Neill v. Five C. Refining Co.

DRAPEAU, J. pro tem.

Sunshine Oil Company was the owner of an oil lease in the Santa Maria field in Santa Barbara County. From producing wells on the lease crude oil was sold to an assignor of Maguire Oil & Refining Company. As security for payment of the purchase price of the oil, a chattel mortgage of the personal property on the lease was executed and delivered, which Maguire assumed and agreed to pay.

Maguire refined the oil and extracted from it the more volatile and valuable portions, an oil product generally known as “tops.” That part of the oil which was left after the tops were taken…