Cornerstone Acquisition & Management Company, LLC
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FAQ

What are the main differences between the various types of interests?

  Mineral Interest Royalty Interest Overriding Royalty Interest Non-Operated Working Interest
Receives Royalty Payments No Yes Yes Yes
Ownership of Underground Minerals Yes Yes No No
Has Rights to Execute Leases Yes Yes No No
Collects Upfront Bonus Payments Yes No No No
Duration Perpetual Perpetual, unless otherwise stated in the lease. Created out of the working interest. Interest terminates upon lease expiration unless otherwise stated in the lease. Interest terminates upon lease expiration.
Liability to Government None None None Unlimited, even after lease expiration.
Drilling Costs Liability None None None Several liabilities, with each interest owner responsible for their proportionate share.
Property or Subsurface Damage Liability None None None Several liabilities, with each interest owner responsible for their proportionate share, subject to insurance coverage.
Upside Receives share of proceeds when a producing well is successfully drilled on the mineral interest. This payment is in the form of royalty interest. If additional wells are drilled on the lease, the royalty owners receive their share of the proceeds from the sales of production and bear no additional cost. None None


Where is Cornerstone located?

Cornerstone's primary office is located in Rancho Santa Fe, CA.


What other entities does Cornerstone control?

Cornerstone controls the following entities:

  • American Assurance 2000, L.P. (formerly JDT 2000, L.P.)

What does Cornerstone do with the properties it acquires?

Cornerstone Acquisition & Management Company, LLC is the Investment Manager of the Caritas Funds, a set of investment funds that focus on U.S. based oil and natural gas mineral interests, royalty interests, overriding royalty interests, and non-operated working interests. Acquired properties and other energy-related investments are added to the Caritas investment portfolio on a regular basis.

Cornerstone represents a diverse group of investors from around the world who wish to participate in the U.S. energy markets. To learn more, please visit the Caritas Funds website and/or contact our Marketing & Investor Relations Department at .