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When may I file a mineral lien against an oil and gas company?

Contract or subcontracting work performed for an oil and gas company entitles you to collect payment for the labor and services you provided. As noted by the State of Texas Property Code, if a company fails to pay for your services six months after submitting an invoice, you may file a mineral lien.

The lien’s value generally includes the amount agreed upon by the property owner to pay for your labor and materials. Deploying your own equipment for the benefit of a company’s profit means that you already invested your out-of-pocket expenses such as the cost of maintenance and insurance.

A contract may contain the information needed for a lien

When entering into an agreement for providing mineral activities, terms may include when you may exercise your legal right by filing a lien. The execution of a lien requires specific details about the services required and the party contracting your supplies, equipment and labor.

Each mineral service contract generally contains a property owner’s legal name. An oil and gas company, however, may have several property owners operating as one entity. This type of company may require some additional due diligence to learn the name of the party responsible for payment upon the work’s completion.

Details of the terrain and work may prevent future issues

Before signing an agreement to provide labor or services, your contract may need to contain comprehensive details of the work you intend to perform. Digging, drilling and hauling, for example, require distinct tasks to complete; a contract may outline what each party agrees they will carry out.

A mineral lien generally contains the details of the labor and services performed, and how a company has failed to pay. By creating a detailed contract with ironclad terms, you may exercise your right against a property owner if you do not receive payment as agreed upon.