What initiates the effectiveness of a lien on oil and gas wells?

Prepare for the Ohio Certified Professional Lease and Title Analyst (CPLTA) Test. Use flashcards and multiple-choice questions with detailed hints and explanations. Ace your exam!

The effectiveness of a lien on oil and gas wells is initiated by the first visible work or labor performed on the site. This principle stems from the legal framework governing liens, which often recognizes that a party providing services or materials with a direct connection to improving or extracting resources from oil and gas wells gains a right to secure payment through a lien.

The first visible act, such as actual drilling or other preparatory work, establishes a tangible connection between the labor performed and the well itself. This initial effort creates a basis for the lien, signaling legal rights to seek compensation for the work done.

While other elements, such as recordation of the lien, are essential for enforcement and notice purposes, they do not determine the initial effectiveness of the lien. Recordation is a later step that helps to formalize and protect the lien rights against third parties. The owner’s permission, while important in certain contexts, is not a prerequisite for the establishment of the lien itself.

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