Chapter 3 - Mines, Quarries, Oil, Gas Or Other Wells
CHAPTER 9 - MISCELLANEOUS LIENS CHAPTER 3 MINES, QUARRIES,OIL, GAS OR OTHER WELLS
ARTICLE 1 - IN GENERAL
29-3-101. Definitions.
(a) As used in this chapter:
(i) "Drilling" means open pit work, field processing,gasification, digging, shooting, torpedoing, perforating, fracturing, testing,logging, acidizing, cementing, completing or repairing;
(ii) "Material" means casing, tanks, pipelines, fuel,machinery, equipment, appliances, buildings, structures, tools, bits orsupplies. "Material" does not include drilling rigs or hoists ortheir integral component parts except wire lines.
29-3-102. Nonimpairment of lien attached to estate less than fee or toequitable or legal contingent interest.
(a) If a lien as provided by this chapter attaches to an estateless than the fee, forfeiture of the estate shall not impair any lien whichattaches prior to forfeiture as to material, appurtenances and fixturespreviously located on the estate.
(b) If a lien provided in this chapter attaches to an equitableinterest or to a legal interest contingent upon the happening of a conditionsubsequent, failure of the interest to ripen into legal title or failure of thecondition subsequent shall not impair any lien as to material, appurtenancesand fixtures located thereon to which the lien attached prior to the failure.
29-3-103. Extent of liens; generally.
(a) Every person who works upon or furnishes material, whetherincorporated into the real property or not, under contract with the owner ofany interest in real estate or with an agent, trustee or receiver of an ownerhas a lien to secure payment for:
(i) Constructing, altering, digging, drilling, driving, boring,operating, completing or repairing any wells, mines or quarries;
(ii) Altering, repairing or constructing any oil derrick, oiltank or any pipelines;
(iii) Transportation and related mileage charges plus interestfrom the date due;
(iv) Advertising, selling and preparing for sale;
(v) Sheriff's fees; and
(vi) Attorney's fees and other costs of collection.
(b) Notwithstanding subsection (a) of this section and W.S.29-3-105 (a) (iii) through (ix):
(i) If work is performed for or materials are furnished the ownerof an estate less than a fee the lien granted by this chapter shall not extendto the underlying fee or royalty interest unless expressly provided by contractwith the owner of the underlying fee or royalty interest;
(ii) If work is performed for or materials furnished to theowner, part owner or lessee of the working interest in only a portion of theacreage covered by a lease, the lien granted by this chapter shall berestricted to that portion of the acreage; and
(iii) If work is performed for, or materials furnished to theowners or an agent, trustee of [or] receiver of the owners of lands, leases orinterests therein validly pooled or unitized by agreement of the owners thereofor by operation of law, the lien granted by this chapter shall extend to thelands, leases or interests so pooled or unitized.
29-3-104. Extent of liens; persons furnishing material or work undercontract.
Anyperson, who furnishes or rents any materials or provides any work undercontract with any contractor or subcontractor shall have a lien on all theproperty on which the lien of the contractor may attach to the same extent asthe contractor's lien to secure payment.
29-3-105. Extent of liens; on oil, or proceeds thereof; notice topurchaser required; effect of notice; purchaser to withhold payments.
(a) The lien provided by this chapter covers:
(i) All the production of oil, gas and ore and minerals insolid form attributable to the interest subject to the lien;
(ii) The proceeds of production attaching to the workinginterest as the working interest existed on the date labor was first performedor materials were first furnished;
(iii) Any well;
(iv) Oil derricks;
(v) Oil tanks;
(vi) Any pipelines including rights-of-way;
(vii) Any mine or quarry;
(viii) All materials furnished for use with work done; and
(ix) The whole of the land or leasehold (or, in the case ofvalidly pooled or unitized lands, leases or interests, the lands, leases orinterests so pooled or unitized) and including all other wells, buildings,property and appurtenances, including water rights, located on the land orleasehold (or pooled or unitized lands, leases or interests) where work wasperformed or materials furnished.
(b) Any lien claimed pursuant to this chapter covering oil, gasor ore and minerals in solid form or the proceeds of their sale is noteffective against any purchaser of the oil, gas or ore and minerals in solidform until written notice of the claim is delivered by certified mail, returnreceipt requested, to the purchaser at his principal place of business. Noticeshall state:
(i) The name of the claimant;
(ii) His address;
(iii) The amount of the lien; and
(iv) The description of the interest on which the lien isclaimed.
(c) The production of any mineral interest or working interestotherwise subject to a lien under this chapter is not to be encumbered untilnotice of the lien is delivered as provided in subsection (b) of this sectionto the holder of the interest. At the time notice is given any proceedsremaining unpaid or any proceeds yet to be paid on future sales of the mineralproduction shall be encumbered by the lien.
(d) A purchaser shall withhold payments for oil or gas runs orore and minerals in solid form to the extent of the lien amount claimed untildelivery of written notice the claim is settled or until otherwise ordered by acourt of competent jurisdiction.
29-3-106. Lien statement to be filed; $750 minimum; place and time offiling.
(a) To perfect the lien provided by this chapter, a lienstatement shall be filed with the county clerk and notice by certified mailshall be given by the lien claimant.
(b) The lien statement may be filed and the lien shall attachand be enforced if any sum exceeding seven hundred fifty dollars ($750.00) formaterials furnished or work performed according to this chapter is owing. Thelien claimant may file a lien statement in the office of the county clerk inany county where any part of the land, leasehold, mine, quarry, pipeline orother property to which a lien may attach under this chapter is situated withinone hundred eighty (180) days:
(i) After the last day materials were delivered or work wasperformed under contract;
(ii) From the date the work was substantially completed asdetermined by the facts in each case; or
(iii) With respect to an employee or subcontractor, after thelast day he performed work at the direction of his employer or contractor.
29-3-107. Property not to be sold or removed after perfected lienattaches without lienholder's consent; lienholder's rights upon violation.
(a) Property subject to a perfected lien shall not be sold orremoved from the premises where it is located without the written consent ofthe holder of the lien and as may be appropriate by:
(i) The owner of the land;
(ii) The owner of any associated oil, gas or mineral leaseholdinterest;
(iii) The owner of any oil, gas or water pipeline;
(iv) Any contractor or subcontractor;
(v) The purchaser, trustee, receiver or agent of any owner;
(vi) Any lessor or lessee; or
(vii) Any agent of any contractor, subcontractor or purchaser.
(b) If a violation of this section occurs, the lienholder isentitled to possession of the property against which a perfected lien hasattached wherever located and is entitled to have the property sold for paymentof the debt whether the debt is due or not.
29-3-108. Fraudulent violation of section 29-3-107; penalty.
Ifany person removes any property covered by the lien created by this chapterfrom its location when the lien is filed and recorded without the writtenconsent of the holder of the lien and with intent to defraud the lienholder,either originally or by transfer, the person removing or causing the property tobe removed is guilty of a misdemeanor. On conviction he shall be punished by afine of not more than seven hundred fifty dollars ($750.00).
29-3-109. Limitation of actions and duration of liens; procedure whenproperty subject to lien removed to another county.
(a) Every person holding a lien created by this chapter mayproceed to obtain a judgment for the amount claimed by civil action commencedon the account within one hundred eighty (180) days after filing of the lienstatement required by W.S. 29-3-106. The lien shall continue until the case isfinally determined.
(b) If any person removes any property subject to a lien to acounty other than the one in which the lien is filed, the lien claimant maywithin thirty (30) days thereafter file with the county clerk of the county towhich it has been removed an itemized inventory of the property removed. Theinventory shall show the amount due and unpaid on the lien. The inventory shallbe recorded in the lien records of that county. The filing shall operate as anotice of the continuing existence of the lien. The lien shall attach andextend to the land or leasehold and other premises, properties andappurtenances to which the property removed is attached.
29-3-110. Limitation upon owner's liability and rights.
Nothingin this chapter shall be construed to fix a greater liability against the ownerof the land or leasehold (or pooled or unitized lands, leases or interests, asthe case may be) than the price or sum stipulated by the owner to be paid forthe materials or services furnished or labor performed. The owner shall nothave the right to offset obligations of the contractor unless these obligationsarise out of the original contract.
29-3-111. Claim against contractor submitted to owner; reduction ofsubsequent payments to contractor by owner; duty of owner to notify contractorand of contractor to dispute or adjust claim.
(a) Every person performing any work or furnishing anymaterial, as specified in this chapter, under contract whose demand to bereimbursed for the work done or material furnished has not been paid shallserve the owner by certified mail return receipt requested, with an accountsigned before a notarial officer of the amount and value of the work performedor the material furnished remaining unpaid. Thereafter the owner or his agentshall retain out of any subsequent payments to the contractors the value of thework performed or material furnished for the person making the claim.
(b) When notice is served on the owner according to subsection(a) of this section he shall immediately furnish the contractor with a copy ofthe notice.
(c) Within ten (10) days of receipt of the notice required bythis section the contractor shall give the owner affirmative written notice of:
(i) His intent to dispute the claim; or
(ii) His intent the claim should be settled as filed.
(d) If within ten (10) days after receiving notice thecontractor takes no action he shall be presumed to have agreed to the validityof the claim. The owner is then authorized to withhold enough of all subsequentpayments to be made to the contractor to pay all claims as they come due.