Of the Enforcement of LiensOil and Gas Liens
Section § 1203.50
This section states the official name of this chapter, which is the Oil and Gas Lien Act.
Section § 1203.51
This section defines key terms used in a particular legal chapter related to oil and gas leases. It explains who or what is considered a 'person', 'owner', and 'contract', among others. For example, 'owner' refers to anyone with an interest in an oil or gas lease, and 'contract' can refer to any type of agreement, whether written, oral, or implied. Also defined are terms like 'material', 'labor', 'services', and 'drilling', each with specific meanings relating to operations on the lease.
Section § 1203.52
If you work under contract to provide labor, materials, or services for an oil or gas lease, you can file a claim for a lien to ensure you get paid. This claim applies even if the well isn't producing or the materials aren't part of the final well. You must file this claim within six months of when you provided the work or materials. You can also include costs like shipping and interest in your claim.
Section § 1203.53
This law explains what property a lien, related to oil or gas leaseholds, can apply to. It includes the rights over the leasehold where the work was done, without affecting prior royalty interests and similar claims. It also covers materials and fixtures used for drilling or operating wells, as well as the wells themselves and the oil or gas produced, excluding interests owned by others as specified before the work began.
Section § 1203.54
If you work as a subcontractor, doing labor or providing materials or services for an original contractor, you can claim a lien. This means you have a legal claim to the property where you've done the work, similar to the original contractor. This also applies to materials and fixtures used in oil or gas well projects.
Section § 1203.55
This section states that if a lien (a legal claim on property) is attached to a leased property and the lease is forfeited, the lien still remains valid for any materials, fixtures, or improvements made before the lease was forfeited. Similarly, if the lien is attached to an interest that hasn't become full legal ownership or depends on a condition that hasn't happened yet, the lien remains valid for the materials and fixtures if they were attached before the issue.
Section § 1203.56
This law explains when a lien (a legal claim on property as security for a debt) starts and how it takes priority over other claims. The lien begins the day materials or services are first provided or labor is first performed on your property. If you follow the specific requirements in Section 1203.58, this lien will take precedence over any other claims or liens that are placed on your property after the original lien started.
Section § 1203.57
Section § 1203.58
If you want to claim a lien (which is like a legal claim on a property for money owed), you need to record a detailed statement at the county recorder's office where the property is located. This statement should include the amount you're claiming and the details of the labor or materials you provided. It must also list the property owner, your name and address, and if applicable, who directly received your services. Importantly, you have six months from the date the work was done to file this document to make sure it's valid.
Section § 1203.59
This law says that if someone claims a lien (a legal claim) on oil or gas, it doesn't affect a buyer until they get a written notice. The notice has to include the claimant's details, the lien amount, and a description of the property. The buyer must get the notice in person or through certified mail and then hold onto the payment for the oil or gas up to the lien amount until they get written proof that the claim has been settled. The person claiming the lien must inform the buyer within 10 days that the lien has been paid off.
Section § 1203.60
If someone has filed a lien on property, the owner, lessor, or involved contractor can record a bond instead. This bond should cover 150% of the lien's value and be payable to the lienholder. It must be signed by the property owner and backed by a surety company. Once recorded, this bond acts as a substitute for the property in question in legal claims. Lienholders have a certain time to sue on this bond, and multiple claims can be made separately.
Section § 1203.61
This law explains how liens should be enforced. You need to start legal action to enforce a lien within 180 days of recording it. If you give credit and document it within that period, the lien can last until 180 days after the credit ends, but no longer than a year after completing work. If you don’t take the lien to trial within two years, the court might dismiss it. If the case is dismissed or it's ruled that no lien exists, it's like the lien was never there. For anyone who buys the property or takes out a loan on it after the 180 days, any credit or lien extension won’t work unless it was officially recorded before the buyer or lender’s rights were established.
Section § 1203.62
This law says that nothing in this chapter will take away or change the right of someone who is owed money for work, materials, or services to take legal action against the person who owes them.
Section § 1203.63
This law states that if a person takes a note or additional security, it doesn't automatically cancel the lien they have unless both parties clearly agree in writing that it does. Similarly, if someone claims a lien, it doesn’t automatically give up any other rights or security they may have unless stated otherwise in writing by the parties involved.
Section § 1203.64
This section explains that if you have a claim for a lien (a legal right to keep someone's property until they pay a debt), you can transfer that claim to someone else (this is called 'assigning'). When you transfer it, the person you give it to gets all the rights you had. However, if there are any legal defenses against the claim, those defenses still apply to the new owner of the claim.
Section § 1203.65
This law explains how liens, which are claims on property to secure a debt, are to be perfected (properly filed and made official) and enforced both before and after the new rules in this chapter took effect. If you have a lien from before these rules, it needs to follow the new processes outlined here. If it wasn't perfected under old laws, you have some extra time to perfect it under the new regulations. For liens perfected under old rules, their validity is judged by the old rules, but enforcing them should follow the new guidelines as much as possible.
Section § 1203.66
This law says that when interpreting this chapter, it should be done generously in support of anyone who has a right to a lien under these rules.