If you’re a mineral owner, you will know that management of your minerals can be a complex issue. From a legal perspective, it is important to know the rights of mineral ownership, particularly if you’re already receiving royalty payments from leasing your assets. Understanding the more intricate details of ownership will ultimately help to ensure that you can maximise your income, as well as prevent you from being cheated out of any income that is rightfully yours.
With this in mind, we’ll be taking the next few weeks to share some tips from professionals in various states that ShaleForum.com covers. This should provide our readers with some useful guidelines for mineral ownership. Today’s professional is Tim Greene.
Tim is currently the managing member of Land and Mineral Management of Appalachia, LLC. (LMMA). LMMA works with mineral and surface owners throughout Appalachia and beyond with Mineral Lease/Pipeline Agreement negotiations and the ongoing issues concerning surface and mineral assets. I work as an Oil & Gas Coach, educating Surface and Mineral Owners regarding how to work with the Oil & Gas Industry. Tim has 31 Years of Experience involving the Oil & Gas Industry.
- Review the deductions being taken each and every month. (Depending on the lease, deductions may or may not be authorized)
- Understand what each column means. each statement has several columns but each company may have a different looking statement. In Appalachia the statements are not standard. Legislation has been introduced in the past to standardize them but has not been successful so far.
- Verify the well the production is coming from; if you are not getting paid from a well you own interest in you would be expected to pay back any money.
- Check the price per mcf with other owners in the area. Or at least with public information
- Compare the total check to the previous months checks and if there is a significant difference contact the company to determine “why” a check is higher or lower.
- Hire a professional with oil and gas EXPERIENCE, not someone with just a law or accounting degree. It’s vital they have the experience to understand what the statement is telling a mineral owner and the experience to ask the appropriate questions to determine how the amounts on the statement were determined. Be cautious of those that claim to be Oil & Gas expert just when the industry is active.
If you have a question for Tim, follow him and send him a message on his ShaleForum profile….
If you're interested in contributing to a Top Tips piece on ShaleForum, message me.