Oil Field Collections

Oil field collections

Oil field collections

You’ve performed your part of the bargain, and the debtor “slow pays” you or “walked away” from the debt altogether. Some debtors require a gentle prodding. Others simply will not act until muscle is applied. In either case, the Oklahoma Oil and Gas Well Lien is a powerful ally.

The Oklahoma Oil and Gas Well Lien is available to operators, contractors and subcontractors who performed work, furnished machinery or supplies on a well or pipeline.

Why is it so powerful?
Suspension of Production Payments. Frequently, the oil and gas purchasers will suspend payments to the Operator until the lien is released. In the majority of cases, this suspension of funds provides the proper motivation for payment of the debt.

Constraints on Borrowing. Lenders require that the well remain free of all liens. If a loan is in place, and a lien is subsequently filed on the debtor’s collateral, then we have a default, subjecting the borrower to summary foreclosure. If the Operator seeks a new loan, the lender will require that all liens are cleared.

Breach of Trust
All monies received under a mortgage are to be held in trust. If an Operator uses funds for other purposes (robbing Peter to pay Paul), then the managing officers of the company are personally open to both criminal and civil actions.
Here is another advantage of the Oklahoma Oil and Gas Well Lien. The general rule sx`ays that each party must pay his or her own attorney’s fees. However, if you have a strong case and the lien is applied properly filed and served, then the debtor will pay your attorney’s fees, interest on the debt, and costs.

In order to avail yourself of these benefits, you must avoid the numerous traps.

On August 27, 2013, Gary Quinnett presented a legal seminar on commercial real estate issues. The attendees rated him "Excellent"