What a Title Opinion Looks Like and What It Means
A title opinion is the document that determines who owns the minerals in a drilling unit and in what proportion. It's written by an attorney, relied upon by the operator, and it directly drives the numbers on your division order. If you've ever wondered how the operator decided on your decimal interest, the answer is in the title opinion.
For how a title opinion differs from an abstract of title, see our comparison post.
What It Looks Like
A title opinion is a multi-page legal document, typically written as a letter from the examining attorney to the operator. It follows a standard structure:
Caption. Identifies the property by legal description, county, and state. Specifies the effective date (the point in time through which the attorney examined the records).
Scope. States what records were examined: county deed records, probate records, court filings, and sometimes federal records. The attorney may note any records that were unavailable.
Chain of title summary. A chronological narrative tracing ownership from the original source (patent, land grant, or earliest recorded conveyance) to the present. Each transaction is summarized: who conveyed to whom, when, what was conveyed, and what (if anything) was reserved.
Current ownership schedule. A table listing every person or entity that currently owns a mineral interest in the tract, along with their fractional or decimal interest. This is the section that determines your share.
Requirements. A list of title defects, gaps, or unresolved questions that need to be addressed before the title is considered marketable. Common requirements include:
- Missing affidavits of heirship for deceased owners
- Unrecorded conveyances that are referenced but not on file
- Ambiguous deed language that could be interpreted multiple ways
- Missing probate records
- Expired leases that haven't been formally released
Curative recommendations. For each requirement, the attorney recommends a fix: file an affidavit, obtain a release, get a corrective deed, or pursue a quiet title action.
Who Writes It
Title opinions are written by attorneys who specialize in oil and gas title examination. The operator hires the attorney (or an in-house title attorney writes it). The attorney examines the records compiled by a landman and applies the law to determine ownership.
The title opinion represents the attorney's professional legal judgment. It's not a guarantee of ownership, but it's the standard the industry relies on. For help preparing for an attorney meeting about title issues, see our guide on what to bring.
How It Affects You
Your decimal interest comes from the title opinion's ownership schedule. If the attorney's examination concludes that you own 10 NMA with a 3/16 royalty in a 640-acre unit, your decimal is calculated from those numbers. That decimal goes on your division order.
If your payments are in suspense, the title opinion likely identified a requirement affecting your interest. The operator won't pay until the defect is cured. Ask the operator what the requirement is and what you need to provide.
If your decimal seems wrong, the title opinion is where to look. Request a copy of the ownership schedule (not all operators will share the full opinion, but most will share the schedule). Compare it to your own records and your deed.
Can You Get a Copy?
Operators are not required to share the full title opinion with you. It's their attorney's work product. However, many will share the ownership schedule showing your interest calculation. Some will explain the basis for the calculation if you ask.
If you need an independent verification, you can hire your own attorney to write a separate title opinion covering your interest. This costs money but gives you your own legal analysis to compare against the operator's.
When Title Opinions Are Updated
A new title opinion (or a supplemental opinion) is prepared when:
- A new well is drilled in the unit
- An ownership change occurs (death, sale, transfer)
- A title defect is cured and the operator needs to update the records
- The unit is reconfigured
Each update can change the ownership schedule and, by extension, your decimal interest on the division order.