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Comment by Skip Peel - Mineral Consultant on November 30, 2008 at 13:37

jffree1. The old saying that "time is money" has gained a whole new meaning with the HS Play.

Comment by jffree1 on November 30, 2008 at 13:30

OK, TD. I'm off my soapbox now.
Yes, there are times when a landowner may get buried in a title search. Common names are only one such. That's why I suggested that they get help from a pro (of some sort) if they find themselves in such a situation or don't even want to tackle it or live too far away or all of the above.
The circumstances I cited in my blog are fairly common, regarding land that has been in the family for decades. And, I may not have found it as daunting as someone else would have because I have been reading deeds for thirty plus years.
And I never said that O&G NEEDED any help running title. But they might need help getting the lead out on occasion and (if I already know what is really going to be found), when I sign that lease, I am asking for a CHECK in escrow and ten days on title. And, while I may not get ten days, I believe I'll get something shorter than thirty business days to run title and fund, which we all know equates to around 45 calendar days.

Comment by Skip Peel - Mineral Consultant on November 30, 2008 at 12:42

Two Dogs. Good question. The answer, I think, is a qualified and experienced O&G attorney.

Comment by Two Dogs, Pirate on November 30, 2008 at 12:33

I feel the same as both of you that one should know their mineral title. Learning how to run title is something else. How many ways can you spell Jose? Is it with a J or an H, is it Joe or whatever, you have to run every name that you can to come up with the right answer. An experienced abstractor knows all the this, a novice doesn't. Lets take J B Smith, how many ways are you going to run him or her Mrs. J B Smith? Think of how long it would take to get to the bottom of that. O&G don't need any help at what they do in running title. Maybe they could explore from the advice of landowners. Every play has their stories, the siesmic crew came through years ago and told me that my property has the hottest spots around, a well was drilled and they hit but they had oversold the mineral interest so they had to cap the well, the stories go on and on. Who do you believe?

Comment by jffree1 on November 30, 2008 at 11:40

Two Dogs,
I do appreciate your comments. I know that you speak from great experience and vast knowledge. I was trying to get landowners to become more aware of some of the problems which could confront them when it comes time to run title. And, paying someone to run title (and cure problems) on a 1/4 acre tract could be cost prohibitive (compared to possible revenue from lease bonus) no matter who you use to run it. But, for those who are fortunate enough to have substantial acreage to be concerned about, a complete file is a necessity.
An attorney is not going to give you an "Opinion of Title" without assuming the liability that goes with it. Nor is an abstract company. And an independant researcher is only providing documentation and not offering legal opinions or remedies (hopefully), although they may be able to recognize potential problems and direct a landowner to proper legal resources. But, a landowner armed with a complete file is going to pay less for an opinion from an attorney or an abstract company because it is going to take less time to review what is provided than it will to duplicate the work. A lawyer or abstract company would be smart enough to accept the deed COPY from an individul rather than send someone to the courthouse to retrieve the same COPY.
I don't really care how many landmen the oil companies want to pay to run title for them. No matter whether a person wants to lease or sell, minerals or surface, timber or whatever, a landowner should know exactly what they own and that there are more avenues available to them than to just wait for an OIL & GAS COMPANY LANDMAN to tell them what they own. If the broker wants to duplicate my work rather than verify it, that is between him and whoever is paying him. But, if I supply copies of all documents in an unbroken chain, it would be a pretty goofy landman who wouldn't make use of what I have provided.
And please don't tell me that there are not hundreds of brand new, incredibly inexperienced landpeople out there today who make mistakes all the time (even though they work for brokers). Just working for a broker is no guarantee that a costly mistake won't go through the O&G land machine.

Comment by Skip Peel - Mineral Consultant on November 30, 2008 at 11:16

Two Dogs, I do not think that jffree1 is suggesting that O&G companies will accept title work or opinions other than their own work product. A mineral owner benefits by having a search performed concerning their mineral interest by an independent party for a number of reasons. It is beneficial to know if the title to a mineral estate is good. It is a benefit to know if there are any title defects and have the opportunity to cure such. Old liens paid, prior leases no longer in force, and mineral servitudes that are now prescribed should all have releases on file with the Clerk of Court. Just so there are no last minute questions or problems. Delays in verifying accurate title have cost quite a few of our members. In numerous ways. Also delays in running title by lessees can be documented, if not avoided entirely, by providing a list of pertinent conveyance documents by volume and page to facilitate and speed their title work. I can imagine a law suit where the lessee claims to have been unsuccessful in running title in a timely or accurate fashion and the mineral owner provided a list of the pertinent title documents and stated that they were given to the landman upon execution of the leasing agreement. O&G companies will do their own research but mineral owners protect their interests by knowing what the correct results of that research should disclose. For many mineral estates, it can be a grave mistake to depend on O&G companies, or their representatives, to perform the title search. And the cost for an independent examination is inconsequential when the financial impact at stake can be quite high.

Comment by Two Dogs, Pirate on November 29, 2008 at 13:37

I don't think that O&G will accept someones title research other than their own, unless it has a title opinion to go with it from an attorney they trust. Doing your own title will not help in the time it takes to pay the draft. Very seldom do large O&G companies buy their own leases. Most go through brokers that handle the paperwork for them and assume the liability that goes along with what they do. Brokers are not going to put their butt on the line for work some third party did in the mineral title. Plus they get paid for the work their people do. I think that everyone needs to have a basic understanding of chain of title, that way they will know the costs associated with the process. Why bear the cost, that could run into tens of thousands of dollars when O&G will do it for you?

Comment by jffree1 on November 23, 2008 at 6:34

Why, you are welcome, Skip Peel. I am sure that there are many members who don't know that you are on "our side" (of land work).
jf

Comment by Skip Peel - Mineral Consultant on November 23, 2008 at 4:25

Thanks, jffree1. There may be a number of members who have not noticed the recent addition of E. TX. to my "Personal Landman Services".

Comment by jffree1 on November 23, 2008 at 3:57

Re: JWC's question, I did noticed that one of our sponsors (see "Sponsor" tab at top of page) is now offering help in Texas counties. My recent experience involved a title policy through an abstract company. What I paid was based on the amount of the sale. I paid them well over $1000.00 and still had to do a lot of work to keep them moving forward. I was told at least two times that they were at an impasse and could not sign off on the T. policy because of...whatever. There were issues. And to keep my deal alive, I had to get busy!

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