What does "possession is nine-tenths of the law" actually mean in oil and gas?
It's an old saying, and it's only partly true. After 35+ years running title across 12 states, I've seen plenty of files in someone's cabinet that didn't settle who owned the rights. Possession can be a starting point, but it has to be backed up, and even then there are limits.
In other words, holding the paper is not the same as holding title. That's why I use a shorter line with firms that are being approached about their records: possession isn't title.
What is an affidavit of use and possession?
In oil and gas title work, an affidavit of use and possession is a sworn statement used to back up a claim that someone has actually occupied and used the property. Title examiners often accept one as part of a curative package. It helps, but it doesn't erase every other claim, and it has limits.
I'm describing the process the way I've used it in the field, not giving legal advice. Your own counsel should tell you what an affidavit can and can't do in a particular matter.
Do workpapers and client files work the same way?
Yes, in the sense that simply having the files doesn't make them yours to sell or license. Workpapers and client files need a paper trail showing who created them, what the engagement terms already grant or hold back, and whether professional rules require consent. A hard drive can't override that trail.
The AICPA records-request interpretation distinguishes client-provided records, member-prepared records, work products, and working papers. See Who owns workpapers? This is a process note, not legal advice.
If the firm owns the workpapers, can it license them?
Not automatically. Even where working papers are the firm's property, they may still contain confidential client information or tax return information. Ownership of the file is not the same as a right to disclose what's in it. Specific client consent, and sometimes a 7216 analysis, may still be required.
The Journal of Accountancy has urged firms to be very cautious about sharing firm data for AI training, including where information is redacted. Read Asked to sell firm data for AI training? Be very cautious (Kelly D. Mullins, Nov. 2, 2026). Also see AICPA confidentiality and data licensing.
What should a firm do before answering a data buyer?
Inventory what your firm actually created. Separate client records from firm operational materials. Check engagement letters, professional rules, and any consent you would need. Then license only the scoped rights you can grant, instead of selling outright. That's the same kind of check I'd run on a lease.
If you want a firm-level view, start with Can a CPA firm license its data? or check if your firm may qualify.
Is this legal advice?
No. This is a landman's plain explanation of a process check I know from title work, applied to accounting records. I don't review your contracts, and I don't tell you what you can sign. Please talk with your own counsel or ethics advisor before you include any client work in a possible license.
FAQ
What does "possession is nine-tenths of the law" actually mean in oil and gas?
It's an old saying, and it's only partly true. After 35+ years running title across 12 states, I've seen plenty of files in someone's cabinet that didn't settle who owned the rights. Possession can be a starting point, but it has to be backed up, and even then there are limits.
What is an affidavit of use and possession?
In oil and gas title work, an affidavit of use and possession is a sworn statement used to back up a claim that someone has actually occupied and used the property. Title examiners often accept one as part of a curative package. It helps, but it doesn't erase every other claim, and it has limits.
Do workpapers and client files work the same way?
Yes, in the sense that simply having the files doesn't make them yours to sell or license. Workpapers and client files need a paper trail showing who created them, what the engagement terms already grant or hold back, and whether professional rules require consent. A hard drive can't override that trail.
If the firm owns the workpapers, can it license them?
Not automatically. Even where working papers are the firm's property, they may still contain confidential client information or tax return information. Ownership of the file is not the same as a right to disclose what's in it. Specific client consent, and sometimes a 7216 analysis, may still be required.
What should a firm do before answering a data buyer?
Inventory what your firm actually created. Separate client records from firm operational materials. Check engagement letters, professional rules, and any consent you would need. Then license only the scoped rights you can grant, instead of selling outright. That's the same kind of check I'd run on a lease.
Is this legal advice?
No. This is a landman's plain explanation of a process check I know from title work, applied to accounting records. I don't review your contracts, and I don't tell you what you can sign. Please talk with your own counsel or ethics advisor before you include any client work in a possible license.