# Mineral Rights in Indiana: Ownership, Dormancy, Leasing & Taxes
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> How Indiana mineral rights law works: the IDNR, indiana extinguishes an unused interest after 20 years — automatically, severance and property taxes, and how land is described. Source-linked, educational.

**URL:** https://www.buckheadenergy.com/mineral-rights-in-indiana
**Source:** Buckhead Energy (https://www.buckheadenergy.com/)
**Generated:** 2026-08-16 (heuristic; server-side extraction)

## Answer
Mineral rights in Indiana are governed by Indiana property and oil and gas law and regulated by the Indiana Department of Natural Resources, Division of Oil and Gas (IDNR). Whether a severed interest can lapse from non-use, how oil and gas production is taxed, and how land is legally described all follow Indiana-specific rules — set out below with the Indiana authorities that govern them. Frequently asked questions Can I lose my mineral rights in Indiana for non-use? Yes, in principle — but it is easy to prevent. Under Indiana Code Section 32-23-10-2, a mineral interest unused for twenty years is automatically extinguished and reverts to the surface owner unless a statement of claim is filed — a self-executing lapse the U.S. Supreme Court upheld in Texaco, Inc. v. Short (1982). But "use" is defined broadly: production, injection or storage, rentals or royalties, operations on a pooled or unitized tract, and paying property taxes on the mineral interest all count. Because Indiana assesses producing interests as real property, an owner who simply pays the county mineral tax bill each year continuously resets the twenty-year clock. Who regulates oil and gas in Indiana? Indiana Department of Natural Resources, Division of Oil and Gas. The DNR Division of Oil and Gas permits Indiana wells and publishes the production records we check on every Indiana evaluation. How are Indiana oil and gas royalties taxed? The petroleum severance tax is computed both ways per return, and you owe the higher. At any oil price above roughly $24 a barrel or gas above about $3.00 per Mcf, the 1% leg governs: How is Indiana mineral property described? Indiana is a rectangular-survey state. The Second Principal Meridian governs the great majority of the state including all of the southwestern Illinois Basin oil counties, with the First Principal Meridian along the eastern edge.

## Page Outline
- Mineral Rights in Indiana: The Law
  - The regulator: Indiana Department of Natural Resources, Division of Oil and Gas
  - Indiana extinguishes an unused interest after 20 years — automatically
  - Indiana takes the greater of 1% or a flat per-unit amount
  - Indiana assesses minerals as real property — and paying protects your title
  - Section-township-range, mostly off the Second Principal Meridian
  - Where oil and gas is produced in Indiana
  - What this means for Indiana mineral owners
  - Related reading
  - Frequently asked questions
  - Ready to Sell Your Mineral Rights?

## Related Pages
- [Indiana Mineral Rights & Counties](https://www.buckheadenergy.com/mineral-rights/indiana)
- [Indiana Royalty Guide](https://www.buckheadenergy.com/sell-oil-gas-royalties/indiana)
- [Mineral Rights by State](https://www.buckheadenergy.com/mineral-rights-by-state)
- [Oil and Gas Law: An Overview](https://www.buckheadenergy.com/oil-and-gas-law)
- [Oil & Gas Encyclopedia — all terms](https://www.buckheadenergy.com/learn)

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