The crucial role of landmen
A reader called and asked whether I could recommend a landman to him that could search a mineral rights title for him. The reader said that all the landmen that he knew were no longer around and hence he felt they were unreliable. I quickly realized that the caller did not understand what landmen do, and so I am dedicating this month蘑菇视频 column on the role of the landman.
According to the American Association of Professional Landmen, landmen are the public face (on the business side) of the oil, gas and mineral exploration and production team. Landmen interact and negotiate directly with landowners to acquire oil and gas drilling leases on the behalf of oil and gas companies.
There are three different types of landmen: Company landmen, independent field landmen and independent land consultants.
Company landmen, negotiate deals and trades with other companies and individuals, draft contracts (and administer their compliance), acquire leases, clear title, prepare land for drilling and ensure compliance with governmental regulation. Company landmen generally work at one of the company蘑菇视频 office locations.
Independent field landmen serve clients on a contract basis and are generally the industry蘑菇视频 contact with the public as they research courthouse records to determine ownership and prepare necessary reports and locate mineral and land owners. They negotiate oil and gas leases and various other agreements, obtain necessary curative documents and conduct surface inspections before drilling.
Independent land consultants serve clients on a contract basis to perform the functions listed above. Much effort is directed to due diligence examinations required in the purchase and sale of companies and properties.
Professional landmen are informed of the applicable laws, proposed legislation, governmental regulations, public policies and current market conditions in the area of his expertise so that he can advise his employer or client properly.
Landmen protect and promote the interests of his employer or client. This obligation of absolute fidelity to the employer蘑菇视频 or client蘑菇视频 interest is primary, but it does not relieve the land professional of his obligation to treat fairly all parties to any transaction or act in an ethical manner. He or she protects the members of the public with whom he or she deals against fraud, misrepresentation and unethical practices and eliminates any practices which could be damaging to the public or bring discredit to the petroleum, mining or environmental industries. Landmen provide a level of competent service in keeping with the standards of practice in those fields in which a land professional customarily engages.
A professional landman will not represent himself to be skilled in nor shall he engage in professional areas in which he is not qualified, such as the practice of law, geology, engineering or other disciplines. Nor will he undertake to provide professional services concerning a property or a transaction where he has a present or contemplated interest, unless such interest is specifically disclosed to all affected parties.
Likewise, a professional landman assures that monies coming into his possession in trust for other persons, such as escrows, advances for expenses, fee advances and other like items, are properly accounted for and administered in a manner approved by the employer or client.
The American Association of Professional Landmen (AAPL) has three tiers of professional rankings: Registered Landman (RL), Registered Professional Landman (RPL) and Certified Professional Landman (CPL).
The Registered Landman is the entry level into the land profession. All applicants for RL certification must be active members of AAPL and must maintain their membership in order to maintain their RL certification. There are educational requirements and background checks required for RL candidates. AAPL蘑菇视频 Registered Landman (RL) designation is the basic-level form of certification offered by AAPL. An RL signifies a fundamental knowledge of the land profession as well as a Landman蘑菇视频 commitment to furthering their education. An RL shall have only one (1) year from the time of qualifying to apply for RPL status in which to achieve designation as an RPL.
The Registered Professional Landman (RPL) is the mid-level certification offered by AAPL. By meeting educational and experience requirements, an RPL distinguishes himself or herself as a competent, proficient and professional landman.
AAPL蘑菇视频 Certified Professional Landman (CPL) certification is the highest designation offered in the energy management industry. By achieving high level standards in both education and field experience, a CPL demonstrates their comprehensive competency, proficiency and professionalism in the landman field.
While some landmen are proficient in researching courthouse records, they are not lawyers. One does not have to be a lawyer to abstract a title. However, title abstracts can at times be tricky, especially when title owners get divorced or die. Landmen cannot guarantee or insure the title to subsurface mineral rights unlike a title insurance company which insures title ownership. Generally, landmen or title abstractors will abstract land and mineral rights titles for an investor or an oil and gas exploration company, which is prepared to accept the economic risk if there are flaws or issues with the title search.
Landmen travel with pipeline construction. If pipelines are complete in your area the landman will move to the next pipeline construction location, hence portraying a transient impression to the profession. Landmen play a crucial role in building pipelines and securing mineral rights. They serve as the interface between the landowners and the oil and gas industry.
(David Pearl is vice president of Infinity Resource Group, Inc., a professional mineral rights consulting firm, specializing in the leasing and sale of mineral rights in Pennsylvania, West Virginia and Ohio. He is also managing director of a natural gas fuel dispensing patent holding company and director of a natural gas fuel island development company. Your questions are welcomed by calling 412-535-9200 or by emailing IRGOilGas@gmail.com.)