Asking for my elderly sister who sold her mineral rights and now will need to determine what a cost basis is when she inherited them in 2004. They were not leased at that time, but since then they are leased but not in production at time of sale.
There is a national association of mineral appraisers. You may be able to find an appraiser familiar with your area. Their website is www.mineralsappraisers.org.
Many of the appraisers in this group specialize more in mining, but you can find some with oil & gas expertise. There are also many good appraisers that do not belong to this association.
Thank you! I have been searching for appraisers but found very little info. I really hope she can find one here.
The county (or counties) where the mineral rights are have an assessment value that they assign (actually the WV State tax department provides this information). When these were inherited in 2004, there should have been some paperwork done through the county to the state to pass the rights to your sister. That would be a place to start.
|### Elaine Fontes|10:13 AM (0 minutes ago)||
I was in charge of settling our parents estate which was not in WV and the MR were not designated so it wasn’t until I was approached with a lease did we begin looking into this. We later filed appropriate deeds and wills with the county, but no value was established at that time. We do pay taxes - is that were the assessment would be? Thank you…every idea helps us work through this!
Yes, it should be on the tax ticket as “Assessment”. This is multiplied by the tax rate (each county sets its own) to yield the tax. The county Assessor’s office might be able to give you the assessment for the 2004 year, and for the year your sister sold them. The value of leased land would probably include some consideration of the lease bonus. I am not an appraiser but I have read a little about this for a different state, and I know the process in WV when inheriting mineral rights, which involves the assessed value (tax assessment).
I was in charge of settling our parents estate which was not in WV and the MR were not designated so it wasn’t until I was approached with a lease did we begin looking into this. We later filed appropriate deeds and wills with the county, but no value was established at that time. Thank you…every idea helps us work through this!