KANSAS OFFICE of
  REVISOR of STATUTES

This website has moved to KSRevisor.gov


 
   

 




55-207. Lien of contractor on gas and oil leasehold or pipeline for labor and material; filing of statement. Any person, corporation or copartnership who shall under contract, express or implied, with the owner of any leasehold for oil and gas purposes, or the owner of any gas pipeline or oil pipeline, or with the trustee or agent of such owner, who shall perform labor or furnish material, machinery and oil-well supplies used in the digging, drilling, torpedoing, completing, operating or repairing of any oil or gas well, or who shall furnish any oil-well supplies or perform any labor in constructing or putting together any of the machinery used in drilling, torpedoing, operating, completing or repairing of any gas well, shall have a lien upon the whole of such leasehold, or oil pipeline or gas pipeline, or lease for oil and gas purposes, the building and appurtenances, and upon the material and supplies so furnished, and upon said oil and gas well for which they were furnished, and upon all the other oil wells, fixtures and appliances used in the operating for oil and gas purposes upon the leasehold for which said material and supplies were furnished and labor performed: Provided, The performing of such labor or furnishing such material, machinery and oil or gas well supplies, unless a period of more than four months elapses between the dates of performing such labor or furnishing such material, machinery or oil or gas well supplies, whether such labor or such material, machinery, or oil or gas well supplies shall be upon the same or different wells, shall constitute and be a performing of such labor or the furnishing of such material, machinery or oil or gas well supplies as a single transaction or contract, whether done under a single contract or a series of contracts; and it shall only be necessary for the claimant to file one lien statement of the work done and material furnished covering the transactions as a whole.

Such lien shall be preferred to all other liens, or encumbrances which may attach to or upon such leasehold for gas and oil purposes and upon any oil pipeline, or gas pipeline, or such oil and gas wells and the material and machinery so furnished and the leasehold for oil and gas purposes and the fixtures and appliances thereon subsequent to the commencement of or the furnishing or putting up of any such machinery or supplies.

History: L. 1909, ch. 159, § 1; R.S. 1923, 55-207; L. 1925, ch. 197, § 1; March 23.

Law Review and Bar Journal References:

Creation and enforcement of mechanics liens against leasehold and equipment, J. B. McKay, 8 J.B.A.K. 63 (1939).

1955-56 survey of Kansas law, F. J. Moreau, 5 K.L.R. 239, 245, 247 (1956); Bernard E. Nordling, 5 K.L.R. 289, 296 (1956).

1957-59 survey of Kansas law, Wesley E. Brown, 8 K.L.R. 265, 270 (1959); William R. Scott, 8 K.L.R. 324, 331 (1959).

Priority of liens under UCC. J. Eugene Balloun, 5 W.L.J. 192, 213 (1966).

Developments in debtor-creditor law between 1965 and 1969, Robert B. Morton, 18 K.L.R. 351, 372 (1970).

"Recent Developments in Kansas Oil and Gas Law," Philip E. DeLaTorre, 32 K.L.R. 595, 608 (1984).

"Kansas Oil and Gas Lien law," David E. Pierce, 56 J.K.B.A. No. 7, 8, 9, 12 (1987).

"Recent Developments in Kansas Oil and Gas Law (1983-1988)," Phillip E. DeLaTorre, 37 K.L.R. 907, 942 (1989).

"Survey of Kansas Oil and Gas Law (1988-1992)," Phillip E. DeLaTorre, 41 K.L.R. 691, 707 (1993).

"New Title Standards Questions Answered," Standards for Title Examination Committee, 78 J.K.B.A. No. 10, 22 (2009).

CASE ANNOTATIONS

1. No lien on oil produced, for materials furnished in construction. Black v. Giarth, 88 K. 338, 128 P. 183.

2. Lien for labor on material attaches to leasehold estate. Meadows v. Oil Co., 108 K. 228, 230, 194 P. 916.

3. Lien obtained in same manner as mechanics' liens. Supply Co. v. Oil Co., 110 K. 468, 471, 204 P. 692.

4. Lien attaches to casing and drilling rig; lien attaches for full contract price of labor. Skinner v. Oil Co., 112 K. 742, 743, 744, 212 P. 684.

5. Effect of furnishing material and labor to owner's agent or contractor. Woodmansee v. Oil and Gas Co., 113 K. 637, 216 P. 276.

6. Pipeline for marketing gas, extending beyond lease, is within statute. Ball v. Oil & Gas Co., 113 K. 763, 769, 216 P. 422.

7. Contractor not entitled to lien on land for drilling expense. Bassett, Trustee, v. Carpenter, 114 K. 828, 830, 220 P. 1028.

8. Owner's acts made lease purchaser his agent in procuring drillers. Mendenhall v. Producing Co., 115 K. 729, 734, 224 P. 925.

9. Lien not filled within four months of purchase not good. Baxter v. Oil Co., 117 K. 47, 230 P. 298.

10. Notice as essential to create and enforce lien. Marion Machine Co. v. Allen, 119 K. 770, 772, 241 P. 450.

11. Tools and equipment forming no part of completed well not subject to lien. Marion Machine Co. v. Allen, 119 K. 770, 241 P. 450; Given v. Campbell, 127 K. 378, 273 P. 442.

12. Lien for labor and supplies is prior to other subsequent liens. Moyer v. Hezlep, 123 K. 735, 737, 257 P. 229.

13. Cited in action for wage preference on insolvency and receivership. Acme Foundry and Machine Co. v. Wampler, 124 K. 486, 489, 260 P. 972.

14. Proportionate payment of liens where proceeds insufficient. Pickering Lumber Co. v. Eisenhour, 125 K. 738, 739, 264 P. 144.

15. Merchandise used but not to be installed is not basis for lien. Given v. Campbell, 127 K. 378, 273 P. 442.

16. Laborers have four months in which to file lien for wages. Sawtelle v. Cosden Oil & Gas Co., 128 K. 220, 277 P. 45.

17. Lien attaches to material borrowed by owner if leased to use in well. Williams v. Otstot Oil Co., 129 K. 210, 211, 282 P. 710.

18. Driller had lien on well and equipment, no lien to lessee of pipe. Fees v. Ritchey, 136 K. 221, 223, 14 P.2d 652.

19. Lien valid on gas meter and gas meter charts. Stockman v. Parsons Pipe Line Corp., 136 K. 240, 244, 14 P.2d 653.

20. Strictly construed in determining lien, liberal construction as to enforcement. Bridgeport Machine Co. v. McKnab, 136 K. 781, 782, 783, 18 P.2d 186.

21. Statutes conferring liens should be strictly construed. Gaudreau v. Smith, 137 K. 644, 646, 21 P.2d 330.

22. Driller given lien though told to look to buyer for payment. Jones v. Sunflower Natural Gas Corp., 137 K. 790, 22 P.2d 482.

23. Lien hereunder is only upon leasehold and property used therewith. Gaudreau v. Smith, 141 K. 123, 125, 40 P.2d 365.

24. Equipment rented to operator not proper foundation for lien. Wilkinson v. Pacific Mid-West Oil Co., 152 K. 712, 107 P.2d 726.

25. Cited; machinery rental cannot be basis of mechanic's lien. American Nat'l Bank v. Central Construction Co., 160 K. 400, 405, 163 P.2d 369.

26. Leasehold owner's drilling rig used in drilling well held proper subject of lien; liberal construction applies when right to lien established. Meyer v. Latta, 178 K. 316, 318, 320, 321, 285 P.2d 782.

27. Cited in construing sections K.S.A. 55-212(b) and 55-213. Rodgers v. Arapahoe Pipe Line Co., 181 K. 579, 582, 583, 585, 313 P.2d 740.

28. Conditional vendee owner's agent, when; leases operated as unit, scope of lien. Adair v. Transcontinental Oil Co., 184 K. 454, 456, 460, 464, 465, 472, 338 P.2d 79.

29. Lienholder's rights held superior to those of subsequent chattel mortgagee. Oil Well Supply Co. v. First Nat. Bank of Winfield, Kan., 106 F.2d 399.

30. Oil and gas lien law construed. Mountain Iron & Supply Co. v. Branum, 200 K. 38, 41, 44, 45, 434 P.2d 1015.

31. For lien to be effective hereunder, material sold to leasehold owner and delivered to leasehold must actually be used for purposes it was furnished. Fender Pipe and Supply, Inc. v. Jenkins, 5 Kan. App. 2d 101, 102, 612 P.2d 1253.

32. A supplier to a materialman is afforded no protection under the oil and gas lien statutes. Interlake, Inc. v. Kansas Power & Light, 7 Kan. App. 2d 16, 637 P.2d 464. Reversed: 231 K. 251, 253, 256, 257, 644 P.2d 385 (1982).

33. Daywork drilling contract and service of hauling and transporting oil field equipment not basis for lien hereunder; lien laws to be strictly construed against one claiming privilege. Calvert Western Exploration Co. v. Diamond Shamrock, 234 K. 699, 702, 675 P.2d 871 (1984).

34. Work, mental or physical, performed in on-site advancement of construction, repair or operation, enriching leasehold owner, is lienable labor. DaMac Drilling, Inc. v. Shoemake, 11 Kan. App. 2d 38, 46, 713 P.2d 480 (1986).

35. Cited; preference of valid statutory lien over equitable lien created by contract examined. Consolidated Oil Well Serv., Inc. v. State Oil Co., 12 Kan. App. 422, 747 P.2d 183 (1987).

36. Lien claimant has priority dating from commencement of furnishing labor or materials even though lienee current at time subsequent mortgage recorded. D Oil, Inc. v. Brungardt, 13 Kan. App. 2d 142, 143, 764 P.2d 851 (1988).

37. Oil and gas mechanic's lien not entitled to priority over purchase money security interest, regardless when lien filed. National Supply Co. v. Case Oil & Gas, Inc., 13 Kan. App. 2d 430, 434, 772 P.2d 1255 (1989).

38. Provisions of K.S.A. 55-208 as not providing protection to supplier of a middleman determined. Steld Engineering, Inc. v. Franklin Supply Co., 14 Kan. App. 2d 81, 82, 782 P.2d 357 (1989).

39. Statute compared to K.S.A. 60-1101 where mechanics' liens for architectural and engineering services held invalid where no improvements made on property. Mark Twain Kansas City Bank v. Kroh Bros. Dev. Co., 14 Kan. App. 2d 714, 721, 798 P.2d 511 (1990).

40. Oil and gas mechanics' lien rights not affected by general lien statutes; to be strictly construed against claimant. Sfeld Engineering, Inc. v. Franklin Supply Co., 247 K. 146, 147, 795 P.2d 60 (1990).

41. Section does not require an oil and gas lien statement to cover an entire leasehold. Klima Well Serv., Inc. v. Hurley, 133 F. Supp. 3d 1297, 1304 (D. Kan. 2015).


 



This website has moved to KSRevisor.gov