CMA Cheat Sheet 2026

The 30 highest-yield CMA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. When appraising oil and gas mineral rights, a 'net revenue interest' (NRI) differs from a 'working interest' (WI) because the NRI: → Receives revenue after deducting royalties and does not bear operating costs
2. A CMA appraiser is asked to value a 'term royalty interest.' What characteristic distinguishes this from a perpetual royalty? → It expires after a defined period or event, unlike a perpetual royalty
3. Which federal act primarily governs the environmental disclosure obligations relevant to mineral appraisers assessing contaminated properties? → CERCLA (Superfund)
4. For USPAP compliance, a restricted appraisal report for mineral interests differs from a complete appraisal report in that it: → Contains less detailed supporting information but reaches the same conclusion
5. In a hydraulically fractured shale well, which production characteristic is most different from a conventional vertical well? → A much steeper initial decline rate followed by a flatter long-tail production profile
6. A minerals appraiser encounters an 'offset well' clause in a lease. What obligation does this typically impose on the lessee? → Drill a protective well if drainage is occurring from an adjacent property
7. Which of the following mineral transactions would most likely qualify for non-recognition treatment under a IRC Section 1031 like-kind exchange? → Exchange of fee mineral rights in Texas for fee mineral rights in Wyoming
8. When valuing mineral rights subject to an existing lease, the appraiser must consider that the lease typically: → Encumbers and may reduce the fee mineral interest value
9. A mineral appraiser observes that nearby comparable sales occurred when oil was $90/bbl but current oil is $70/bbl. What adjustment is needed? → Downward adjustment to the comparable sales prices
10. How do global economic trends impact mineral pricing? → By influencing market demand and mineral value
11. In royalty accounting, what does 'in-kind royalty' mean? → The royalty owner receives actual physical product rather than cash payment
12. What is the significance of conflict-of-interest disclosures in mineral appraisals? → To disclose potential biases and ensure objectivity in appraisals
13. What does 'commingling' refer to in the context of mineral production and leases? → Mixing production from multiple leases or wells before measurement
14. Which mineral is the primary ore of aluminum and forms by intense tropical weathering of aluminous rocks? → Bauxite
15. Which organization administers the National Uniform Licensing and Certification Examination for appraisers, including those in the minerals sector? → The Appraisal Foundation
16. Which geophysical method measures variations in Earth's gravitational field to detect subsurface density contrasts? → Gravity survey
17. What is market analysis in the context of mineral appraisal? → Evaluating supply, demand, and market conditions for pricing
18. What is the primary purpose of a 'sensitivity analysis' in mineral property valuation? → To test how value changes under variations in key assumptions
19. In the context of royalty valuation, what does the term 'net revenue interest' (NRI) represent? → The working interest owner's share of production revenue after deducting all royalties
20. Which of the following correctly describes the tax treatment of delay rentals paid under an oil and gas lease? → They are ordinary income to the lessor and a deductible business expense to the lessee
21. The passive activity loss rules under IRC Section 469 most commonly restrict deductions for mineral property investors who: → Hold a working interest in an oil and gas well through a limited partnership
22. When assessing environmental liabilities in mineral property appraisal, an appraiser should: → Deduct estimated remediation costs from the property value
23. A mineral interest valued using the 'per-acre' sales comparison method requires which primary adjustment when comparing tracts of different royalty rates? → Normalizing comparable sales to a common royalty fraction before comparison
24. In the context of CMA mineral appraisal, what does 'BOE' stand for and why is it important for market analysis? → Barrel of Oil Equivalent — converts different hydrocarbons to a common unit for comparison
25. Which type of alteration zone, characterized by sericite, quartz, and pyrite, is typically found in the core of a porphyry copper system? → Phyllic (sericitic) alteration
26. When using the income approach for an undeveloped mineral tract with no current production, which component is most critical to estimate first? → Estimated ultimate recovery (EUR) of hydrocarbons
27. Which operational metric measures how efficiently a well converts reservoir energy into surface production? → Recovery factor
28. In geochemical sampling for mineral exploration, what is a 'pathfinder element'? → An element that occurs with an ore metal and signals its presence nearby
29. When donating a mineral property interest to a qualified charity, the income tax deduction is generally based on: → The fair market value of the contributed interest at the time of donation
30. In mineral appraisal ethics, what is the significance of the 'prior services' disclosure requirement under USPAP? → Appraisers must disclose if they appraised the same property within the prior three years