EXPIRATION OF LIEN - ENFORCEMENT - JOINDER AND CONSOLIDATION -

COSTS - PERSONAL ACTIONS - OTHER RIGHTS AND REMEDIES

A. An oil and gas lien shall expire, as to an interest owner, one (1) year after the last day of the month following the date proceeds from the sale of oil or gas subject to such lien are required by law or contract to be paid to such interest owner but only as to the oil or gas sold during such month, unless an action to enforce the oil and gas lien is commenced within such time in a court of competent jurisdiction. In addition to any other court of competent jurisdiction, an action to enforce the oil and gas lien may be commenced in the district court of the county in which there is located the oil and gas well from which the oil or gas is produced, or wherever the oil or gas unpaid for or the proceeds may be found. Notwithstanding the foregoing, the commencement of any proceeding by or against any person claiming an interest in any property subject to the oil and gas lien seeking to adjudicate such person as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of such person or such person’s debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for such person or for any substantial part of such person’s property shall toll the foregoing one (1) year period in which to commence an action to enforce the oil and gas lien for an additional period of ninety (90) days from the earlier of:

1. The final conclusion or dismissal of such proceedings; or

2. The date final relief is obtained from the applicable tribunal authorizing the commencement of such action.

Proceedings to enforce oil and gas liens involving more than one oil and gas well in one county can be joined by an interest owner in the same action. Any number of persons claiming oil and gas liens with respect to the oil or gas from the same oil and gas well or wells may join in the same action and where separate actions are commenced, the district court may consolidate them. The district court shall allow as part of the costs of the action all costs of collection including, without limitation, reasonable attorney fees for the prevailing party in the trial and appellate tribunals.

B. Nothing in this act shall be construed to impair or affect the right of any interest owner to maintain a personal action to recover the debt against any person liable for payment of the sales price or to exercise any other rights and remedies available at law or in equity.

Added by Laws 2010, c. 142, § 10, emerg. eff. April 19, 2010.