Texas Mineral Liens: Receivables Protection for Oilfield Services Companies

Short summary

Texas mineral lien statute (Property Code § 56) allows oilfield services contractors to secure unpaid receivables directly against mineral property, bypassing typical creditor hierarchy. Requires lien affidavit filing within six months of work completion—missing this deadline eliminates the right permanently. With smaller OFS firms facing negative margins despite oil price recovery, mineral liens provide critical protection as customer payment risk rises.

• •Mineral lien attaches directly to mineral property (land, lease, wells, equipment), securing unpaid debt against physical assets
• •Strict six-month window from last work date to file affidavit; no exceptions granted by Texas courts for missed deadlines
• •Subcontractor liens can trap funds in property owner's hands, providing leverage when contractors in payment chain face liquidity stress

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