Chain of Title in Oil and Gas — How to Build a Runsheet
The runsheet is a landman's primary deliverable. It documents the chain of title — every conveyance from the original land patent to the present mineral owners — and calculates current ownership interests. Building a clean, accurate runsheet is the skill that separates experienced landmen from beginners. Here is how to do it right.
What is a Chain of Title?
A chain of title is the chronological sequence of conveyances and other instruments that transfer ownership of a property interest from one party to the next. In oil and gas, we are primarily concerned with the mineral estate — who owns the right to explore for and produce oil and gas. The chain starts at the sovereign (Republic of Texas or State of Texas) and traces every transaction forward to the present day.
What is a Runsheet?
A runsheet is the organized document that presents the chain of title in a usable format. A good runsheet includes:
- The legal description of the tract being examined
- Each conveyance in chronological order with recording information
- Grantor, grantee, date executed, date recorded, volume/page
- What interest was conveyed (fee simple, mineral interest, royalty interest)
- Any reservations, exceptions, or conditions
- Current ownership schedule with fractional interests
- Notes on title defects or requirements
Step-by-Step Runsheet Process
1. Start at the Patent
Every chain of title in Texas begins with the land patent — the original grant from the sovereign. The Texas General Land Office (GLO) maintains these records online. Record the patent information: patentee name, date, abstract number, survey, and acreage.
2. Work Forward Through Deed Records
At the county clerk's office, search the grantor/grantee indices starting from the patentee. For each conveyance, record the essential information and note what was conveyed. Pay close attention to:
- Warranty deeds — Full conveyance of the fee estate (surface + minerals unless otherwise stated)
- Mineral deeds — Conveyance of only the mineral interest
- Royalty deeds — Conveyance of a royalty interest (non-participating)
- Reservations — Language in a deed where the grantor retains an interest
3. Track Splits Carefully
When a mineral interest is divided — through a reservation, a partial conveyance, or inheritance — you must track each resulting interest separately going forward. This is where runsheets get complex. A common scenario:
4. Check Probate and Heirship Records
When a mineral owner dies, their interest passes through probate or intestate succession. Look for:
- Wills filed with the county clerk or probate court
- Affidavits of heirship — sworn statements identifying heirs
- Court orders distributing estate assets
- Independent administration records
Heirship issues are the most common source of title defects in Texas. Intestate succession can split a mineral interest across dozens of heirs over multiple generations.
5. Verify Lease Status
For each current mineral owner, determine whether their interest is leased. Check for recorded leases, assignments of leases, and releases. Verify that leases are still in effect by checking production status on the RRC/MineralSearch database. A lease that has expired opens the minerals for new leasing.
6. Calculate Current Interests
The final section of the runsheet is the ownership schedule. For each tract, list:
- Current mineral interest owners and their fractional interest (e.g., 1/16 MI)
- Lease status for each mineral interest
- Net revenue interest (NRI) — the decimal share of production revenue each party receives. See our NRI guide for calculation details.
Common Title Issues
- Gap in the chain — A missing link where there is no recorded conveyance from one owner to the next
- Undivided interest problems — When fractional interests do not add up to a whole
- Expired term interests — Mineral interests with expiration dates that may have terminated
- Outstanding liens — Federal tax liens, judgment liens, or other encumbrances
Verify Production for Lease Maintenance
Check production status for any Texas well or lease to verify if a lease is held by production.
Search Production Data