We are selling our land in Borden and Garza County TX and our family owns 100% of the minerals. It is divided between 4 people but everyone hasn’t agreed to sell part of their portion. Our problem is how to value the minerals for those that have agreed to sell. If anyone can point me in the right direction I would appreciate.
Before you sell, make sure that you know if there are pending horizontal wells. That might make the sale price more important. Most offers to buy come before drilling and are low ball. They may pay for production from current wells for a few years, but the buyer will not usually mention that drilling is pending. They want those royalties! The forum can help with activity if you give the block, abstract and section.
If you sell, then you will also need a cost basis for capital gains. That is another whole issue.
The Directories tab above has a few appraisers listed. The appraiser can help with a cost basis which will be needed for capital gains purposes. As far as a “market rate”, my attorney used to say that “the value is what a willing and informed seller under no compulsion to sell and a will and informed buyer under no compulsion to sell agree upon.” The buyers tend to be more informed.
How do I find out if there are any drill pending. Look for the drilling permits?
Go to the Texas Mineral Rights and post your question about pending activity in the Borden and Garza Counties. Put the Block, Abstract and section in the body of your post separately in each county. (Post Borden tracts in Borden and Garza tracts in Garza so we can keep the forum answers organized.) Use the Counties tab above.