Drillsite vs division order title opinion

General information only. This guide explains common practice in plain terms. It is not legal advice, and practice varies by state, county and attorney. Ask the examining attorney how they want something done.

Same land, different question

Both are title opinions written by an attorney. They are written at different times for different reasons, so they cover different ground. Practice varies by region, operator and attorney, so treat this as the general picture.

Drillsite title opinion

This is written before a well is drilled. The operator wants to know, before spending money on the well, whether it holds valid leases on the land it plans to drill, who owns the working interest, and what has to be fixed first. The opinion lists requirements, and the operator usually works through the important ones before drilling.

• Timing: before spud.
• Main question: can we drill here, and is our leasehold good?
• Typical content: ownership of the minerals and leases in the drilling unit, lease status, mortgages and other burdens, and requirements.

Division order title opinion

This is written once a well is drilled or about to produce. The question moves from "can we drill" to "who gets paid, and how much." It sets out each owner's share of production in the unit, as working interest, royalty and overriding royalty, so the operator can prepare division orders and pay correctly.

• Timing: after the well is drilled or when production begins.
• Main question: what is each owner's decimal interest in production?
• Typical content: the full list of owners in the unit and their interests, the effect of the unit, and any requirements that must be met before payment.

What it means for the packet

A drillsite packet needs a runsheet for each tract in the proposed unit, the leases, and any earlier opinions. A division order packet needs the same material brought down to the date the attorney sets, usually the first production date, plus the unit documents and the earlier drilling opinion if there is one.

In both cases we can build the packet and keep track of the requirements. The attorney decides what the record shows. See title opinion support.

Ask the attorney

Attorneys differ on what they want in a packet, how far back they want the search, and how they number requirements. Ask for their checklist before the work starts. It saves a round of corrections.

Packets on a drilling schedule

Drillsite opinions are usually tied to a drilling date, so the packet has a deadline. We can staff the search across several landmen so the packet is ready when the attorney needs it, and our tools keep the format steady from tract to tract. Send the attorney's checklist with the scope.

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