Oil & Gas Title Examinations and Title Opinions
We are available for title examinations covering lands in Oklahoma, Texas, New Mexico, North Dakota and Arkansas. Title examination for oil and gas purposes is usually to advise the client as to the ownership of the mineral estate in a tract of land on which the client is considering obtaining an oil and gas lease, either for the purpose of assignment or for the drilling of an oil or gas well, or perhaps to a mortgage company who is proposing to lend money to an oil and gas operator, to be secured by a mortgage (or deed of trust) on the oil and gas leasehold estate and the production attributable thereto. As such, we offer Title Opinions for all of your needs, including:
Drilling Title Opinions: The purpose of the Drilling Title Opinion is to advise the client of the surface, mineral and leasehold estate ownership of the land in question for the purpose of acquiring new oil and gas leases and/or drilling purposes. In the course of setting out the mineral and leasehold ownership, the Opinion will also address many other aspects of the title which may affect the ownership of the leasehold estate and the E & P company’s drilling operations, such as: (1) surface ownership and possession, which, if different than mineral ownership, may cause access problems; (2) easements, since pipeline and other easements must be located and avoided in conduction drilling operations, (3) liens and encumbrances, which may need to be subordinated to the leasehold estate, and (4) ad valorem (property) taxes, which are a lien upon the land.
Division Order Title Opinions: The sole purpose of a Division Order Title Opinion is to set forth the ownership of oil and gas production from a well drilled on specific acreage which ownership includes Royalties, Overriding Royalties, Production Payments, Net Profits Interests, Working Interests and other interests in production. It is this Opinion which provides the basis for the preparation of Division Orders by the purchaser of the production which conforms to the ownership tabulated in the Opinion. The Opinion will not only outline the ownership, but will also point out and discuss any defects in the title which have not been satisfied by previous opinions. In addition, any new problems that may have cropped up since the preparation of the prior opinions will be presented and specific Requirements set-forth.
Limited Leasehold Acquisition Opinions: The purpose of the Limited Leasehold Acquisition Opinion is to advise the client of the leasehold ownership covering the land in question for the purpose of acquiring oil and gas leases or a Working Interest position in an existing leasehold estate. Generally, this Opinion is limited to the interest of a specified Working Interest owner or owners, in connection with a leasehold acquisition under a Purchase and Sale Agreement. Furthermore, when rendering this Opinion, we generally act as Special Counsel for the Buyer, Seller and Lender.
Supplemental Title Opinions: We are often requested to render a Supplemental Opinion to our original Leasehold Acquisition or Drilling Opinion. Prior to rendering a Supplemental Opinion, the client will furnish supplementary curative material obtained in order to satisfy some or all of the title Requirements in the original Opinion. The purpose of the Supplemental Opinion is to set forth the status of the title Requirements in the original Opinion, pointing out if the same have been satisfied, and if not, what additionally needs to accomplished. The Supplemental Opinion will also report any changes in the ownership of the fee title and leasehold estate brought about by the examination of the supplemental and curative material submitted for examination.
Surface/Right-of-Way Title Opinions: We are sometimes requested by the client to render title opinions covering surface ownership only. These Opinions are generally used in connection with acquiring surface well site locations (i.e., well sites located off the leased premises); pipeline right-of-ways; and easements for flow lines and gathering systems.
