Title 38 Liens Chapter 10 Oil, Gas, and Mining Liens Section 102 Those entitled to lien -- What may be attached -- Qualifying work, materials, equipment, and costs -- Liability of nonoperating owners.
38-10-102.Those entitled to lien -- What may be attached -- Qualifying work,
materials, equipment, and costs -- Liability of nonoperating owners.
(1) Contractors and subcontractors shall have a lien upon the interest of the owner in:
(a) the production unit and access rights appurtenant thereto;
(b) pipelines, including rights of way, buildings, wells, oil tanks, and appurtenances
located on the land or leasehold within the production unit; and
(c) the ore, minerals, oil, gas, or associated substances in the ground, or while the same
remain in storage on the production unit, which are attributable to the interest subject to the lien as
the interest existed on the date work was first performed or materials or equipment were first
furnished.
(2) The lien upon the interest of the owner in property described in Subsections (1)(a)
through (c) shall be for the value of the work performed or materials or equipment furnished for:
(a) open pit work, field processing, construction, alteration, digging, drilling, driving,
boring, operating, perforating, fracturing, testing, logging, acidizing, cementing, completion,
repair, maintenance, prospecting, sampling, exploration, development, preservation, performing
geophysical, geochemical, location, or assessment work, or related activities;
(b) work performed or materials or equipment furnished in accordance with a pooling
order, or pursuant to an operating agreement, or other agreement governing joint mining, or oil,
and gas operations;
(c) title services, designs, plats, plans, maps, specifications, drawings, estimates of cost,
surveys, permitting, or regulatory compliance;
(d) foreclosure costs including publication, costs of sale, sheriff's fees, attorney's fees, and
other costs of collection; and
(e) transportation and related mileage charges, for any work performed or materials or
equipment furnished pursuant to Subsections (2)(a) through (d).
(3) For purposes of this section, the operator under a joint operating agreement, unit
operating agreement, or other agreement granting one owner control of operations on the
production unit shall not be considered to be the agent or contractor of the nonconsenting,
nonoperating owners. The operator shall, however, have the lien granted under Subsection (1)
upon the interest of all nonoperating owners for work performed, or materials or equipment
furnished by the operator; and the nonoperating owners shall have the lien granted under
Subsection (1) upon the interest of the operator for work performed, or materials or equipment
furnished by third persons to the extent the nonoperating owners have paid or advanced funds to
the operator for such work, materials, or equipment.
Amended by Chapter 203, 1990 General Session
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