In this month's edition:



Page 1

Texas Changes Payment Requirements

Page 2

President's Letter

Page 3

Behind the Scenes Planning for 2002
Donna Reeves

Page 4

State Bar of Texas-
Opportunity for
Associate Membership

Page 5

Icebreaker and NAPE 2002
S. Sullivan and M. Cousins

Page 6

Counterpart Connection

Page 9

Certification News

Page 10

State of Texas HB 981
An Act
Relating to Oil and Gas
Royalty Reporting Standards

Page 12

MMS Royalty Reduction Program

Page 13

NADOA 2002 Institute

Page 14

Test Your Title Knowledge

Page 17

Calendar of Events

Page 19

Board of Directors and
Committee Chairmen

© 2002, All Rights Reserved

Title Knowledge

Test your knowledge of title facts! To complete the quiz, click on your response to each multiple choice question. When finished, click the button at the bottom of the screen, your score and the answers to any missed questions will be displayed.

Good luck...

1. If you drill 8 wildcat wells, according to the law of averages, how many will be dry holes?

a. 2
b. 3
c. 5
d. 7

2. The operator of a well is responsible for the maintenance of the leases included in the proration of the well.

a. True
b. False

3. A type of ownership in which two or more parties own property equally, and upon the death of one, ownership passes to the survivor.

a. Tenants in Common.
b. Joint Tenancy.
c. Joint Venture.
d. Life Estate.

4. Farmout Agreements are almost always recorded.

a. True
b. False

5. An interest in which payment is computed after the deduction of certain specified costs is what type of interest?

a. Overriding Royalty Interest
b. Carried Interest
c. Net Profits Interest
d. Term Interest

6. At what point does title to real property vest in the devisee or heirs of a deceased individual?

a. Immediately after death.
b. As soon as a will is presented to probate.
c. When the final decree is issued by the court.
d. When an instrument conveying title is executed by the Administrator or Executor of the estate.

7. Under what type of bankruptcy would a company be liquidated?

a. Chapter 7
b. Chapter 11
c. Chapter 12
d. Chapter 13

8. Under what type of bankruptcy would a company be reorganized?

a. Chapter 7
b. Chapter 11
c. Chapter 12
d. Chapter 13

9. Who would you pay royalty proceeds due to a company in Chapter 7 bankruptcy?

a. The company
b. The bankruptcy court handling the case
c. The Chapter 7 trustee
d. The funds would be held in suspense pending resolution of the case

10. A modification to a will is known as a:

a. Revised will
b. Probated will
c. Supplemental will
d. Codicil