Creating a Mineral Rights Inventory for Your Family
One of the most valuable things you can do as a mineral rights owner has nothing to do with wells, leases, or check stubs. It's creating a document that tells your family, clearly and completely, what you own.
Not because you're planning on going anywhere. But because nobody plans on it, and the people who handle things well are the ones who prepare anyway.
What an Inventory Looks Like
A mineral rights inventory is a straightforward document that answers four questions for each property:
- What do you own? Legal description, county, state, net mineral acres, your fractional interest.
- What's the status? Leased or unleased. If leased, who's the operator. If producing, which wells.
- What's it paying? Approximate annual royalty income per property.
- Where are the records? Where the deeds, leases, division orders, and check stubs are kept.
That's it. One page per property, or a single table if the interests are simple.
Why It Matters
For your spouse. If you're the one who manages the minerals, your spouse may not know the details. An inventory gives them a starting point if they need to take over.
For your children. Mineral rights pass to heirs, and heirs who don't know what they're inheriting can't manage it. We've written about what happens when a family has to start from scratch after a death. An inventory prevents that.
For your attorney or CPA. If you become incapacitated or pass away, the people handling your affairs need to know what assets exist. An inventory is faster than searching through filing cabinets.
For yourself. The process of creating an inventory forces you to confirm what you own. You may discover interests you forgot about, leases you need to check on, or records that need updating.
How to Create One
Start Simple
Open a document or spreadsheet and create a row for each property. Include:
| Property | Legal Description | County/State | NMA | Leased? | Operator | Est. Annual Income |
|---|---|---|---|---|---|---|
| Smith Ranch | S14-T12N-R3W | Oklahoma Co, OK | 10 | Yes | XYZ Energy | $1,200 |
| Johnson Tract | S22-T9N-R5E | Canadian Co, OK | 3.33 | Yes | ABC Oil | $400 |
| Baker Estate | Abstract 4567, Block 42 | Reeves Co, TX | 5 | No | N/A | $0 |
Add Contact Information
List the phone number and mailing address for each operator's owner relations department. If something needs attention, your family needs to know who to call.
Note Where Records Are Kept
"Deeds are in the fireproof safe. Check stubs are in the filing cabinet, second drawer. MinRight database is on the desktop computer." A sentence or two per category is enough.
Include Professional Contacts
List your mineral rights attorney, your CPA, and any landman or family friend who has helped you with mineral matters. A name and phone number for each.
Where to Keep It
Keep a printed copy with your important papers (will, insurance policies, estate documents). Keep a digital copy on your computer. Tell at least one family member that it exists and where to find it.
Keep It Current
Review and update the inventory once a year. When a lease expires, a new well comes online, or an operator changes, update the document. An inventory that's five years out of date is better than nothing, but a current one is much more useful.
Using MinRight for This
MinRight can generate reports of your owned and leased properties that serve as a detailed version of this inventory. If all you need is to build that one comprehensive report of what the family owns, the monthly subscription lets you enter everything, generate the reports, and cancel when you're done. The data stays on your computer either way.
If you're going to track royalty payments and manage the interests over time, the lifetime license makes more sense. But for a one-time organizing project, the subscription is designed for exactly that.