# Ark. Code Ann. § 15-72-1106: Rights of purchasers

> Arkansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1106

## Section

- **Citation:** Ark. Code Ann. § 15-72-1106
- **Heading:** Rights of purchasers
- **Jurisdiction:** Arkansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** AR Code / Title 15 / Chapter 72 / Subchapter 11 / Section 15-72-1106

## Text

(a) A purchaser takes free of an oil and gas lien otherwise applicable to the oil or gas purchased and is relieved of an obligation to hold revenue or proceeds from the sale of production for the benefit of the owners legally entitled to the revenue or proceeds from the sale of production only in the event that either of the following occurs: (1) The purchaser is deemed to be a buyer in the ordinary course of the first purchaser's business as defined in Article 9; or (2) The purchaser has paid all of the consideration due the first purchaser, including by exchange of oil or gas, net-out or set-off, under all applicable enforceable contracts in existence at the time of the payment. (b) Notwithstanding subsection (a) of this section, the oil and gas lien will continue uninterrupted in the proceeds paid to or otherwise due the first purchaser. (c) Except as specifically set forth in this section, an oil and gas lien has priority over the rights of a purchaser. Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.

(a) A purchaser takes free of an oil and gas lien otherwise applicable to the oil or gas purchased and is relieved of an obligation to hold revenue or proceeds from the sale of production for the benefit of the owners legally entitled to the revenue or proceeds from the sale of production only in the event that either of the following occurs: (1) The purchaser is deemed to be a buyer in the ordinary course of the first purchaser's business as defined in Article 9; or (2) The purchaser has paid all of the consideration due the first purchaser, including by exchange of oil or gas, net-out or set-off, under all applicable enforceable contracts in existence at the time of the payment.

(1) The purchaser is deemed to be a buyer in the ordinary course of the first purchaser's business as defined in Article 9; or

(2) The purchaser has paid all of the consideration due the first purchaser, including by exchange of oil or gas, net-out or set-off, under all applicable enforceable contracts in existence at the time of the payment.

(b) Notwithstanding subsection (a) of this section, the oil and gas lien will continue uninterrupted in the proceeds paid to or otherwise due the first purchaser.

(c) Except as specifically set forth in this section, an oil and gas lien has priority over the rights of a purchaser.

Added by Act 2021, No. 275,§ 1, eff. 7/28/2021.

## Nearby sections

- [Ark. Code Ann. § 15-72-1101 Title](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1101.md)
- [Ark. Code Ann. § 15-72-1102 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1102.md)
- [Ark. Code Ann. § 15-72-1103 Nature, extent, and duration of oil and gas lien](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1103.md)
- [Ark. Code Ann. § 15-72-1104 Perfection of oil and gas security interest](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1104.md)
- [Ark. Code Ann. § 15-72-1105 Commingling](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1105.md)
- [Ark. Code Ann. § 15-72-1106 Rights of purchasers](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1106.md)
- [Ark. Code Ann. § 15-72-1107 Priority relative to other liens or security interests](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1107.md)
- [Ark. Code Ann. § 15-72-1108 Legal title](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1108.md)
- [Ark. Code Ann. § 15-72-1109 Waiver](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1109.md)
- [Ark. Code Ann. § 15-72-1110 Expiration of oil and gas lien - Enforcement - Joinder and consolidation - Costs - Personal actions - Other rights and remedies](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1110.md)
- [Ark. Code Ann. § 15-72-1111 Rights of operator not impaired](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1111.md)
- [Ark. Code Ann. § 15-72-1112 Rights cumulative](https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1112.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T15_C72_S11_S15-72-1106. Check the current official text before relying on it. Not legal advice.