§ 15-72-1106 — Rights of purchasers

Arkansas § 15-72-1106

• Jurisdiction: Arkansas
• Title: 15

Text

(a) A purchaser takes free of an oil and gas lien otherwise applicable to the oil or gas purchased and is relieved of an obligation to hold revenue or proceeds from the sale of production for the benefit of the owners legally entitled to the revenue or proceeds from the sale of production only in the event that either of the following occurs: (1) The purchaser is deemed to be a buyer in the ordinary course of the first purchaser's business as defined in Article 9; or (2) The purchaser has paid all of the consideration due the first purchaser, including by exchange of oil or gas, net-out or set-off, under all applicable enforceable contracts in existence at the time of the payment. (b) Notwithstanding subsection (a) of this section, the oil and gas lien will continue uninterrupted in the proceeds paid to or otherwise due the first purchaser. (c) Except as specifically set forth in this section, an oil and gas lien has priority over the rights of a purchaser.

Legislative History

Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.