New Mexico · San Juan Basin · Four Corners

Sell Mineral Rights
in San Juan County,
New Mexico.

San Juan County is a different oil and gas story from the Permian. The San Juan Basin underlies most of the county, with gas production going back to 1921 and a current Mancos Shale revival pushing rig activity to its highest level in a decade. We are happy to help you understand what you have.

1921
First NM Gas
Drilled near Aztec
2nd
Largest US Gas Basin
after the Appalachian
60%+
Reservation Land
Navajo and Ute Mountain Ute
Mancos
Modern Target
Horizontal revival 2024
BLMFarmington
Federal Office
Major mineral owner
01 The Basin

A century of production,
a Mancos revival now.

San Juan County sits in the northwest corner of New Mexico, in the Four Corners region where four states meet. The county covers the New Mexico portion of the San Juan Basin, the second largest natural gas basin in the United States. The first commercial gas well in New Mexico was drilled near Aztec in 1921 from Farmington Sandstone at about 1,000 feet, and the basin has been producing continuously for a century since.

The modern story is the Mancos Shale. After years of low gas prices that pushed activity to a basin-wide low, rising gas prices and improved horizontal completion technology have driven San Juan rig activity to its highest level since 2015. Private operators are leading the revival, with the gas-rich northern part of the basin near the Colorado border and the oilier southern portion both seeing meaningful new development.

San Juan County is a basin that has produced through every commodity cycle for a hundred years. Mineral owners here often have positions they have held for decades, sometimes through three or four operator changes, with a current revival making the rock interesting again.

If you are reading this, you may own a piece of that. Maybe you inherited gas royalties through a family chain that goes back generations. Maybe your minerals fell under one of the BP packages that Hilcorp or Simcoe acquired. Maybe you have allotted minerals on the Navajo Nation. This page walks through the rock, the operators, the geography, valuation, and the regulatory landscape including the substantial role of tribal trust minerals and the BLM Farmington Field Office.

Starting point

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02 The Rock

Stacked pay through the
Cretaceous column.

San Juan Basin geology is uniquely stacked, with multiple Cretaceous formations producing across different depth ranges. Most of the gas comes from Cretaceous strata including the Fruitland coal, Pictured Cliffs, Lewis, Mesaverde, Mancos, and Dakota intervals. Most of the oil comes from the Mancos, Gallup, and Dakota. Modern horizontal development is concentrated in the Mancos Shale, which is both a source rock and a productive reservoir.

Mancos Shaleprimary modern horizontal target

The Mancos Shale is the primary target of the current San Juan Basin revival. It is a thick Late Cretaceous marine shale that serves as both a source rock and a productive reservoir. In the gas-rich northern part of the basin near the New Mexico-Colorado border, Mancos wells from operators like LOGOS, Hilcorp, and Simcoe have produced strong gas IP rates, with some wells reaching IPs above 17 million cubic feet per day. In the southern part of the basin, the Mancos produces oil at meaningful rates from operators including DJR Operating and Enduring Resources.

For mineral owners, the Mancos revival means new wells being drilled into formations that may not have been targeted from your specific spacing unit before. Modern Mancos wells use longer laterals and larger fracs than legacy vertical Cretaceous gas wells, and the production curves differ substantially from vintage San Juan production.

Type
Marine shale, source and reservoir
Active As
Gas (north), oil (south)
Status
Primary horizontal target
Top IP Wells
17+ MMcf/d
Dakota and Mesaverdelegacy and continuing horizons

Below the Mancos sits the Dakota Sandstone, a porous and permeable Cretaceous reservoir that has been produced since the early days of the basin. Dakota is a primary historic gas target and continues to produce. Above the Mancos sit the Mesaverde Group sandstones, which include multiple legacy gas-producing intervals. Together the Dakota and Mesaverde represent decades of vertical and horizontal gas production across San Juan County.

For mineral owners, the practical implication is that minerals in San Juan County often have multiple producing intervals contributing to royalty income, sometimes with different operators on different wells in the same area. Older Mesaverde and Dakota wells may produce for many decades at low rates, generating modest but steady royalty income.

Dakota Type
Sandstone reservoir
Mesaverde Type
Stacked sandstones
Status
Legacy production
Vintage
Many wells decades old
Fruitland Coal & Pictured Cliffscoalbed methane and shallow gas

The Fruitland coal seams produce coalbed methane (CBM) and have been a meaningful gas-producing horizon in the basin for decades. Most Fruitland production is shallow, from a few hundred to a couple thousand feet, and uses different completion technology than deeper shale or sandstone wells. Above the Fruitland, the Pictured Cliffs sandstone has historically produced shallow gas. Most Fruitland coalbed methane in San Juan County is operated by Hilcorp and Enduring on a basin-wide footprint that reflects long-running production.

The practical implication for mineral owners is that some San Juan minerals have meaningful Fruitland or Pictured Cliffs production tied to legacy CBM development, generating royalty income on a different economic basis than modern Mancos Shale production. CBM royalty calculations can be more sensitive to gas price and post-production costs than other gas types.

Fruitland Depth
~500 to 4,000 ft
Type
Coalbed methane
Pictured Cliffs
Shallow sandstone gas
Status
Legacy, mature
03 The Operators

Who is drilling on your
San Juan County minerals.

The San Juan Basin operator landscape is unusually private and unusually concentrated. Many of the largest historic operators (BP, El Paso, Burlington Resources) sold or merged out of the basin in the 2010s. The current operators include some of the largest private oil and gas companies in the country, plus a handful of focused public operators. The five operators below are leaders in current San Juan County activity.

i.
Hilcorp Energy
Hilcorp Energy is the largest gas producer in the San Juan Basin and operates extensive Mancos, Mesaverde, Dakota, and Fruitland coalbed methane production across San Juan County. Hilcorp acquired the major BP America position in 2017, consolidating one of the largest historic acreage packages in the basin under a single operator. Hilcorp has continued to drill selectively as gas prices have improved.
Private · Largest gas producer
Top Gas Operator
ii.
LOGOS Resources
LOGOS Resources is a Farmington-based private operator that has emerged as the second-largest San Juan gas producer and one of the most active drillers. LOGOS operates the Rosa Unit, a 54,000-acre federal unit in the core of the Mancos play, and has reported some of the strongest Mancos IP rates in the basin. LOGOS is backed by North Hudson Resource Partners and has been running multiple rigs through the recent revival.
Private · Mancos leader
2nd Largest Gas
iii.
DJR Operating & Enduring Resources
DJR Operating and Enduring Resources are the leading producers in the Mancos oil play in the southern part of the San Juan Basin. DJR's 2024 gross production was about 14,000 barrels of oil per day plus 45.6 million cubic feet of gas per day. Enduring's gross production was around 25,000 barrels per day combined oil and gas equivalent. Both have been actively drilling new Mancos oil wells.
Private · Mancos oil
Top Oil Operators
iv.
Simcoe Resources
Simcoe Resources also acquired BP-legacy acreage in the basin and operates a significant gas position concentrated near the New Mexico-Colorado border. Simcoe has been one of the more active drillers in the recent revival, with a focus on the gassier northern San Juan acreage. Like Hilcorp and LOGOS, Simcoe is privately held.
Private · Northern gas
Active Drilling Now
v.
Long Tail of Legacy and Active Operators
San Juan County has many additional meaningful operators including IKAV (currently running one rig), Benson-Montin-Greer (operating Canada Ojitos and other long-running units), and a long list of smaller operators on legacy gas and CBM properties. Mineral owners may see different operator names on different wells within the same general area depending on which formation each well targeted and when. Operator changes are particularly common in San Juan County given the BP-era divestitures.
Mixed · Many active
Many Active Operators
See a familiar name?

We know how these operators develop in San Juan County. Happy to give you context on yours.

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04 The Geography

Not all San Juan County
minerals are built the same.

San Juan County covers about 5,538 square miles across the northwestern corner of New Mexico. About 63 percent of the county is reservation or trust land, with the Navajo Nation occupying roughly 60 percent and the Ute Mountain Ute Tribe Reservation occupying about 3 percent. The remainder is a mix of private fee minerals concentrated around the river valleys and federal minerals administered by the BLM Farmington Field Office. Where in the county your minerals sit shapes everything from operator activity to mineral title structure.

Aztec / Bloomfield Core
T29N-T30N R10W-R12W
The geographic and historical core of San Juan County oil and gas, including the Animas and San Juan river valleys. This area holds the highest concentration of fee minerals in the county and was the site of the original 1921 gas discovery near Aztec. Mancos and Dakota production is meaningful, and modern horizontal activity is selective but ongoing.
Activity: Moderate Development: Mature, fee-dense
Northern Border / Mancos Gas Core
T31N-T32N R10W-R13W
The gas-rich heart of the Mancos Shale revival sits along the New Mexico-Colorado border. Hilcorp, LOGOS, and Simcoe all hold significant acreage here, and most current rig activity targeting Mancos gas is concentrated in this area. Mineral interests here may have leasing competition that owners further south do not see.
Activity: Highest Development: Active drilling
Farmington Area
T29N-T30N R12W-R14W
Farmington is the largest population center in the county and the regional industry hub. The area has a mix of fee and federal minerals, with substantial legacy Mesaverde and Dakota production. Modern horizontal activity is selective, with operator focus shifting between this area and the gassier northern acreage as commodity prices move.
Activity: Moderate Development: Legacy plus selective
Navajo Nation Western Half
T29N-T32N R15W-R20W incl. Shiprock
The western half of the county lies within the Navajo Nation, including the area around Shiprock. Mineral interests here are generally either tribal trust minerals administered by the Bureau of Indian Affairs or allotted minerals held by individual tribal members. The leasing and royalty payment processes for Navajo minerals differ substantially from fee or federal minerals.
Activity: Variable Development: Trust and allotted
Southern San Juan / Mancos Oil
T22N-T26N R10W-R13W
The oilier southern part of San Juan County has been the focus of DJR Operating and Enduring Resources, both targeting Mancos oil with horizontal wells. This area is geographically dispersed and includes the Bisti badlands. Mineral interests here are valued differently than gas-weighted interests further north.
Activity: Active Development: Mancos oil
Ute Mountain Ute Reservation
Far NW corner
A small portion of the Ute Mountain Ute Tribe Reservation extends into the far northwest corner of San Juan County. Mineral interests in this area are administered through the BIA Ute Mountain Ute office and are distinct from both Navajo and fee minerals. This is a small portion of the county overall but worth noting if your minerals fall here.
Activity: Limited Development: Tribal trust
05 Your Valuation

What your San Juan County
mineral rights are worth.

Valuation in San Juan County is more nuanced than in pure-oil counties. The basin produces a mix of gas, oil, and coalbed methane, with significant variation by area, formation, and operator. The four scenarios below cover what we see most often.

01
Producing Gas Minerals with Long-Running Royalty Income
Valued on cash flow, formation mix, and remaining life
Many San Juan County mineral owners have been receiving gas royalty income for decades. Valuation typically starts with the trailing twelve months of royalty income, then applies a multiple based on remaining well life across the producing formations, the operator, and the gas price outlook. Wells producing from multiple Cretaceous formations may have meaningfully different decline characteristics than single-formation wells.
What shapes the number: well count and vintage across producing formations, gas price assumptions, your royalty rate, the operator quality, lease cost-deduction language, and whether the spacing unit has new horizontal Mancos potential.
02
Mancos Shale Optionality on Unleased or Lightly-Leased Acreage
Valued on operator proximity and Mancos quality
Unleased or lightly-leased minerals in the northern Mancos gas core or in the southern Mancos oil play have meaningful optionality value tied to current drilling activity. The current Mancos revival has brought leasing competition back to certain townships. Valuation here depends heavily on which operator is active in your area and how close they are to drilling.
What shapes the number: which operator holds adjacent acreage, recent drilling pace in your township, comparable lease bonuses paid on surrounding tracts, formation quality beneath your specific section, and whether your section is part of an operator's near-term drilling plan.
03
Navajo Allotted or Tribal Trust Minerals
Different process, different valuation
Mineral interests held in trust for the Navajo Nation or for individual Navajo allottees are administered through the Bureau of Indian Affairs, not directly through the NMOCD. The leasing and royalty payment processes differ substantially from fee or federal minerals. Sale of allotted interests is possible in specific circumstances but typically requires BIA approval. Valuation is anchored to the same underlying production and inventory analysis but the transaction structure is different.
What shapes the number: the BIA process applicable to your specific situation, the underlying production economics, your allotment ownership documentation, and whether the BIA has historically approved sales of similar interests.
04
Inherited Fractional Interests with Lost Track of Operator
Often have suspended income and revival potential
Many San Juan County mineral owners hold small fractional interests inherited across multiple generations. Operator changes through the BP, El Paso, and Burlington divestitures have left many owners with unclear records of who currently operates their wells. Suspended royalty income from undelivered division orders is more common in San Juan than in some other basins. Valuation includes both the underlying mineral interest and the work to sort out current operator status.
What shapes the number: current operator identification across your producing wells, any suspended income outstanding with a transfer agent, your net mineral acre count, royalty rate if leased, and whether the spacing unit has new horizontal potential.
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,
San Juan realities.

San Juan County operates under the New Mexico oil and gas regime for state and private minerals, but the practical regulatory landscape is shaped substantially by federal mineral administration through the BLM Farmington Field Office and by tribal mineral administration through the Bureau of Indian Affairs. The rules and processes differ meaningfully from the New Mexico Permian.

The NMOCD and San Juan spacing

The New Mexico Oil Conservation Division (NMOCD) regulates oil and gas activity on state and private minerals in San Juan County. NMOCD permits wells, conducts hearings on spacing and unitization applications, and maintains the public well database. San Juan Basin spacing has historically used a complex mix of patterns reflecting decades of accumulated regulatory orders, with modern Mancos horizontal development typically using larger units to match longer laterals.

BLM Farmington and federal minerals

The BLM Farmington Field Office administers federal minerals across San Juan County, which represent a substantial share of the non-tribal acreage in the basin. 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. The Farmington Field Office has historically had significant San Juan permit activity, though pace has varied with commodity prices.

Navajo Nation trust and allotted minerals

About 60 percent of San Juan County is Navajo Nation reservation or trust land. Mineral interests within the Navajo Nation are either tribal trust minerals (held in trust for the Tribe collectively) or allotted minerals (held in trust for individual tribal members or their heirs). Both are administered through the Bureau of Indian Affairs, not through the NMOCD or BLM. Leasing, royalty payments, and any sale or transfer of allotted interests are subject to BIA approval processes that differ substantially from fee or federal minerals.

Operator changes and suspended royalties

San Juan County has had some of the most extensive operator turnover of any major US basin, particularly through the BP, El Paso, and Burlington Resources divestitures of the 2010s. Each operator change requires a new division order. Mineral owners who moved or whose contact information changed may have division orders that did not reach them, leading to royalty income held in suspense, sometimes for years. Tracking down current operator contacts and any suspended income is a frequent first step for San Juan mineral owners.

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 San Juan County, New Mexico?
Values vary widely depending on whether your minerals are gas-weighted (most of the basin), oil-weighted (southern Mancos play), in the active Mancos Shale revival area, on legacy CBM acreage, or fee, federal, or tribal trust. The same generic mineral interest can have meaningfully different valuations depending on these factors. San Juan County values are generally lower per net mineral acre than the New Mexico Permian but the inventory life is often longer. 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
Why are my San Juan royalty checks getting smaller?
Several reasons are common in San Juan County. First, vintage wells produce on natural decline curves, so checks shrink over time even at constant prices. Second, gas prices have been volatile over the past decade, with prolonged periods of low prices that reduce royalty income. Third, post-production cost deductions for gas processing, gathering, and methane compliance can reduce net royalty depending on your lease language. Fourth, the operator on your wells may have changed, and a new operator may calculate royalties differently. We can pull the production history for your specific wells and help understand what is happening.
03
My minerals are on the Navajo Nation. Does that change anything?
Yes, substantially. Navajo Nation mineral interests are either trust minerals (held for the Tribe collectively) or allotted minerals (held for individual tribal members or their heirs). Both are administered through the Bureau of Indian Affairs, not the NMOCD or BLM. Leasing, royalty payments, and any sale or transfer of allotted interests are subject to BIA approval processes. Sales of allotted interests are possible in specific circumstances but typically require BIA review. The economics of the underlying minerals are the same as off-reservation, but the transaction process is different. We can help sort out the specifics for your situation.
04
My royalty checks stopped a few years ago. What happened?
This is one of the most common San Juan County questions, and it is usually one of two things. First, an operator change may have generated a new division order that did not reach you because your address changed, leading to royalties held in suspense by the new operator or a transfer agent. Second, the well may have stopped producing or been plugged, ending royalty income. We can help track down current operator contacts and check for suspended income outstanding. Suspended royalty recoveries in San Juan are not unusual, sometimes spanning years.
05
I inherited mineral rights in San Juan County but I do not have any documents. What do I do?
Start by gathering anything you do have: old letters from operators, tax statements, probate records, royalty stubs, division orders. The San Juan County Clerk's office in Aztec keeps deed records for fee minerals. The NMOCD maintains a public database of wells, operators, and production. For federal minerals, the BLM has records on lease and royalty interests. For Navajo minerals, the BIA has records but the access process is different. We can usually identify what someone owns with just a name and a rough idea of where the minerals are located.
06
Should I sell my San Juan County mineral rights now or hold them?
That depends on your situation and what kind of minerals you have. Holding makes sense if you want long-term royalty income (some San Juan minerals have produced steadily for decades), do not need cash for other priorities, and are comfortable with gas price volatility. Selling makes sense if you want to convert future uncertain income into certain present value, simplify an estate, or use the capital for something else. The current Mancos revival has lifted some San Juan valuations off recent lows. Neither holding nor selling is wrong. We can help you think through the tradeoffs without pressure to pick a side.
07
What is the difference between an offer to lease and an offer to buy my minerals?
Leasing gives an operator the right to develop your minerals for a period of time, typically three to five years, with extension if production is established. In exchange you receive a bonus payment per net mineral acre and a royalty percentage on any production. You still own the minerals. Buying transfers ownership entirely, in exchange for a lump sum. After a sale, you no longer own the minerals and you receive no future royalties. Both have their place. Buying typically delivers more value up front, leasing preserves long-term upside.
08
Why do my royalty statements have so many cost deductions?
San Juan Basin gas typically passes through processing for liquids removal and pipeline gathering before sale, and these costs often appear as deductions on royalty statements depending on your specific lease language. Coalbed methane wells in particular can have meaningful processing and transportation costs. New Mexico methane rules have also affected operator economics in ways that show up on some royalty statements. Reading a San Juan royalty statement carefully and understanding what your lease permits is worth doing. We can help review your statements and lease language together if helpful.
09
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 extremely common in San Juan 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. For Navajo allotted interests, the same is generally true but the BIA approval process applies.
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 San Juan Basin specifics including legacy operator histories from the BP and El Paso era, the BIA process for any Navajo Nation interests, BLM Farmington processes for federal minerals, and the gas-weighted economics of San Juan production. We work with mineral interests of all sizes including small fractional gas-weighted interests. You should always get multiple offers and we encourage it. If ours is not the best one you receive, that is useful information for you. Either way, we are happy to help you understand what you have.

Find out what your
San Juan 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, look for suspended income if relevant, 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

San Juan status, April 2026

The San Juan Basin in northwestern New Mexico is primarily a natural gas basin and remains the second-largest gas-producing basin in the United States. Oil production from the New Mexico portion has been growing modestly through the Mancos Shale revival in the southern part of the basin, where DJR Operating and Enduring Resources have been actively drilling. For San Juan County mineral owners, the practical takeaway is that the basin is seeing its highest rig activity since 2015, with both gas-focused operators and Mancos oil operators contributing to the resurgence.

12 month oil production trend
28
thousand barrels per day
Latest month
+1(+3.7%)
thousand barrels per day
Month over month
+3(+12.0%)
thousand barrels per day
Year over year