CPL Due Diligence & Title Opinions 3

Question 1

A 'division order title opinion' is specifically designed to:

Accepted Answer

Establish the decimal interest for each revenue owner prior to first production payment

Answer

A division order title opinion establishes the ownership percentages so the operator can properly disburse production revenues to each interest owner.

Question 2

The 'warranty clause' in a mineral deed primarily protects the grantee by:

Accepted Answer

Obligating the grantor to defend the title against lawful claims

Answer

A general warranty clause binds the grantor to defend the grantee's title against all claims, strengthening the chain of title.

Question 3

Which of the following situations would most likely constitute a 'title failure' that triggers a lease's title failure clause?

Accepted Answer

A court adjudication that the lessor owned no mineral interest at the time of leasing

Answer

Title failure occurs when a lessor is found to have held no title to the minerals conveyed in the lease, typically triggering refund of bonus and rental payments.

Question 4

When reviewing heirship affidavits during a title examination, the landman must verify that they:

Accepted Answer

Identify all heirs and are executed by disinterested parties with knowledge of the decedent

Answer

Valid heirship affidavits must be made by disinterested persons with knowledge of the family to establish title through intestate succession.

Question 5

A 'mother hubbard' or 'cover-all' clause in an oil and gas lease is intended to:

Accepted Answer

Capture small strips or parcels inadvertently omitted from the property description

Answer

A mother hubbard clause covers small adjacent strips or parcels the grantor may own that are not specifically described, preventing gaps in coverage.

(CPL) Certified Professional Landman Practice Test

(CPL) Certified Professional Landman Practice Test

CPL Due Diligence & Title Opinions 3