My father recently passed, leaving me and my sisters as the heirs to his estate, which included a variety of mineral rights in McKenzie County, North Dakota. Most of this he appears to have active leases on. In addition, he is receiving monthly royalties on some old, still-producing wells (~$200 per month).
So far so good: I was proceeding down the path of doing an ancillary probate in ND to transfer his rights to us (the main probate is here in Oregon). Yesterday, however I received a claim against his (small) estate. This claim is valid and will drain the estate of all other assets and still leave about a $30,000 debt. It seems as though I may be forced to either sell off the royalties and mineral rights to satisfy the remainder of the debt, or else perhaps determine fair market value, pay that myself, and then keep the rights/royalties, hoping that they eventually pay back the FMV I pay out now. (if this idea is even legal - I"m looking into it).
So, the bottom line question I have is I need to know where I can go to determine fair market value and/or get fair offers for the rights and royalties. I know there are a lot of people and companies out there who are looking to low-ball people and make a killing, so I thought I would post here in hopes of getting reputable referrals.
Thanks in advance.
McKenzie County, North Dakota 
Your sitting on a GOLD MINE Keep it.
The “fair market value” is not something easy to get, and it’s debatable even if there is such a thing. The market value is what someone is willing to pay for them. Oil and gas properties are not like real estate. Oil and gas production is subject to so many variables, it’s like trying to hit a moving target. Things are always changing. Plus, many things can occur that devalue mineral rights. Of course, things can turn out for the good, too. Suffice to say, it’s a crapshoot.
I have no idea what the “value” of your mineral rights are; that would require an analysis of all of the info. As for general discussion, you might read this – http://www.whysellmineralrights.com.
And the disclaimer is that I am in the business. But, I don’t mislead people. I don’t think anyone with any knowledge of how the oil business operates could dispute what I have said. Then again, many people tell mineral owners that they will become Jed Clampett, knowing very little about the actual property and very little about how the business actually works.
Once again, mineral rights are worth what the market says they are worth… meaning a cash offer to buy, not what somebody says they are worth.
Your only other alternative is to hire a geologist and a petroleum engineer and have them do a property evaluation but that is not cheap. And, it’s only the opinion of whoever is preparing the evaluation. It’s not a real world offer.
Good luck.
Richard Broschat prepared the mineral appraisal for my father’s estate several years ago. His knowledge of minerals in western North Dakota, including McKenzie County, and eastern Montana is extensive. The IRS may need the appraisal to be as of the date of death.
Broschat Engineering and Management Services, Williston ND
701-572-8075