Landman Services 101
Have you ever thought about investing in property for oil, gas, or mineral rights? Then you need landman services to help protect your investment!
The American Association of Professional Landmen (AAPL) spells out the services that landmen provide to clients. These include title search, negotiations, reviewing title status, curing title defects, and determining ownership of rights. An expert team is typically called upon to take the project from start to finish due to the specialization of roles.
Here is a simplified look at what is involved in a project, and how landmen drive the process:
Can/Should It Be Leased?
Team geologists look to their partner landmen for data about the property. This data includes information about existing oil and gas leases, pooled unit data, or drilling obstructions. An overview of the title needs to be completed at this initial stage, including scouting for new or unfinished leases, and the production noted on the tract and nearby tracts as well. This data will also show any older leases that are currently held by production (HBP) or any pooled leases on neighboring tracts of land. Research into this type of production can be done through online sites like Drilling Info and Conduit Resources. Competent landmen will ensure that time and money is not spent on a potential project that cannot be drilled.
Ownership of Mineral Rights
Once the group geologist gives the green light for leasing, putting together a mineral ownership report is required. This report will include who owns the rights, in what percentages, and how these owners can be contacted.
Drill Site Run Sheet
At this stage, the appropriate people to be part of the lease are determined. Additionally, any title flaws are found by a complete state title check, including copies of all deeds and instruments. Included will be plats, tax data, and ownership charts. This data is meant to expedite drill site opinion on the title.
Title Opinion and Curatives
The title attorney examines documentation and the drill site run sheet. They then apply title standards according to the laws of the state where the property exists. When flaws are found that can affect ownership, they will note them to be cured before final approval. The landman then performs steps needed to cure the title, possibly locating and filing copies of probate, ratification and subordination agreements, or preparing heirship affidavits.
Once title issues are cured, and the property is under lease, a division order title opinion is completed, and drilling commences. This title opinion spells out who gets paid, and in what amount, from the tract’s gas or oil production.
If you need excellent landman services, look no further than MAJR Resources. We handle all project aspects and negotiations, and our team members are well-qualified and highly experienced.