person-looking-at-the -acting-confused

“My minerals have been in my family for generations, I’m hesitant to sell.”

I talk to a lot of mineral and royalty owners who feel conflicted when it comes to selling their interests. They have been conditioned to feel as though they should be kept forever and it would be a mistake to sell them. “Never sell your minerals” is just not good advice anymore, especially when you:

  • Need the money to pursue personal needs (get out of debt, start a business, pay for college, invest in another venture, etc.)
  • No longer want the responsibilities that come with maintaining your interests
  • No longer want to stay invested in fossil fuels


Any reason for wanting to sell your interests is not a “wrong” one. In fact, there may not be a better time to sell your interests. Consider this: the amount you can get for your minerals in a lump sum payment by selling could be more now rather than receiving incremental payments over the next 5-10 years. And who knows what the state of oil and gas will be then? 

Of course, the value of your interests depends on many factors, but there are times when to sell minerals and royalties and when you should hold them. 


“But I really wanted to pass down my interests to my heirs. I’m still feeling unsure about this.” 


You still can! There are many ways to structure a sale. First, know that you don’t have to sell all your interests. If you like, you can transfer some to your heirs and sell the rest. Secondly, inheritances can be given in many forms, not just in minerals and royalties. They can be given in the form of physical assets such as cash, cars, houses, jewelry, art, etc. Or in the non-physical form like stocks, bonds, and nowadays, in digital currency and digital art like NFT’s! 

If you sell your interests, you can use that money to purchase any of these physical or non-physical assets and give them to your heirs as an inheritance. You just need to be willing and feel comfortable seeing it this way. 

It’s also important to consider this for your heirs: owning minerals and royalties can come with a lot of responsibility, time, and effort, including but not limited to:

  • Monitoring your division orders and revenue statements to make sure you are being paid correctly
  • Requiring additional fees (legal, accounting, landman fees)
  • Communicating with Operators, other mineral and royalty owners, and surface owners about lease agreements 
  • Communicating with buyers and navigating the selling process should they wish to sell some, or all, of the interests
  • Preparing Estate and Will documents so the interests don’t go into probate


Have you asked your heirs if they want these responsibilities? Maybe they do! Maybe they don’t. It’s a good idea to have a discussion with them about what they want, too. 

We understand how our clients feel as we own minerals and royalties, too. We’ve learned to treat them as an investment, and investments are vehicles to help further wealth and secure a financial future. Try to detach your emotions from them and instead of feeling sad about selling them, try to see them as an instrument that you were fortunate to have handed down to you so that you could further you, or someone else’s financial future.

We’re happy to help guide you and be there to help you make a decision. And remember, you can keep a portion and sell the rest! There are many ways we can do this; you have options.

Schedule a complimentary consultation to speak with us about this today.

Kyle D. Venema

Leave a Comment