CPL Due Diligence & Title Opinions 2

Question 1

Which document is typically the starting point when examining oil and gas title in a new area with no prior production history?

Accepted Answer

The original patent or grant from the sovereign

Answer

Title examination must trace ownership back to the original sovereign grant or patent, which is the root of title.

Question 2

A 'Runsheet' prepared during a title examination primarily serves to:

Accepted Answer

Chronologically document all instruments affecting title

Answer

A runsheet is a chronological abstract of all recorded instruments affecting the property, used as the foundation for the title opinion.

Question 3

When a title opinion identifies a 'curative requirement,' this means:

Accepted Answer

A defect exists that must be corrected before the title can be relied upon

Answer

A curative requirement identifies a specific title defect and the action needed to remedy it before the company can rely on the title.

Question 4

In a title opinion, which section typically outlines the conditions that must be met before the company can drill or operate?

Accepted Answer

Requirements section

Answer

The requirements section of a title opinion lists specific actions or documents needed to cure defects before operations can proceed.

Question 5

A 'skeleton title opinion' differs from a full title opinion in that it:

Accepted Answer

Provides a preliminary review based on limited records for early decision-making

Answer

A skeleton opinion gives a quick preliminary assessment based on available records so the company can make early acquisition or leasing decisions before a full search.

(CPL) Certified Professional Landman Practice Test

(CPL) Certified Professional Landman Practice Test

CPL Due Diligence & Title Opinions 2