I, like many others it seems, am new to the Mineral Right Leasing game. I am in the process of working with an attorney to get my father's mineral rights for property in Sheridan County transferred. My father died in 1980 and I was not aware of the "state" of his mineral rights until recently. As part of my overall effort I am trying to establish some type of value basis for these Mineral Rights. Since he passed in 1980 that is the year basis that I need to use for tax purposes. Is there a way to find the value of what Mineral Right leases were going for back then, so many dollars/acre? From what I have read on line this valuation process is somewhat of a "black art" with many complex variables but if I can just get some examples of what Mineral Rights were actually leased for in Sheridan County back in 1980 or thereabouts that would help tremendously.
My guess is that Charles will catch this post and offer some insight...
..I'm still a two week newbie so I'm not going to be of any help.
..Welcome to the Forum Roy!
Roy:
I see two ways that you could use to obtain this information. First, you could do some research on the nearby mineral owners and contact them as most would have possibly leased during this time period. These minerals are generally handed down through generations and someone around your area might have this information. Second, you could contact the Minerals Leasing Section/Dept. of Natural Resources & Conservation in Helena, Mt. The phone number is (406) 444-4576. This agency leases "State Lands" several times during the year but their website only goes back to 2004. Keep in mind, if they have the leasing information back to 1980, the amount they quote will be a higher amount than the average mineral owner would have recieved. The reason is that these State Lease Auctions is generally for a longer lease term and the purchaser of the minerals is not having to pay a landman to research the records at the County Clerk's Office. Hope this bit of info. helps in your quest for information.
Where are your acres located. This will have a major effect on value. For instance, just west of Plentywood, we could get a lease of any kind suring that period. The Westby area had little leasing going on, but older leases were being produced. acreage in this area that wasn't being produced was not leased for future development either. Was there ever any activity on your property? Leasing activity during that timw period was very slow.
Is there any production of any minerals going on in Sheridan County right now? After reading how owners spend so much time doing their research, does anyone ever sign? How long do people take before signing? I have known of interesst in leasing where I have mineral rights I didn't even know I had.... since June. Now I get a note that basically says the offer is good for another 2 weeks. Really? You mean if I don't sign soon I've lost this opprtunity? I live out of state and still need time to work this through....ellen
Eleanor, what is the specific location of your mineral rights in Sheridan County? …As in the Township?
Grumpet Brumblecutt said:
Eleanor, what is the specific location of your mineral rights in Sheridan County?
...As in the Township?township 33 north.....Eleanor
What are the other numbers? My family is in 34 - 52.
Grumpet Brumblecutt said:
What are the other numbers? My family is in 34 - 52.54