If you own mineral rights in Colorado, you may be wondering what they’re worth, how they work, or if now is the right time to sell. Colorado is a key player in the U.S. oil and gas industry, and even small mineral interests can have value.

At Fraction Royalty, we help everyday mineral owners understand their options. Whether you inherited mineral rights, bought land, or are just starting to receive checks, we’re here to guide you through the process.

Let’s take a closer look at how Colorado mineral rights work, where the value lies, and how to sell them easily—with no pressure and no hassle.

Colorado’s energy production is centered around a few specific regions. These areas are where leasing, drilling, and royalty activity is the most active.

Top Producing Regions

1. DJ Basin (Denver-Julesburg Basin)
   Located in northeast Colorado, this is by far the most active oil-producing region. Counties like Weld, Adams, Morgan, and Logan see the most drilling.

2. Piceance Basin
   Found in the western part of the state, especially Garfield County, the Piceance Basin is known more for natural gas than oil.

3. San Juan Basin
   In the southwest, including parts of La Plata County, this region has long been a source of coalbed methane gas.

If your mineral rights are in any of these areas, there’s a good chance they hold value—even if you’re not currently receiving oil and gas royalties.

One of the most confusing aspects of mineral rights is understanding exactly what you own. Colorado law treats mineral and surface rights as separate. This means it’s possible to own the minerals beneath the land without owning the land itself.

What You May Own

• Mineral Rights Only
  You own the subsurface minerals but not the land. You may be receiving royalties in Colorado if there is active production.

• Surface and Mineral Rights Together
  This is called a “fee simple” estate and gives you complete control of the property.

• Royalty Interest Only
  This means someone else leased and developed the minerals, and you only receive a percentage of the revenue.

If you’re not sure what you own, don’t worry. At Fraction Royalty, we’ll help you figure it out and explain your options clearly.

Before deciding to lease or sell your mineral rights, it helps to understand how leases work and what taxes apply in Colorado.

Leasing in Colorado

Leasing your mineral rights gives an oil company the right to explore, drill, and produce oil or gas. You’ll typically receive:

• An upfront lease bonus

• A percentage of production revenue (called a royalty)

In Colorado, royalty rates usually range from 12.5% to 20%, depending on the lease terms.

Taxes in Colorado

Colorado applies a severance tax on mineral production. Royalty owners are subject to:

• State severance tax (based on the value of minerals produced)

• Federal income tax (if applicable)

• Property tax in some counties

This tax structure can impact how much you take home in royalties. If you’re receiving small checks and tired of managing taxes, selling might be a better option.

The value of your Colorado mineral rights depends on many factors, including location, current production, and nearby drilling activity.

Factors That Affect Value

• Location (especially in active counties like Weld)

• Production Status (producing, non-producing, or unleased)

• Royalty Rate in your lease

• Size of your interest (net mineral acres)

• Nearby permits or wells

What Are Colorado Minerals Worth?

There is no set price, but here are some ballpark estimates:

• Non-producing minerals: $50 to $1,000 per net mineral acre

• Producing minerals: $1,000 to $10,000+ per acre, depending on royalty rate and production.

If your minerals are small or fractional, don’t worry. We specialize in small deals that most buyers won’t consider.

If you decide to sell oil rights in Colorado, here are a few simple tips to make sure you get a fair deal and avoid unnecessary stress.

1. Work with Direct Buyers

Many brokers flip deals or tie up your rights for weeks without closing. We’re direct buyers, which means faster offers and no middlemen.

2. Get Multiple Opinions

Even if someone has made you an offer, it’s smart to compare. We’ll give you a no-obligation offer in 24 hours.

3. Watch Out for Red Flags

Avoid buyers who:

• Pressure you to sign fast

• Can’t explain their offer

• Charge closing costs or fees

At Fraction Royalty, we cover all costs and make sure the process is clear and easy from start to finish.

You might be wondering, “Should I hold on to my mineral rights or sell now?” That’s a fair question—and one we can help you answer.

We’ll provide a free, no-pressure evaluation based on:

• Location

• Production history

• Nearby wells and permits

• Lease terms (if any)

• Market demand

From there, we’ll give you a real offer and help you decide what’s best for you. Even if you don’t sell, you’ll have more clarity.

Ready to Receive an Offer for Mineral Rights in Colorado?

If you’re ready to sell oil rights in Colorado, or just want to know what your mineral rights are worth, we’re here to help. We’ll make the process fast, fair, and easy.

Fill out our quick contact form and get your personalized offer in 24 hours.

👉 Click here to request your free mineral rights evaluation