§ 35-37-04 — Perfection of lien - Verified notice - Effect of instruments - Effective date of lien

lien.
1. If the proceeds for oil or gas which are required to be paid are not paid to the interest
owner when due, the interest owner may perfect the security interest and lien by filing
electronically a UCC-1A in the central indexing system and recording the lien in the
real estate records in the office of the county recorder of the county in which the well is
located. If the oil and gas owner's lien is not filed within ninety days from the date of
production, the security interest is not perfected and does not give the interest owner

priority over a perfected security interest in the same oil, gas, or proceeds of the oil or
gas.
2. Liens must be filed electronically in the central indexing system and recorded in the
real estate records of the county according to sections 11-18-01 and 11-18-05. Liens
may be terminated in the same manner as financing statements.
3. Upon perfection by filing, the security interest and lien of the interest owner takes
priority over the rights of all persons whose rights or claims arise or attach thereafter to
the oil or gas unpaid for, or the proceeds of oil or gas if the oil or gas has been sold,
including those that arise or attach between the time the security interest and lien
attaches and the time of filing. The security interest and lien created pursuant to this
chapter do not have priority over the security interest and lien rights previously created
and perfected or an operating agreement or other voluntary agreement for the
development and operation of the property.