A la mode -Total Elite Pricing

[JeffSH]

I'm jealous of your experience. All the specialized people. Reviewing hog-farm appraisals was a nightmare. None of it made any sense. I never got to read any mineral reports..

 

[TerryRohrer]

Mineral appraisal work for the most part. Not many of us who do mineral appraisals are certified. It is mostly done by petroleum engineers...The BIA recently required their own internal appraisals be certified and they are hurting to find qualified people.

So is it feasible to become competent in mineral valuation without being a geologist?

 

[Ariba]

Minor inconveniences compound up over time and I HATE inefficiency. If you add up the amount of time wasted signing reports, then clicking to export XML, click.

So the question becomes, why are you wasting your time on this forum when you could be coding your own appraiser software. Now you are just using your time inefficiency.

OH, I get it, if you didn’t have to spent so much time on Total inefficiency you could spent more time on the forum.

 

[Ariba]

Total users are total losers.

And what is in your wallet?

 

[Fernando]

When I was working at the bank, I convinced the appraisal department to switch to Ala Mode because I liked it. And I didn't get a referral fee.

 

[Terrel L. Shields]

So is it feasible to become competent in mineral valuation without being a geologist?

Yes, with some training. I use the analysis of engineers. I don't do my own decline curves (to explain a decline curve measures the decline of a well over time as production is less and less with time. That curve is rarely straight line, often a power law curve but with 2 or so years data, that curve can be projected to estimate the remaining reserves. Reserves can be sold in the ground (and are) so we can set a price on the reserves. We can use the income data to project a value. We can uses sales when we can find them (data is problem numero uno). The biggest time consumer is actually figuring out what net mineral acres the owner actually has, and what percentage of a drilling unit they are entitled to. (States often set drilling units via the PLSS - 640 acres or 1,280 perhaps). And the problem is the landowner has 40 mineral acres out of a unit of 640, and has a lease of one-eighth. So they are entitled to one-eighth the proceeds from one-sixteeth of a drilling unit. This "division of interest" is usually a small decimal number.

 

[TerryRohrer]

Yes, with some training. I use the analysis of engineers. I don't do my own decline curves (to explain a decline curve measures the decline of a well over time as production is less and less with time. That curve is rarely straight line, often a power law curve but with 2 or so years data, that curve can be projected to estimate the remaining reserves. Reserves can be sold in the ground (and are) so we can set a price on the reserves. We can use the income data to project a value. We can uses sales when we can find them (data is problem numero uno). The biggest time consumer is actually figuring out what net mineral acres the owner actually has, and what percentage of a drilling unit they are entitled to. (States often set drilling units via the PLSS - 640 acres or 1,280 perhaps). And the problem is the landowner has 40 mineral acres out of a unit of 640, and has a lease of one-eighth. So they are entitled to one-eighth the proceeds from one-sixteeth of a drilling unit. This "division of interest" is usually a small decimal number.

I have your book. I must get it read so I can have a semi-intelligent conversation on the matter! What do you see as the outlook for the market for mineral appraisals?

Did you happen to know Michael Cartwright out of Reno?

 

[TerryRohrer]

Yes, with some training. I use the analysis of engineers. I don't do my own decline curves (to explain a decline curve measures the decline of a well over time as production is less and less with time. That curve is rarely straight line, often a power law curve but with 2 or so years data, that curve can be projected to estimate the remaining reserves. Reserves can be sold in the ground (and are) so we can set a price on the reserves. We can use the income data to project a value. We can uses sales when we can find them (data is problem numero uno). The biggest time consumer is actually figuring out what net mineral acres the owner actually has, and what percentage of a drilling unit they are entitled to. (States often set drilling units via the PLSS - 640 acres or 1,280 perhaps). And the problem is the landowner has 40 mineral acres out of a unit of 640, and has a lease of one-eighth. So they are entitled to one-eighth the proceeds from one-sixteeth of a drilling unit. This "division of interest" is usually a small decimal number.

From this description, it seems there would not be any "discount for lack of control" or discount for a partial interest, presumably because this has been hashed out and litigated to death over 150 years and the more atypical situation would be for someone to have a 100% interest. Is that correct?

 

[Ariba]

What do the last posts have to do with Total.

 

[TerryRohrer]

A lot about nothingness. Nothing major. I appears you are just venting.

What did this post have to do with Total?