We Know Construction Law

Oil & Gas Mineral Liens

We Wrote the Book on Texas Construction Law — Literally.

At Lovein Ribman, construction law is not just a practice area—it is the foundation of our firm. For nearly two decades, we have represented the full spectrum of the construction industry in every type of dispute and transaction across commercial, residential, industrial, and public works projects throughout Texas.  Our leadership in this field is well established.  Managing Partner Robert M. Lovein and Senior Partner Elana M. Ribman are the co-authors of Texas Construction Law and Practice, published by LexisNexis and Matthew Bender.  This treatise is widely relied upon by attorneys, judges, arbitrators, and construction professionals for guidance on preparing, filing and foreclosing statutory and constitutional mechanic’s liens; litigating residential and commercial construction defect claims; construction contract drafting and disputes; and understanding common construction statutes.  The firm’s Construction Law Department is led by two of the only 151 attorneys in Texas who are Board Certified in Construction Law: Robert M. Lovein and Haven J. Massey. Year after year, Best Lawyers—the legal industry’s leading peer-reviewed publication—has recognized Lovein Ribman as one of the top construction law and litigation firms in Texas.  This distinction—paired with our extensive experience in commercial construction litigation and contract matters—sets Lovein Ribman apart as one of the most qualified and respected construction law firms in Texas.

We have filed tens of thousands of Oil & Gas Mineral Liens and Construction Mechanic’s Liens for our clients in nearly every county across the entire state of Texas.  Based on our experience, we believe that there is nothing stronger that an unpaid contractor, subcontractor, supplier, or laborer can do to secure payment of its unpaid invoices on an oil/gas project than invoke the Mineral Lien process.  The key is to begin the process early and retain a Construction Lawyer to assist you.  If you are looking to serve a Preliminary Notice, file a Mineral Lien, or to foreclose a Mineral Lien, please contact us for a no obligation consultation by calling (888) 368-2483 or by submitting the Contact Form.  Read below to learn more about the mineral lien process and the statutory deadlines.

What is an Oil & Gas Mineral Lien?

If you have provided labor, materials, equipment, or services to an oil well, gas pipeline, or midstream processing plant and have not been paid, then you may be entitled to record a Texas Property Code Chapter 56 “Mineral Lien” to secure payment of your unpaid invoices. A Mineral Lien differs from the standard Texas Property Code Chapter 53 mechanic’s lien, in that it attaches to the mineral rights, material, machinery, equipment, and leasehold interest in the property and is only available to those who have improved an oil and gas related project. The requirements and deadlines to perfect a Mineral Lien differ from the standard mechanic’s lien and are strictly enforced by our courts. If the Mineral Lien is not informally resolved, then the lien claimant has the right to file a lawsuit to foreclose the lien and recover payment of the debt, plus attorneys’ fees and costs. It has become the practice, as opposed to the exception, for all categories of contractors, subcontractors, engineers, material suppliers, and laborers to routinely serve and file all necessary lien documents on oil/gas projects as a means to protect their unpaid invoices.

The Subcontractor’s Mandatory Notice of Intent to Lien

If you were not hired directly by the property owner or leasehold interest owner, then before you can record the Mineral Lien Affidavit, you must first serve the property owner/leasehold interest owner with a Notice of Intent to Lien. The Notice must be served 10 days before recording the Mineral Lien affidavit and include the following information: (1) the amount of the lien; (2) the name and address of the company or individual who retained your services; (3) a description of the property, leasehold interest, or pipeline; and (4) a description of the unpaid labor, material, services, or equipment. In response to the Notice, a property/leasehold interest owner may withhold the amount claimed owed from the prime contractor until the debt is resolved. However, the property/leasehold interest owner is not liable to a lien claimant for any amount above what is owed to the prime contractor at the time the Notice is received. As such, all lien claimants should make it a practice to routinely serve the Notice after completing the work or as soon a payment dispute is anticipated.

The Oil & Gas Mineral Lien Affidavit

In order to perfect an Oil & Gas Mineral Lien against an oil well, gas plant/pipeline, or midstream processing plant, you must prepare and record a lien affidavit in the county where the property is located and timely serve the lien affidavit on the leasehold interest owner and the prime contractor. The lien affidavit must include the following information: (1) the identity of the mineral property owner; (2) the claimant’s name and mailing address; (3) the dates the labor, materials, equipment, and/or services were provided to the project; (4) a description of the land, leasehold interest, pipeline, or pipeline right-of-way; and (5) an itemized list of the amounts claimed owed to include the nature of the labor, materials, or equipment. For anyone not hired directly by the property owner or leasehold interest owner, the affidavit must also include: (1) the identity of the individual or company who retained your services; and (2) a statement that the party timely served the Notice of Intent to Lien discussed above. The affidavit must be notarized and sworn to as being true and correct.

Deadline to Record and Serve the Oil & Gas Mineral Lien

A Mineral Lien claimant must record the lien affidavit with the county clerk’s office where the property is located by no later than six months after completion of the work. For laborers paid by the day or by the week, the deadline to file the lien affidavit begins to accrue at the end of the day or week during which the labor was provided. It is never a good idea to suspend filing the lien. The better practice is to record the lien as soon as you anticipate a payment dispute. Once recorded, the lien affidavit must be served within 5 days of being recorded. To increase the probability of being paid, the lien affidavit should be served as an enclosure to a strong payment demand letter that addresses the Texas Trust Fund Statute, the Texas Prompt Payment Act, and possibly the Deceptive Trade Practices Act.

Deadline to File a Lawsuit to Foreclose the Mineral Lien

If filing the lien does not result in payment, you must file a lawsuit to foreclose the lien within no later than one year from filing the lien affidavit. If you prevail on the lien foreclosure, the court is required to award all reasonable and necessary attorneys’ fees and costs.

IF YOU HAVE PROVIDED LABOR, EQUIPMENT, MATERIALS, OR SERVICES TO AN OIL WELL, GAS PLANT/PIPELINE, OR A MIDSTREAM PLANT, PLEASE CONTACT US NOW TO DISCUSS THE LIEN FILING PROCESS AND HOW WE CAN HELP YOU COLLECT YOUR UNPAID INVOICES.  FOR NO CHARGE, WE WILL: (1) ANALYZE YOUR LEGAL MATTER, (2) ANSWER ANY LIEN QUESTION, AND (3) RECOMMEND A COURSE OF ACTION.

PREPARE AND SERVE A PAYMENT BOND CLAIM (PRIVATE AND PUBLIC PROJECTS)
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Robert M. Lovein

About the Author

Robert M. Lovein is the Managing Partner at Lovein Ribman, P.C. , a Texas-based construction law firm.

He is Board Certified in Construction Law by the Texas Board of Legal Specialization and brings over 20 years of experience representing contractors, business owners, and professionals across Texas.

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Robert Lovein and the entire Lovein Ribman team are great attorneys and a real asset to my business. I have consulted with them on countless projects over the past 9 years and they have always been great to work with. They are my go to group for all construction related matters. When it comes to navigating the Texas lien laws or collecting on a project these guys cant be beat.
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I hired Steven Beauchamp to take over a case that my previous council was not getting done and he was able to get everything wrapped up in just a few weeks. I was blown away by his responsiveness and willingness to take the time to answer all of my questions in detail. This firm is fair, honest, and truly cares about their clients. I highly recommend Mr. Beauchamp to anyone who wants someone that will actually work for their clients!
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Lovein Ribman is an exceptional firm and quite literally one of the finest we have ever worked with. Mr. Lovien has represented us over the years on a number of matters and has always been extremely effective at accomplishing our objectives in a prompt and efficient manner. Attorney Lovein is extremely knowledgeable and packs a mighty punch, often reaching into large corporations to turn levers thereby ensuring their smaller vendors are treated fairly and equitably.
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I appreciated the prompt response times, helpful consultation, the information provided and the ability to recommend a positive course of action. Outstanding professionalism throughout. Absolutely made the difference in reaching a resolution.
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