Not all liens are created equal. The most commonly discussed lien is related to construction improvements under Chapter 53 of the Texas Property Code. For those in the oil & gas/energy segment lien rights exist under Chapter 56 of the Texas Property Code and are refereed to as “Mineral Liens”. This quick piece is intended to provide some clarity on the Mineral Lien process and the basic requirements of Chapter 56.  

In Texas, the deadline for filing a Chapter 56 mineral lien affidavit is six months after the last time labor or materials were provided. The affidavit must be filed with the county clerk in the area where the property is located. 

Filing deadline

To perfect a mineral lien, the lien claimant must file a mineral lien affidavit within six months after the day the indebtedness accrues.  The indebtedness accrues for labor performed at the end of each week during which the labor is performed.  The indebtedness for material or services accrues on the date the material or services were last furnished.  The lien claimant is also required serve the property owner written notice of their intent to file the lien 10 days before the date the lien affidavit is filed. 

Lien Affidavit Requirements

A lien claimant’s affidavit must include (i) the name of the mineral property owner; (ii) the name and mailing address of the contractor; (iii) the dates of performance or furnishing; (iv) a description of the land, leasehold interest, pipeline, or pipeline right-of-way; and (v) an itemized list of the items and amounts claimed.  A subcontractor’s mineral lien affidavit must (in addition to the foregoing) include (i) the name of the person for whom labor was performed or material was furnished or hauled; and (ii) a statement that the subcontractor timely served written notice to the property owner or the owner’s agent, representative, or receiver upon whom the lien is claimed. 

Enforcement

The enforcement requirements for a Chapter 56 mineral lien are identical to those of a Texas Property Code Chapter 53 mechanic’s lien.  This means that a lien claimant’s deadline to file suit is 1 year from the date the lien is actually recorded by the county clerk. 

Filing in New County

If the property is moved to a new county, the lienholder must file an itemized inventory of the property with the new county clerk within 90 days.  The inventory must include the amount of the unpaid debt 

It is important to file the affidavit as early as possible to avoid issues.