011-6 Wyo. Code R. §§ 6-10 - Recognized Appraisal Techniques Applicable to Miscellaneous Minerals
(a) When the Department is required to
appraise or determine the fair market value of miscellaneous minerals by
application of recognized appraisal techniques, the Department shall use one or
more of the following approaches or a combination thereof:
(i) Cost approach. Applied to minerals, the
cost approach is a method of estimating the value of a mineral by determining
the total of direct and indirect costs attributable to mining or production of
a mineral. Other elements of value include but are not limited to royalty, and
return on and of investment.
(ii)
Comparison approach. Applied to minerals, the comparison approach is a method
of determining the fair market value of a mineral by comparison with sales of
minerals similar in quality and characteristics. This approach includes
consideration of:
(A) Direct arm's-length
sales of unprocessed minerals at the mine or oil and gas property;
and
(B) Direct sales of processed
or transported minerals whether at or away from the mine or oil and gas
property.
(b)
The Department shall consider whether the sales price includes the value of
processing or transportation to market or both added after the mineral has
passed beyond the point of valuation.
(i) If
the selling price includes such value, the Department shall deduct such value
from the selling price to determine the fair market value of the
mineral.
(ii) If the value or cost
of processing or transportation to market or both is represented by a bona fide
arm's-length contract, such value or cost shall be deemed to be the appropriate
deduction from the selling price.
(c) Return on investment attributable to
mining and processing may be determined by a direct cost ratio proportion of
costs, the proportion of investment, or rates of return prevalent in the
industry.
(d) The Department shall
weigh the relative significance, applicability and appropriateness of the
indicators of value derived from the approaches to value or methods outlined
above, including comparison of value indicators for similar minerals which best
approximates the value of the mineral being appraised or valued.
(e) The fair market value of a mineral shall
not include direct and indirect costs attributable to processing or
transportation to market.
Notes
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