Hi everybody.
I am doing an estate valuation for minerals owned in Weld County CO in the Wattenburg area near the town of Windsor. The date of death was Dec 2014 so I am trying to determine what minerals might have been worth at that time in that area ... T6N, R67W
Has anyone done any transactions in this part of the country in the time frame 2013-2015?
Thanks.
Hi, Kevin -
Several people here on The Forum have asked about how to value mineral interests. And I know that there are professional firms out there that prepare such evaluations.
Perhaps someone else can offer you more detailed information, but from my experience, if the mineral interests are not producing then for the sake of an estate or estate tax calculation, there is no value.
If they are producing, then I suppose you could take the average of the most recent three months worth of royalty checks and multiply that by anywhere from 36 months to 60 months. At least, that's the formula I would advise someone to use to arrive at an asking price when they are trying to sell their mineral interests.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas