Terrel L. Shields
Elite Member
- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
I get calls to value property in Texas, but normally I don't consult or work there due to the stringent geological licensing laws (they don't reciprocate geological licenses and I am not licensed there as an appraiser) I refer people to others. But one lady explained they have an elderly father going to the rest home and he is unable to get help because the taxing authority claims his minerals are worth $72,000...a value the county claims was calculated by a "certified" source. But they only get $40 a month or so from the interest and the best offers from buyers are from $2,000 to $4,000. They used to get some years ago, about $2000 a month, but that has dwindled as the well has aged. They want to sell the minerals but the state said they won't honor these sales/offers as market value, and only if they get a certified appraisal saying the value is in the $10K or less range, they won't put him on Medicaid.
The state is far behind on its assessment of minerals and the appropriate methods. Unconventional wells deplete rapidly. A $72,000 property in 2010 has likely depleted 80 - 90% of the gas originally in place. It is worth a fraction those often tardy behind-the-time "certified" appraisals. By the time these valuations are made, the well is likely well past its peak and declining rapidly. The school tax in Texas is one reason there is no income tax. The mineral owners get bled like pigs.
The state is far behind on its assessment of minerals and the appropriate methods. Unconventional wells deplete rapidly. A $72,000 property in 2010 has likely depleted 80 - 90% of the gas originally in place. It is worth a fraction those often tardy behind-the-time "certified" appraisals. By the time these valuations are made, the well is likely well past its peak and declining rapidly. The school tax in Texas is one reason there is no income tax. The mineral owners get bled like pigs.
