§ 1203.55.Forfeiture of Estate; Failure of Equitable Or Contingent Interest to Ripen Into Legal Interest
Title 4. Of the Enforcement of Liens · Chapter 2.5. Oil and Gas Liens · Enacted 1959 · no amendments on record · Last verified July 29, 2026
Full Text of § 1203.55
Plain-English Summary
Leasehold interests in oil and gas operations aren't always secure — they can be forfeited for breach of the lease, or they can be equitable interests, or legal interests contingent on some future condition. This section makes sure a lien claimant who already did the work isn't wiped out when that underlying interest later falls apart.
If the leasehold estate is forfeited after a lien has attached, the forfeiture doesn't impair the lien as to material, appurtenances, and fixtures already covered before the forfeiture. And if the lien attached to an equitable interest, or to a legal interest contingent on some condition being met, the later failure of that interest to become full legal title — or the condition failing to happen — doesn't impair the lien either, again as to whatever it had already attached to.
Frequently Asked Questions
What happens to my lien if the leasehold I worked on is later forfeited?
Section 1203.55 protects the lien as to material, appurtenances, and fixtures the lien had already attached to before the forfeiture.
Does it matter if the interest my lien attached to was only equitable or contingent?
No. The lien survives even if that equitable interest never becomes legal title, or the condition the interest depended on never happens.
Amendment History
Added by Stats. 1959, Ch. 2020.