Texas Mineral Liens: Important Deadlines Under Chapter 56 of the Texas Property Code
For oilfield service companies, contractors, suppliers, and vendors, getting paid on time is critical. When an operator, working interest owner, or contractor refuses to pay for labor, materials, equipment, or services, Texas law provides powerful protections through Texas mineral liens.
However, Texas mineral lien laws contain strict filing and notice requirements. Missing a deadline can permanently destroy your lien rights.
The attorneys at Allen Bryson Lamar regularly assist oilfield service companies with Texas mineral liens, demand letters, and collection lawsuits. Below is an overview of important deadlines and requirements under Chapter 56 of the Texas Property Code.
What Is a Texas Mineral Lien?
Chapter 56 of the Texas Property Code provides lien rights to certain parties that perform labor or furnish materials, machinery, supplies, or services used in mineral activities.
Under Chapter 56, lien rights may apply to companies involved in:
Drilling operations
Oilfield construction
Pipeline services
Equipment rentals
Water transfer services
Welding and fabrication
Roustabout services
Fuel and chemical supply
Transportation and trucking
Oilfield maintenance and repairs
Texas mineral liens can attach to valuable property interests, including:
Leasehold interests
Wells
Pipelines
Oilfield equipment
Materials and supplies
Related mineral property interests
Who Can File a Texas Mineral Lien?
Chapter 56 generally protects both mineral contractors and mineral subcontractors.
This can include companies that:
Perform labor in mineral operations
Furnish or haul materials
Provide machinery or supplies
Contract directly with operators or contractors
Provide subcontracted oilfield services
Because lien rights can depend heavily on contractual relationships and the nature of the work performed, companies should consult an experienced Texas oil and gas attorney as early as possible.
Important Texas Mineral Lien Deadlines
One of the most important provisions in Chapter 56 is the deadline to file the lien affidavit.
Under Section 56.021 of the Texas Property Code, a claimant generally must file its mineral lien affidavit no later than six months after the indebtedness accrues.
The timing of accrual is critical.
Under Section 56.005:
Indebtedness for labor performed by the day or week accrues at the end of each week during which the labor is performed.
Indebtedness for materials or services generally accrues on the date the materials or services were last furnished.
In many cases, determining the correct accrual date can be legally complex. Incorrectly calculating the accrual date may result in a late lien filing and loss of lien rights.
Notice Requirements for Mineral Subcontractors
Mineral subcontractors have additional notice obligations. Under Section 56.021(b), a mineral subcontractor claiming a lien must provide written notice to the property owner at least ten days before filing the lien affidavit.
The notice must generally include:
The amount claimed
The identity of the party indebted to the subcontractor
A description of the mineral property involved
Failure to provide proper notice can invalidate a mineral lien claim.
Required Contents of the Mineral Lien Affidavit
Texas law also requires specific information to be included in the lien affidavit. Under Section 56.022, the affidavit generally must contain:
The name of the mineral property owner, if known
The claimant’s name and address
Dates work was performed or materials furnished
A description of the property involved
An itemized statement of amounts claimed
Additional requirements apply to subcontractors.
Improperly prepared affidavits may be challenged and potentially declared invalid.
Why Timing Matters in Oilfield Collections
Many oilfield service companies wait too long before consulting an attorney regarding unpaid invoices. Unfortunately, by the time legal counsel becomes involved, important deadlines may already be approaching or expired.
Early action can be critical when dealing with:
Operators not paying invoices
Oil companies not paying vendors
Outstanding field tickets
Unpaid equipment rentals
Oilfield collection disputes
Potential operator insolvency or bankruptcy
An experienced Texas oil and gas attorney can help preserve lien rights before they are lost.
Mineral Liens Are Only One Part of the Collection Process
While Texas mineral liens are powerful tools, they are often only part of a broader collection strategy.
Depending on the circumstances, oilfield collection efforts may also include:
Demand letters
Breach of contract claims
Suit on sworn account claims
Collection lawsuits
Garnishments
Post-judgment collections
Enforcement of guaranties
The attorneys at Allen Bryson Lamar routinely assist oilfield service companies with all stages of oilfield collections and Texas mineral lien enforcement.
Contact Allen Bryson Lamar
If your company is dealing with unpaid oilfield invoices or questions regarding Texas mineral liens under Chapter 56 of the Texas Property Code, contact the experienced Texas oil and gas attorney team at Allen Bryson Lamar.
Our firm represents oilfield service companies, contractors, suppliers, and vendors throughout Texas and across the country in matters involving:
Texas mineral liens
Oilfield collections
Collection on unpaid invoices
Demand letters
Collection litigation
Post-judgment enforcement
Protect your rights before critical lien deadlines expire by contacting us at 903-212-9300.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.