What it’s worth : A review of mineral royalty information

The is the 14th consecutive year for this column and the 13th in which the royalty data have been tabulated. Some holes still exist in the list of royalties that readers hopefully will fill. Construction aggregates - either sand and gravel or crushed stone - are the most common mineral commodity. In spite of their pervasive use nationwide, royalty information for these commodities has been difficult to acquire from some states. Readers can help. Share information about these missing states and next year there will be fewer states without information. Dennis Bryan sent a copy of a report, "Regional Appraisal of Mineral Materials: Carson City District, BLM." The report was authored by real-estate appraisers. It contains more than 50 references to leases of various construction materials in Nevada and nearby states. It gives a thumbnail sketch of each lease and is a good reference. However, the authors erroneously imply that the royalty rate and the in-place value are the same. Several of this year's new entries come from the report. However, the royalties for landscaping materials vary from state to state and by rock type. Some boulders used for landscaping in Nevada have a royalty reported at $1.10/t ($1/st). At the other extreme is lava from Idaho. Used for the same purpose, it has a royalty range of $11 to $18.70/t ($10 to $17/st). Chuanming Tian of Beijing, China has shared some information about the changing mineral royalty policies in China. China first implemented an oil and gas royalty in 1984. In 1992, the government expanded that to include iron ore. In 1994, the royalty policy was extended to all mineral commodities. At the same time, the royalty rate for iron ore increased tenfold.