THE VALUATION OF MINES AND OIL PROPERTIES 239 
Among methods that have been used the following are the 
most important: 
(1) Valuation by empirical methods. 
(2) Valuation based on market value. 
(3) Valuation based on royalty value. 
(4) Valuation by capitalizing profits. 
(5) Valuation by estimation method. 
(1) Valuation by Empirical Methods. — An important ex- 
ample of an empirical method is the so-called * foot-acre ” 
valuation of coal measures. A certain value per foot-acre of 
coal has been established in a certain district and the value of 
any property is based on this unit disregarding the fact that 
thin beds of coal are not worth as much per acre-foot as thick 
beds. 
Another empirical method is that under which a value is 
placed on a mineral property of so many times the annual 
proceeds or the annual profits regardless of the actual expecta- 
tion of life of the mine. It is needless to say that this method 
is used only for taxation purposes. 
(2) Valuation based on Market Value. — A method of valuation 
of coal lands based on the use of the results of sales of neighbor- 
ing properties has been found acceptable to the courts. The 
attempt is made to fix the actual sale value of a coal property 
by examining the price at which other property similar to that 
under consideration has been sold. This method is derived 
from existing methods of real-estate valuation and from an 
engineer’s standpoint is acceptable only when checked or sup- 
plemented by a valuation on some other basis. Such checks 
may demonstrate that recent sales were not made at the actual 
value of the properties sold. Further than this no recent sales 
of similar properties may be available for purposes of com- 
parison. 
(3) Valuation Based on Royalty Value. — The royalty value 
method of appraising the value of mining properties makes 
use of the established royalty value per ton. This method of