Common use of Operator’s Lien Clause in Contracts

Operator’s Lien. RIGHT TO COLLECT FROM OIL OR GAS PURCHASER. (a) OPERATOR'S LIEN. To secure the payment of all sums due from Developer to Operator under the provisions of this Agreement the Developer grants Operator a first and preferred lien on and security interest in the following: (i) the Developer's interest in the Leases covered by this Agreement; (ii) the Developer's interest in oil and gas produced under this Agreement and its proceeds from the sale of the oil and gas; and (iii) the Developer's interest in materials and equipment under this Agreement.