United States v. Adamant Co. And Four Other Cases

On September 28, 1942, the Government of the United States instituted a condemnation proceeding for the use of the Reconstruction Finance Corporation, acting in behalf of its subsidiary Defense Plant Corporation, to condemn certain real property in the City of Los Angeles, California. The Defense Plant Corporation by the Joint Resolution of June 30, 1945, 59 Stat. 310 , 15 U.S.C.A. § 611 note, was merged with the Reconstruction Finance Corporation. The property consisting of a largely depleted oil field, known as the Playa Del Rey field, was taken for use as a natural gas reservoir. Many different parcels were within the area condemned. But this appeal involves only two contiguous tracts on which Treasure Company, to be referred to as “Treasure”, owned oil and gas leases. The lease known as the Fletcher lease was on Lots 9, 10 and 11, Block 33, Tract 9809. The lease known as the Burns No. 1 lease, covered Lots 7, 8, 35 and 36, Block 33, Tract 9809.

In its Answer, Treasure claimed ownership of both leases. The defendant, Adamant Company, to be referred to as “Adamant”, alleged ownership, through agreement with Treasure, of a 25 per cent participating interest in the Fletcher and…