Hiring a Mineral Manager

Owning mineral rights can be a blessing and a challenge. While these financial assets can generate income, they also require a specialized knowledge of the industry to manage effectively. Many mineral owners find themselves wondering if they should hire a mineral manager to help navigate the day-to-day intricacies of specialty asset management.

A mineral manager is your advocate in the oil and gas industry. They protect your mineral interest and maximize the value of your assets through the use of experience, knowledge, mineral management software, legal understanding, and actionable guidance.

Quick Summary

A mineral manager oversees all aspects of your mineral ownership–from negotiating good lease terms to ensuring you receive timely and accurate payments. A certified mineral manager is your representative and makes informed decisions based on current market conditions and industry best practices.

Key tasks
 

• Negotiating and reviewing lease agreements
• Auditing royalty statements to make sure you’re paid correctly
• Managing tax documentation and compliance
• Monitoring production volumes and well performance
• Conducting title research and resolving ownership issues
• Providing regular reporting on asset performance
   

What’s the difference between mineral managers and landmen, attorneys or accountants

While landmen focus on leasing, attorneys on legal matters, and accountants on tax issues, a professional mineral manager covers all those areas. A certified mineral manager has a full-service understanding of the industry and can provide a holistic approach to managing minerals that these other professionals can’t on their own.

Many individuals run into challenges when they try to manage their specialty assets on their own.

Inaccurate royalty payments or underpayments

It's essential to stay on top of payments and documentation while managing your minerals. You need regular asset audits paired with industry knowledge, otherwise you may miss underpayments that could add up to thousands of dollars over time. Thoroughly reviewing your statements can identify mistakes that would have otherwise gone unnoticed.

Missed lease opportunities or bad lease terms

Without expertise in negotiations, you might accept lease terms that undervalue your assets or you may even miss opportunities entirely. FNC Energy ensures you receive the most favorable lease terms and handles the negotiation process for you.

Complicated tax reporting

Oil and gas investments come with unique tax situations that can be tough to navigate without specialized knowledge. This can lead to compliance issues and possible missed deductions.

Difficulty understanding division orders and ownership changes

It can be difficult to keep track of your ownership interests when properties change hands or are transferred between operators. A mineral manager stays on top of these changes and manages accordingly.

Unfamiliarity with local laws and industry practices

Regulations vary significantly by region, making it difficult for individual owners to stay current on all relevant rules affecting their mineral rights.

Professional mineral management delivers value in multiple ways, just like you would use other professional services for complex matters.

More revenue through lease negotiation and auditing royalty statements

Managing royalty assets takes frequent attention and follow-ups, time many owners don't have or want to spend doing more important tasks. A mineral manager also uses their skill for negotiation to make sure operators pay what they owe.

Peace of mind knowing someone with expertise is watching out for you

Just like you would work with financial advisors for investment management, having a dedicated professional manage your mineral assets provides confidence that someone is watching out for your interests.

Lack of negotiation or offer evaluation skills

Without industry knowledge, it’s hard to know if an offer is fair market value or if lease terms offer sufficient protection.

Emotional decisions vs. data-driven strategy

If you're managing family minerals, it's possible emotional attachment could cloud your judgment. Certified mineral managers use objective analysis and help you make data-based decisions with your interests in mind.

Estate planning support for future generations

Professional managers can help structure ownership for smooth transitions to heirs, minimize tax implications, and preserve asset value.

Navigating sales, mergers or property transfers

When selling assets or doing operator changes, professional guidance ensures your interests are protected throughout the transaction.

Portfolio management and revenue forecasting

Just like other investments, understanding the future value and performance of your mineral rights helps with financial planning and decision-making.

While managing your minerals on your own is possible, working with a professional mineral manager gets you better financial results with less stress and time spent on your end. As the mineral and energy markets and regulations change, having a team that's experienced is important for anyone who's serious about protecting and growing their mineral wealth.

Our team at FNC Energy understands the complexities of the industry, has years of experience working across the country with unique client types, and continues to support our clients in helping them successfully navigate mineral ownership.