What is “clearing title?
Before obtaining an oil and gas lease, drilling a well, or making payments under a division order, the operator will want to determine who owns title to the surface, minerals, and royalty and working interests in the land. This is done to ensure the operator has the legal right to drill, and so the operator will know which parties have a legal right to production or royalties. Title is typically determined by a title opinion, which is an attorneys written legal opinion based upon an examination of the real property records in the county where the land is located. The opinion will often recommend that curative instruments be obtained before the property interest is purchased, drilled on, or otherwise dealt with. This process may take several months.
