Mineral Interest Assets often appear stable on the surface. Royalties are paid, operators report production, and ownership structures can remain unchanged for years. This appearance of stability can be misleading. Quiet changes can accumulate over time, and without consistent periodic review, small issues can turn into material problems.
Annual Reviews are a best practice for owners, fiduciaries, and advisors who want to protect value, maintain compliance, and ensure mineral assets continue to perform to their full potential.
Mineral Interests Assets Change Even When Owners Are Not Paying Attention
Unlike traditional investments such as publicly traded securities that are often reviewed frequently, mineral interests are often left untouched for long periods. During that time, operators may change, division orders may be updated, production may decline or shift, and regulatory requirements may evolve.
As Walt Lotspeich explains in the NARO discussion, “A lot can change year to year, even when owners assume everything is the same.” Without periodic review, these changes can go unnoticed until revenue is missing or questions arise.
What an Annual Review Actually Covers
An effective annual mineral review goes beyond confirming that checks arrived. It examines ownership records, verifies operator information, reconciles production and revenue, and confirms that payments align with current agreements.
Annual reviews also provide an opportunity to identify missing revenue, address suspense balances, and confirm that documentation remains current. For fiduciaries, this process mirrors the discipline of Reg 9 style reviews by demonstrating consistent oversight and accountability. In order for the process to be efficient and complete, proper tools and reporting are necessary.
Preventing Revenue Drift and Administrative Risk
Revenue drift occurs when payments gradually deviate from expectations without triggering immediate concern. Small discrepancies, when left unchecked, can compound over time.
Walt notes that owners often assume issues will surface on their own. “Most problems we see did not happen overnight,” he explains. “They built up because nobody was looking closely.” Annual reviews create a structured checkpoint to catch issues early.
Supporting Fiduciary Responsibility
For trustees and financial institutions, annual reviews are not optional best practices. They are a practical way to document prudent management. Clear review processes help demonstrate compliance, support beneficiary communication, and reduce exposure to fiduciary risk.
Consistent review also supports smoother transitions when roles change. When oversight is documented and repeatable, stewardship does not depend on institutional memory or individual expertise.
Making Reviews Part of a Long-Term Strategy
Annual Reviews are most effective when integrated into a broader management strategy. Combined with organized records, clear ownership structures, and professional support, reviews help ensure mineral assets remain aligned with long term objectives.
Regular review does not mean constant intervention. It means intentional oversight. For mineral owners and fiduciaries alike, this discipline protects value and preserves confidence.
OG Trust Services Perspective
OG Trust Services shares insights like these because we see, every day, how avoidable missteps can erode mineral value over time. Our clients rely on OG Trust’s experience, processes, and purpose built tools to bring clarity, discipline, and transparency to mineral ownership and oversight. Whether supporting families, trustees, or institutions, our role is to help guide informed decision making and reduce the risk of costly mistakes before they occur. If the issues outlined here resonate with your situation, engaging early can make a meaningful difference.
Podcast Context
This article reflects insights shared by Walt Lotspeich and Dana Church of OG Trust Services during their conversation with Rob Prentice of the National Association of Royalty Owners on best practices for preparing mineral assets for future generations.
Watch the full podcast episode here:
