MRP 4: How Mineral Rights are Valued

In This Episode, You Will Learn About:

• Different Approaches Used in Valuing Mineral Rights
• Different Property Types
• The Market Approach (comparable sales)
• The Income Approach (aka Discounted Cash Flow Analysis)
• A rule of thumb you can use to provide a rough estimate of value of some producing minerals.
• We also talk about different factors that go into a mineral rights valuation

If you are considering selling, we discuss some of your options:

• What is a Non-Participating Royalty Interest (NPRI) and when it can be used.
• Selling only a portion vs. selling 100% of your interest
• Long vs. short-term personal & financial goals
• Red flags to look out for (in the fine print of any legal documents)
• and who typically pays for what in a mineral rights transaction.

Finally, we cover some local Colorado mineral rights news:

• Royalty owners claim wider well setbacks would cost them $26 billion