Limitation on liability for other owners in production unit if notice provided -- Contents of notice -- Filing of notice -- Time for filing -- Failure to file does not affect other defenses.
Limitation on liability for other owners in production unit if notice provided -- Contents of notice -- Filing of notice -- Time for filing -- Failure to file does not affect other defenses.
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(1) Where work is performed or materials or equipment are furnished for any production unit under a contract with an owner of an interest in the production unit, any interest of any other owner in the production unit shall not be subject to a lien under this chapter, if such other owner gives written notice that he will not be responsible for work performed or materials or equipment provided.
(2) Written notice shall be:
(a) in recordable form;
(b) filed with the county recorder of the county where the production unit is located; and
(c) filed within 10 working days after the latter of:
(i) the owner obtaining knowledge of the performance of such work or the providing of such materials or equipment; or
(ii) the execution by the last party of:
(A) a farmout agreement;
(B) a lease or sublease;
(C) an operating agreement;
(D) an assignment of less than 100% of the lessee's interest or operating rights under a lease;
(E) a sales contract; or
(F) an option agreement.
(3) Failure to file under this section shall not impair any other defense available to such owner.