you are likely to find Channel in/at/on Town. you are likely to find Tree in/at/on Town. you are likely to find Dirt in/at/on Tree. Oil is a type of Dirt. 
Render is a type of Coat. 
Channel --AtLocation--> Town <--AtLocation-- Tree <--AtLocation-- Dirt <--IsA-- Oil 
Render --IsA--> Coat 