oil, gas and mineral rights valuation in potential Ch. 13=
Posted: Thu Apr 12, 2012 10:13 am
charsetndows-1252
While I suppose a five times annual income multiplier is as good a guess as any, there could be factors affecting the "asset" value including likely depletion, environmental issues, volatility from year to year, etc. I would ask client to come up with a number, put it on the schedule as "estimated" and then let trustee try to evaluate the value, and decide whether it is worth objecting.
Same issue comes up with streams of recording or songwriting royalties.
Jason Wallach
jwallach@gladstonemichel.com
On Apr 12, 2012, at 10:07 AM, Sharon Hughes wrote:
>
> I had a case with such rights. Look back 5 years and averaged. Chapter 7 trustee
> sold the rights as they were not exempted.
> Best Regards,
> Sharon C. Hughes
> Hughes & Dunstan, LLP
> 21650 Oxnard Street, Suite 1960
> Woodland Hill, CA 91367Tel: 818-715-9558x1
> Fax: 818-715-9559
> Email: schug98@aol.com
> A/V rated by The Martindale-Hubbell Law Directory
> www.hughesanddunstan.com
> -----Original Message-----
> To: cdcbaa
> Sent: Thu, Apr 12, 2012 9:27 am
> Subject: [cdcbaa] oil, gas and mineral rights valuation in potential Ch. 13
>
>
> Potential client has oil, gas and mineral rights that he inherited through his deceased parents of which he shares 50% annual royalties between himself and his surviving sister. He receives on average $1,000 a month in income and he inherited these rights about a year ago.
>
> How do you value the fair market value of this asset on Schedule "B" in a Ch. 13 case.
>
> If in fact valuation should be done via appraisal, does anyone have an appraiser that is well versed in valuation of oil, gas and mineral rights. The deed does not specify which particular minerals.
>
> Sincerely,
>
> Lindsey B. Green, Esq.
> Gumm & Green, LLP, Attorneys at Law
> 5743 Corsa Ave., Suite 111
> Westlake Village, CA 91362
> phone: 818 707 4233
> fax: 818 707 4262
> e-mail-Lindsey@gummandgreen.com
>
>
>
charsetndows-1252
While I suppose a five times annual income multiplier is as good a guess as any, there could be factors affecting the "asset" value including likely depletion, environmental issues, volatility from year to year, etc. I would ask client to come up with a number, put it on the schedule as "estimated" and then let trustee try to evaluate the value, and decide whether it is worth objecting.Same issue comes up with streams of recording or songwriting royalties.
Jason Wallach
The post was migrated from Yahoo.