Colorado § 38-24-101 - Property subject to lien.

§ 38-24-101. Property subject to lien.

Every person, firm, or corporation, whether as contractor, subcontractor, materialman, or laborer, who performs labor upon or furnishes machinery, material, fuel, explosives, power, or supplies for sinking, repairing, altering, or operating any gas well, oil well, or other well or for constructing, repairing, or operating any oil derrick, oil tank, oil pipeline or water pipeline, pump or pumping station, transportation or communication line, or gasoline plant and refinery by virtue of a contract, express or implied, with the owner or lessee of any interest in real estate or with the trustee, agent, or receiver of any such owner, part owner, or lessee shall have a lien to secure the payment thereof upon the properties mentioned belonging to the party contracting with the lien claimants, and upon the machinery, materials, and supplies so furnished, and upon any well upon and in which such machinery, materials, and supplies have been placed and used, and upon all other wells, buildings, and appurtenances, and the interest, leasehold, or otherwise, of such owner, part owner, or lessee in the lot or land upon which said improvements are located, or to which they may be removed, to the extent of the right, title, and interest of the owner, part owner, or lessee, at the time the work was commenced or machinery, materials, and supplies were begun to be furnished by the lien claimant or by the contractor under the original contract; and such lien shall extend to any subsequently acquired interest of any such owner, part owner, or lessee.

Source: L. 29: p. 435, § 1. CSA: C. 101, § 51. CRS 53: § 86-5-1. C.R.S. 1963: § 86-5-1.

ANNOTATION

Law reviews. For article, "Mechanics' Liens Relative to Oil and Gas Operations", see 34 Dicta 207 (1957). For article, "Mechanics' Liens Relative to Oil and Gas Operations — Part II", see 34 Dicta 373 (1957). For article, "Oil and Gas Financing Under the Uniform Commercial Code as Enacted in Colorado", see 43 Den. L.J. 129 (1966).

Section is constitutional. Terminal Drilling Co. v. Jones, 84 Colo. 279, 269 P. 894 (1928).

Section severely restricts classes of personalty which may be impressed with lien it confers, and the restriction lies not only against the types of personalty, but also against the classes of persons who may assert their liens against personal property. Nation v. Chambers, 29 Colo. App. 413, 486 P.2d 460 (1971), aff'd, 178 Colo. 124, 497 P.2d 5 (1972).

"Properties" construed. The statutory term "properties", as used in this section, does not include additional unspecified items acquired by the debtor from third parties, which items have not become integral parts of the well. Gearhart-Owen Indus., Inc. v. Panhandle Prod. Co., 624 P.2d 355 (Colo. App. 1980).

Prior lien subordinate to property encumbered with purchase money lien. If the property comes into the hands of the purchaser already encumbered with a purchase money lien, a prior mechanic's lien remains subordinate to the purchase money mortgage, and it cannot displace the security interest which is the subject matter of the purchase money agreement. Chambers v. Nation, 178 Colo. 124, 497 P.2d 5 (1972).

Laborer not entitled to lien upon machinery and equipment. One who only performed labor is not entitled to a lien upon machinery and equipment treated as personal property and as segregated from the oil well itself. Poudre River Oil Corp. v. Carey, 83 Colo. 419, 266 P. 201 (1928).

Under this section, those who provide consulting or engineering services relating to an oil or gas well are not necessarily entitled to a mechanic's lien superior to all other liens on the subject property. AEC Indus., LLC v. Survivor Oil, Inc., 7 P.3d 1052 (Colo. App. 1999).

Structural equipment essential to oil well within section. In view of the fact that a derrick and drilling rig with their stationary parts, were essential to the sinking of the well, and would also have been useful in its operation should it have proven productive, such equipment is a portion of the structure or improvement and of the oil well itself, for the purposes of this section. Terminal Drilling Co. v. Jones, 84 Colo. 279, 269 P. 894 (1928).

Lien does not attach to detached personalty not supplied by the lien claimant. Gearhart-Owen Indus., Inc. v. Panhandle Prod. Co., 624 P.2d 355 (Colo. App. 1980).

Proceeds of oil and gas sales not lienable. Since the proceeds of the sale of oil and gas are not listed in this section as property within the scope of the lien, they cannot be attached under a mechanic's lien on oil and gas wells. Chambers v. Nation, 178 Colo. 124, 497 P.2d 5 (1972).