CHAPTER 56. LIENS AGAINST MINERAL PROPERTY - Texas Statutes

PROPERTY CODE

TITLE 5. EXEMPT PROPERTY AND LIENS

SUBTITLE B. LIENS

CHAPTER 56. LIENS AGAINST MINERAL PROPERTY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 56.001. DEFINITIONS. In this chapter:

(1) "Mineral activities" means digging, drilling, torpedoing,

operating, completing, maintaining, or repairing an oil, gas, or

water well, an oil or gas pipeline, or a mine or quarry.

(2) "Mineral contractor" means a person who performs labor or

furnishes or hauls material, machinery, or supplies used in

mineral activities under an express or implied contract with a

mineral property owner or with a trustee, agent, or receiver of a

mineral property owner.

(3) "Mineral property owner" means an owner of land, an oil,

gas, or other mineral leasehold, an oil or gas pipeline, or an

oil or gas pipeline right-of-way.

(4) "Mineral subcontractor" means a person who:

(A) furnishes or hauls material, machinery, or supplies used in

mineral activities under contract with a mineral contractor or

with a subcontractor;

(B) performs labor used in mineral activities under contract

with a mineral contractor; or

(C) performs labor used in mineral activities as an artisan or

day laborer employed by a subcontractor.

Acts 1983, 68th Leg., p. 3565, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.002. LIEN. A mineral contractor or subcontractor has a

lien to secure payment for labor or services related to the

mineral activities.

Acts 1983, 68th Leg., p. 3566, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.003. PROPERTY SUBJECT TO LIEN. (a) The following

property is subject to the lien:

(1) the material, machinery, and supplies furnished or hauled by

the lien claimant;

(2) the land, leasehold, oil or gas well, water well, oil or gas

pipeline and its right-of-way, and lease for oil and gas purposes

for which the labor was performed or material, machinery, or

supplies were furnished or hauled, and the buildings and

appurtenances on this property;

(3) other material, machinery, and supplies used for mineral

activities and owned by the owner of the property listed in

Subdivision (2); and

(4) other wells and pipelines used in operations related to oil,

gas, and minerals and located on property listed in Subdivision

(2).

(b) A lien created by performing labor or furnishing or hauling

material, machinery, or supplies for a leaseholder does not

attach to the fee title to the property.

Acts 1983, 68th Leg., p. 3566, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.004. PRIORITY. (a) The lien does not affect an

encumbrance that attached to land or a leasehold before the

lien's inception.

(b) The lien on material, machinery, supplies, or a specific

improvement takes priority over an earlier encumbrance on the

land or leasehold on which the material, machinery, supplies, or

improvement is placed or located.

Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.005. ACCRUAL OF INDEBTEDNESS. (a) The indebtedness for

labor performed by the day or week accrues at the end of each

week during which the labor is performed.

(b) The indebtedness for material or services accrues on the

date the material or services were last furnished. All material

or services that a person furnishes for the same land, leasehold

interest, oil or gas pipeline, or oil or gas pipeline

right-of-way are considered to be furnished under a single

contract unless more than six months elapse between the dates the

material or services are furnished.

Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.006. LIABILITY OF OWNER. An owner of land or a

leasehold may not be subjected to liability under this chapter

greater than the amount agreed to be paid in the contract for

furnishing material or performing labor.

Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1,

1984.

SUBCHAPTER B. SECURING LIEN

Sec. 56.021. SECURING LIEN. (a) Not later than six months

after the day the indebtedness accrues, a person claiming the

lien must file an affidavit with the county clerk of the county

in which the property is located.

(b) Not later than the 10th day before the day the affidavit is

filed, a mineral subcontractor claiming the lien must serve on

the property owner written notice that the lien is claimed.

Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.022. CONTENTS OF AFFIDAVIT. (a) A lien claimant's

affidavit must include:

(1) the name of the mineral property owner involved, if known;

(2) the name and mailing address of the claimant;

(3) the dates of performance or furnishing;

(4) a description of the land, leasehold interest, pipeline, or

pipeline right-of-way involved; and

(5) an itemized list of amounts claimed.

(b) A mineral subcontractor's affidavit must in addition

include:

(1) the name of the person for whom labor was performed or

material was furnished or hauled; and

(2) a statement that the subcontractor timely served written

notice that the lien is claimed on the property owner or the

owner's agent, representative, or receiver.

Acts 1983, 68th Leg., p. 3568, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.023. CONTENTS OF MINERAL SUBCONTRACTOR'S NOTICE. A

mineral subcontractor's notice to the property owner must include

the amount of the lien, the name of the person indebted to the

subcontractor, and a description of the land, leasehold interest,

pipeline, or pipeline right-of-way involved.

Acts 1983, 68th Leg., p. 3568, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.024. FILING IN NEW COUNTY. (a) Not later than the 90th

day after the day that property to which the lien has attached is

removed from a county in which the lien affidavit covering the

property has been filed, the lienholder may file with the clerk

of the county to which the property has been moved an itemized

inventory of the property showing the unpaid amount due.

(b) The lien attaches to all property subject to the lien

located in a county in which an inventory is filed under this

section.

(c) An inventory filed under this section is notice of the

lien's existence.

Acts 1983, 68th Leg., p. 3568, ch. 576, Sec. 1, eff. Jan. 1,

1984.

SUBCHAPTER C. ENFORCEMENT

Sec. 56.041. ENFORCEMENT. (a) A claimant must enforce the lien

within the same time and in the same manner as a mechanic's,

contractor's, or materialman's lien under Chapter 53.

(b) A holder of a prior encumbrance on land or a leasehold is

not a necessary party to a suit to foreclose the lien.

Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.042. SALE OR REMOVAL OF PROPERTY. (a) A mineral

property owner, contractor, subcontractor, or purchaser or an

agent, trustee, or receiver of one of those persons may not sell

property to which the lien has attached or remove it from the

land on which it was to be used, unless the lienholder consents

in writing.

(b) On a violation of this section, a lienholder is entitled to

possession of the property regardless of where it is found, and

the lienholder may have the property sold to satisfy the debt on

which the lien is based regardless of whether the debt is due.

Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.043. RETENTION OF PAYMENT. A property owner who is

served with a mineral subcontractor's notice may withhold payment

to the contractor in the amount claimed until the debt on which

the lien is based is settled or determined to be not owed. The

owner is not liable to the subcontractor for more than the amount

that the owner owes the original contractor when the notice is

received.

Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.044. FORFEITURE OF LEASEHOLD. Forfeiture of a leasehold

does not impair a lien on material, machinery, supplies, or an

improvement located on the leasehold if:

(1) the lien attached to the property before the leasehold was

forfeited;

(2) the property is not permanently attached to the land; and

(3) the lienholder pays the owner of the land the damages caused

to the land by removal of the property.

Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 56.045. EQUITABLE OR CONTINGENT INTEREST. Failure of an

equitable interest to become legal title or nonfulfillment of a

condition subsequent on which a legal interest is contingent does

not impair a lien on material, machinery, supplies, or an

improvement located on the land covered by the equitable interest

if the lien attached to the material, machinery, supplies, or

improvement before the failure.

Acts 1983, 68th Leg., p. 3570, ch. 576, Sec. 1, eff. Jan. 1,

1984.