Whether you are a newcomer or well-versed in the oil and gas business, there is never a shortage of learning opportunities. In part one of our glossary, we compiled a list of some of the most popular terms, such as "Affidavit of Production" and "Non-Participating Royalty." In part 2 of our oil and gas glossary of terms, we highlight more commonly used words, along with their definitions.
1. Adverse Possession: Obtaining title to land by taking possession of the land and staying in possession for a certain number of years, as set by law. The adverse possession statutes vary by state, but share requirements that the rightful owner has had notice (actual or constructive), that the possession is open, and notorious (i.e., occupation in a manner that is open and obvious to the public)
At its most basic level, oil and gas title due diligence seeks to protect your investment by confirming that the represented interest in a given property as well as any valued potential upside are accurately portrayed. No two deals are the same, and similarly, due diligence should be tailored to meet the specific objectives of the management team. How you perform due diligence is as important as why you should conduct certain types of due diligence.
There are many reasons a company may choose to outsource land work, ranging from a lack of bandwidth to a new startup without a land department. Land management companies can plug into your existing company structure, or provided independent land oversight and management. Here are the top advantages of outsourcing your land work.