Oklahoma § 42-144.2 - Trust funds for payment of lienable claims

§ 42-144.2. Trust funds for payment of lienable claims

A. Except as provided by subsection D of this section, the

amount payable under any oil and gas well drilling contract,

reworking contract, operating agreement, or monies payable as a

condition of participation in the drilling of an oil and gas well

under the terms of a pooling order issued by the Oklahoma

Corporation Commission shall, upon receipt by any oil and gas well

operator, contractor or subcontractor, be held by such operator as

trust funds for the payment of all lienable claims due and owing by

such operator, contractor or subcontractor by reason of such

drilling contract, reworking contract, operating agreement, or force

pooling order.

B. The trust funds created under subsection A of this section

shall be applied to the payment of said valid lienable claims and no

portion thereof shall be used for any other purpose until all

lienable claims due and owing or to become due and owing shall have

been paid.

C. The existence of such trust funds shall not prohibit the

filing or enforcement of any labor, mechanic or materialmen's lien

against the affected real property by any lien claimant, nor shall

the filing of such a lien release the holder of such funds from the

obligations created under this section.

D. The provisions of this section shall not be applicable or

affect payments owed to royalty owners by the operator of an oil or

gas well and shall not affect or alter the terms or provisions of

Section 87.1 of Title 52 of the Oklahoma Statutes.

Oklahoma Statutes - Title 42. Liens

Added by Laws 1986, c. 176, § 11, emerg. eff. May 15, 1986. Amended

by Laws 1997, c. 133, § 459, eff. July 1, 1999; Laws 2002, c. 460, §

30, eff. Nov. 1, 2002.

NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective

date of Laws 1997, c. 133, § 459 from July 1, 1998, to July 1, 1999.