Ensure Your Beneficiaries Get Your Mineral Assets

Posted on November 7, 2022May 7, 2026 by Valor

Holding on to generational assets like mineral rights, rather than selling them off before you pass on, could hold several benefits for your beneficiaries.

When it comes to generational assets, mineral rights hold a lot of potential for your beneficiaries. Instead of selling, consider the gift that transferring your mineral assets could be for your loved ones, both now and in the future.

According to many experts, if you are willing and able to keep your mineral rights for more than 10 years, opportunities for leasing and gaining royalties greatly increase. Therefore, not only are you passing mineral rights to beneficiaries or an entrusted party, you’re also passing the financial benefits that come with rights ownership.

What Are the Benefits of Holding on to Your Mineral Rights?

First, if you lease your mineral rights to an oil and gas operator, you will typically receive a lease bonus. An operator leases the oil or natural gas rights from you and reserves the option to drill on your property over a set period of time called the primary term. Oil and gas leasing are essentially a “reasonable access to leased property” sale that comes with primary and secondary terms. A primary, or definite, term covers the oil and gas exploration and production, while the secondary term covers the life of production in paying quantities. In other words, if the well is not producing, the leasing expires after the primary term. However, if the primary term is up and the well is producing, you or your inheritors hold the lease until production ceases.

If the land is drilled and oil or natural gas assets are found, you can earn royalties on your mineral rights. These royalties can essentially be a means of income for whoever holds those rights. Imagine a monthly royalty check in the mail for as long as the production value lasts.

It’s also worth noting that in most states, keeping nonproducing minerals still means owing property tax or ad valorem tax, but there’s value in asset ownership. The world is not making any more land, and the U.S. is the only country with private mineral ownership, so opportunities to own mineral acres are few and far between. Keeping mineral assets can be a wise move for future wealth, especially if you are living in a period of inflation and experiencing a volatile stock market.

Moreover, the question of how much mineral rights are worth per acre will change constantly. As innovation happens and technology improves, operators will be able to tap into more resources and obtain minerals in new ways that could be financially beneficial to whoever holds the rights to them.

Are There Any Challenges to Inheriting Rights to Minerals?

The benefits of passing mineral rights on as generational assets are many, but that doesn’t mean the process doesn’t have its complexities.

For example, dividing mineral rights among different beneficiaries can be tricky. If you inherit mineral rights along with another party and you own a specific percentage of that asset, you may encounter resistance to fragmenting the rights further by handing them down to your beneficiaries. (However, undivided mineral rights ownership is one of the best and easiest qualities for generational assets ownership.)

Surface owners can also run into trouble by assuming they own the mineral rights connected to the ownership of the surface property. If left uninformed, beneficiaries may have to work out what they’re actually entitled to. Meanwhile, oil and gas companies looking to arrange leases can take advantage of naive title holders and offer rates that don’t match up with the potential value of the asset. In the most extreme examples of uninformed mineral rights holders, predatory mineral buyers can capitalize on unknown mineral rights.

This is why getting a land deed drafted and making sure it’s executed, notarized and filed appropriately is critical.

How to Set Up Mineral Rights Beneficiaries for Success

You want to make inheriting mineral rights as easy as possible for your family or chosen beneficiaries, so how can you mitigate the above challenges effectively? Consider the following steps:

1. Bring in an expert to help manage the process.

It’s unlikely that you or your beneficiaries are experts in mineral rights. One challenge of inheriting rights to minerals is ensuring that you’re capturing their full value, which can oftentimes become a full-time job. Seek out an experienced mineral manager to make sense of your assets, to make sure you hand them down with accurate documentation, and to make the most from them in the form of lease bonuses and royalties. They can be a knowledgeable, invaluable partner who understands specialist information, like the cost basis for inherited mineral rights and the day-to-day operational concerns connected with oil or natural gas assets.

2. Create a comprehensive asset inventory.

Document all mineral interests thoroughly, including the county and state where each interest is located, the legal description of the property, current lease status and operator information, decimal interest or net mineral acres owned, and historical production and payment information. This inventory becomes invaluable for beneficiaries who need to understand what they are inheriting and how to manage it going forward.

3. Communicate with your beneficiaries.

Many heirs are surprised to learn they have inherited mineral rights and may not understand what that means. Consider explaining your mineral holdings to beneficiaries before they inherit, showing them where records are kept and how to access them, introducing them to your mineral manager or other professionals who help manage the assets, and discussing your wishes for how the minerals should be handled. This communication helps beneficiaries feel prepared rather than overwhelmed when they take ownership.

4. Keep records organized and accessible.

Maintain organized files with all deeds, leases, division orders, correspondence, and payment records. Consider digital storage in addition to physical files, and make sure beneficiaries know where to find these records. Clear organization prevents confusion and ensures continuity of management after a transfer.

5. Make sure the mineral deed is valid.

To ensure your deed is valid for estate transfer, it must be in writing, the grantee and grantor must be identified by signature, and both parties must have the legal capacity to transfer or accept the assets. They must also be able to locate assets on the ground. It’s frustrating to have a will that tells the reader to “see inventory” when referencing assets but doesn’t include a consolidated, detailed inventory of the mineral assets.

Holding on to generational assets like mineral rights, rather than selling them off before you pass on, could hold several benefits for your beneficiaries. While drafting deeds and obtaining leases may seem complex, with a trusted operator, your assets can become a regular income for your loved ones for years to come.

Matt Autry is the President, Oil, and Gas at Valor, a specialty asset services provider focusing on mineral management, oil and gas operator services, accounting, and back-office outsourcing.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

How to Effectively Pass On Mineral Rights

Posted on September 15, 2022May 7, 2026 by Valor

Leaving mineral rights to your beneficiaries can be incredibly complicated. The right mineral management partner can make all the difference.

Generational Rights to Minerals: How to Set Your Beneficiaries Up for Success

When thinking about estate transition, questions may come to mind about how to create a detailed descent and distribution plan for your mineral assets. You may be wondering how to ensure the mineral rights transfer is successful, what some of the pitfalls are to avoid, and how you can protect your assets.

At Valor, we understand the importance of thorough estate planning to ensure you have secured your mineral rights for your beneficiaries. Addressing these questions head-on — with knowledge and clarity — can help set you on the path to a successful mineral estate transfer.

How do mineral rights get passed from one generation to the next?

Mineral rights are the ownership of the subsurface real property. When hydrocarbons are produced, the mineral owners are entitled to a royalty percentage of the production proceeds. When you pass away, your beneficiaries inherit your mineral interests. If you have a will, it is up to the executor to probate your will and make sure the assets are passed on in accordance with your will. Since mineral rights are considered real estate, this will require a conveyance to be filed in your respective county courthouse. The executor will need to prepare, execute and record the conveyances. If you pass on without a will (intestate), the mineral ownership will pass in accordance to the inheritance laws of the state in which the property is located — this usually requires an Affidavit of Heirship to be filed in lieu of a deed.

In either case, it is important to know what exactly is owned so that the property descriptions on the conveyance are accurate.

First, in order to verify ownership, a landman, title company or attorney are usually hired to research the ownership records of the property(ies) in question. It is the norm for the deed to have the gross property description, not necessarily each individual owner’s net ownership. So even if you have copies of deeds, it will likely require further research to verify net ownership. It is also common for the surface owner(s) and the mineral owner(s) to differ. Just because you own a house does not necessarily mean you own the minerals as well. It’s also common for there to be multiple owners of a property, especially after a generation or two. Sometimes an owner sells to someone outside of the family, or gets divorced, and you can have a range of related and unrelated owners of the same mineral property.

Once the conveyances are filed of record, the next steps are to make sure the county tax authorities update the records to match. They should also make sure any oil and gas companies that have an active lease on the properties are notified. In an intestate case, oil and gas companies may require additional documentation to prove ownership.

This can be quite a tedious and expensive process if there is not a plan in place along with the correct people designated to handle it. Too often individuals did not know about the mineral rights until they’ve been inherited and they have to start from scratch. Do your beneficiaries a favor and keep good records, have the right people to help, and have your estate plan in order.

What are the biggest challenges in mineral estate planning?

1. Family Matters: Inheriting and keeping track of mineral rights is becoming increasingly complicated. For example, let’s say your grandfather divided mineral rights ownership among your family members, with each owning a specific percentage. While you may want to exclusively split your portion with your own children, others may hold a different view. Some may opt to sell their rights to outsiders, further fragmenting mineral rights.

2. Documenting what you own: Owning a real estate’s surface rights doesn’t automatically mean owning the mineral rights. This can be most challenging for your beneficiaries if they don’t know where to start. An important piece of the puzzle to prevent confusion for them would be outlining the plans for the mineral rights in your will in as much detail as can be provided. The more you’re able to explain and translate for their understanding, the more responsibly they can make decisions on ownership and the future of the rights and property.
3. Educating inheritors: When the mineral rights are transferred to your inheritors, some oil and gas companies will reach out and ask them to sign leases. Unfortunately, some of these enterprises can capitalize on your beneficiaries’ naivety or lack of regular valuation knowledge and offer exploitative rates.
4. Being taken advantage of: There is also the threat of predatory mineral buyers taking advantage of your mineral rights inheritors if they are unaware of their inheritance. Mineral buyers usually work with probate firms to research and target potential heirs of wealth who did not file a last will. Hunters sometimes demand that the beneficiaries agree to share a significant portion of the inheritance with them before disclosing the source of the inheritance.

How can you set up inheritors to avoid challenges?

Though the aforementioned are all major hurdles, you have a couple proven ways to mitigate these issues and set your inheritors up for lasting success:

1. Provide Clear Documentation for All Parties

Inheriting rights to minerals, oil or natural gas could produce a financial windfall for your beneficiaries. But maintaining this complex asset class can be a daunting task, especially for those unaccustomed to maximizing the value of mineral rights. Set up your inheritors now with clear, well-thought-out direction for them when the time comes to take on the mineral rights. Having your rights audited before inheriting them will prevent confusion and complicated decisions (and fees involved with auditing after inheriting) for beneficiaries and any legal and insurance teams involved down the road.

2. Utilize a Mineral Management Company

You simply may not have the time or expertise to effectively manage mineral, oil and gas assets — nevermind being certain that you’re following best practices. A number of beneficiaries don’t even know the details of everything they inherit. If they do, they aren’t equipped with an accurate picture, or they’re not getting the true pay for it. For that reason, mineral asset owners often choose to work with a professional mineral management company who can oversee key tasks on their behalf, including conducting regular valuations to fill in the gap in the value of the rights versus the market price at any given moment. These regular appraisals will keep your inheritors up to date on any changes in value of the mineral rights as well as be crucial in making any decisions about them or the land the minerals are on. Utilizing a mineral manager provides your inheritors with a knowledgeable source of trustworthy guidance and information on a regular basis.

When mineral assets are part of an estate or trust, you need an experienced partner who understands more than just the market value. And that’s what we do. Valor understands the day-to-day operational challenges, the long-term investment environment, and the ins and outs of complex agreements and transactions. We safekeep your records with our proprietary mineral tech software (mineral.tech®, equipped with up-to-date security and revenue-optimization technology) to ensure that your rights are protected — and effectively managed and reported — making for a seamless, profitable transition to your inheritors.

Allowing an expert to work as your partner on your estate or trust takes the work and worry off of your and your inheritor’s hands while still safeguarding your asset rights. For your peace of mind in managing and securing your mineral rights, get in touch with one of our experts today.

How to Manage Your Minerals From Afar

Posted on September 12, 2022May 7, 2026 by Valor

Some people don’t live in the same place as their mineral assets. Here are best practices and tips for managing your minerals from a different location.

There are approximately 8-12 million mineral owners across the United States. Many of them not only live a distance from their assets, but have never even seen or set foot on the land where their minerals reside. So how exactly can they engage in confident, competent mineral asset management? For many, the answer lies in understanding what it means to own minerals from afar, as well as working with mineral management companies that can simplify the experience.

First, though, let’s examine some of the reasons people may not reside anywhere near their minerals. The most obvious way this can happen is through relocation. People move all the time for different reasons. They may therefore sever, or split, their surface property rights with the next buyer, but retain rights to whatever minerals exist within the land they sell.

Inheritance is another way that people become mineral owners. For example, you might live in California and inherit minerals in Texas. This happens frequently and can prompt a lot of stress on the part of the beneficiary who doesn’t know what to do next.

Finally, it’s important to note that some mineral buyers and investors actively seek out minerals regardless of location. They know that minerals are a worthy investment and care more about the geology and where drilling is hot at the moment.

Challenges When You’re Not Living Near Your Mineral Assets

It’s worth mentioning that even if you live in the same area as your minerals or are a surface owner of a property teeming with minerals, you can still have challenges. However, managing your minerals can get a bit stickier if you’re not close by. Perhaps one of the biggest concerns is staying up-to-date and compliant with local, state, and federal mineral rights laws and regulations.

Mineral rights laws and regulations can differ wildly from state to state. You could own the same type and amount of mineral in two states but wind up having vastly different considerations. For example, one jurisdiction may limit how many extraction operations are allowed in a particular region during a given timeframe. Another jurisdiction may have conservation-related statutes like Colorado, which establishes mine and well land-use rules.

All these legal guardrails can become confounding. However, they’re essential to know and follow. No mineral owner wants to run afoul of non-ownership or ownership-in-place theory interests. Still, it can be hard to know exactly what moves are allowable (and when they’re permissible, in some circumstances).

Another hindrance to being physically removed from your minerals is that you may misunderstand which land or assets you own. It’s hard to have a good feel for your minerals in the Permian Basin when you live in Chicago. This can be doubly confusing if you’re an inheritor since many places have complicated inheritor laws. Add this possibility to all the tax differences and you have a lot of room for error and frustration.

Valor’s Solution to Remote Minerals Management

The question remains: How can you effectively manage mineral assets and live elsewhere? At Valor, we’ve included several features and benefits into our service offerings that give remote mineral owners peace of mind.

1. Our team helps with everything, including leasing mineral rights.

The Valor team is composed of experts ready to handle all aspects of remote mineral ownership. These include in-house landmen, accounting professionals, land professionals, a Juris Doctor, and certified mineral managers. You can also tap into our collective knowledge to assist with common decisions, like leasing mineral rights.

When you lease to oil and gas companies, you want to get the best contract possible. We bring the expertise to advise you on obtaining strong terms; Valor maintains properties for years and currently manages minerals in 32 states. The better your lease, the more money you may make. And if you make money, we have developed automated processing for your 1099s to ensure their accuracy, too.

2. We offer a proprietary software tool.

One of the biggest advantages Valor brings to the table is mineral.tech®, our proprietary mineral asset management software. This data-rich platform integrates accounting, land management, data analytics, and reporting for all of our clients.

Mineral.tech® provides digital document management and includes a GIS mapping platform, full integration with public oil and gas data, and customized reporting that analyzes revenue and well data for your accounting and decision-making needs. You can see all of your assets mapped out and any activity on bordering land, including nearby production, drilling, and permitting activity. You no longer miss things that are happening on your non-producing assets.

With mineral.tech, you have 24/7 portfolio visibility from all angles, with access from anywhere in the world to everything you need to manage your minerals no matter where they’re located.

3. We handle the regulations associated with mineral management and ownership.

One of the most common issues that mineral owners run into is dormant mineral filings. We’ve worked hard to recover more than half a million dollars in suspended funds for clients with our most requested option — helping owners navigate dormant laws and regulations.

The laws surrounding mineral rights, mineral leasing, and everything in between are different from state to state. While it’s possible to go to court if necessary, most mineral owners want to do everything they can to not pay avoidable legal fees. Our up-to-date understanding of mineral ownership rights and responsibilities provides reliable protection for the more than 8.4 million gross acres and 450,000 net royalty acres we manage on behalf of our clients.

Whether you’re living close to your mineral investments or you’ve never even seen the property, you can trust Valor. Get in touch with us to get started on managing your mineral assets more effectively today.

Best Practices for Remote Mineral Owners

Beyond working with professional management, there are several practices that help mineral owners stay connected to their assets regardless of distance.

Organize Your Documentation

Maintaining organized records is essential for remote ownership. Create digital copies of all deeds, leases, division orders, and correspondence. Store these in a secure cloud service that you can access from anywhere. Having your documents readily available makes it easier to respond to inquiries, verify payments, and provide information when needed.

Keep Contact Information Current

Operators need accurate contact information to send payments and important correspondence. If you move or change phone numbers or email addresses, notify every operator paying you royalties. Consider using a permanent mailing address like a P.O. box if you relocate frequently. Missing operator communications can lead to suspended payments or missed deadlines.

Monitor State Regulatory Websites

Most state oil and gas commissions provide online access to well data, production reports, and permit filings. Bookmarking these resources allows you to check on activity in your area even from across the country. The Texas Railroad Commission, Oklahoma Corporation Commission, and similar agencies in other states publish this information publicly and update it regularly.

Set Up Direct Deposit

Enrolling in direct deposit for royalty payments eliminates the risk of lost checks and ensures payments arrive promptly regardless of where you live. Most operators offer this option and it simplifies tracking your income. You can monitor deposits from your bank account without waiting for mail delivery.

Respond Promptly to All Correspondence

When operators or landmen contact you, respond in a timely manner even if you need time to make decisions. Acknowledging receipt and asking for additional time is better than silence. Unresponsive owners may have their payments suspended or miss important deadlines for pooling elections and lease renewals.

Managing minerals from a distance is increasingly common as families become more geographically dispersed. With proper organization, reliable communication, and appropriate professional support, mineral owners can effectively oversee their assets no matter where they reside.

What is a “Dresser Drawer Deed”?

Posted on August 16, 2022May 7, 2026 by Valor

Quick Answer: A “dresser drawer deed” is an informal term for a mineral deed or conveyance that was signed but never recorded at the county courthouse. These unrecorded documents are often found in family papers years later and can create title problems. To be legally effective, deeds should be properly recorded.

Have you heard the phrase “Dresser Drawer Deed?”

Are you constantly having to dig through old boxes of paper to find your deeds?
Are you certain everything in your family history has been filed? One common mistake of mineral rights ownership is unfiled deeds, or “dresser drawer deeds.”

A dresser drawer deed is one that is established by the rightful property owner. However, rather than ensuring the deed is legitimate in the eyes of the law, the prepared deed is simply put away in a dresser drawer.

At Valor, we can digitize and properly store your deeds to prevent this from ever happening again.
Technically, the deed is not valid
A dresser drawer deed does not meet all the criteria to allow for an estate transfer. The minimum elements of an official deed are:

∙ The deed must be in writing.
∙ The grantor and grantee must be identified.
∙ The grantor must have “legal capacity” (of legal age, competent, etc.).
∙ The grantee must have the capacity to accept the transfer of the property.
∙ The property must be adequately described.
∙ There must be words of conveyance or transfer.
∙ The deed must be signed by the grantor.
∙ The deed must be delivered to the grantee or his agent.
∙ The deed must be accepted by the grantee.
∙ All of the elements must be met to have a valid deed. A dresser drawer deed oftentimes misses one key element- delivery. Retrieving a deed is not the same as delivering a deed.

By missing this step, family members can waste time and incur legal fees to rectify the situation.

Are You Losing Money on Your Mineral Rights? 4 Steps to Protect Your Assets

Posted on August 16, 2022December 26, 2025 by Valor

Whether you have recently inherited a family legacy or strategically purchased assets, owning mineral rights should be a source of financial freedom, not a source of stress. However, the oil and gas industry is complex, and for the uninitiated, it can feel like navigating a minefield.

At Valor, our mission is to provide peace of mind. We see many owners losing significant revenue simply because they lack the “back-office” resources that major operators use every day.

Here are the most common ways we see owners losing money and the simple steps you can take to secure your interest through proactive mineral management.

1. Know Your Mineral Rights (The Information Gap)

The biggest “Villain” in this story is the information asymmetry between the owner and the operator. Oil and gas companies, landmen, and professional buyers have entire departments dedicated to well production data and drilling activity.

To level the playing field, you must be well-versed in:
• Your Exact Ownership: Do you own the surface rights, executive rights, or just the royalty interest?
• Drilling Activity: Are there new permits being filed in your section or the neighboring “offset” sections?
• Production Data: Are the volumes reported on your check stubs matching the volumes reported to state regulatory agencies?

Without this knowledge, you are essentially flying blind, leaving your financial future in the hands of the very people who are looking to minimize their payout.

2. Watch Out for Common Scams and “Leaked” Revenue

Those looking to cash in on an owner’s lack of experience can “take a little off the top” in ways that are difficult to spot without professional oil and gas back-office support.

We frequently see owners get taken advantage of in the following ways:
• Blind Leases: Not knowing the “market rate” for bonuses or royalty percentages in your specific county, leading to signing “below-market” leases.
• Unauthorized Activity: Wells being drilled across your acreage without a proper pooling agreement or notice.
• The “Shadow” Deduction: Excessive post-production costs (transportation, gathering, and compression) being deducted from your check that may violate the terms of your lease.
• Incorrect Decimal Interest: Being paid on an outdated or incorrect Division Order that doesn’t reflect your true share of production.

3. Strategic Data Optimization & Revenue Recovery

Data will set you free, but only if it is professionally audited. Many mineral owners receive royalty checks and assume the operator’s calculations are correct; however, without a technical review, you may be missing out on significant revenue recovery opportunities.

To protect your interests, you must look beyond the check stub and focus on Strategic Data Analysis:
• Production Reconciliation: Cross-reference your payout data against state regulatory records to identify discrepancies in reported volumes.
• Revenue Auditing: Conduct a forensic review of past payments to identify “suspended funds,” escheatment issues, or chronic underpayments.
• Market Benchmarking: Compare your lease terms and royalty percentages against current basin averages to ensure your assets are performing at peak market value.

We recommend partnering with a trusted advisor, such as Valor, whose entire business model is built on providing mineral management for the owner. Utilizing a dedicated team for your oil and gas back-office needs ensures that every barrel produced is a barrel paid.

4. Don’t Be Scared; Be Prepared

Inheriting or purchasing mineral rights is a major milestone, but it requires active stewardship. If you feel you could fall victim to these pitfalls, seek expert guidance immediately.

At Valor, we understand that managing mineral rights and associated royalties can be complex and fraught with potential pitfalls. Our team of experts specializes in navigating these complexities to help mineral owners avoid common mistakes that can significantly hinder the value of their assets. From ensuring accurate and comprehensive title searches to providing strategic guidance on oil and gas leasing and negotiations, Valor acts as a guardian for your assets. We meticulously monitor regulatory changes and market conditions to ensure compliance and capitalize on opportunities, enhancing both the security and profitability of your assets.

By partnering with Valor, mineral owners gain peace of mind and a proactive ally dedicated to maximizing their returns and protecting their interests.

FAQ: Protecting Your Mineral Rights

How do I know if my royalty checks are accurate? The most reliable method is to reconcile your check stub data against production volumes reported to state agencies like the Texas Railroad Commission.

Can I negotiate post-production costs? Yes. Depending on your lease language, many deductions for gathering and processing can be capped or eliminated through professional negotiation.

What is a Historical Audit? It is a forensic review of several years of payment data to find underpayments, incorrect decimal calculations, or funds held in suspense by the operator

Contact Valor Today

How Much Are Mineral Rights Worth in Texas Today? (2025 Guide)

Posted on August 1, 2022December 23, 2025 by Valor

Quick Answer: Texas mineral rights value varies widely based on location, production status, and oil/gas prices. Producing minerals in the Permian Basin may sell for 4-6x annual royalty income. Non-producing minerals in prospective areas might sell for $500-$5,000+ per net mineral acre. Factors include well proximity, geology, lease terms, and current commodity prices.

It’s critical to understand the history and current value of your mineral rights to ensure you are maximizing your opportunities as the rightful owner. Whether you are looking to sell or simply audit your portfolio, Valor’s expert mineral management team is here to provide the clarity you need to manage your legacy

Understanding Texas Mineral Rights Value Fluctuation

Texas remains the “king” of oil and gas in the United States. It produces more historically than any other state, and for generations, mineral rights have been divided among the heirs of legacy oil-holding families. However, value is never static. In 2025, factors such as global energy demand, technological shifts in extraction, and regional pipeline capacity cause values to fluctuate monthly. Owners today need more than a guess; they need a data-driven valuation.

Location Matters: A Basin-by-Basin Breakdown

There are massive differences in the value of Texas mineral rights depending on where they are located. Owning in the heart of the Midland Basin is typically more valuable than owning in speculative areas like Llano, Texas.

• The Permian Basin (Midland & Delaware): In 2025, high-density production zones here command the highest premiums, often ranging from $15,000 to $25,000+ per net mineral acre.
• Eagle Ford (South Texas): Values here remain stabilized, offering attractive returns for owners in mature, low-risk production zones.
• Haynesville (East Texas): This region has seen a 2025 resurgence due to increased natural gas demand, making East Texas rights more competitive than they were five years ago.

The Three Stages of Valuation

1. Producing Rights: If you receive a monthly royalty check, your value is usually a multiple of that income—typically 4 to 6 years (48–72 months) of average monthly royalty checks.
2. Leased (Non-Producing): If your land is leased but not yet drilling, the value is often 2 to 3 times the last lease bonus paid per acre.
3. Speculative (Non-Leased): This is the baseline value, determined by what speculators are willing to pay for future potential.

Not Every Operator is Equal

Oil and gas operators vary significantly; each one is different. Some operate with superior technology and provide more value to the mineral owners by extracting more “Barrels of Oil Equivalent” (BOE) per foot. Knowing who operates your property and their history of “post-production deductions” is beneficial in knowing the true value of your minerals. At Valor, our oil and gas back-office experts audit these operators to ensure you aren’t leaving money on the table

Advice for Heirs: The “Step-Up Basis”

If you have recently inherited mineral rights, your most important step isn’t selling—it’s establishing a Fair Market Value (FMV) as of the date of the previous owner’s death. This “Step-Up Basis” can save your family significant capital gains taxes if you choose to sell in the future.

Find a Trusted Professional

Finding a professional mineral management company is the best route to learning more about what you own and what it might be worth. A Certified Mineral Manager at Valor can help you discover the hidden value of your portfolio and provide revenue optimization for your rights.

FAQ: People Also Ask

• How long does it take to value Texas mineral rights? A professional valuation typically takes 15–30 days, depending on the availability of county records and production data.
• Can I sell my mineral rights but keep my surface rights? Yes. In Texas, the mineral estate is the “dominant estate” and can be completely severed from the surface land.
• What is a “Net Mineral Acre”? Valuation is always calculated per Net Mineral Acre (NMA), which represents your fractional ownership of the total acreage.

Contact Valor Today

Contact us today if you need help see how our mineral management solutions can help you organize, optimize, and monitor your assets.

The Mineral Owner’s Guide to Division Orders: How to Protect Your Interests

Posted on July 31, 2022May 8, 2026 by Valor

Receiving a Division Order (DO) is a critical milestone for any owner of mineral rights. It indicates that production has begun and your royalty interest is ready to be paid out. Because your search performance and user experience are directly affected by how you manage this information, we recommend following these professional best practices to protect your assets.

What is a Division Order?

A Division Order is a legal document used to confirm ownership and authorize payments. It typically includes:

• Decimal Interest: Also known as your net revenue interest (NRI).
• Type of Interest: For example, royalty, mineral, or working interest.
• Producing Property Name: The legal description and/or the specific well name and number.
• Owner’s Name: Your identifying information as recognized by the operator.

Who Prepares & Distributes Division Orders?

The operating company prepares and sends Division Orders to all owners of an interest in a producing well. These documents are created only after the title has been confirmed, the well has been drilled, and production has officially begun.

Note on Timing: You should not expect a DO on a well that is not yet complete. Mineral royalty owners generally receive them through the mail, often months after the well is finished.

What Do I Do When I Receive My Division Order?

Once you receive a Division Order, you must review, sign, and return it to the operating company. However, do not sign and return it until you are 100% confident it is accurate and you are satisfied with all outlined information.

Accuracy is Key: If any information is incorrect, you must contact the issuing company immediately.
Record Keeping: We highly recommend making a copy of every DO you receive.
Digital Management: Implement a professional digital document management system to track your interests over time.
Payment Requirement: It is important to know that in most cases, you will not receive your royalty payment until the signed DO is returned.

What if I Haven’t Received My Division Order?

If you know production has started but your DO hasn’t arrived, take these steps to expedite the issue:

• Contact your Operator: You can typically find their contact details online.
• Contact the Purchaser: Reach out to the entity purchasing the oil and natural gas.
• Consult a Professional: Contact a mineral management company or an oil and gas outsourcing expert to represent your interests.

Working with a Division Order Analyst

When reaching out to an operator, ask to speak to a Division Order Analyst. These professionals maintain the company’s “pay decks” and ensure ownership data is correct in their systems.

To ensure an efficient transfer of royalty interests, provide them with:

1. Basic Information: Your name, address, and unique owner number.
2. Recorded Documentation: Any documents from the appropriate county clerk where the properties are located.
3. Inheritance Data: If you recently inherited mineral rights, provide the former owner’s name, address, and social security number, along with estate documents such as a probated will, letters testamentary, or affidavit of heirship.

Professional Tip: If you cannot reach an analyst by phone or email, compose a certified letter via USPS to ensure your documentation is received and tracked.

Valor is Your Guide to Complex Interests
Managing mineral rights can be overwhelming. Whether you need a second set of eyes to review your documents or you require comprehensive oil and gas back-office support, Valor is here to help. We provide the technical expertise needed to maximize your royalty potential and ensure your digital records are perfectly maintained.

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Contact us today if you need help see how our mineral management solutions can help you organize, optimize, and monitor your assets.