Higgins

The undisputed facts on this appeal show that on and prior to June 15, 1926, the plaintiff, Fanny Higgins, was the holder of a U. S. prospecting permit for prospecting and drilling for oil and gas on a tract of land in Kern County, California. This permit provided that the holder thereof should, within six months of the date thereof, or within the period of specified extensions of time, install and prosecute certain development work, and within two years from date of the permit drill for oil or, gas to a depth of not less than 2,000 feet, unless valuable deposits of oil or gas should be discovered at a less depth.

On June 15, 1926, the plaintiff entered into a subcontract with one Grant, whereby the latter covenanted and agreed to furnish the necessary machinery, tools and labor, and construct on said land “a standard oil well derrick” and to drill a well to a depth of not less than 3,000 feet, unless oil in paying quantities was struck at. a less depth, and to begin the actual drilling of said well within ninety days from the above date. In ease of failure to accomplish this, he agreed to deposit on said date $5,000 for an extension of time, the amount to be forfeited in the…