Items Necessary for Mineral Valuation PLEASE READ BEFORE ENGAGING ME

The most difficult part of appraising a mineral interest is to get the data together from the subject.  Often an estate is left where the heirs are uncertain about the property, or have no organized accounting of the property. This leads to frequent interruptions in the process, delays in the report, and general uncertainty.

To comply with the Uniform Standards of Professional Appraisal Practice (USPAP), I will need to know the name of the subject party, the name of the client, the purpose of the appraisal, and if for anything the IRS may look at, I need to be told that so I can include the proper verbiage in the report. NOTE – The 8283 form used for gifting has only ONE section the appraiser signs. I DO NOT FILL OUT THE ENTIRE FORM.
PLEASE READ CAREFULLY

A LEGAL DESCRIPTION IS REQUIRED.
The description of a well is NOT a legal description. The originating interest comes from either a mineral or fee simple deed or a reservation of minerals from a deed. Identification of the well will not suffice. Sometimes a complete legal can be found on the lease but those often are not complete legal descriptions.

OWNERSHIP NAME
What name is the interest actually in? Is it a trust, an individual, heirs, etc.

DATE OF VALUE
If the interest is valued for an estate, normally the date of death or transfer is required to estimate the value. A date of value that is retrospective normally limits the appraiser to examining data as of that date, including current gas price, ownership, and production to that point.

INCOME HISTORY
Annual income is a bare minimum. We prefer monthly tally of income from each well, along with a copy of the Division Order (DO) also known as Division of Interest (DOI) and the history of income should be complete for five years if possible. A complete history back to the original start of production is useful.

LEASE STATUS
If the property leased, I need a copy of the CURRENT lease. What is the lease history. Is the lease held by production. Has there been other wells drilled and since abandoned.

OTHER ITEMS OF USE
Offers to purchase
Prior appraisals
Oil & Gas Leases or Amendments
A three year history of your ownership (when did you acquire the interest)
1099 statements

WHAT NOT TO SEND ME

Please be sure that what you send me is correct. Sending old legals that include property not in the valuation, or communications such as old leases that have long expired, letters between companies, or anything not listed above is likely only going to confuse me, slow me down and I do charge by the hour…Wasting your money and my time is the result when I am appraising something that isn’t necessary or I have to revise a report to include property you do own…