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Utah Code Title 38. Liens § 38-10-109. 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

Current as of January 01, 2025 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - Utah Code Title 38. Liens § 38-10-109. 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 - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-38-liens/ut-code-sect-38-10-109/

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