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Drilling
Opinions - Prior to drilling an oil
and gas well an oil company will have a
drilling title opinion prepared. The title
opinion identifies all who would have an
interest in the oil, gas and other
minerals in the lands upon which a well is
to be drilled. It will identify problems
or any issues in each owner's title and
make requirements specifying the issues
and discuss easy to understand
solutions to title issues so the oil
company can be assured that it has the
right to drill for and produce oil and gas
from the lands. Services include the
review of title records and documents and
preparation of a drilling opinion to
reduce the risk and exposure of a title
failure to oil and gas operators prior to
drilling operation.
Division
Order Opinions - In the event the oil
company finds producible oil or gas from
the property, a division order title
opinion will be prepared. This
opinion is usually based on the prior
title opinion and includes an updated
record check and identifies the persons
who are entitled to proceeds from the sale
of production from the well and the percentage each is
entitled. Again it identifies problems or
issues in each owner's title and makes
requirements concerning how to correct
those issues so that those persons who are
entitled to production from the property
can be correctly paid by the purchasers of
production.
Lenders
Opinions - Lender’s opinions are
prepared and addressed to a bank or other
institution who is lending money secured
by a mortgage or other security instrument.
These opinions are limited to the interest of
the borrower and confirm that the lender
is acquiring the security for their loan
and confirms
that they would be able to proceed against
the properties in the event of default on
the loan.
Acquisition Opinions - Acquisition
opinions are prepared for someone who is
intending to purchase an oil and gas
property. These opinions are more limited
and enable the purchaser to understand
what they are purchasing and confirms the
seller's title. Many times the scope
of these opinions are fashioned according
to the nature of the properties being
purchased and are prepared in connection
with the design and implementation of a due
diligence program to identify the quality
and quantity of the properties being
acquired. |