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