Valuation of Mineral Interests in Condemnation Cases

This paper discusses the law as it relates to appraising operational mining properties in the context of a takings claim. Topics include the need for valuation expertise, the differences between de jure and de facto takings, an overview of the law of condemnation, including jurisdictional issues, and defining your strategic options according to the controlling statute. State condemnation law varies by jurisdiction and just compensation can be calculated by comparable sales unit-times-price, before ¬after-valuation, capitalization of income and discounted cash flow methods. Takings under Federal laws are reviewed, as is the necessity of assembling a team including attorneys, valuation experts including a mineral appraiser, a real estate appraiser, economists and geologists.