SERVICE DESCRIPTION
CREST Engineering Services provides Mineral Fair Market Value appraisals used to establish a market value of mineral and royalty interest at a specific time. The mineral fair market value is important because it shows what a typical investor might have been willing to pay for the minerals.
WHO USES THIS AND WHY
A Mineral Fair Market Value is used by estate planners, accountants, trust managers and attorneys for:
- Estate Tax filings with the IRS (Fed Form 706) to set the value at the date of death and at the alternate evaluation date.
- Evaluating sales offers to see if the proposed purchase price is reasonable.
- Provide a third party value for transactions into and out of trusts or estates.
- Establish the basis for depletion or capital gains for inherited assets.
- Support for mineral and royalty fair market values in litigation.
WHAT WE VALUE
- Producing Minerals – Royalty checks that you are already receiving.
- Undeveloped Minerals – Acreage where you own minerals that have not been drilled. This might be undrilled acreage in existing units, or minerals under tracts with no surrounding development.
HOW WE VALUE MINERAL RIGHTS
Mineral buying is a dynamic industry, therefore we track recent transactions, commodity prices and drilling activity to stay on top of it. We understand the market and our mineral rights appraisal is accurate and provides the insight you need to make sound decisions regarding your mineral rights.
We build a cashflow model for the minerals based on past production and forward price estimates and assign a value based on what an investor might pay for it. This is the most accurate method for predicting a value. We also validate our work against 2-3 other evaluation methods, therefore our value represents how multiple buyer might look at it.
WHAT WE NEED TO GET STARTED ON YOUR MINERAL FAIR MARKET VALUE APPRAISAL
Effective Date
- Current Value
- Date of Death
- Alternate Date of Death
- Trust Transaction Date
For Producing Minerals
- 2-3 months of current remittance/check stub data for each interest (preferred)
For Undeveloped Acreage (Outside of Existing Drilling Units)
- Legal description of the mineral property owned showing the County and Abstract.
- Information on the net acres or mineral percentage owned in each tract.