Active Acquisition State
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California is the fourth-largest oil-producing state in the country, with a production history that dates back to the 1860s. The San Joaquin Basin in the Central Valley is the heart of the state's production, but the Los Angeles, Ventura, and Santa Barbara basins also host significant reserves. California's oil is primarily heavy crude that requires enhanced recovery techniques like steam injection and cyclic steam stimulation, which creates unique economics for mineral ownership. Despite the state's regulatory environment becoming increasingly restrictive, existing production continues to generate meaningful royalty income, and mineral rights with established production remain valuable. We buy mineral interests and royalties across all of California's producing basins.
Highlighted state with approximate basin locations shown in tan
The table below shows the top producing counties in California where we are most active, along with the primary operators and target formations in each area.
| County | Major Operators | Key Formations |
|---|---|---|
| Kern | Chevron, Aera Energy, Berry Petroleum, California Resources Corp | Monterey, Kern River, Belridge, Midway-Sunset |
| Kings | Aera Energy, Berry Petroleum | Monterey, Tulare |
| Fresno | Aera Energy, Berry Petroleum | Monterey |
| Ventura | Aera Energy, California Resources Corp | Monterey, Pico |
| Los Angeles | California Resources Corp, Sentinel Peak Resources | Puente, Repetto, Terminal Zone |
| Santa Barbara | Aera Energy, PetroRock | Monterey, Vaqueros |
We cover 11 California counties in total. Beyond the counties highlighted above, we also buy mineral rights in these 5 additional producing counties, listed in order of recent oil and gas activity:
California's oil industry is dominated by a handful of operators with deep expertise in heavy oil production and enhanced recovery. Chevron has the largest production footprint in the state, with massive operations in the San Joaquin Basin. Aera Energy (a joint venture between Shell and ExxonMobil) is the second-largest producer. Berry Petroleum and California Resources Corporation (CRC) also operate significant portfolios. These operators have invested billions in steam injection and other enhanced recovery infrastructure that supports decades of remaining production.
Operators ranked by the number of California counties where they hold the top active-well count. Counties where the operator runs the most active wells link through to the county detail page.
| Operator | Counties | Top Counties |
|---|---|---|
| Aera Energy | 4 | Ventura, Fresno, Santa Barbara, Kings |
| Chevron | 1 | Kern |
| California Resources Corp | 1 | Los Angeles |
| THUMS Long Beach Co. | 1 | Los Angeles Offshore |
| Pacific Gas and Electric Company | 1 | San Joaquin |
| Chevron U.S.A. Inc. | 1 | Monterey |
| California Resources Production Corporation | 1 | Colusa |
| Bridge Energy LLC | 1 | Orange |
California mineral lease terms vary widely but typically include royalty rates of 1/6 (16.67%) to 1/4 (25%), depending on the basin and the vintage of the lease. Many California mineral interests are subject to very old leases with terms that predate modern standards. California does not have a comprehensive forced pooling statute, which can complicate the assembly of drilling units in some areas. The state's regulatory environment has become increasingly restrictive, with setback requirements, well stimulation permit requirements, and potential future production phase-outs that create uncertainty for new development. However, existing production under current permits is protected and continues to generate royalty income.
We buy mineral interests, royalty interests, NPRI, and ORRI across California's producing basins.
Not sure which type you own? Start with our mineral rights glossary for plain-English definitions of MI, RI, NPRI, and ORRI.
California's regulatory environment is among the most restrictive in the country for oil and gas development. The California Geologic Energy Management Division (CalGEM) regulates drilling and production, and recent legislation has imposed buffer zones around sensitive receptors that limit new well locations. Despite these restrictions, existing production continues under current permits, and California mineral rights with established production remain valuable. The heavy oil produced in California requires enhanced recovery techniques that create higher operating costs but also extend the productive life of fields for decades beyond what conventional depletion would allow.
California mineral owners occasionally run into questions about severance-tax treatment, dormant mineral statutes, and non-participating royalty interests. These topics rarely drive a transaction, but understanding them helps you read a division order or evaluate an offer. The summaries below are starting points — verify against current statute text before relying on them.
California is one of the few major producing states with no traditional severance tax on oil and gas. Producers pay an oil and gas regulatory assessment to CalGEM (the Geologic Energy Management Division) per barrel and per Mcf — currently a small per-unit fee, not a percent-of-value tax.
County ad valorem property tax on producing mineral interests applies. Various local taxes (e.g., Kern County oil-related assessments) also apply. Multiple statewide severance-tax ballot measures have failed.
Statutory citation: Cal. Pub. Resources Code §3403
California has no specific dormant mineral act. Quiet-title actions under CCP §761.020 are available to clear stale mineral claims, but there is no statutory automatic lapse for non-use. Adverse possession of minerals is extremely difficult under California law.
California recognizes NPRIs as cost-free royalty interests. The state's mineral-rights case law is substantially less developed than Texas or Oklahoma, so deed-language drafting is especially important — courts default to deed language where ambiguity exists.
Need plain-English definitions? See our mineral rights glossary.
Yes. California mineral rights with existing production continue to generate meaningful royalty income, and existing wells are not affected by restrictions on new drilling. The heavy oil fields in Kern County have decades of remaining production supported by enhanced recovery infrastructure. While the uncertainty around future development does affect valuations for undeveloped minerals, producing interests remain valuable. We evaluate California minerals based on the economics of existing production and any realistic remaining development potential.
California produces primarily heavy crude oil with an API gravity of 10 to 20 degrees, compared to 35 to 45 degrees for the light oil produced in the Permian Basin or Bakken. This heavy crude requires enhanced recovery techniques — primarily steam injection and cyclic steam stimulation — to flow to the surface. These techniques are expensive but have been refined over decades and allow fields to produce for much longer than they would under primary depletion. The result is that California oil fields have very long productive lives with slow decline rates.
California oil and gas production is regulated by the California Geologic Energy Management Division (CalGEM), which issues permits, enforces well construction standards, and monitors production. Recent legislation (SB 1137) established 3,200-foot buffer zones between new wells and sensitive receptors like homes and schools, though a referendum challenged the law and its implementation has been contested. The regulatory environment adds complexity to mineral ownership in California, but it does not affect your right to sell your existing mineral interest.
California does not have a severance tax on oil and gas production, which is unusual among producing states. However, mineral rights sale proceeds are subject to California state income tax at rates up to 13.3% — the highest in the country — plus federal capital gains tax. Ongoing royalty income is also subject to California income tax. The absence of a severance tax is favorable for production economics, but the high income tax rate on sale proceeds is an important consideration.
We can typically close on California mineral rights in 30 to 60 days from the date you accept our offer. California title work can be more complex than in states like Texas because of the state's long production history, complex land ownership patterns, and the variety of legacy lease structures. Some interests may require additional time to resolve title issues. We handle all title work and closing costs at our expense.
See all mineral rights FAQ.
State-specific guides covering the legal mechanics that come up most often for owners considering a sale.