Hi,
I'm a social worker working with a client who owns 4.4444 mineral acres in Williams County. I am assisting her in applying for some county assistance and they need to know the value of the mineral acres. As I've been researching this, I've discovered that this is not a simple matter due to several factors. She has signed a release with J. Mark Smith and Associates and received a bonus of approx $4500. I spoke with an individual with that company and he validated my research in the difficulty in determining value. He said that sometimes the bonus paid out may be a rough equivalent of the value of the acres, but he also said they really don't have any value until they are used/accessed. He suggested I check with a real estate appraiser who works with probate matters, but not sure how to go about this. My client cannot afford to pay for any process to determine the value of her mineral acres. I spoke with the county assessor's office and she said that most of the mineral acres being sold in the area are valued between $1,000 and $2,000/acre. Again, not sure how I would present this to the county as far as value because it was just word-of-mouth and I didn't get the person's name. Any help in this matter would be greatly appreciated!
Mineral acres are not worth anything unless that are actively producing. For instance, no property taxes are due on mineral acres in Texas unless they are generating income.
Heather:
If you will locate Gary L Hutchinson on this forum and "Friend" him, you can pose this question to him but try to add additional information such as the legal description of the mineral area (Township/Range/Section). Mr. Hutchinson has great expertise in the area of mineral appraisals and I'm sure he will be able to assist you in your matter.
Thank you so much, Cape Porter and Charles Mallory, for your replies! So helpful!
Heather
Heather,
There are many factors taken into consideration when assessing mineral value but it all boils down to what someone is willing to pay based on those factors at the time of evaluation. There are many people in the market to buy minerals
Check the internet for sites and ask what they are willing to pay.
I purchase mineral rights in Williams County and also Divide, Dunn, McKenzie, Mountrail Counties paying on average $3000 per mineral acre. I have heard of people selling for $1000-$2000 but most areas are worth a lot more, area and lease terms are a major factor. The most I have paid is $4500 per mineral acre but there are areas worth more than that. It gets a little spotty in the Northern part of Williams County.