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Permalink Reply by tc on October 30, 2014 at 11:15

Did your nephew lease or sell his acreage?  There is a big difference.

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Permalink Reply by Skip Peel - Mineral Consultant on October 30, 2014 at 12:10

To calculate value requires some specific information.  Not all royalty is equal so to speak.  Location (by section-township-range), the royalty fraction contained in the existing lease and the TMS operator that would be expected to develop the acreage would be the minimal information needed to form an opinion. 

I haven't heard of any $2000/acre bonuses in TMS leases so I think this is more likely to be a sale of royalty or mineral rights..  The value would be different between a sale of mineral rights and a sale of a royalty interest.

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Permalink Reply by John Weisenhorn on October 31, 2014 at 2:13

I am talking about the sale of royalties

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