For over a century, the process of running title and uncovering the ownership of mineral rights has been plagued by an immense amount of wasted time, travel costs and valuable resources.
With Drillinginfo’s Courthouse tool, the days of landmen waiting in long lines at antiquated county courthouses to locate and scan property records is quickly becoming a chore of the past.
When one up-and-coming producer was presented with a promising acquisition opportunity for a prospect in the Permian Basin, the land department used DI’s Courthouse to outpace competitors that were also interested in the prospect.
The team was able to reduce the due diligence process to minutes, allowing the company to acquire the prospect several weeks before other interested parties had vetted the opportunity – leaving the competition in the dust and saving the company over $20,000.
Analyze Mineral Ownership
The technical staff had already reviewed the estimated reserves, decline curves and economics of the prospect, but they wanted to confirm the seller possessed ownership of the existing title and mineral rights before negotiating a deal.
Using the Courthouse database, the land department was able to quickly and easily access all of the mineral title reports in a matter of minutes, avoiding valuable time, resources and travel costs.
In the past, a landman would have to travel to the county courthouse, wait for index books and make a copy of the required documents. This process, which could take more than a week to complete, involved hefty travel expenses and laborious overhead.
Organize Chain of Title
After the land department had collected the necessary documents, the team then needed to organize the research materials to provide a detailed view of all of the deeds, titles, mortgages, etc. in order to verify ownership of the mineral rights for the field.
Using the “My Runsheet” feature in DI’s Courthouse, the chief landman quickly organized the data and created a complete index of the chain of title and its supporting documents. He was able to streamline the organization process in a simple, convenient, digital and fully-searchable form.
Typically, a landman would have to sift through a pile of paperwork, organize the documents and manually index the materials to be able to reference them at a later date. Considering the scope of the information, the process requires a keen eye for organization.
Share the Results
The land team discussed the findings, verified the ownership of the lease and confirmed the ownership of mineral rights for the prospect. The chief landman gave his seal of approval, and he was ready to submit the information to the company’s title attorney.
The landman clicked on the “E-mail” tab within the “My Runsheet” featureof DI’s Courthouse to quickly email an indexed PDF directly to the title attorney. He also downloaded the fully searchable PDF and imported the file into a shareable DNA folder.
In order to present the materials to the company’s title attorney, a landman would bind the information and schedule a meeting to present his findings. The process could take several days to complete, and he would have to release all materials to the title attorney.
Maintain Accurate Runsheets
Due to multiple ownership parties, the length of tracts and a delay in purchasing caused by an extensive negotiation process, the tracts had to be updated regularly until the deal was finalized.
Fortunately for Landmen, DI’s Courthouse database is constantly being updated with the most accurate information. The chief landman can log into Courthouse on a weekly basis to update, organize and seamlessly share the latest version of the run sheet with his colleagues.
In order to maintain an accurate run sheet, a landman would have to revisit the courthouse on a weekly basis, locate the latest documents, make a copy of the records and manually update the existing tract. The process would result in countless wasted hours, travel expenses, time away from home and allow DI customers the opportunity to easily get ahead.
This Drillinginfo customer was extremely happy with the results. Instead of having to travel, waste countless hours in courthouses, and spend numerous nights in economy hotel rooms away from home, the landmen bypassed the courthouse entirely by utilizing DI’s Courthouse - allowing the organization to seal the deal long before other buyers were able to fully vet the opportunity.
While the competition was still on the road and traveling to the county courthouse, our customer was able to finalize research and due diligence at a fraction of the normal time and expense.
For Drillinginfo customers, this situation is becoming the norm. Hundreds of our customers are already using DI’s Courthouse to outperform the competition.
Don’t let them pass you by. Give your landmen access to title information from anywhere, around the clock by contacting one of our Courthouse specialists today.