Close the transaction. Buckhead Energy streamlines this process with quick closings and competitive offers.

What is the best company to sell mineral rights to?

The best mineral buying company offers fair market value, transparent pricing, quick closings, and professional service. Look for companies with proven track records, positive landowner reviews, and expertise in your specific basin or region. Buckhead Energy has been acquiring mineral rights since 2007, with successful transactions across 33 states.

Should I sell or lease my mineral rights?

The decision to sell or lease mineral rights depends on your financial goals, risk tolerance, and market conditions. Selling provides immediate cash with no ongoing management, while leasing offers potential long-term income but requires active management. Consider factors like current commodity prices, development potential, tax implications, and your need for immediate capital.

What are mineral rights?

Mineral rights are the legal rights to extract and profit from minerals beneath the surface of land, including oil, natural gas, coal, and other valuable substances. These rights can be owned separately from surface rights. Mineral rights ownership entitles you to lease payments, royalties from production, and the right to sell these assets.

How long does it take to sell mineral rights?

The timeline to sell mineral rights typically ranges from 30-90 days, depending on title complexity and documentation requirements. At Buckhead Energy, we streamline the process: initial evaluation and offer within 7-14 days, title review 2-4 weeks, and closing within 30-45 days of accepted offer.

California Residents: Understanding Your Oklahoma Royalty Checks

Every month a check arrives from an Oklahoma oil company, along with a statement full of numbers, abbreviations, and well names that mean nothing to you. You deposit the check and file the statement with the others you don't understand. Sound familiar?

For California residents receiving Oklahoma mineral royalties, the statements can feel like they're written in another language. Here's a guide to help you understand what you're looking at.

Anatomy of a Royalty Statement

Owner Information

At the top, you'll see your name, address, and owner number. The owner number is your unique identifier with that operator—keep it handy when calling with questions.

Well Identification

Each well has a name (like "Johnson 1-5H") and often an API number—a unique identifier assigned by the Oklahoma Corporation Commission. If you own interests in multiple wells, each will be listed separately.

Production Period

Statements show production for a specific month, but there's typically a 60-90 day lag. Your January statement might show production from October or November. This delay is normal.

Your Decimal Interest

This is where it gets confusing. You might see something like "0.00234567" as your ownership interest. This tiny number represents your fractional share of production. For example:

Well produced: 10,000 barrels of oil

Lease royalty rate: 18.75% (3/16)

Your decimal: 0.00234567

Your share: 10,000 × 0.1875 × 0.00234567 = 4.40 barrels

At $70/barrel: $308 (before deductions)

Common Deductions

Your gross royalty amount isn't what you receive. Common deductions include:

Oklahoma withholding tax: Oklahoma withholds state income tax from non-resident royalty owners (typically 5%)

Severance tax: Oklahoma taxes oil and gas production at the wellhead

Post-production costs: Some leases allow deduction of transportation, gathering, compression, or marketing costs

Whether post-production costs can be deducted depends on your specific lease language. If you're unsure, reviewing your lease (or having an attorney review it) may be worthwhile for larger interests.

Product Types

Your statement will break down production by type:

Oil: Measured in barrels (BBL), priced per barrel

Natural gas: Measured in MCF (thousand cubic feet) or MMBTU, priced accordingly

NGLs (condensate): Natural gas liquids, often reported separately

Why Your Check Amount Varies

If you're wondering why your royalty checks fluctuate month to month:

Production changes: Wells produce less over time (decline curve)

Price changes: Oil and gas prices fluctuate constantly

New wells: If a new well comes online, your checks may increase

Well downtime: Wells may be shut in for maintenance or low prices

Adjustments: Prior period corrections can appear on current statements

Red Flags to Watch For

While most operators are honest, watch for:

Sudden significant drops in production without explanation

Prices that seem significantly below market rates

Large deductions that don't match your lease terms

Checks stopping without communication

If something seems off, call the operator's owner relations department. They're generally helpful in explaining discrepancies.

When the Hassle Outweighs the Benefit

For California residents with small Oklahoma interests, the monthly routine of receiving statements, trying to understand them, and dealing with multi-state tax implications can feel like more trouble than it's worth.

If you find yourself:

Filing statements without reading them

Unsure if you're being paid correctly

Annoyed by the ongoing paperwork for small checks

Dealing with multi-state tax complexity

...it may be worth exploring the option of selling your Oklahoma minerals for a lump sum.

Want to Know What Your Oklahoma Minerals Are Worth?

We provide free valuations for Oklahoma mineral owners. Send us your royalty statements and we'll research your ownership, analyze production, and provide a fair offer. No obligation, and we handle all the legwork.

Tired of Confusing Oklahoma Royalty Statements?

Get a free valuation to see what your minerals are worth as a lump sum.

Get Your Free Valuation

California Residents: Sell Your Oklahoma Mineral Rights

Out-of-State Mineral Rights and California Taxes

California Owners Hub

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.