Sunday, August 06, 2006 5:47:50 PM
My conservative valuation of BLMC land is derived from an article entitled “No Time To Lose, Facing the Future of Louisiana and the Crisis of Coastal Land Loss.” http://64.233.167.104/search?q=cache:rEa...
df+%22No+Time+to+Lose%22%2B%22Future+of+Louisiana%22&h l=en&gl=us&ct=clnk&cd=1
On page 43 of that study, the author cites the “U.S. Fish and Wildlife Service 1994 Draft” in identifying Sale Value for Wetlands. Sale Value in 1994 was “$200-300 per acre”.
The article also indicates a “public value” of $4,300 per acre.
I don’t believe these valuations include mineral rights. In 1994, BLMC land was not being explored and developed.
Note, in Louisiana, "landowners may convey, reserve, or lease their right to explore and develop their land for production of minerals. This right to explore and develop reverts back to the landowner if no exploration or production occurs within ten years ….”
Oil and Gas at Your Door? A Landowner’s Guide to Oil and Gas Development,
http://64.233.167.104/search?q=cache:3gk...
LOguideCh2.pdf+%22mineral+rights%22%2B%22Louisiana%22% 2B%2210+years%22%2B%22reve
rts+back%22&hl=en&gl=us&ct=clnk&cd=2.
Restoration costs of marsh land are delineated in The Biloxi Marsh Stabilization and Restoration Plan. Overall, restoration costs will run between $2,560 and $5,535 per acre. See
http://www.biloximarshlandscorp.com/rest...
Projecting what BLMC's land valuation would be once the restoration plan is implemented would be purely speculative. Perhaps one could utilize standard appraisal practices which would consider costs of restoration as one variable in determining value.
Overall, however, BLMC land would become more valuable. The risks of another Katrina would be drastically reduced. The rebuilding of New Orleans would be accelerated.
Erosion of marsh land would be eliminated and actually reversed. The stage would be set for even greater mineral rights opportunities for future generations.
The key underlying value of BLMC, however, will be the extent of hydrocarbons beneath BLMC’s extensive acreage.
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