When do liens upon gas or oil wells become effective?

Liens upon gas or oil wells become effective on the date the first visible work or labor is performed. This principle is rooted in how property law treats the establishment of liens, particularly for the oil and gas sector. When work is first performed on a well, it indicates the commencement of a project which in turn grants creditors a security interest in the property. This protects the rights of those who have begun the work, as it establishes a claim against the well for any debts incurred in the process.

The other options, while they relate to various aspects of oil and gas operations, do not represent the correct instantiation of a lien. The date the well is drilled signifies progress but does not mark the effective date of a lien; similarly, the date of the lease signing or state approval pertains to different legal processes or requirements that do not trigger a lien's activation. The importance of the initial effort, marked by the visible work or labor, reflects the law's recognition of those who contribute resources and labor to develop and extract natural resources.