What is an Oil and Gas Lien ?
If you have provided work and/or materials in connection with an oil and gas well or well site, you can file a special type of Builders’ Lien. An Oil and Gas Lien is generally filed against the mineral title of a given property and is registered against all estates and interests in which the mineral is concerned. As long as you have some interest in the mineral right you are eligible to file a lien that will attached to all estates and interests in which the mineral is concerned.
An Oil and Gas Lien is typically used if you are having difficulty receiving payment. You are eligible to file a an Oil and Gas Lien if you have provided labour and/or materials to a site in order to help improve the land. Liens must be filed within a specific time period, which varies in each province.
Be Aware of Oil and Gas Lien filing deadlines
In Alberta, Oil and Gas Liens have two lien deadlines: 45 days and 90 days. If you have provided work that is directly associated with the well or well site, you have 90 days to file a Lien. For example, if you are a sub-contractor proving servicing directly to an oil and gas well, you have 90 days to file an Oil and Gas Lien against the mineral title. If you have worked on the project but your work was not directly associated with a well site, you have 45 days to file a lien. For example, if you are providing generators or equipment to an oil and gas site, but your equipment is not being used in conjunction with the oil well on site, you have 45 days to file a lien. However, there is not a specific definition of what constitutes an oil and gas well and/or well site so if you are in doubt, stick to the 45 day deadline.
If you have provided work and/or materials to a pipeline project, the lien is not considered to be an Oil and Gas Lien. The lien is a special Builders’ Lien associated with the pipeline. For additional information, visit our Builders’ Lien page.
An Oil and Gas Lien leverages payment
A lien ensures you have a secured interest on the property you are doing work for. When a lien is placed it is registered against a specific agreement number associated with a mineral title, it can delay the release of funds or the sale or refinancing of the property. Filing an Oil and Gas Lien forces your client to address the situation head on and gets you to the negotiating table. The lien will not be removed until an agreement has been met or it expires.
Every situation varies; therefore it is difficult to apply general concepts to a complex situation. When it comes to filing an Oil and Gas Lien it is best to consult with a qualified professional to determine the best course of action for your particular situation.
Whether you are still working on site or have been off site recently, make sure you receive payment prior to your lien rights expiring. Our lien filing date calculator can help determine where you fall within your lien deadline. For pricing, please refer to our fee schedule for filing an Oil and Gas Lien.