Hi, my family has an offer on the table to purchase our surface rights. I know there are a lot of factors to consider, but generally speaking, is this something to sell or hold on to? We own several sections in Midland and the surface never generated much income for us, so this came out of left field.
We have also started receiving offers for our surface rights in Howard County!! Why now?
From what I understand, it’s about water. But what I am getting conflicting messages about is whether I can profit from their use of my water while retaining my surface rights or if this is a good opportunity to sell. We own multiple sections, but there are many owners. Some are selling, others are not.
It’s very confusing and frustrating. I’ve been told (recently)the state of Texas owns “surface” water… held in a trust for all citizens of the state. You can sell the water (In some cases)-(for oil/gas development) but you have to get approval from the state…and it takes about a year to get approval. Most agricultural activities are exempt… and in some cases you are allowed to sell your water without approval. Just depends on how the state defines your part of the state/location and its drought status. It’s a Texas Commission on Environmental Quality statute… and it’s about 136 pages long if you want to read it. I’ve only recently learned about this and could be completely uninformed. Here is the state’s website on water rights/permits. Am I Regulated? Water Rights in Texas - TCEQ - www.tceq.texas.gov … the actual statute is there somewhere. you might have to hunt around for it. Sub-surface water is another issue.