Title & Due Diligence

Why Mineral Title Research Matters

Mineral title research forms the foundation of any successful mining or energy project. Before investing significant capital in exploration, development, or acquisition, stakeholders must verify who actually owns the mineral rights, whether the chain of title is clear, and what encumbrances or defects might affect the asset's value or development potential.

A clear chain of title traces mineral ownership from the original patent or grant through every subsequent transfer to the present day. Gaps, ambiguities, or conflicting claims in this chain create title defects that can delay projects, reduce asset value, or expose buyers to legal liability. Thorough due diligence identifies these issues before they become costly problems.

The Title Examination Process

Professional title examination begins with researching county recorder records, federal land patents, and BLM mining claim filings. Examiners trace each conveyance—deeds, assignments, probate proceedings, and corporate transfers—to construct a complete ownership history. This research reveals the current fractional interests, identifies any breaks in the chain, and documents encumbrances such as liens, leases, or royalty reservations.

For mineral properties, the examination must distinguish between surface and subsurface rights, which often have separate ownership histories. Severed mineral estates, reserved royalty interests, and overriding royalties all affect the net revenue interest available to a potential operator or buyer. Accurate interest calculations require careful analysis of every instrument in the chain.

Common Title Defects and Curative Actions

Title research frequently uncovers defects that require resolution before a transaction can proceed. Common issues include missing probate proceedings, improperly executed deeds, ambiguous legal descriptions, and unreleased liens. Each defect requires a specific curative action—whether obtaining a corrective deed, quieting title through legal proceedings, or securing releases from prior interest holders.

Identifying these issues early in the due diligence process provides leverage in negotiations and allows time for curative work before closing deadlines. Buyers who skip thorough title examination often discover problems only after acquisition, when resolution becomes more expensive and time-consuming.