Quick & Dirty Valuation?

Is there a quick way to do a roughly-right valuation of property in Venango Co Pa?  We know acreage and ownership (50% of 70 acres). It doesn't have any wells on it, and is for the oil, gas and minerals. The surface land it owned by someone.  My head is spinning trying to et an estimate.  We ultimately will get it formallly appraised (if that is the right term) but in the mean time, we're trying to account for it in our will.(as in who gets it if we pass away soon).   And whether it is $5K or $20K or a $bizillion as the roughtly-right amount is imortant to estimate for now.

Any simple math to use? Thank you.

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Permalink Reply by JPN on May 13, 2013 at 3:04am

I also meant to add that I am still hoping for an answer to an earlier post. Both are new properties we found out we inherited and we're trying to know what to do with them.Thanks again.

Permalink Reply by Steven Kacerski on May 13, 2013 at 4:38am

Janet,

Are you looking for someone to do an appraisal of the mineral rights?  I work with a couple different people who do that type of work and could possibly help you. Unfortunately, I don't think there is a simple calculation, since there too many factors that go into determing valuation of mineral rights. 

 

Permalink Reply by JPN on May 13, 2013 at 5:07am

Thanks Steve.  Agreed.... nothing is simple.  If you don't mind, send their names along and we can at least find out how much it costs to do an assessment. Not sure we're ready yet, but one never knows.  Thank you again.

Permalink Reply by Steven Kacerski on May 13, 2013 at 6:04am

I just sent you a friend request with my information. I have worked with an excellent oil & gas attorney out of Erie who could help as well if you need legal advice.

Permalink Reply by Edward Sekerak on May 13, 2013 at 3:38pm

Who is a excellent oil & gas attorney in Erie?

Permalink Reply by Steven Kacerski on May 22, 2013 at 4:20am

Ed,

I have worked with Jeremy Toman with Knox McLaughlin Gornall & Sennett

Permalink Reply by Edward Sekerak on May 22, 2013 at 7:50am

Good firm. I have worked with with several of the attorneys from KMGS over the years.   

Permalink Reply by JPN on May 13, 2013 at 5:06am

Me too!  thanks. :)

Permalink Reply by Steven Kacerski on May 13, 2013 at 9:13am

Even if there has been no production yet, there is some value to the mineral rights.  You can't just assume $0 unless you want to run the risk of visit from the IRS.

Permalink Reply by Steven Kacerski on May 13, 2013 at 9:59am

Dennis,

Thanks for sharing the PA tax bulletin.  My experience so far with the IRS is they would look at not just the real property value (surface, structures on the surface) but also mineral rights as well when determining the full estate value. I have had a couple of projects with clients where we have had to value the mineral rights for gifting purposes, but the same rules would apply for estate purposes. 

Permalink Reply by Oliver Perry on May 13, 2013 at 10:11am

For inheritance taxes it is zero unless they are producing. I don't think that is what she is talking about here.

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Permalink Reply by Edward Sekerak on May 14, 2013 at 1:25am

Based on what?

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