Page 12 - Untitled document (4)02

are provided. Sometimes, it is not possible to determine all the mineral interest owners due

to the lack of time given by the Client, so the mineral interest owners are not given enough
notice required by State law for the lien to be applied to these owners. In Texas, the law

requires that a mineral lien is filed no more than six (6) months after the last date of work

by a company. Further, the law also sets deadlines for notices to be sent to the people
and/or companies that will be subjected to the lien.

In this case, by the time the Client decided to file a mineral lien to collect for its overdue

work, the deadline had already passed to give the mineral interest owners their legal notice;

however, the deadline for the mineral liens had not passed. The mineral lien was filed
before the legal deadline, but it was effective enforceable against the operator-debtor only.

Doré Rothberg McKay files the most mineral liens nationwide. We also represent the most

oilfield service companies of any law firm. The same operator-debtor had failed to pay

other companies for work who were also our Clients. The difference is that these clients
gave the firm time to research the mineral interest owners of those wells. To help collect

for services and equipment, our lawyers filed other mineral liens against the Operator and

all the mineral interest owners. The later dates that the other work was completed on the
leasehold combined with the time to research these wells, allowed all the notices and filings

to be done before the State-imposed deadlines.

When the mineral interest owners were notified that their contractor for the oil well – the

Operator – had failed to pay its subcontractors, and that this action had resulted in a lien
that put their asset in jeopardy, they made sure the subcontractors got paid. All our Clients

got paid in full, including the original Client who had the operator-only lien.