Replies to This Discussion

Permalink Reply by Bacon on March 9, 2011 at 17:41

In regards to taxes, that's the point.  Count 'em before there is documented value and "they" decide for you.  Disclaimer - I'm not an accountant or lawyer.  Everybody is going to have different circumstances so it may or may not be of any benefit to you.

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Permalink Reply by Jimmy Stiles on March 10, 2011 at 2:42

Unfortunately, I think that is what the majority of the basis may be on - bonus money (from what it sounds like as we start moving through this process).

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Permalink Reply by Robert G. Oliver on March 9, 2011 at 18:41

There are some things that you can do that will protect your interest. Email me @ bob@ds.com and I will try to point you in the right direction.

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Permalink Reply by RONNY on March 10, 2011 at 1:52

Why not ask a qualified mineral buyer what price they would set to purchase your holdings?  That amount could be used to value the estate as of today in real today dollars.  Many different qualified mineral buyers are readily available to give a quote.  Get three quotes and take the average.  Save the lawyer fees.  Most likely the lawyer will include a clause somewhere which relieves them of culpability in case of problems down the road. JMO

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Permalink Reply by TAURUS on March 10, 2011 at 2:43

Mr. Styles,

 

   There are many ways to go about this. Many of which have not been mentioned here. I'm a Financial Planner and I have a relationship with one of the companies that actually does the valuations for the IRS when it comes time to value estates for estate taxes purposes. I sent you a friend request. Perhaps I can shed some light on this in a private conversation. Specifics are really important to know what we're up against. 10 acres would certainly be a far cry from the challenge of a 1000 acres. While estate planning is and has been a bit of a moving target there are ways that you can address your concerns and goals in this ever changing environment. I actually have a complete packet dedicated to the methods,tools, and strategies that can be used by mineral owners to accomplish their goals and concerns.

 

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Permalink Reply by P.G. on March 10, 2011 at 2:41

One would think if Mineral Rights had an actual accountable book value, there'd be some government entity seeking to tax them..

Do Mineral Rights have any value? They certainly would to someone who intends to mine the minerals. Can't reduce those minerals to possession without them. Just Look at all the lease bonus money paid a couple years back. Today, those same folks who paid all that money may not even want to lease them any more or wouldn't pay any where near as much...

And of course if one sells his surface property and retains his minerals, do the mortgage company reduce the value of the property?

Be nice to know exactly what the value of Mineral Rights were so we'd know how to deal with those Landmen when they come calling.. Seems  mineral rights were only worth a couple hundred dollars an acre for some and $15 to $20 thousand per acre for acreage right across the street depending upon how educated the land owners were. What if the estate owner preparing his will wasn't as knowledgeable about the oil and gas business as say his neighbor who was in the know? That would make quite a big difference wouldn't it?

Gheesh! Looks like Mineral Right could be worth about anything, perhaps nothing! Dependent upon what's going on in the Oil and Gas business at the moment, huh?

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Permalink Reply by Jimmy Stiles on March 10, 2011 at 2:45

That's how I feel about it too; however, we would like something "official" just in case the dogs come barking.

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Permalink Reply by P.G. on March 10, 2011 at 3:02

Perhaps Mineral Rights are like a fishing license..

It gives you the right to bait your hook and toss it into the water but you can't be sure if you will catch the Big Bass or just a little blue gill... Maybe even get gleaned and catch nothing... But you don't get to even take a chance without the fishing license, right?

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Permalink Reply by Jimmy Stiles on March 10, 2011 at 3:15

Ding, ding, ding ding - give that man a prize!

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Permalink Reply by TAURUS on March 10, 2011 at 3:21

Sent you a friend request Mr. Styles.

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Permalink Reply by Dan Arnold on March 10, 2011 at 5:19

Perhaps you could do it the old fashioned way, with a Mineral Deed.

"for $10.00 and and other good and valuable considerations..."

"For the love and affection I have for my daughter...." etc.

In that case you would be stating what the value was.....to you.

 

"

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Permalink Reply by TAURUS on March 10, 2011 at 7:24

Dan ... you don't think the IRS would be wise to that?

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