A Deed of Trust, Security Agreement, Financing Statement and Assignment of Production should be filed in the Real Property Records of each county where the oil and gas leases or interests therein are situated or deemed to be situated. A sample form is located at the end of this chapter.
A UCC-1 Financing Statement covering (i) the oil and gas when extracted and accounts arising from the sale thereof and (ii) fixtures should be filed with the county clerk where the well is situated. The UCC-1 Financing Statement must contain a description of the real estate concerned, state that it covers this type of collateral and recite that it is to be filed for record in the Real Property Records. If the debtor does not have an interest of record in the real estate, the UCC-1 Financing Statement must show the name of the record owner. The Deed of Trust may be used as a nonconforming UCC-1 Financing Statement if all of the requirements of a UCC-1 Financing Statement are contained in the Deed of Trust.
A Financing Statement covering equipment and general intangibles should be filed in the Office of the Secretary of State of the state in which the debtor is located. For example, if the debtor is a corporation organized under the laws of the State of Delaware, the debtor is deemed to be located in Delaware, and the Financing Statement would be filed with the Delaware Secretary of State.
The Financing Statement covering extracted oil and gas, accounts, fixtures, equipment and general intangibles can be incorporated into one financing statement and filed with both the county clerk and the applicable Secretary of State(s) if all requirements are met.