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Update on Oil & Gas Royalties Litigation-Key Valuation Issues

Value Scope

Additionally, Section 1.611-2(g) outlines some considerations that a valuation of mineral properties must include for tax-oriented appraisals. The Asset-Based Approach. This approach is not useful for determining the value of royalty interest, and we do not use it. The Market Approach. Well Economics.

article thumbnail

Update on Oil & Gas Royalties Litigation-Key Valuation Issues

Value Scope

Additionally, Section 1.611-2(g) outlines some considerations that a valuation of mineral properties must include for tax-oriented appraisals. The Market Approach The market approach uses comps, both trading and transaction. However, they usually are not available, so the market-based approach is often not useful.