Home>Levelset Community>Legal Help>Should we file file a lien , as we did sub contract work on several different oil well pads, pads had several owners.

Should we file file a lien , as we did sub contract work on several different oil well pads, pads had several owners.

We are a trucking company that subcontracted to a general contractor who is now being liquidated by the bank. We hauled dirt etc. to different oil well pad sites for several different land owners. Would we put a lien against the general contractor,or the oil well company, and what type of lien

1 reply

Dec 20, 2019

The ability to file a mechanics lien for work done at oil and gas projects can be a little tricky in some states. However, those who perform work which permanently improves property in Wyoming - including work done at oil and gas related sites - will generally be entitled to file a Wyoming mechanics lien. Mechanics liens don't tie to a particular contractor or company. Rather, they tie directly to the project property and encumber the title to the land. And, as a result, the land becomes much harder to sell or take out a loan against - plus, if the lien isn't properly dealt with, it could result in the foreclosure of the property. That means oil and gas projects, mechanics liens can be especially problematic. Of course, in order to file a Wyoming mechanics lien, certain notices must be sent before a lien can be filed - and you can learn more about those requirements here: Wyoming Preliminary Notice Guide and FAQs.

Recovery options before resorting to a mechanics lien filing

Of course, mechanics liens are generally the nuclear option. Before pursuing a lien claim, sending less-official notices or claims for payment can help to get paid. For one, sending a demand letter to higher-tiered parties on the project can help to get paid - this is true even if a customer won't be able to make payment, themselves. A demand letter helps to let others know you're serious about getting paid and that you're willing to do what it takes to ensure payments. Further, escalating things by threatening to file a mechanics lien can be powerful, too. Nobody likes a lien claim, and a lien claimant can hold the property owner or lessee accountable by filing one. So, by sending a Notice of Intent to Lien, a would-be claimant may be able to get payment talks moving in the right direction before having to resort to a lien filing. What's more, Wyoming mechanics lien claimants are actually required to send a Notice of Intent before they file a lien claim. So, they'll carry that much more weight - plus one would need to be sent, anyway, before a lien could be filed. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Filing a Wyoming mechanics lien

Nobody wants to file a lien claim, but sometimes it will be necessary. For more information on Wyoming liens, this resource should be valuable: Wyoming Mechanics Lien Guide and FAQs.

Wyoming oil and gas liens

Note also that it appears Wyoming has a specific subset of laws designed specifically for payment recovery on oil and gas projects - and those laws may be able to help force payment here, too. However, unfortunately, that's a subject I'm unfamiliar with. Still, this resource should be helpful on that front: Wyoming Oil and Gas Liens.

0 people found this helpful

Helpful