My family owns a few mineral acres and have had a title opinion done on one of the tracts of land; however the title opinion is fraught with inaccuracies. How can you be sure that the landman hired by the O & G company is experienced enough to know what they're doing when they have gotten vital information wrong?

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Annette,

Did the title company run title for both the land and minerals, and title information about both are wrong?  Or did they run title for the land, and included information about the minerals, which was incorrect.  You might just have a complicated title, or the title company may have been focusing on the surface

Annette,

It is difficult to determine the caliber of the landman and attorney. The best way I know of to get this information is from referrals from others who have worked with the professionals in the past. You can hire your own land man to do the work and then have him submit that to an attorney. Could you elaborate on the nature of the inaccuracies?

O & G ran title on minerals only.  No need to run on surface land because there are title deeds.  Inaccuracy was pretty blatant.  Landman referenced a will and concluded that biological children were actually stepchildren who were never adopted; therefore, heirs are not entitled to any royalty.  However,  landman is requesting that heirs sign lease contract with o & g.

That would cover his bases in case he is wrong.

Annette:

 

This "opinion" does not sound like it was rendered by an attorney.  It is likely that a landman or abstractor simply ran your mineral interest for the purposes of securing a lease.  Unless the drilling of the well or production is imminent, it is not typical to obtain a formal title opinion in this scenario.

 

Irrespective of the title issues, the landman's task is to lease anyone who may possess an interest in and to the minerals, not opine as to title or cure the title (unless so directed by the company and/or the examining attorney).  If there is some ambiguity from the title research, this may include leasing parties who purport to own an interest and actually have no interest, or (conversely) parties that may not purport to have an interest but may have a possible claim.  In cases of complicated or clouded title, a lease broker, abstractor or landman may consult with an attorney prior to contacting potential lessees on occasion.  Usually it's cheaper to lease "everyone", unless the minerals to be leased are substantial, and let the title examiners and potential owners sort out the ownership at the time that production occurs.

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