Category: Mineral Rights

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.

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.

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.

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.

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.

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

Contact us today if you need managing minerals support.

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.

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 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.

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.

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 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.