I am in the process of settling an estate that has mineral rights in the above listed areas. I know in the past the royalty checks were small, as the original shares have been diluted over successive generations.
How do I determine a fair price to ask when I put these shares up for sale?
Don’t be too quick to sell until you find out if there has been any recent drilling, royalties held in suspense or at the treasurer’s office, pending drilling, etc. All those factors will help determine the value. Section 7 has several horizontal wells that were drilled by recently by BP and then sold to Limerock.
31-6N-1W also has a BP well sold to Limerock. The status of those wells would be important. The executor of the estate can have the estate pay for an appraisal to determine the value of any vertical and horizontal wells and their life cycle. Then there are various options-private buyers, auction houses, etc. Or the heirs might want to hang onto the minerals. The executor should also contact Limerock and get the wells into pay status under their heirs’ names.
Be sure to have the attorney who is assisting you provide the correct way to transfer property from an estate. Too often people do things without the proper authority or in an improper way.
This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.
Richard,
Thank you for the heads up. I am the executor of the will and the primary trustee of the trust. The attorney I have retained specializes in probate and mineral rights. Your points are certainly valid, I have read too many horror stories by lurking on this forum.
M_Barnes, May I direct message you with further questions?
If you have legal questions, direct them to Richard. I can answer geology questions.
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