New Mexico · Permian Basin · Northwest Shelf

Sell Mineral Rights
in Chaves County,
New Mexico.

Chaves County sits on the Northwest Shelf of the Permian Basin. The geology here is shallower and more conventional than the Wolfcamp-driven counties to the south, with long-life San Andres and Yeso production carrying many leases for decades. If you own minerals here, we are happy to help you understand what you have.

NWShelf
Permian Position
Shallower flank of basin
~5,000ft
San Andres Depth
typical TVD
Decades
Production History
San Andres long-life wells
Mixed
Vertical & Horizontal
conventional dominant
Statelands
NM Land Office
Major mineral owner
01 The Basin

The shallower side
of the Permian.

Chaves County is one of the largest counties by area in New Mexico, stretching across the southeastern part of the state with Roswell at its center. Geologically, Chaves sits on the Northwest Shelf of the Permian Basin, which is the shallower carbonate platform that wraps around the deeper Delaware sub-basin to the south.

Where Lea and Eddy Counties to the south are defined by deep, thick unconventional Wolfcamp and Bone Spring development, Chaves is defined by shallower, mostly conventional production. The San Andres formation has been produced across Chaves for many decades, with vertical wells supporting steady, slow-declining oil production. Above the San Andres, the Yeso also produces in parts of the county. Closer to the southern county line, where the basin begins to deepen toward Eddy, Bone Spring activity has crept north into parts of Chaves.

Chaves is not a Wolfcamp county. It is a long-life conventional county on the edge of one of the most active basins in the world. Different rock, different operator mix, different mineral economics.

If you own minerals in Chaves, what you have likely looks different from what someone in Lea County has. You may have a position with decades of producing San Andres history, a recent shallow horizontal lease, an undeveloped tract waiting on a leasing cycle, or something in between. This page walks through the rock, the operators, the geography, valuation, and the regulatory landscape, including the substantial role of the New Mexico State Land Office.

Starting point

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02 The Rock

Conventional carbonates
and a touch of Bone Spring.

Chaves County's productive geology is dominated by the San Andres carbonate, with the shallower Yeso above it and selective Bone Spring activity along the southern county line. This is a different stack than the deeper Wolfcamp-driven inventory of Lea and Eddy. Wells tend to be shallower, longer-lived, and more conventional in nature.

San AndresNorthwest Shelf workhorse

The San Andres is the dominant producing formation across much of Chaves County. It is a shallow carbonate that has produced oil across the Northwest Shelf for many decades, with a significant portion of historical New Mexico oil production coming from San Andres reservoirs across this part of the state.

For mineral owners, San Andres production tends to behave differently than Wolfcamp production. Wells are shallower, often vertical, and many have been on production for a long time with relatively shallow decline curves. Some operators have pursued horizontal San Andres development as well. Royalty income from San Andres wells is typically more stable and longer-lived than the steeper-decline modern horizontals to the south.

Depth Range
3,500 to 5,500 ft
Type
Carbonate (dolomite)
Style
Vertical & selective horizontal
Status
Long-life producer
Yesoshallower carbonate target

Above the San Andres sits the Yeso (and the related Glorieta), another shallow carbonate interval that produces in parts of Chaves County. The Yeso has been a significant target across the broader Northwest Shelf, with both vertical and selective horizontal development depending on the area.

For mineral owners, Yeso production often coexists with San Andres production on the same lease, sometimes in the same wellbore, with operators commingling production where regulators allow. Long-term Yeso wells can carry leases for many years even at modest production rates.

Depth Range
2,500 to 4,500 ft
Type
Carbonate & mixed
Style
Vertical, some horizontal
Where Active
Across the shelf
Bone Spring & Deeper Targetssouthern Chaves only

The Bone Spring is the dominant unconventional target in the Delaware sub-basin to the south, and the play extends north into the southern part of Chaves County where the basin geometry permits. This is not the dominant story in Chaves the way it is in Eddy or Lea, but operators have selectively pursued Bone Spring locations in southern Chaves, particularly along the Eddy County line.

For mineral owners in southern Chaves, the practical implication is that your tract may carry both shallower San Andres or Yeso potential and deeper Bone Spring optionality. Mineral owners further north in the county generally do not have meaningful Bone Spring exposure.

Bone Spring Depth
7,500 to 10,000 ft
Type
Mixed sandstones and shales
Style
Horizontal, selective
Where Active
Southern Chaves near Eddy line
03 The Operators

Who is drilling on your
Chaves County minerals.

The operator landscape in Chaves is more fragmented than in Lea or Eddy, with a mix of long-time conventional operators, smaller independents, and the occasional larger Permian player working the southern part of the county. The list below covers some of the more visible names, but many smaller operators also hold leases here.

i.
Mewbourne Oil Company
Mewbourne is one of the larger private operators across the New Mexico Permian and has historically been active across the Northwest Shelf, including parts of Chaves County. The company has operated consistently across Lea and Eddy for decades and works selectively in adjacent areas. Privately held operators like Mewbourne report less public information than the majors, but their presence across the broader region is meaningful.
Private · Major NM operator
Active Regional Operator
ii.
Coterra Energy (Cimarex legacy)
Coterra Energy was formed by the 2021 merger of Cabot Oil & Gas and Cimarex Energy. The Cimarex side of the company has historically held positions across the New Mexico Permian, including portions of Chaves County. Coterra is a public operator developing primarily across the deeper Delaware Basin core, with selective activity reaching into Northwest Shelf areas.
Public · Cimarex legacy
Selective in Chaves
iii.
San Andres-Focused Independents
A meaningful share of Chaves County production comes from smaller independents focused on conventional San Andres and Yeso development. These operators tend to specialize in shallower, lower-cost wells with long production lives. Operator names change as small companies trade properties, but the conventional side of Chaves production has long been carried by independents of this type rather than by the big public Permian names.
Private · Conventional focus
Many Small Operators
iv.
Larger Permian Operators (Southern Chaves)
Along the southern Chaves County line, where the geology transitions toward the Delaware sub-basin proper, larger Permian operators including those active in northern Eddy County have selectively pursued Bone Spring locations. The operator mix here looks more like the Lea/Eddy operator list than the conventional Northwest Shelf list, depending on the specific section.
Mixed · Southern county only
Edge of Delaware play
v.
Long Tail of Legacy Operators
Chaves County has a long history of oil production going back many decades, and many wells are operated by smaller companies that picked up legacy positions over time. Mineral owners may see operator names on royalty checks they have never heard of. This is normal in conventional counties with long production histories. We can help identify the current operator on a specific tract.
Mixed · Many active
Long Operator History
See a familiar name?

We know how operators develop in Chaves County. Happy to give you context on yours.

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04 The Geography

Not all Chaves County
minerals are built the same.

Chaves is a very large county, covering roughly 6,000 square miles. Productive areas are mostly concentrated in the eastern and southeastern parts of the county, with the western half stretching into ranch country and the foothills toward Lincoln County. Where in Chaves your minerals sit shapes everything from formation depth to operator activity.

Roswell Area
T10S-T12S R23E-R26E
The geographic and population center of Chaves County. Roswell is the regional service hub. The area around and east of Roswell has long-running San Andres and Yeso production, with a mix of legacy vertical wells and more selective recent activity. Many mineral interests here have been held in families for generations.
Activity: Steady, mature Development: Conventional
Eastern Chaves
T6S-T12S R28E-R32E
Eastern Chaves runs toward the Lea County line. Activity here picks up as the geology grades toward the Delaware sub-basin, with San Andres and Yeso production dominant and some operators pushing horizontal development across the area.
Activity: Moderate Development: Mixed
Southern Chaves / Eddy Border
T13S-T16S R23E-R30E
Southern Chaves transitions toward the deeper Delaware sub-basin in northern Eddy. This is the part of the county most likely to see Bone Spring activity, with operators occasionally drilling laterals that originate or terminate in southern Chaves. Mineral interests here may carry both shallower conventional and deeper unconventional potential.
Activity: Variable Development: Conventional + Bone Spring
Northern Chaves
T1S-T6S R22E-R30E
Northern Chaves grades toward De Baca and Roosevelt Counties along the northern edge of the productive Permian. Activity thins meaningfully here, with selective drilling in the better-defined trends and large stretches with limited recent operator interest. Mineral values here lean more on optionality than current production.
Activity: Light Development: Selective
Western Chaves
T8S-T16S R15E-R22E
Western Chaves stretches toward the Lincoln County line and the foothills of the Sacramento Mountains. This part of the county is largely outside the productive Permian fairway. Operator activity is limited, and many mineral interests here have little active leasing or production history. There are exceptions in localized areas.
Activity: Very limited Development: Outside main fairway
State Land Office Acreage
Scattered · County-wide
The New Mexico State Land Office is one of the largest mineral owners in Chaves County. State acreage was granted to New Mexico at statehood and is held in trust to fund public schools and other state programs. Mineral interests adjacent to or surrounded by state land may interact with state leasing dynamics that differ from purely private acreage.
Activity: State lease auctions Development: Major mineral owner
05 Your Valuation

What your Chaves County
mineral rights are worth.

Valuation in Chaves County reflects the conventional, long-life nature of most production here. Multiples are generally lower than in the deep Delaware core to the south, but stable San Andres production can carry meaningful long-term value. The four scenarios below cover what we see most often.

01
Producing Minerals on Long-Life Conventional Wells
Valued on stable cash flow and remaining life
If your Chaves County minerals are producing from San Andres or Yeso wells, valuation typically starts with the trailing twelve months of royalty income. A buyer applies a multiple based on expected remaining well life, the slow declines typical of these formations, the operator, and the commodity outlook. Multiples on conventional Northwest Shelf production tend to be lower than Wolfcamp multiples, but the steadier production profile partly offsets that.
What shapes the number: well age and remaining life, decline rate observed in your specific wells, your royalty rate, the operator quality, lease cost-deduction language, and whether there is any meaningful additional drilling potential on the spacing unit.
02
Unleased Minerals in Active Areas
Valued on operator interest and proximity to drilling
Unleased Chaves County minerals are valued based on whether your tract sits in an area with active operator interest. In the southern parts of the county near the Eddy line, or in pockets of active San Andres development, lease bonuses and royalty rates can be reasonable. Further from active fairways, unleased minerals may have meaningful optionality value but lighter near-term lease prospects.
What shapes the number: nearby permit activity, recent leasing activity in your township, whether your section sits over the productive fairway, comparable lease bonuses paid on surrounding tracts, and proximity to the Eddy County line.
03
Small Fractional Interests & Inherited Positions
Common in long-history conventional counties
Many Chaves County mineral owners hold small fractional interests inherited across multiple generations, often from family members who originally acquired the minerals decades ago when conventional production was first established. We pay these interests the same attention as larger ones and are comfortable doing the title research, including chains that go back to original homestead patents.
What shapes the number: net mineral acre count, royalty rate if leased, producing status, accumulated unpaid suspense (sometimes meaningful for inherited interests), and the location of the tract within the county.
04
Leased but Not Yet Producing
Valued on lease terms and operator activity
If your Chaves County minerals are leased but not yet producing, value depends substantially on the lease terms and how active the operator is. New Mexico Permian leases typically have three to five year primary terms with extension by production. A lease held by an active operator with nearby drilling is worth materially more than one held by a passive leaseholder.
What shapes the number: your royalty rate, primary term expiration, the specific operator holding the lease, recent drilling activity nearby, and whether your lease has a Pugh clause or similar acreage-protection language.
Your specific situation

We would rather look at real facts than speak in generalities. Send us what you have.

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06 The Regulatory Landscape

New Mexico rules,
Northwest Shelf realities.

Chaves County operates under the New Mexico oil and gas regime, administered primarily by the New Mexico Oil Conservation Division. The on-the-ground realities reflect the substantial role of the New Mexico State Land Office as a mineral owner, BLM administration of federal minerals through the Roswell and Carlsbad field offices, and increasingly active state-level regulation around methane emissions and water use.

The NMOCD and how spacing works

The New Mexico Oil Conservation Division (NMOCD), part of the Energy, Minerals and Natural Resources Department, regulates oil and gas activity on state and private minerals in Chaves County. NMOCD permits wells, conducts hearings on spacing and unitization applications, and maintains the public well database. Spacing patterns in Chaves often reflect the legacy conventional development, with smaller spacing units typical for older vertical San Andres development and larger units for selective horizontal projects.

The New Mexico State Land Office and trust lands

The New Mexico State Land Office is one of the largest mineral owners across Chaves County. State trust lands were granted to New Mexico at statehood and are held to fund public schools, universities, and other state programs. State land is leased through public auctions held by the Land Office. Royalties on state mineral production flow into the Land Grant Permanent Fund. If your minerals are adjacent to or surrounded by state acreage, the state's leasing dynamics may affect your situation.

BLM Roswell, BLM Carlsbad, and federal minerals

Federal minerals in Chaves County are administered by BLM, primarily through the Roswell Field Office, with portions of the southern county also touching BLM Carlsbad jurisdiction. Federal lease sales are conducted quarterly. Standard federal lease royalty rates are 12.5 percent for older leases and 16.67 percent for newer leases under the Inflation Reduction Act. New Mexico federal minerals are now being leased under the higher royalty rates.

Methane rules and cost deductions

New Mexico has been one of the more active states in regulating methane emissions and venting, with rules that have shaped operator economics and infrastructure investment. Royalty owners may see cost deductions related to gas processing, gathering, and compliance with state rules depending on lease language. Reading your specific lease's post-production cost language matters in New Mexico.

07 Questions We Hear Often

The real questions
mineral owners ask.

We have been through these conversations hundreds of times. Below are honest answers to the things people actually want to know.

01
How much are mineral rights worth in Chaves County, New Mexico?
Chaves County values vary widely. The county sits on the Northwest Shelf of the Permian, which is mostly shallower conventional production from the San Andres and Yeso, with some Bone Spring activity in the southern part of the county closer to Eddy and Lea. Values depend heavily on where in Chaves your minerals sit, whether they are leased or producing, the operator, your royalty rate, and the lease terms. The only way to know what your specific minerals are worth is to look at the actual facts. We are happy to do that for you, at no cost and with no obligation to sell.
02
Is Chaves County part of the Permian Basin?
Yes, Chaves County sits on the Northwest Shelf of the Permian Basin. The Northwest Shelf is the shallower, more conventional part of the basin that wraps around the deeper Delaware sub-basin to the south. Production in Chaves is dominated by shallower conventional formations like the San Andres and Yeso, with some unconventional activity along the southern county line where the basin deepens toward Eddy and Lea Counties.
03
I inherited mineral rights in Chaves County but I do not have any documents. What do I do?
You are not alone. Start by gathering anything you do have: old letters from operators, tax statements, probate records, royalty stubs, division orders. The Chaves County Clerk's office in Roswell maintains deed records. The NMOCD has a public database of wells, operators, and production. With a name and a rough idea of where the minerals are located, we can usually identify what someone owns, because New Mexico mineral records are publicly accessible.
04
Why is Chaves County less talked about than Lea or Eddy?
Lea and Eddy sit over the deepest, thickest part of the Delaware sub-basin and host the bulk of the high-profile horizontal Wolfcamp and Bone Spring development. Chaves sits on the Northwest Shelf, which is shallower and primarily conventional. That does not mean Chaves minerals are not valuable. Long-life San Andres and Yeso production can be steady, and parts of southern Chaves see more aggressive horizontal interest. It is a different kind of county than Lea, not necessarily a lesser one.
05
What is the San Andres formation and why does it matter in Chaves County?
The San Andres is a shallow carbonate formation that has produced oil across the Northwest Shelf for many decades. It is the dominant target across much of Chaves County. Wells are relatively shallow compared to Wolfcamp wells in Lea and Eddy, and many San Andres wells have been on production for a long time with steady, slow declines. Some operators have also pursued horizontal San Andres development in recent years.
06
Should I sell my Chaves County mineral rights now or hold them?
It depends on your situation. People who hold typically want long-term royalty income, do not need cash for other priorities, and are comfortable with commodity price volatility. People who sell typically want certain present value, want to simplify an estate, or want capital for something else. Chaves County minerals often appeal to people who like steady, long-life conventional production, but the same characteristics support reasonable sale values. Neither is wrong. We can help you think through the tradeoffs.
07
My minerals are on or adjacent to State Land Office acreage. Does that matter?
It can. The New Mexico State Land Office is one of the largest mineral owners in the state and conducts its own leasing through public auctions. If your minerals are adjacent to state acreage, the state's leasing dynamics may affect timing of nearby drilling. State acreage is leased on different terms than fee minerals. We can help sort out the implications for your specific situation.
08
Can I sell mineral rights I inherited if other family members inherited the same minerals?
Yes, you can sell your undivided fractional interest without needing the other heirs to participate. This is common in Chaves County, where many interests have been subdivided across generations of heirs spread across multiple states. A good buyer will work with your specific interest, not require you to round up cousins. We do this all the time.
09
How does the sale process actually work?
Step one, we do the research. You send us what you have, we pull NMOCD and BLM records, we check operator activity in your area, and we build an analysis. Step two, we walk you through what we found, on a call or by email. Step three, if you want to proceed, we handle the mineral deed preparation, you sign at a notary, and funds are wired at close. We move on your timeline. There is no charge for the research and no obligation to sell.
10
Why should I sell to Timberline Minerals specifically?
We are a family-owned office with roots in Texas and Montana. We work across the primary US basins and we are comfortable with New Mexico Permian specifics, including the conventional Northwest Shelf, state land dynamics, methane rule cost deductions, and the BLM Roswell and Carlsbad processes. We work with mineral interests of all sizes including small fractional positions. Our process is straightforward: we research the tract, share what we find, and make an offer. The decision to sell is yours, and we are happy to help you understand what you have either way.

Find out what your
Chaves County minerals
are actually worth.

Send us what you have, or what you think you have. We will pull NMOCD and BLM records, check operator activity in your section, and put together a plain-English summary with our reasoning laid out. If it makes sense to go further, we move on your timeline. If not, you have a free breakdown you can take anywhere.

Free · No Obligation · Your Timeline
Market Pulse

Permian status, June 2026

12 month oil production trend
6,627
thousand barrels per day
Latest month
+1(+0.0%)
thousand barrels per day
Month over month
-65(-1.0%)
thousand barrels per day
Year over year