A mineral management company is a specialized company that manages mineral rights on behalf of the owners of those rights. They provide a broad range of services to help mineral owners protect and optimize their assets, which could include oil, gas, coal, precious metals, and other types of underground resources.
Here are some ways a mineral management company may support mineral owners:
- 1. Negotiation and Management of Leases: Mineral management companies are skilled in negotiating leases with oil and gas companies, ensuring that the terms are fair and in the best interests of the mineral owner. They’ll understand the complexities of lease agreements, including royalty rates, duration of lease, shut-in clauses, and many more.
- 2. Royalty Auditing: These companies often have the expertise to ensure that owners are being paid the correct amounts by conducting audits of royalty statements. They’ll verify the accuracy of the volumes, values, taxes, and deductions reported by the oil and gas companies.
- 3. Market Analysis: Mineral management companies can provide market analysis and projections for oil and gas prices, which can help mineral owners make informed decisions about leasing and production.
- 4. Asset Evaluation: They can also assist with the evaluation of the mineral rights, providing the owners with a realistic understanding of what the minerals are worth.
- 5. Production Monitoring: They can track production activity on the leased properties to ensure that operations are proceeding as agreed, and to make sure the owner is receiving the agreed-upon share of the production revenues.
- 6. Legal and Regulatory Compliance: These companies help mineral owners navigate the complex legal and regulatory landscape related to mineral rights, including managing any environmental concerns or permits needed.
- 7. Record Keeping and Reporting: They also keep track of all documents and reports related to the mineral rights, which is important for financial, tax, and legal reasons.
- 8. Estate Planning and Succession: Mineral management companies can provide guidance on how to pass on mineral rights to future generations in the most efficient and beneficial way.
- 9. Mapping: Some companies many utilize software that allows them to track owner’s mineral interests, allowing them to become visual assets, consolidated in one place.
By providing these services, a mineral management company helps to reduce the complexities and challenges that come with owning mineral rights. They take care of the technical, legal, and administrative aspects, allowing the owners to fully benefit from their assets without needing to be experts in the industry themselves.
Valor’s team has decades of experience in mineral management and has created a proprietary mineral management technology, mineral.tech®, allowing mineral owners to both visualize and optimize their mineral assets. Contact us today to learn more.
The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
