§ 35-24-06 — Notice to purchaser of oil and gas

North Dakota § 35-24-06

• Jurisdiction: North Dakota
• Title 35: Liens
• Ch. 35-24: Well or Pipeline Construction Lien

Text

Anything in this chapter to the contrary notwithstanding, any lien claimed by virtue of this
chapter insofar as it may extend to oil or gas or the proceeds of the sale of oil or gas is not
effective against any purchaser of such oil or gas until written notice of such claim has been
delivered to such purchaser. Such notice must state the name of the claimant, the claimant's
address, the amount for which the lien is claimed, and a description of the leasehold upon which
the lien is claimed. Such notice must be delivered personally to the purchaser or by registered
or certified letter deposited in the United States mails. Until such notice is delivered as above
provided, no such purchaser is liable to the claimant for any oil or gas produced from the
leasehold upon which the lien is claimed or the proceeds thereof except to the extent of such
part of the purchase price of such oil or gas or the proceeds thereof as may be owing by such
purchaser at the time of delivery of such written notice. Such purchaser shall withhold payments
for such oil or gas runs to the extent of the lien amount claimed until delivery of notice in writing
that the claim has been paid.