Baxter v. Cherryvale Oil Co.

Citations

• 111 Kan. 621
• 208 P. 568
• 1922 Kan. LEXIS 305

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Mortgages — On Leasehold Interest in Oil Lands — Mechanic’s Lien Statements on Same Land — Priorities. A written, contract was entered into between oil-well drillers and an oil company to drill two wells. Shortly before the wells were completed, the oil company gave a mortgage on its leasehold interests. At that time visible development showed two wells, one completed and one not quite finished. Under a verbal arrangement made after the mortgage had been executed the parties to the written contract agreed that other wells might be drilled under the terms of the first contract. Held, that the subsequent verbal arrangement could not be tacked to the first contract so as to give priority over the mortgage to liens for work performed in drilling other wells.</p> <p>2. Same. A supply company agreed to give an' oil company a line of credit. The oil company made purchases of material from time to time without any contract to purchase additional material and the supply company was under no obligation to furnish more. Each purchase was a separate transaction. Held, that as each contract was a separate one, the furnishing of material under different contracts after the execution of the mortgage could not be tacked to the-prior contract so as to give priority over the mortgage to the liens for additional material.</p>