Breaking Up Is Hard To Do..... - The HuntingPA.com Outdoor Community
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post #1 of 25 (permalink) Old 12-27-2013, 12:13 AM Thread Starter
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Breaking Up Is Hard To Do.....

14 years ago 3 of us bought a 50% interest in a hunting camp with all mineral rights. Today the cabin is primarily used by only one member who is the other 50% owner.
Now one of the 3 is interested to sell their share. How would one fairly go about determining a price for the 1/6 interest? The mineral lease was signed 4 yrs ago.
Will an appraiser provide both a value with gas rights and one without gas rights?
Can the other owners be forced to buy at fair market value under PA law? Has anyone had this experience?
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post #2 of 25 (permalink) Old 12-27-2013, 12:34 AM
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Re: Breaking Up Is Hard To Do.....

.
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post #3 of 25 (permalink) Old 12-27-2013, 12:49 AM
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Re: Breaking Up Is Hard To Do.....

1/6 is 1/3 of 50% of the total value or 16.7% of the camp value.
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post #4 of 25 (permalink) Old 12-27-2013, 01:19 AM
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Re: Breaking Up Is Hard To Do.....

As far as I'm concerned hunting camps are not investments. Therefore, he gets his money back. If the remaining members sell then he gets his share of the gain. Another choice is to buy him out but let him keep the mineral rights since the value is very speculative. The remaining owners of the surface rights determine what lease/development should be done.

I miss my hunting partner
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post #5 of 25 (permalink) Old 12-27-2013, 02:05 AM
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Re: Breaking Up Is Hard To Do.....

You need legal advice and the answers depend in part on the deeds and any relevant written and oral agreements regarding your camp arrangement, the terms of the gas lease (is it paid up and if so how was bonus distributed?). There are experts that value oil and gas rights - I have a few names at my office I could provide via PM. Depending on the acreage and where the land is, the present value of the oil and gas may be less than most would expect. I am an attorney and do oil and gas work for the industry. I refer landowner work elsewhere. If you are at the point of needing to sell/purchase the 1/6 interest, do yourself a favor and talk to an attorney who understands oil and gas law.
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post #6 of 25 (permalink) Old 12-27-2013, 03:27 AM
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Re: Breaking Up Is Hard To Do.....

Sounds like one of those...

IT'S MY MONEY, AND I WANT IT NOW commercials
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post #7 of 25 (permalink) Old 12-27-2013, 12:17 PM
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Re: Breaking Up Is Hard To Do.....

Should be a simple buy him out kind of deal but it is not going to work out that way!!! Good luck on this one!

live laugh love and hunt hard!

Forest county got to love it!
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post #8 of 25 (permalink) Old 12-27-2013, 01:04 PM
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Re: Breaking Up Is Hard To Do.....

Another reason to always incorporate and supply shares. We set the value ourselves for shares each year so we won't have to penny up a ton if someone wants out. My guess is if nothing is legal in writing then he would be entitled to the 16.7% of the camps current value per an appraisal. Unless you can all agree on what you think it's worth based off of comps (and I did mean comps, not camps lol) located nearby.

<span style="color: yellow">Trying to understand women is like trying to smell the color nine. -Ferrell</span>
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post #9 of 25 (permalink) Old 12-27-2013, 02:29 PM
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Re: Breaking Up Is Hard To Do.....

Estimates and apprasials are great but just like anything else for sale; it's what a buyer will pay. Is there someone interested in purchasing his percentage? The guy wanting out still has to find someone that wants his interest and unless there is a prior agreement requiring the others to buy him out I doubt anyone could be forced to do so.

Look over the deeds, written agreements and the gas lease agreements to see where you stand. Consult a business law textbook to bone up on the details and go see an attorney. It's easy to make assumptions but as you well know contracts can get a bit interesting. Good luck Dan.
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post #10 of 25 (permalink) Old 12-27-2013, 03:42 PM
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Re: Breaking Up Is Hard To Do.....

That's just one of the reasons I am the "only" owner of my place.
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