Managing mineral rights should be a strategic advantage, not a source of stress. Yet, for many fiduciaries and institutions, managing these assets is complicated. Without the right system, even high-value holdings can slip through the cracks, and title issues, tax complexity, and administrative burdens can turn valuable assets into operational headaches.
SS&C Black Diamond® Wealth Solutions addresses these challenges directly. From clarity and compliance to scalability and control, Black Diamond equips trust professionals to confidently administer mineral assets.
The Hidden Threat
One of the biggest risks mineral owners encounter is title defects. These issues can stem from ambiguous legal language, missing probate records, or even clerical errors. Sometimes deeds lack proper seals or fail to specify the interest being conveyed. Incomplete or unrecorded historical transactions can make ownership murky, leaving heirs and institutions to guess.
In one case, a client encountered a title defect that resulted in a significant delay in distributing trust assets. During what should have been a routine process of distributing known mineral interests to a beneficiary, a review uncovered that certain assets had not been retitled from the trustor’s name into the trust. This oversight prevented immediate transfer and left the inheritance unresolved for over a year.
Given that the executor failed to transfer the mineral interests into the trust during the probate process, the trustee was unaware of mineral rights existence. The Oklahoma properties continued to generate income, and the operator held the funds in suspense. After the title was corrected, the beneficiary received 20% of the delayed proceeds.
Black Diamond could have helped the client avoid this issue, as our team would have resolved the title defect well before distribution was necessary. Our expert mineral assets management team can resolve such issues as they arise and, more importantly, can prevent them from appearing in the title in the first place.
Tax Trouble
Tax obligations create another layer of risk. Property taxes, severance taxes, and income taxes on royalties can quickly add up. For individual owners or smaller institutions, keeping up with filings and valuations is often unmanageable.
Worse, failing to pay taxes on time can lead to foreclosure. Disputing valuations or seeking relief involves attorneys, consultants, and time, all of which owners often find in short supply. With professional oversight, however, these burdens don’t have to be carried alone.
Administrative Overload
Mineral ownership also creates a lot of paperwork. Owners must file deeds, update pay statuses, notify purchasers, manage leases, monitor production, and ensure compliance with environmental regulations. Without a structured system, it's easy to lose track of details and income.
To overcome this obstacle, many institutions have relied on spreadsheets, loosely organized records, and a patchwork of ad hoc communication. That can lead to missed payments, reporting delays, and compliance gaps.
With Black Diamond, everything is centralized. One dashboard integrates with trust accounting systems, tracks revenue, verifies decimals, flags issues, and stores documentation. The result? Fewer surprises, stronger oversight and total transparency.
The Solution: Trust Mineral Management
Black Diamond supports the unique responsibilities of fiduciaries managing mineral, oil, and gas assets. Delivered as a secure, cloud-based platform, it enables scalable administration and complete visibility. Key features include:
Account and asset setup
Valuations, sales, and purchases
Division order and payment decimal verification
Revenue tracking and audit trails
Property tax management
Integration with trust systems
Document storage and retention
Banks, trust companies, and family offices across the U.S. use Black Diamond as it supports everything from modest family-held leases to complex institutional portfolios. Black Diamond-powered systems have overseen the administration of mineral holdings across millions of acres, helping fiduciaries streamline oversight and meet compliance obligations.
The impact goes beyond technology. In one case, due to Black Diamond, a family was able to uncover long-buried mineral interests associated with a decades-old estate. What began as a pile of disorganized records became a new source of income.
When You Need More Than Tech
Fiduciaries who prefer to delegate the day-to-day demands of mineral asset management can use Black Diamond’s full suite of managed services:
Title examination and resolution: Conducting thorough title searches to identify and resolve defects, ensuring clear ownership
Tax management: Handling property tax filings, contesting valuations, and seeking tax relief where applicable
Lease negotiation and management: Negotiating favorable lease terms and monitoring ongoing compliance
Regulatory compliance: Ensuring adherence to environmental and legal requirements across jurisdictions
Revenue management: Tracking royalty payments, auditing revenue statements, and maximizing asset income
By leveraging the expertise of Black Diamond’s professional asset managers, mineral owners can free themselves from the task of personally handling the responsibilities of marshalling their mineral property, mitigating risk, ensuring compliance, and optimizing the financial performance of their assets.
Ultimately, with the right partner, mineral ownership transforms from a source of complexity into an enduring advantage for generations to come
To learn more about how Black Diamond can help you navigate the complexities of mineral rights ownership, call (800) 727-0605, request a personal demo, or email info@sscblackdiamond.com.
