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What are oil & gas title opinions?

On Behalf of | Aug 31, 2023 | Oil And Gas Law, Royalty Disputes

In Oklahoma, the exploration and production of oil and gas is a major industry. It is important for landowners to understand their rights and the ownership of these natural resources. One essential aspect of this process is the oil & gas title opinion, which helps to determine who has the right to explore, drill or produce oil and gas on a specific piece of land.

Oil & gas title opinions are legal documents that summarize the ownership and rights related to a particular mineral property. They provide a detailed examination of the title to the mineral estate, revealing who owns the rights to explore, drill and produce oil and gas. These opinions are important in making informed decisions about purchasing, leasing and developing mineral rights, so it is important to understand how they work.

Preliminary title opinions

A preliminary title opinion is an initial examination of the ownership and rights related to a mineral property. It is usually conducted before leasing or purchasing the rights to explore and produce oil and gas. This opinion provides an overview of the current ownership and any issues that may need resolution before proceeding with a project.

Drilling title opinions

Once a company decides to proceed with exploration and drilling, a drilling title opinion becomes necessary. It is a more comprehensive examination of the title to ensure that all legal rights and requirements are in place for drilling to begin. The drilling title opinion identifies any defects in the title that might hinder the exploration process and outlines the steps needed to resolve them.

Division order title opinions

After the discovery of oil or gas and the decision to produce, a division order title opinion comes into play. It determines the ownership percentages for the proceeds from the production of the oil or gas. This opinion helps in distributing the revenue among the owners and ensures that everyone receives their fair share according to their ownership of the mineral rights.

Oil & gas title opinions are key to successful projects, providing clarity and confidence to all parties involved in the industry. Whether you are a landowner or an individual interested in the oil and gas sector, understanding these opinions is essential for making informed decisions.