Midland Basin Mineral Rights Owner: Everything You Need to Know

Owning property in the Midland Basin is often not just about what you see on the surface. Deep underground, there may be oil, gas, and other minerals that can carry great financial potential. Many landowners are unaware of the value or legal complexities tied to these underground resources.

That is why understanding mineral rights is important for Midland Basin landowners. In this guide, we’ll explain what mineral rights are, how they affect landowners in the Midland Basin, and what to think about before leasing or selling them. Understanding this side of ownership is key and can shape both your short-term earnings and long-term financial future.

‍

Key Takeaways

• The Midland Basin is one of Texas’s most important oil and gas regions, with valuable minerals located beneath the land.
• Midland Basin mineral rights owners can benefit from knowing whether to sell or lease their rights to maximize value.
• The Mineral Auction helps owners connect with trusted buyers through a clear auction process to secure the best deal.

‍

What is the Midland Basin?

The Midland Basin is a major oil and gas development area in West Texas and is part of the Permian Basin. It stretches across several Midland counties, including Midland, Ector, Andrews, and Martin County. The basin has rich underground layers, such as the Wolfcamp and Spraberry, where companies acquire minerals like oil and natural gas. The area is rich in resources and ripe for mineral production growth.

In the past, wells were drilled straight down, but today, new methods like horizontal drilling help extract more resources. Because of this, the Midland Basin is one of Texas’s busiest areas. It attracts investors, energy companies, and mineral rights owners who gain from royalties and strong production.

‍

Minerals Found in the Midland Basin

The Midland Basin holds many different kinds of mineral and energy resources. These resources make the area one of the most active and valuable parts of the Permian Basin. 

Here are some of the minerals you’ll find in the Midland Basin:

• Oil – Large amounts of crude oil come from layers like the Spraberry Formation. Professionals say billions of barrels of oil can still be found in the ground.
• Natural Gas – Along with oil, there are trillions of cubic feet of natural gas in the same formations. This makes it a strong asset for investors and companies.
• Salt and Brine – Deep below West Texas, including Midland counties, are salt layers that create brine. These can be useful in oilfield work and industry.
• Potash – Parts of the wider Permian Basin also hold potassium salts, or potash, which is used in making fertilizer.

‍

How to Determine if You Own Mineral Rights

Owning land in Texas doesn’t always mean you also own the mineral rights to the land beneath. Surface rights cover the land above, while mineral rights control resources below. Knowing what you own is key to your land’s value and smart oil and gas deals.

Here are simple steps to help you find out if you own the rights to the mineral resources on your property:

1. Check Your Deeds – Your property deed may state if mineral rights were sold or kept by a past owner.
2. Visit the County Clerk’s Office – Use your land’s legal description to look through deed records in your county.
3. Read Deeds in Reverse Order – Start with the most recent deed and work backward to see if rights were reserved.
4. Hire a Landman – A trained landman can trace mineral ownership and explain what you do or don’t own.
5. Ask a Title Company or Attorney – Professionals in mineral law can review records and clear up complex ownership issues.

In the Midland Basin, confirming mineral ownership protects your assets and guides smarter choices when selling, leasing, or passing rights to family. If you’re ready to sell, The Mineral Auction can help you clear up ownership and connect you with trusted buyers.

‍

Tips for Mineral Owners in the Midland Basin

The Midland Basin in Texas is a busy oil and gas area, so being careful now can save you time and help you earn more from cash or royalties later. Whether you are a first-time mineral rights owner or already have experience, these tips can help you protect your land and get a fair deal:

• Gather all Papers – Get your deed, lease, maps, title docs, and royalty checks together in one place so you can show what was acquired and who gets paid what.
• Know Surface and Mineral Rights – Owning the land does not always mean you own the minerals below. Be sure you’re aware of the differences and what you own.
• Hire Help if Needed – A landman, title company, or attorney who knows Texas mineral law can trace ownership and explain deeds and mineral deals.
• Work With a Mineral Rights Broker – Mineral rights acquisitions are complex, and mineral rights valuations can be incredibly complicated. By working with a mineral rights broker, you can improve your position and the outcome of your mineral rights deal.
• Get Many Offers – Do not take the first bid without careful review. Let several buyers or investors compete to raise the purchase price.
• Be Careful With Option Agreements – Option agreements can lock you into a low sale or bad terms; they are often a red flag.
• Learn What Drives Value – Leases, current operations, production, depth, royalty interests, and oil and natural gas prices can all change the value of your minerals.
• Decide Between Selling and Leasing – Selling gives you cash immediately, while leasing may possibly give you steady royalties over time. Pick the strategy that fits your goals.
• Always Negotiate – Most offers can be improved with simple negotiation on price, royalty share, or closing terms.
• Avoid Unsolicited Offers – Cold calls or mail offers can be rushed or low, so make sure you verify any buyer before you sign.
• Keep Good Records – Track payments, past deals, and who acquired what, because this can help you in future transactions and taxes.

‍

Selling vs. Leasing Mineral Rights

If you own land in Texas with valuable minerals beneath it, you’ll likely face the decision of whether to sell your mineral rights or lease them. Both options come with unique benefits and trade-offs, and the best choice often depends on your financial goals and risk tolerance. If you feel lost, you can work with The Mineral Auction for more guidance or to auction your mineral rights to qualified buyers. Below, you can learn more about what to expect from selling vs. leasing.

‍

Selling Mineral Rights:

• Selling your mineral rights provides a one-time, lump-sum payment, allowing you to settle everything at once.
• Selling also removes the uncertainty of fluctuating mineral values.
• With selling, there’s no responsibility for future production or royalty management.
• The downside to selling is that you give up on any future royalty payments if production increases.

‍

Leasing Mineral Rights:

• Leasing your mineral rights allows you to keep ownership while earning royalty payments.
• Leasing also offers the potential for higher returns if mineral values rise.
• Contracts through leasing are usually time-limited, and payments may vary with production levels.
• With leasing, your income can decrease if values or production drop.
• You will need to handle the ongoing management of royalty payment collection and taxes.

‍

Auction Your Midland Basin Mineral Rights With The Mineral Auction

Understanding your Midland Basin mineral rights helps you unlock your property’s full value. From knowing what’s beneath your land to choosing whether to lease or sell mineral rights, every step can shape your financial future.

At The Mineral Auction, we connect Midland Basin mineral rights owners with serious buyers through a transparent and trusted auction process. Our team is here to guide you through every stage, helping you secure the best possible outcome for your mineral rights. We focus on actionable insights, tested tactics, and a competitive network of more than 7,000 qualified buyers.

‍

Looking to maximize your Midland Basin mineral rights? Reach out to The Mineral Auction today.

‍

Get a Free Evaluation Today

‍