Sell Mineral Rights in Alabama
Sell mineral rights in Alabama by asking buyers for written offers before you sign anything. Alabama produced about 3 million barrels of crude oil in 2025 and about 76 billion cubic feet of marketed natural gas in 2024, according to the U.S. Energy Information Administration. Most activity centers on the Black Warrior Basin, and we take your interest to buyers at no cost to you.
Request offers Free to ask, with no upfront fee and no obligation to sell.
What shapes an offer for Alabama minerals
Buyers price each tract on its own wells and the wells around it, so the Black Warrior Basin coalbed methane fields in the northwest and conventional oil and gas along the Gulf Coast in the south are priced differently.
Well and production records are kept by the State Oil and Gas Board of Alabama, and your deed is recorded with the county where the land sits.
Alabama rules to know before you sell
No Alabama statute was found that ends or transfers a severed mineral interest for nonuse, and no marketable record title act was found. Nonproducing oil, gas and mineral interests held separately from the surface are exempt from ad valorem tax (Ala. Code 40-20-35; interests created before October 1957 only on application), and a tax sale of the surface does not affect an exempt interest. Abandoned Mineral Rights in Alabama (opens in a new tab) gives the statute and its conditions.
Alabama has a forced pooling statute.
Alabama levies a privilege tax of 8 percent of the gross value of oil and gas at the point of production, 6 percent for wells permitted on or after July 1, 1988 and 4 percent for low volume wells, plus a 2 percent production tax. The operator deducts each owner’s share, royalty included, before paying.
Alabama taxes royalty income through its personal income tax. Oil and Gas Severance Tax by State (opens in a new tab) compares every state.
One request. Buyers compete in writing. You call the shots.
Keep a recent check stub or the lease handy if you have one; it helps buyers price an offer, but you can ask without either. Nothing goes to a buyer until we have talked with you. If a buyer has already written to you, tell us; that letter becomes the number every other offer has to beat.
Free for families. You never pay us a dime.
Asking for an offer costs you nothing, and there is no fee when you sell. Usually we buy the interest ourselves, and the offer says so. We may resell it, and that is how we are paid; it never changes the price you agreed.
Your money moves through a licensed title company, escrow agent or closing attorney, never through our hands. Every written offer names its buyer.
Common questions
How do I sell mineral rights in Alabama?
Send the county, your interest, and a recent check stub or lease if you have one. Buyers who are interested send written offers, you choose one or none, and you close through a licensed closing or title company.
Does Alabama have a dormant mineral act?
No Alabama statute was found that ends or transfers a severed mineral interest for nonuse, and no marketable record title act was found. Read the rule and its sources (opens in a new tab).
Where is oil and gas activity in Alabama?
Oil and gas activity in the state centers on the Black Warrior Basin coalbed methane fields in the northwest.
What is a non-participating royalty interest (NPRI)?
An NPRI is a share of production revenue with no right to lease the minerals or take a lease bonus. It is fully sellable and valued on the income it pays, much like a producing royalty.
Do I sign a division order before selling?
Signing a division order confirms your share for payment purposes. It is not a sale, it does not transfer ownership, and you can sign it and still sell later.
Is getting Alabama mineral offers free?
Yes. Asking for offers is free, with no upfront fee and no obligation to sell.
What taxes apply when I sell Alabama minerals?
A sale is generally treated as the sale of a capital asset, so federal capital gains rules usually apply, while royalty checks are ordinary income. Alabama taxes royalty income from Alabama property as part of its income tax; how a gain on a sale is taxed depends on where you live and on Alabama’s rules for nonresidents. State production taxes, where they apply, usually come off the royalty check, and some producing minerals are also taxed locally.
Inherited minerals usually receive a stepped up basis as of the date of death, which can reduce the gain on a later sale. AMR’s state tax reference (opens in a new tab) has the rules and sources; confirm your own situation with a tax professional.
Does Alabama tax oil and gas royalty income?
Yes. Alabama’s income tax reaches royalty income from Alabama property, including for owners who live in another state. If you live elsewhere, your home state may tax the same income.
Federal tax applies on top.
What is the severance tax on oil and gas in Alabama?
Alabama levies a privilege tax of 8 percent of the gross value of oil and gas at the point of production, 6 percent for wells permitted on or after July 1, 1988 and 4 percent for low volume wells, plus a 2 percent production tax. The operator deducts each owner’s share, royalty included, before paying. Rates, exemptions and sources (opens in a new tab).
How do I find out what minerals I own in Alabama?
Check the county recorder where the land sits for the deed, the State Oil and Gas Board of Alabama for well and production records, and the state unclaimed property program for any unclaimed royalty money. Our unclaimed royalties finder builds the checklist.
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Find out what your Alabama soil would bring, before the next letter lands in your mailbox.
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