Okla. Stat. tit. 52, § 52-549.2

DEFINITIONS

As used in the Oil and Gas Owners’ Lien Act of 2010:

1. “Affiliate” means any person:

a. who is controlled, directly or indirectly, by a first

purchaser, or

b. who controls, directly or indirectly, a first

purchaser.

“Control” or “controlled by” means the possession, directly or

indirectly, of the power to direct or cause the direction of the

management and policies of a person, whether through ownership, by

contract or otherwise;

2. “Agreement to sell” means any enforceable agreement, whether

express or implied, whether oral or written, by which an interest

owner, either directly or through a representative, agrees to sell

or is deemed by applicable contract or law to have agreed to sell

oil or gas upon or after severance to a first purchaser;

3. “Article 9” means Article 9 of the Oklahoma Uniform

Commercial Code in effect as of the relevant date or a comparable

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article under the uniform commercial code of another state to the

extent applicable;

4. “First purchaser” means the first person that purchases oil

or gas from an interest owner, either directly or through a

representative, under an agreement to sell;

5. “Gas” means natural gas and casinghead gas and all

constituent parts thereof both before and after processing but prior

to the time at which a first purchaser transfers title, possession

or control thereof to a purchaser;

6. “Interest owner” means a person owning an interest of any

kind or nature in oil and gas rights before the acquisition thereof

by a first purchaser. Interest owner includes a representative and

a transferee interest owner;

7. “Oil” means oil and condensate and all constituent parts

thereof whether before or after processing but prior to the time at

which a first purchaser transfers title, possession or control

thereto to a purchaser;

8. “Oil and gas lien” means the lien granted by the Oil and Gas

Owners’ Lien Act of 2010;

9. a. “Oil and gas rights” means, as to any lands within the

State of Oklahoma, any right, title or interest,

whether legal or equitable, in and to:

(1) oil,

(2) gas,

(3) proceeds,

(4) an oil and gas lease,

(5) a pooling order, and

(6) an agreement to sell.

b. By way of illustration and not limitation, oil and gas

rights include, but are not limited to:

(1) oil or gas in place prior to severance,

(2) oil or gas production, or the right to receive a

portion of the proceeds, upon severance,

(3) proceeds owed for oil and gas drilling and

development,

(4) proceeds from the acquisition of oil and gas

rights including but not limited to a lease bonus

or pooling bonus,

(5) proceeds from an unfulfilled contract or

agreement for the purchase of mineral rights,

(6) any interest or estate in, by, through or under

an oil and gas lease,

(7) rights acquired under a pooling order insofar as

such rights relate to: ownership of oil and gas,

the right to proceeds or the right to enter into

an agreement to sell,

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(8) a legal or equitable right to receive

consideration of whatsoever nature under an

agreement to sell, or

(9) a mortgage lien or security interest in any of

the foregoing;

10. “Operator” means a person engaged in the severance of oil

or gas for that person alone, for other persons only, or for that

person and others;

11. “Permitted lien” means any of the following liens or

security interests:

a. a mortgage lien or security interest granted by a

first purchaser in favor of a person not an affiliate

of the first purchaser which mortgage lien or security

interest secures payment under a written instrument of

indebtedness signed by the first purchaser and

accepted in writing by the payee thereof prior to

April 19, 2010, with a principal amount and a fixed

maturity stated therein; provided, however, a

permitted lien does not include a mortgage lien or

security interest which:
n affiliate

of the first purchaser which mortgage lien or security

interest secures payment under a written instrument of

indebtedness signed by the first purchaser and

accepted in writing by the payee thereof prior to

April 19, 2010, with a principal amount and a fixed

maturity stated therein; provided, however, a

permitted lien does not include a mortgage lien or

security interest which:

(1) secures payment of any indebtedness incurred from

and after April 19, 2010,

(2) secures payment under a written instrument of

indebtedness not signed by a first purchaser and

accepted in writing by the payee thereof prior to

April 19, 2010,

(3) secures payment under a written instrument of

indebtedness modified, amended or restated from

or after April 19, 2010, which modification,

amendment or restatement increases the principal

amount which was owing on April 19, 2010,

(4) secures payment under a written instrument of

indebtedness modified, amended or restated from

or after April 19, 2010, which modification,

amendment or restatement extends the stated

maturity thereof which was in effect on April 19,

2010, or

(5) is not validly perfected with a first priority

against the claims of all persons under

applicable law other than persons holding a

statutory or regulatory lien as to which first

priority is granted by statute or regulation, or

b. a validly perfected and enforceable lien created by

statute or by rule or regulation of a governmental

agency for storage or transportation charges,

including terminal charges, tariffs, demurrage,

insurance, labor or other charges, owed by a first

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purchaser in relation to oil or gas originally

purchased under an agreement to sell; provided,

however, a permitted lien does not include any such

lien:

(1) which is in favor of an affiliate of a first

purchaser unless such lien is authorized by the

statute, rule or regulation creating such lien,

or

(2) which is for charges in excess of ninety (90)

days from the time the first purchaser delivers

such oil or gas for such storage or

transportation;

12. “Person” means any individual, executor, administrator,

estate, agent, trust, trustee, institution, receiver, business

trust, firm, corporation, partnership, limited liability company,

cooperative, joint venture, governmental entity or agency,

association or any other group or combination acting as a unit;

13. “Pooling order” means an order issued by the Corporation

Commission that requires the owners of the right to drill for oil or

gas in a drilling and spacing unit to pool their interests for the

development of such drilling and spacing unit;

14. “Proceeds” means any of the following when paid or to be

paid in consideration of, or as a consequence of, the sale of oil or

gas under an agreement to sell: oil or gas on or after severance;

inventory of raw, refined or manufactured oil or gas after

severance; rights to or products of any of the foregoing; cash

proceeds; accounts; chattel paper; instruments; documents; or

payment intangibles with respect to any of the foregoing;

15. “Purchaser” means a person which is not an affiliate of a

first purchaser and which takes, receives or purchases oil or gas

from a first purchaser;

16. “Representative” means any person who is authorized, either

expressly or by implication, including, without limitation, an

operator or a broker so authorized, to sell oil or gas on behalf of,

or for the benefit of, an interest owner under an agreement to sell

or to receive on behalf of an interest owner the consideration under

an agreement to sell;

17. “Sales price” means the proceeds a first purchaser agrees

to pay an interest owner or representative under an agreement to

sell;

18. “Security interest” means a security interest governed by

Article 9;

19. “Severance” means that point in time at which oil or gas is
wner under an agreement to sell

or to receive on behalf of an interest owner the consideration under

an agreement to sell;

17. “Sales price” means the proceeds a first purchaser agrees

to pay an interest owner or representative under an agreement to

sell;

18. “Security interest” means a security interest governed by

Article 9;

19. “Severance” means that point in time at which oil or gas is

reduced to possession at the mouth of the wellbore of an oil and gas

well;

20. “Transferor interest owner” means an interest owner that

transfers or conveys oil and gas rights, in whole or in part; and

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21. “Transferee interest owner” means a person that acquires

oil and gas rights from a transferor interest owner.