Jones v. Salem National Bank (In re Fullop)

KANNE, Circuit Judge.

“[0]il and gas financing is a strange world of its own.” Woodward v. Wright, 266 F.2d 108, 115 (10th Cir.1959). In attempting to convert dreams of black gold to hard cash, aspiring capitalists split the property interest in oil into “more fragments than the atom or the rainbow.” B. Clark, The Law of Secured Transactions Under the UCC ¶ 13.01 at 13-2 (2d ed. 1988). This case requires us to examine the scope of one of those fragments — a lessee’s rights under an oil and gas lease— and determine the requirements a secured creditor must meet to perfect its interest in the oil…