Oil and Gas Titles Workshop: Ownership Reports & Title Opinions

Transcription

1 AMERICAN ASSOCIATION OF PROFESSIONAL LANDMEN Oil and Gas Titles Workshop: Ownership Reports & Title Opinions November 30, 2012 Pittsburgh Airport Marriott Hotel Pittsburgh, PA Course Covers Running Title - The Courthouse and the Abstract Plant Negotiation: the Landman and the Attorney Ownership Reports Form, Content and Efficiency Lease Buyers and how to preserve their sanity Title Opinions Form and Substance Title Requirements, Title Standards and E & O Insurance Ethics - Group Discussion

2 AMERICAN ASSOCIATION OF PROFESSIONAL LANDMEN Oil and Gas Titles Workshop: Ownership Reports & Title Opinions November 30, 2012 Pittsburgh Airport Marriott Hotel The American Association of Professional Landmen invites you to an Oil and Gas Titles Workshop: Ownership Reports and Title Opinions Seminar on Friday, November 30, The program will be held at the Pittsburgh Airport Marriott Hotel: 777 Aten Rd. Coraopolis, PA This seminar will be presented in one day from 8:30 to 11:30 a.m. 1:00 to 4:30 p.m. The AAPL Ownership Reports and Title Opinions seminar is an education program designed for Landmen desiring to expand or refresh their knowledge of the basics of title determination and Lease purchase. It is well suited for both the Field Landman and the In-house Landman who wants to learn more about the practical application of land practices, procedures and tools to determine mineral ownership for Lease acquisition This is a fast-paced seminar, providing interaction between the participants and speaker, a bound narrative text for later reference, and short, (1-to-3 page) hand-out forms for Ownership Reports and Title Curative designed to better equip Landmen with the knowledge and tools necessary to meet the needs of their companies, clients, Lessors, Attorneys, Division Order Analysts, and Accountants. This one-day seminar will cover the topics of field land work, running title, document preparation, initial title clarification and curative, the lease purchase report package, Objections and Requirements in Title Opinions resulting from field examination, ethics, and improving understanding and communication among and between Landmen, Lease Buyers, Attorneys, Division Order Analysts and Accountants. Ownership Reports Running Title The Courthouse and the Abstract Plant We will very briefly cover the initial process of determining ownership of real property interests by use of courthouse and abstract plant records running title and some suggestions as to where the chain of title can be run bottoms up or top down. We will cover some of the most commonly encountered title problems and some possible ways for the Field Landman to get around them or at least buy enough time to write up the Ownership Report and then let his or her In-house Landman and Attorney determine what degree of curative will be necessary to achieve Marketable or at least Defensible Title. A suggested Form for an Ownership Report will be given to participants at this point as a hand-out, and discussed as to its structure and content. Negotiations, and the Mineral Owner, Landman, Lessee, and Attorney As, perhaps, the pivotal point of this seminar, we will cover negotiations among and between Field Landmen, In-house Landmen and Attorneys, long before it becomes time to buy Leases or prepare Drilling and / or Division Order Title Opinions and the Requirements in them with an indepth look at the Landman as client, the Attorney as a service provider, and how both can make

3 life much easier for Lease Buyers to purchase Leases and for Division Order Analysts and Accountants to later shoulder the fiduciary responsibility involved in letting go of cold hard cash that is, distributing OPM (other people s money). Ownership Reports Form, Substance and Efficiency This section will cover the basics of preparing Ownership Reports and will include a comparison of cursory title examinations such as Leasehold quickies versus title examination from Land Grant or Patent to Present with the use of field notes or digital images and cell-formula- studded EXCEL spreadsheets to lay out the content of those notes or images in an orderly fashion to arrive at accurate mineral ownerships. Included with this discussion will be a hand-out suggesting a form that may be chosen, at the discretion of the Landman, for these Reports. After completing the tract or abstract title search, determining and platting the tracts into which the drilling and spacing unit has been broken, finding the full legal name and any variants thereof of each mineral owner, supplying a current or last-known address (and year appearing in the records for and ancients e.g ), finding phone numbers (and cells #s) and even, if possible, an address, rounding up all or as many as possible of the legal instruments necessary to at least patch or even (hopefully) cure title, correctly calculating the fractional interest of mineral ownership for each Lessor, and then writing the Ownership Report, the Landman is then called upon to transport this package to the client or company land department for further processing. Most companies have very specific guidelines for the Ownership Report package and expect it to include all documents (e.g. Affidavit of Surviving Joint Tenant) necessary to take the business risk of paying boatloads of money to buy Oil and Gas Leases from otherwise perfect strangers. Title Opinions, Requirements, Title Examination Standards, Marketable Title, E & O Insurance and Defensible Title. We will also cover how to style the name of Lessor, the Lessee, the legal description, estimate of acreage, rental information (if applicable), and signature and acknowledgement blocks. There will also be an overview and hand-out of the various addendum clauses (Exhibit A ) that may be required to complete the Lease agreement to the satisfaction of Lessor, Lessee, and the latter s Attorney. Several of the topics and items in the text to be provided to seminar participants for later reference, will be covered briefly to show the structural elements of a Drilling, and then, a Division Order Title Opinion the latter of which was written by the current President of the Oklahoma Bar Association and is considered by the author to be a masterpiece. Also, based on some hard-won experience with Title Opinions, and 20 selected glitches in them, we will examine several of the critical if not fatal omissions and errors often made by Attorneys writing Title Opinions. And, as a demonstration of the interdependence of Landmen, Lease Buyers, Lessees, Operators, Division Order Analysts, Accounts and E & P Companies trying to stay alive and make a profit in the process, we will discuss the extremely critical role of the Field Landman, the manner in which Requirements in Title Opinions arise, and the relationship of those Requirements to State Bar Association Title Standards and E & O Insurance. A bound, narrative text covering topics in addition to those discussed during the seminar will be provided to all participants for future reference. A suggested form for an Ownership Report and Title Curative Instruments will be handed out to participants to prompt interaction with the speaker and, hopefully, tools for use in the future. The advance registration fee for this one day seminar is $250 for AAPL members and $375 for non-members. The class is open to the first 50 registrants; confirmations will only be ed once payment is received in full.

4 Friday, November 30, :30 AM Registration & Continental Breakfast 8:00 Welcoming Remarks and Course Overview Running Title - The Courthouse and the Abstract Plant Common Title Problems Methods of chaining title 8:50 Break 9:00 Ownership Reports Form, Content and Efficiency 9:50 Break 11:30 LUNCH Lease Buyers and how to preserve their sanity 1:00 PM Title Opinions Form and Substance 1:50 Break 2:00 Mistakes often made in Title Opinions 2:50 Break 3:00 Title Requirements, Title Standards and E & O Insurance 3:50 Break 4:00 Ethics, Questions & Group Discussion 4:15 Seminar Review Reminder to Fill Out: Speaker Evaluation Sheets, and CPL or RPL Credit Forms 4:30 Close Note: Schedule subject to change

5 Instructor Jon F. Love, CPL, JD Jon is one of the Managing Members of Love and Services, LLC, based in Oklahoma City. Jon began his career as a Landman in 1978 with Cities Service Oil Company, and has experience in Colorado, Kansas, New Mexico, Oklahoma, and Texas. An active member of the Colorado Bar, Jon earned his Juris Doctorate from Washburn University where, as a student, he was appointed Law Journal Research Editor. He has been a Staff Attorney for the U.S. Court of Appeals for the 10 th Judicial Circuit in Denver, and practiced Mineral and Water Rights law for AMAX and the Denver Water Board in Granby, Colorado. After he returned to his family in Oklahoma City, Jon wrote Oil & Gas Title Opinions for TXO and other clients and then was hired as Director of Division Orders for TOTAL Petroleum, Inc. During his service with TOTAL, he was also a Member of the Board of Directors of the National Association of Division Order Analysts, and assisted in drafting the Model Form Division Order in conjunction with the National Association of Royalty Owners. Jon has continued to conduct seminars for AAPL, and has taught Land Management courses for the School of Engineering and Geosciences College of Continuing Education at the University of Oklahoma from 1987 to He has also taught Continuing Legal Education courses for Washburn University, The University of Oklahoma, and Oklahoma City University. He has had articles published by the American Oil & Gas Reporter, and has contributed Text and Questions to the Certified Division Order Analyst Test Preparation Manual, Vol. II He is now an Oil & Gas Lease Buyer in Oklahoma City. General Information Accreditation: This program is accredited by AAPL for 7 CPL, RPL, or RL reaccreditation credits including 1 ethics credit. Transfers and Cancellations: All requests for transfers and cancellations must be made in writing and all must be made before November 16, Individuals may transfer registrations to another individual for this event at no additional charge. Transfers to another AAPL event may be made for $25 if made prior to November 16, After that date, no transfers will be accepted. Registrations may be cancelled for a refund, less a $25 administration fee, if made prior to November 16, After that date, no refunds will be granted. Registrants not entitled to a refund will receive a copy of the written materials. AAPL retains cancellation rights. In the unlikely event of cancellation, AAPL will attempt to notify all pre-registrants. The deadline for transfers and cancellations is 3p.m. November 16, The deadline for ALL pre-registrations is Monday, November 26, After this date, registration will only be available and accepted on-site the day of and only if seats are available. Registration Fees after November 16, 2012: AAPL Members: $300 Non-AAPL Members: $425 Special Needs: If you have special needs addressed by the ADA, please notify us at least two weeks before the program. Seminar Location: Pittsburgh Airport Marriott Hotel 777 Aten Rd. Coraopolis, PA AAPL Contact: Stephanie Rickels (817) srickels@landman.org AAPL is proud to offer high-quality educational opportunities such as this at significantly lower costs to its members. For membership information, please contact the AAPL headquarters at (817)

6 REGISTRATION FORM (Please type or print legibly) Name: AAPL Member # Ownership Reports & Title Opinions 11OGTW Pittsburgh, PA November 30, 2012 Company: Address: City, ST ZIP: Phone: Fax: Request for special needs: MAIL TO: REMIT CHECK: AAPL P.O. Box Dallas, TX REMIT CREDIT CARD : AAPL 4100 Fossil Creek Blvd Fort Worth, TX Fax: (817) Oil & Gas Titles AAPL Member Non AAPL Member PLM/ERM Student Tuition Assistance (Request Attached) Registrations & Payment Received: Thru 11/16/2012 After 11/16/ 2012 $250 $375 $0 $0 $300 $425 $50 $50 ATTENTION: If you are paying by check, please note that AAPL cannot process your registration until the check has cleared; this delays your registration process by at least two days. AAPL recommends that you pay by credit card whenever possible to ensure quick reservation and confirmation. AAPL Contact: Stephanie Rickels (817) srickels@landman.org Office Use Only RECEIVED Payment Information Check MasterCard Visa American Express TOTAL: Credit Card #: Exp. Date: Card Security Code (CSC): POSTED Name on Card: Signature: