Marxen

This is an appeal from a judgment for plaintiff in a creditor’s suit in equity to establish the validity and secure the benefit of the proceeds derived from the operation of a lease upon state tide lands for the development of oil, gas and other hydrocarbon substances.

This suit was commenced by Dorothy 0. Smith, under the provisions of section 382 of the Code of Civil Procedure, for the benefit of all parties interested in the lease. The defendant, Jennie S. Herron, held a lease upon 160 acres of state tide land in the vicinity of Summerland from the state of California under the provisions of the Mineral Land Act of California, for the purpose of prospecting for oil, gas and other hydrocarbon substances. October 17, 1925, this lease was transferred to C. H. Smith for a term of ten years, in consideration of one-eighth royalty of the gross products therefrom, with the agreement that Smith should diligently prospect for oil and gas by sinking thereon at least ten wells each year. With the consent of Jennie S. Herron, a one-half interest in this lease was transferred to E. H.-Barmore, Sr., with whom Smith formed a partnership for the purpose of prospecting this land for oil and…