Appraisals
When a mineral or royalty interest has to be valued for the IRS, a court, or the other side of a negotiation, you need a number that is built to hold up, not a guess.
Most mineral owners never think about what their interest is worth until a specific event forces the question. A mineral rights appraisal is the tool for exactly those moments, when the value has to be established as of a particular date, for a particular purpose, and documented well enough that someone outside the family can rely on it. The most common triggers are:
In every one of these situations, someone other than the owner has a reason to question the value. The IRS reviews estate and gift filings for reasonable basis. A judge or opposing counsel in a divorce will not simply accept a spouse's estimate. A charity's own advisors will look for support behind the deduction being claimed. A round number, a guess based on a recent royalty check, or an unsolicited buyer's offer will not hold up to that scrutiny, because none of them explain how the figure was derived or why it reflects fair market value as of the date that matters.
A defensible appraisal is different. It states its assumptions, shows its work, and arrives at a value through a methodology that can be explained and, if necessary, defended. That is the difference between a number you can put in front of the IRS or a court and a number that invites a challenge.
An engineering-based mineral rights appraisal starts with the same building blocks used to underwrite acquisitions in the industry:
The modeling is done in ComboCurve, the same industry-standard platform used across the major U.S. basins to evaluate producing and undeveloped mineral and royalty interests. Building the appraisal on a documented process, rather than a rule of thumb, is what allows it to withstand review from an accountant, an attorney, or an examiner. If you'd like more background on the mechanics behind the number, see how mineral rights are valued and our general mineral rights valuation service for owners who are simply weighing an offer rather than working through an estate, probate, or divorce.
Most single-tract appraisals are turned around within a few business days. Estates or divorces that involve multiple tracts, several counties, or a larger number of wells take longer, and you'll get a realistic timeline once the scope is clear. Either way, you receive a written report, not a number over the phone. The report lays out the value as of the date requested, the production and reserves behind it, the price and cost assumptions used, and the reasoning that connects them to the final figure, so the appraisal can be attached to a filing, handed to opposing counsel, or reviewed by your own advisors on its own terms.
If you handle estates, probate, or divorce matters that include oil and gas mineral or royalty interests, I work directly with attorneys and CPAs as well as with owners. You get clear, defensible mineral and royalty valuations for your clients' estates, probate, and divorce matters, delivered on your timeline, with an independent engineer's methodology you can put in front of the IRS or a court. If you have a client who needs a date-of-death value for a return, a value for a probate inventory, or a neutral figure both sides in a divorce can work from, I'm glad to talk through the scope and turnaround before you bring it to your client.
To be clear about the scope of what I provide: I deliver an independent, engineering-based fair market value appraisal of the mineral or royalty interest itself. I am not an accountant or an attorney, and nothing in the appraisal is tax or legal advice. How that value is used on a return, in a probate filing, or in a divorce settlement is a question for your own CPA or attorney, and I'd encourage you to review the report with them. For more on the topic, browse our resources library.
Common Questions
A mineral rights appraisal establishes the fair market value of an oil and gas mineral or royalty interest for a specific purpose and date, most often estate settlement, probate, divorce, or a gift or charitable donation. It gives the IRS, a court, or the parties involved a defensible number backed by a written methodology, rather than a guess or a buyer's offer.
When a mineral owner passes away, their heirs generally receive a stepped-up basis equal to the fair market value of the minerals on the date of death. That value has to be established and supported, because it determines the heirs' cost basis going forward and can materially affect capital gains if the minerals are later sold. An appraisal built around that specific date gives the estate a supportable number for the return.
The value is built from decline-curve analysis of existing production, reserves estimates, comparable sales in the area, and reasonable commodity price assumptions, using ComboCurve, the same modeling approach used to underwrite acquisitions across the major U.S. basins. The result is a present value of expected future cash flow as of the valuation date, not a multiple of the last royalty check.
No. I provide an independent, engineering-based valuation of the mineral or royalty interest. I am not an accountant or attorney, and this is not tax or legal advice. Clients should review the appraisal with their own CPA or attorney, who can advise on how the value applies to their specific estate, probate, or divorce matter.
Most single-tract appraisals are turned around within a few business days. Estates or divorces involving multiple tracts, several counties, or a large number of wells take longer, and I'll give you a realistic timeline once I see the scope.
Tell me the purpose, the date, and what you have on the property, and I'll walk you through the scope and timeline for a written appraisal you can rely on.
Request an Appraisal