Texas Updates Oil And Gas Owners’ Lien Statute

LexisNexis (November 5, 2021, 8:43 AM EDT) -- For decades, Texas had nonuniform provisions in its implementation of Article 9 that were designed to protect the right of owners of oil and gas right to receive payment for extracted hydrocarbons. Time and again, however, Texas’s provisions let mineral interest owners down, failing to create enforceable liens when the first purchaser of oil and gas went bankrupt. This was generally good news for lenders, because it meant that, in most circumstances, they could rely on the usual, predictable rights and priorities established by the uniform provisions in Article 9—without fear of being trumped by an automatically-perfected superpriority security interest....