Issue 7 - Time is Running Out for 2010 Tax and Estate Planning for Marcellus Shale Landowners
By Scott P. Borsack
Like the sand passing through an hourglass, time is fleeting. With the passage of time, opportunities are lost. These notions are never more appropriate than when speaking about Marcellus Shale. In previous notes to our friends who attended one of our seminars I spoke about the growing body of intelligence from production data finally disclosed by exploration companies. We have focused upon how the value of royalty rights increase as drilling activities move ever closer to your property. Once the rig takes up residence near your residence, opportunities are forever lost. Time is not on your side.
With the passage of time we have learned that natural gas quantities are greater than geologists originally estimated. As a result, appraisals and valuations of gas reserves will likely be higher for those who seek these appraisals in the future. With the passage of time, gas exploration companies have increased the pace of exploration, seeking ever greater numbers of permits in the state and drilling ever more wells in the state. Permit activity and drilling activity for the first six months of this year exceeded such activity for all of last year. That pace is likely to continue.
As these comments reach you, there are fewer than five weeks left in the current calendar year in which to plan for the reduction of estate and gift taxes. With the ever increasing work load, appraisers are experiencing a back log from the time of contract to delivery of a report. In order to complete any estate plan, and to know which methods and techniques to employ, an appraisal is absolutely essential. So even if you ordered an appraisal today, you would have barely three weeks following delivery of a report to make decisions about appropriate methods, review documents and get comfortable with techniques recommended in order for you to complete planning by the end of the calendar year. With Thanksgiving upon us, for purposes of year end estate and gift planning, the calendar year is essentially over.
Many of you reading this message have not taken any affirmative steps to put a tax plan into place. Some are considering whether to do something before the end of the year. Given the timeline to completion, if you are thinking about doing something before the end of year, the time to set a plan into motion is really upon you. If you have not yet met with an attorney, please call us today to set up an appointment. If you have met with one of us and have a retainer and memo in hand, please sign the retainer and return it to us with the requested fee advance with copies of your deed and lease. In the coming weeks our ability to complete plans by the end of the year shall come to an end.
We look forward to hearing from you soon.
Like the sand passing through an hourglass, time is fleeting. With the passage of time, opportunities are lost. These notions are never more appropriate than when speaking about Marcellus Shale. In previous notes to our friends who attended one of our seminars I spoke about the growing body of intelligence from production data finally disclosed by exploration companies. We have focused upon how the value of royalty rights increase as drilling activities move ever closer to your property. Once the rig takes up residence near your residence, opportunities are forever lost. Time is not on your side.
With the passage of time we have learned that natural gas quantities are greater than geologists originally estimated. As a result, appraisals and valuations of gas reserves will likely be higher for those who seek these appraisals in the future. With the passage of time, gas exploration companies have increased the pace of exploration, seeking ever greater numbers of permits in the state and drilling ever more wells in the state. Permit activity and drilling activity for the first six months of this year exceeded such activity for all of last year. That pace is likely to continue.
As these comments reach you, there are fewer than five weeks left in the current calendar year in which to plan for the reduction of estate and gift taxes. With the ever increasing work load, appraisers are experiencing a back log from the time of contract to delivery of a report. In order to complete any estate plan, and to know which methods and techniques to employ, an appraisal is absolutely essential. So even if you ordered an appraisal today, you would have barely three weeks following delivery of a report to make decisions about appropriate methods, review documents and get comfortable with techniques recommended in order for you to complete planning by the end of the calendar year. With Thanksgiving upon us, for purposes of year end estate and gift planning, the calendar year is essentially over.
Many of you reading this message have not taken any affirmative steps to put a tax plan into place. Some are considering whether to do something before the end of the year. Given the timeline to completion, if you are thinking about doing something before the end of year, the time to set a plan into motion is really upon you. If you have not yet met with an attorney, please call us today to set up an appointment. If you have met with one of us and have a retainer and memo in hand, please sign the retainer and return it to us with the requested fee advance with copies of your deed and lease. In the coming weeks our ability to complete plans by the end of the year shall come to an end.
We look forward to hearing from you soon.