What is the title? It seems to me they would have got this info before they leased the land and they would have all this ready by the time they started drilling.
Dear Ms. Pace,
There are several states of title. One is the title sufficient for drilling an oil and gas well. That title is generally determined by a drilling title opinion, subject to the exceptions and comments of the examiner.
If they make a well, then a separate title opinion is rendered and it’s called a division order title opinion. That breaks down the ownership and the revenue interest of everybody due revenue from the well.
Yup
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It depends upon what one’s definition of a title is… To me a title is done by an attorney (or heavily supervised by one) and signed by an attorney. Everything else to me is an abstract. For some companies in some states an abstract (done by an abstractor or landman) is good enough to begin the leasing process. It can get really expensive ordering title on every property you want to lease, because some units will never develop. Then before drilling a title opinion is completed by an attorney, any mess ups done by the abstractor or landman is corrected (hopefully), and the division order is built from this title.
Thank you. Oxy called me today and said that they are still working on the titling and that I don’t know what I might be expecting but it is not going to be a lot of money; it is a very small amount.