Standard Pipe & Supply Co. v. Marvin

SPENCE, J.

This is an appeal by defendants from a judgment entered in consolidated actions foreclosing mechanics’ liens.

Defendants Woods were the owners of a portion of a thirteen-acre tract upon which an oil well had been partially drilled. Defendants Woods and defendants Capser were the owners in common of the remaining portion of said thirteen-

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acre tract. Said defendants, as lessors, thereafter entered into what is commonly known as a community lease with defendant Marvin, as lessee, granting to said lessee the exclusive right to possession of said thirteen-acre tract for the purpose of exploring for oil and drilling oil wells thereon. Under, the terms of said lease, defendants Woods and defendants Capsers were to participate equally in the landowners’ share of the oil produced irrespective of the place on said tract where producing wells might be located. The lessee entered upon the premises under said lease and commenced deepening the partially drilled well thereon with the knowledge and consent of defendants. Plaintiffs furnished materials used in said work and the lessee failed to pay for said materials. Oil was not produced from said well and the lessee ceased the performance of work and filed a notice of cessation of labor. Plaintiffs filed liens on said thirteen-acre tract and brought these actions to foreclose said liens. The cause was tried upon stipulated facts and the uncontradicted evidence of a single witness and judgment was entered in favor of plaintiffs.

Defendants first contend that “the ‘dry hole’ involved herein is not a ‘work of improvement’ within the purview of section 1183, Code of Civil

Procedure;

hence neither said hole nor any of the surrounding land is subject to mechanics’ liens for the drilling thereof.” We are of the opinion that this contention is without merit and that it may be disposed of upon the authority of

Western Well Works

v.

California Farms Co.,

60 Cal. App. 749 [214 Pac. 491].