I am entertaining a sales offer on a little over 80 nma in Township 11N, Range 23W in Kern County. Does anyone have any insights on how much mineral interests are selling for in that area?
Hi ShellyG. Mineral interest values are typically based upon whether they are currently producing or not. In addition, you indicate that we’re talking net acreage so I presume that you are just one of the undivided mineral owners. This changes the value as well.
If producing, the value is based most often on the annual income generated times some number of years. If nonproducing, the value is generally low, around $50/nma. Hope this helps.
I thank you for this topic. I’ve been thinking about my mothers rights. They were my great grandmother’s and grandfather’s from the 1930s. Unfortunately the land was sold, the distribution of trust split 500 acres between 4 sisters(my grandmother). My mother is an only daughter. They were leased for numerous years by various companys. All the paperwork is here somewher as gram kept everything. They have not been put in my mothers name. Any help would be appreciated.
Unfortunately, your mother will likely need to probate her mother’s (your gram’s) estate. As you likely know, mineral rights are interests in real property and therefore have a title that is recorded just like any other real estate.
So, if the property is still in your gram’s name then it needs to be put into your mother’s name before she could sell it. There may be someone interested in purchasing from your mother without her having legal title, but they would discount the interest because they would have to clear title by some method.
Who is entitled to own the property is determined by your gram’s will if she had one. If she did not then there are statutes that determine who is an heir.
Depending upon the percentage of interest, ithe costs might exceed the value of the property.
Hope this helps.