Home > For Everyone > Real Estate > Liens on Real Property > Utah Code 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
Utah Code 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
Utah Code > Title 38 > Chapter 10 > § 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
(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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