We have family with mineral rights in Section 34, some of whom may want to sell. There is a lot of activity within this section in preparation for drilling, and have been many letters from companies wanting to purchase our rights. If we were to sell, how do you determine the true market value of those rights, or determine a fair offer?
Do you mean Fair Market Value or True Market Value?
As I understand the term, True Market Value can only be determined at auction attended by everyone who has an interest in the property.
Fair Market Value is what two knowledgeable parties, being a buyer and seller, can agree to. The key is knowledgeable. The best you can do is either hire/contract a knowledgeable party to negotiate on your behalf or you can become knowledgeable yourself.
The easiest way to determine if your offers are close to FMV is to review recent mineral transactions in your area. After determining how much others were willing to buy and sell their minerals for, you can find a reasonable price range for your acreage.
I use the documentary tax stamp on the mineral deeds. Divide the tax stamp value by $1.50 then multiply by $1,000 then divide by the number of net mineral acres conveyed.
Which township and range?
Thank you,I appreciate your advice...Stephanie
Section 34 township 9n range 5w
The only way to determine how much you can get for these minerals would be to take offers from several different interested purchasers. You may already have an offer from Land Run Minerals who is currently buying minerals in this area. I don't know who they are buying for. A large number of companies have purchased mineral deeds in your township: Longpoint Minerals, Lefco Energy, Russell Minerals, Liberty Minerals, Raintree Energy and many others. You can solicit offers and evaluate them yourself to take the best one. More landmen are operating in Grady Co than you can shake a stick at.
Many thanks for your information. I appreciate the companies names and will use that information...Stephanie