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Oil and natural gas valuation, in an estate-planning context, is becoming more important, as mineral ownership has created vast amounts of wealth in the past decade. New technologies have unlocked shale1 plays and brought older oil fields back to life. Furthermore, due to the proliferation of independent and, in many cases, private equity-backed oil and gas companies, oil and gas wealth is in the hands of more and more individuals. Estate planners advising clients who hold these assets need to know how minerals, especially non-producing minerals, and oil and gas holding entities are valued and what the Treasury regulations have to say about determining the fair market value (FMV) of oil and gas interests.
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