CMM CMM Professional Ethics & Standards

Question 1

Which organization administers the Certified Mineral Manager (CMM) designation in the United States?

Accepted Answer

National Association of Royalty Owners (NARO)

Answer

American Association of Professional Landmen (AAPL)

Answer

Society of Petroleum Engineers (SPE)

Answer

Independent Petroleum Association of America (IPAA)

Question 2

Under the CMM Code of Ethics, what is a mineral manager's primary obligation when representing a client?

Accepted Answer

To act in the client's best interest with loyalty, competence, and full disclosure of material information

Answer

To maximize production volumes regardless of the lease terms

Answer

To prioritize the operator's development timeline over the mineral owner's preferences

Answer

To maintain confidentiality even when disclosing information is required by law

Question 3

What action must a CMM take upon discovering a conflict of interest between two clients they represent?

Accepted Answer

Disclose the conflict to both clients and obtain informed consent, or withdraw from representing one or both clients

Answer

Favor the client with the larger mineral estate without disclosure

Answer

Continue representation without disclosure to avoid alarming either client

Answer

Report the conflict only to NARO and take no further action

Question 4

Which of the following would constitute an ethical violation for a CMM under NARO's standards?

Accepted Answer

Purchasing a mineral interest from a client without full disclosure and fair dealing

Answer

Advising a client to audit an operator's production records

Answer

Recommending that a client consult an attorney on a complex title issue

Answer

Disclosing publicly available lease terms to a prospective client

Question 5

A CMM who lacks expertise in a specific aspect of a client's mineral management needs should:

Accepted Answer

Disclose their limitations and refer the client to a qualified specialist

Answer

Proceed with the work and research the topic without informing the client

Answer

Decline the entire engagement without offering any referral assistance

Answer

Charge a reduced fee and attempt the work outside their competency

Question 6

How long must a CMM typically retain client files and correspondence under professional standards?

Accepted Answer

For the duration of the engagement plus a reasonable period thereafter, often consistent with the applicable statute of limitations

Answer

Only for the calendar year in which the services were rendered

Answer

Indefinitely regardless of the nature of the engagement

Answer

Until the client requests their destruction in writing