5 SIGNS YOU HIRED THE WRONG OIL & GAS TITLE COMPANY
I will admit, running title is not the most exciting sector of the oil and gas industry. Nevertheless, title is the foundation of exploration and production and it lays the groundwork for the many pieces that follow. Whether your company buys minerals, royalties, leases or operates wells, having accurate title reports that do not break your bank will determine if your operations are a boom or bust.
There are many title companies who provide exceptional services. However, if your company is experiencing any of these problems, it is an indication you may need to find another title company.
1. Expensive Title Costs
The majority of title companies charge their clients on a day rate which does not vary too much between each company. Keep in mind, each additional work day adds up, and in no time, you can be looking at a large bill. If your title costs are consistently over budget you need to search for a more efficient company.
2. Lack of Communication
You should be able to contact your title company at any time during the project and determine status, inquire about potential title issues, and be able to get an overall feel of the project. If your current title company cannot answer any of your questions you may be working with the wrong company.
3. Missing Deadlines
Unless you are a major operator, you likely acquire interests in areas that have signs of future activity. Therefore, you have acquisition deadlines that must be met due to order dates or psa terms. Miss the deadline and you lose out on the acreage. If your current title company continuously misses deadlines, it might be time to look elsewhere.
4. Title Errors
Another sign that you are working with the wrong title company is if you are constantly having to file correction instruments or finding out that reported nma is different than actual nma. Preparing title reports is a difficult task and there are many steps involved; therefore, mistakes are going to happen. Due to the costs associated with title mistakes, it is important that title agents understand the consequences of their errors and take the necessary steps to ensure that the same mistake does not happen twice.
5. Office Not Located Near Your Buy Area
Each state has their own title laws and legal instruments. It is important to hire a company that is experienced in the state you are acquiring acreage. Many times, title agents think that just because they worked in Texas they can easily run title in Oklahoma (or vice versa), and often times this is not the case. Additionally, there are costs associated with travel; from mileage, hotels, to meal per diems. If your current company is not local, you may want to examine your travel expenses and compare costs with a local company.
If you are not completely satisfied with your current title company do not be afraid to switch. By partnering with a title company who provides efficient and accurate title reports, along with understanding your specific needs, you are better positioning yourself to acquire more acreage at lower costs.
Contact Convey Energy Consultants to learn about our title services. Our team would be honored to assist you on your next transaction(s). And if we do not feel like we can adequately meet your needs we will be happy to point you in the direction of a company who can. Our goal is to provide valuable services no matter the project size. Visit our services page to learn more about how we can help you and your company.