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Royality Amount???

toast953 | Posted in General Discussion on March 11, 2006 11:18am

What is the going Rate for Sand, Gravel and Rock, Royalties?? This lease, my client has, is expired, she was getting .50 cents a Ton. Location is Central Arizona, and it appears to be a fairly substancial year end amount, well at least to me anyways. I Thank You all for your Time, Be Safe out there Jim J

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  1. Norse | Mar 11, 2006 02:43pm | #1

    Raw material pricing is VERY localized. You'll have to check with others in your area. Location in proximity to the end users is also a price consideration, trucking this stuff is expensive.
    Norse

    1. toast953 | Mar 11, 2006 06:53pm | #2

      Norse, as my friend is fond of saying, "Hey Jim, the sky is the limit, and reality is the gravity." I did not mention, the lease that expired, was, for 5 years. Now is the time for renewal, I suppose one just picks a number based on knowlege, and some gut feelings. I thank you, Jim J

  2. ponytl | Mar 11, 2006 06:57pm | #3

    want to talk about luck...  have'n a pos piece of land...that is all but useless and have'n/find'n  a gravel or sand pit on it... near where there is road construction... around here  if you have a sand pit  you go into the concrete ready mix biz... plant onsite... and dare someone to compete with you... 

    sometimes you just have to know what to wish for

    p

  3. hasbeen | Mar 11, 2006 07:23pm | #4

    Anything you can buy by the acre and sell the the ton is a good deal, no matter what you get for it!

    ++++++++++++++++++++++++++++++++++++++++++++++++++
    Our ancestors killed mastadons with pointy sticks!
  4. peteshlagor | Mar 12, 2006 12:00am | #5

    I'm hearing stories about shortages of sand.  S. Cal construction has eaten up most normally available.  Any RR lines close by?

     

    1. toast953 | Mar 12, 2006 03:13am | #6

      To All, great reading, buy by the acre sell by the ton, as to a Rail Road Line, I do not know, I do know the location of Sand Gravel and Rock, in Question is Bullhead City, AZ. For me, an interesting word, has, in my latter years, been the word,,, Fair.  Another interesting note, my clients attorney, tells her(client) to do the research. I, a carpenter, with access to the internet,  again, Thank you All, this/these Boards are Great.. Jim J

      1. User avater
        BillHartmann | Mar 12, 2006 03:20am | #7

        I would think that a CPA would be the one to do that kind of research.I know that "evalutaions" is one of their functions.I don't know how common sand and gravel extraction is, specially in that area.Maybe a CPA that is familar with oil and gas wells would have a good background for figuring this.

        1. toast953 | Mar 12, 2006 09:51am | #8

          Bill, ah Bingo, on the CPA slant, I myself had not thought of that. Time, but hey, the Client is  willing to pay for my Time, and I, most willing to track time spent, especially when it is my time. A  friend of mine, is going to tell me what a local redi-mix plant is paying, ie- per ton royalities. Note: this plant is 3 hours away from my Clients, leased operation. What amazes  me, given the amount of dollars that have been payed out in the past,  is that the lawyer did not care to research a figure at all, dog gone he must be busy also.  Thanks, Jim J  ps, with all the "growth", and I mean alot, somebody is needing that Sand, Gravel and Rock, looks like the price just went up another 3 to 5 cents per ton

        2. Notchman | Mar 12, 2006 10:03am | #9

          I can't speak to Arizona, but the permits required in many states for "mining," (under which rock extraction falls) is mind-boggling.....the overhead for just meeting the bureaucratic requirements is significant...and ever on the rise.

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