Bankruptcy Court Holds Texas Chapter 56 Mineral Lien Claimants Not Entitled to Chapter 67 Withholding Protections

A Texas bankruptcy court denied a motion to stay pending appeal in a dispute over whether oilfield service providers holding Chapter 56 mineral liens can invoke Chapter 67's statutory withholding mechanism to intercept over $2.5 million in crude oil proceeds. The ruling affects Force Pressure Control and Axis Energy Services, which had demanded Plains Marketing withhold payments from debtor Barrow Shaver Resources' oil sales based on unpaid service claims totaling approximately $2.5 million.