Title Opinions and their Function in Oil and Gas Transfers

Purchasing oil and gas properties in Pittsburgh and the surrounding areas may involve complexity. Whether you are an operator, owner of the lands, or an investor, there is one step you simply cannot skip: getting an opinion of title.
In this article, we’ll take you through the place of title opinions in oil and gas transactions, why they are important, and the ways working with an experienced Pittsburgh oil and gas lawyer can protect you against expensive legal distress down the road.

What Is a Title Opinion?

An attorney prepares a written title opinion. The title opinion goes through a chain of title to the land or mineral rights and makes sure the owner actually has what they say they have. The opinion describes if there are any problems with the title—such as liens, unpaid taxes, or hidden heirs—that need to be addressed.
Unless you have a clear title, you may end up purchasing or leasing an item legally owned by someone else.

Title opinions are critical in the oil and gas industry.

When you’re doing oil and gas transactions, you’re not merely working with the surface of the land—you’re working with subsurface mineral rights. The right to those minerals is often not clear and has probably been transferred numerous times along the years.

A title opinion is important because:

  1. Guards your investment
    If you’re purchasing or leasing property in Pittsburgh for oil and gas development, getting a title opinion guarantees you pay for rights the seller truly possesses. It verifies what you’re obtaining, and most significantly, what you’re not.
  2. Reveals Underlying Issues
    Numerous land titles have defects, particularly in the older regions of Pennsylvania. Title opinion identifies:
    • Gaps in the Ownership
    • Deeds, unrecorded or old
    • Unknown heirs
    • Encumbrances such as unpaid mortgages or liens
  3. Complies with Pennsylvania Legislation
    All states have their own specific laws governing land and mineral rights. A Pittsburgh oil and gas lawyer is familiar with the specifics of the regulations. This is particularly relevant to regions such as Allegheny County, where the records of land titles may date back decades.

Who requires an opinion title?

Title opinions are beneficial to all parties to a mineral rights transaction, including:
• Mineral rights holders interested in leasing out their rights
• Oil and gas companies interested in the development of the new location
• Developers or investors who invest through joint ventures or acquisitions
• Financial institutions or lenders who finance development projects
If you belong to the aforementioned categories and are looking for “oil and gas attorney near me,” the time is now to call on the expertise of an attorney who knows the Pittsburgh terrain.

What is contained in a Title Opinion

A well-crafted title opinion includes the following components:

  1. Ownership Structure
    Provides the current holders of both surface and mineral rights. This is important in the case of Pennsylvania, where the rights can be severed (held independently).
  2. Chain of Title
    Timeline of the various owners of the property throughout history. This is to identify any break in the chain or claimed titles.
  3. Encumbrances
    It identifies legal claims against the land or the minerals, including:
    • Mortgages
    • Tax liens
    • Judgements
    • Easements
  4. Curative measures
    If the title is problematic, the lawyer will advise on steps to “cure” them—like the preparation of missing documents or obtaining a quitclaim deed signature.

How an Attorney for Pittsburgh Oil & Gas Assists

Title examiners and landmen can conduct preliminary research, but only an attorney can offer an opinion on title and liability.
At Kostrub Law Firm, we specialize in oil and gas law in Pittsburgh, PA, and have extensive experience processing land title reviews. We understand the ways to maneuver through complicated local title problems and work with clients to settle matters before they evolve into exorbitant court battles.
If you prefer to see us face to face, you can locate us directly on Google Maps.

When to Obtain a Title Opinion

You should have a title opinion prior to the exchange of any money, and certainly prior to production or drilling. Numerous operators in Pennsylvania even insist on title opinions prior to commencing operations to steer clear of delays behind the scenes, or shutdowns.
If you’re leasing mineral rights, the title opinion should precede:
• Signing the lease
• Making payments (bonus or royalties)
• Initiating exploration and drilling

Avoid These Common Mistakes

Assuming surface and mineral rights are the same is incorrect.
Many landowners in Pittsburgh assume they own everything beneath their land. But in Pennsylvania, mineral rights can be sold or inherited separately. Always verify ownership.

Using Outdated Title Records
Avoid using ten-year-old title reports. Title chains fluctuate continually with divorces, deaths, and sales. An updated title opinion provides you with current security.

Omission of Legal Scrutiny
Never use only the title abstract or search. No title abstract or search can accurately identify and interpret all of the potential legal risks that may impact your transaction.

Pittsburgh’s title challenges are unique.

Pittsburgh and the surrounding counties have had long histories of oil, gas, and coal development. That is to say, their title histories can get complicated. Typical problems we encounter there involve:
• Handwritten old deeds
• Mineral severances of the 1800s
• Conflicting Claims to Inheritance
• Documents kept at numerous courthouses
These are not easy corrections. That is why you need a Pittsburgh attorney who works regularly on oil and gas title opinions—not just a general practice attorney.

Work with Kostrub Law Firm – Pittsburgh, PA’s trusted professionals

At Kostrub Law Firm, we specialize exclusively in oil and gas law in Pittsburgh. We’re there to ensure your transaction is sound, your title is secured, and your project remains on schedule.
We assist customers all across western Pennsylvania with:

• Drilling title views
• Order of division titles
• Lease negotiations
• Curative actions
• Surface use agreements

Whether you wish to lease, drill, or acquire land with mineral rights, you can rely upon us to deliver accurate, quick, and inexpensive counsel.
Stop by and see us on Google Maps, or check out our services at www.KostrubLaw.com.

Closing Thoughts

If you conduct oil and gas transactions in Pittsburgh, PA, or nearby, don’t risk uncertain ownership. Title opinion is among the most critical steps you can take to safeguard your investment and prevent future litigation.
Searching for a trustworthy oil and gas lawyer close to where you are? Let the Kostrub Law Firm guide you through the specifics with confidence.

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