Estate of John L. Baird - Page 19




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          the following:  (1) The fractional interests are held in a trust            
          causing an inability to directly access any proceeds of                     
          partition; (2) the beneficial fractional interest holders were              
          from the same family generally resulting in less agreement on a             
          course of action;5 (3) partition suits in Louisiana require that            
          all mineral owners be made parties to the proceeding; (4) the               
          costs of partition might be assessed against and borne by the               
          instigating partial interest holder; and (5) a buyer of a 14/65             
          or 17/65 interest would have no control and the other interests             
          could limit profitable use or sale of the property.  In this                
          case, the property has been poorly managed by one of the                    
          beneficiaries/family members for years, and the only remedy would           
          be to wait until other interest holders die or to attempt                   
          partition.                                                                  
               The reasons cited by Mr. Steele do not support his                     
          conclusion for a 90-percent discount.  Several of the reasons he            
          cites were already considered in his written report to arrive at            
          his “at least 55 percent” discount opinion.  We do agree,                   
          however, with his observation that this family has experienced              
          prior disagreement, which precipitated the creation of the trust.           
          In addition, one family member has been allowed to independently            


               5 Because of Mr. Steele’s reputation and willingness to be             
          involved in partial interests, disgruntled family members seek              
          him out to purchase their fractional interests.  In those                   
          experiences he has found that the likelihood of disagreement is             
          greater among family members.                                               





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