We have a customer in which the job site is a plant/industrial job and the invoices are seriously past due. What are our lien rights for plant jobs in Louisiana and Texas?
1 reply
Jan 25, 2018
Determining where mechanics lien laws and oil and gas lien laws begin an end can be a bit of a struggle, and deciding which type of security will be available is typically heavily dependent on the particular type of work performed and the location of that work. Specifically, the Texas Oil and Gas lien statute can be quite expansive and preclude other recoveries. In Louisiana, it appears as though only work related to the drilling or production of wells will be bound by the provisions controlling oil and gas liens. Construction on private property not related to a well site could likely fall under the Private Works Act, meaning mechanics lien rights would be available (as long as the claimant's work is authorized, lienable work and all other requirements for establishing and preserving lien rights are met). In Texas, pipelines, quarries, and mines are also included. If the work done does not fall under the Texas mineral liens statute (found here), mechanics lien rights may be available - but Texas is home to very strict notice requirements that could kill a lien claim if not adhered to. Depending on project role, various notices might be required in Louisiana and Texas in order to preserve the right to file a mechanics lien (if available). You can gain a better idea of what notice is required of each state by clicking the following links: Louisiana and Texas.