Mineral Valuation

So you inherited a mineral estate…Now what?

Posted May 12, 2016

If you inherited an undivided interest of 500 acres of land with an associated title to known coal deposits and or suspected oil and gas deposits, how would you determine the value of the land? This is an all too common question for those who inherit land with a title to known or suspected mineral deposits. The problem is further complicated by other factors: the intentions of the other heirs, the estate valuations, the required listing of value for the timely tax return filings. Where do you begin?

Most real estate agents will quickly and rightfully point out that they have no experience and are not qualified to estimate the value of the coal, oil, or gas that may or may not be present beneath the surface. They may also point out that the mineral value is separate and very different from the surface value and the value of any dwellings or structures. They may point you to a state-operated geological survey or an engineering firm to solve your problem. Who do you call?

A geological survey, at little or no cost, can guide you to some maps and maybe some technical reports that detail the extent, thickness, and depth of mineral resources in your county, township, or “quadrangle” area. However, neither the maps nor publications list any estimate of the value of the mineral deposits. Many engineering firms staffed by civil and even mining engineers lack the experience and qualifications to perform a mineral valuation or appraisal. If they did have the experience and qualifications, they may shy away from devoting staff, budgets, and time to worry about your 500 acres. What do you do?

You will likely need to consult a professional geologist or a small firm that has specific experience in coal resource estimation and coal appraisal. Coal appraisers are generally listed in an online directory of the Board of Registration for Professional Geologists or the Board of Professional Engineers in the state of your mineral interest holdings. The professional will know how to quickly access relevant coal resource data and information, market pricing, and determine a mineral value, typically without having to visit the property or make a lengthy inquest.

Kathy Webb, P.G.

Senior Market Leader | Principal

Kathy, a founder of SynTerra (previously The Fletcher Group) in 1992, has completed remedial investigations and regulatory compliance projects associated with Resource Conservation and Recovery Act (RCRA) facilities, state and federal Superfund sites, solid waste landfills, brownfield redevelopment, utility coal combustion residual (CCR) management units, and regulated industrial facilities. She has supported litigation as an expert witness related to chlorinated solvents, metals, and polychlorinated biphenyls (PCBs). Kathy is known for her practical assessment strategy with the perspective of the client’s business objectives. She routinely evaluates groundwater corrective action systems for effectiveness and progress toward achieving compliance objectives. She has also co-authored a trade journal paper with case studies of low-impact remedial strategies. Kathy is a licensed Professional Geologist in North and South Carolina.

Mark Taylor, P.G.

Principal

Mark has worked more than 40 years in natural-resource based industries. His expertise includes mine geology and mine engineering, hydrogeologic and geotechnical investigations, solid and hazardous waste management, and regulatory negotiations. He has published peer-reviewed papers about coal geology, ore geochemistry, mineralogy, and solid waste management. He is a leading expert in mining and environmental permitting for litigation support.

Mark is licensed as a Professional Geologist in South Carolina, Alabama, Arkansas, Georgia, Kentucky, Mississippi, North Carolina, and Washington. He serves on the boards of the Upstate Red Cross and Upstate Forever. He served on the South Carolina Board of Registration for Geologists for six years. Mark holds a Master’s degree in Geological Sciences from The University of Michigan and a Bachelor’s degree in Geological Science from Harvard University.

Andrea Kehn, P.E.

Vice President of Engineering | Principal

Andrea, leader of our Civil & Environmental Engineering Business Unit, has 28 years of experience in chemical manufacturing and environmental consulting. She leads and supervises staff professionals on multidisciplinary projects for a variety of industrial clients. Andrea’s vast experience and expertise includes: air quality construction and operating permitting; air quality modeling; air permit record-keeping and reporting; Oil Spill Prevention Control and Countermeasures (SPCC) and Storm Water Pollution Prevention Plans (SWPPP); NPDES Permitting; water quality modeling; process safety management; risk management compliance and auditing; and RCRA compliance.

Andrea is registered as a Professional Engineer in South Carolina. She holds a Bachelor of Science degree in Chemical Engineering from Michigan Technological University.

Ruth Albright, P.E.

Vice President | Principal

Ruth has led projects for major industrial facilities throughout the Southeast and beyond. She built her knowledge of environmental regulations and their application to manufacturing operations while working for the second largest chemical manufacturing company in the United States. At SynTerra, she has expanded both her knowledge and reputation working for chemical manufacturing operations of all sizes. She has also worked extensively with other manufacturing operations, including pulp and paper, industrial equipment, pharmaceuticals, food, and automotive parts and assembly. Her experience includes air and wastewater permit compliance, solid and hazardous waste management, solid waste construction permitting, hazardous materials transportation, wastewater treatment systems, air pollution control equipment operations and maintenance, and ambient air monitoring systems.

Ruth is a professional engineer registered in South Carolina, North Carolina, Georgia, Florida, Virginia, Mississippi, Oklahoma, Michigan, Arkansas, and Kentucky. She is an active member of the South Carolina Chamber of Commerce Environmental Technical Committee and serves as the chair of the water subcommittee. She has previously served as the program and committee chair for the Greater Greenville Chamber of Commerce Environmental Affairs committee. She has a Bachelor’s degree in Chemical Engineering from Clemson University.