Rockefeller
Rockefeller v. Smith
Opinion
Lead Opinion
Craig, J.
This is an appeal by defendant from a judgment of the Superior Court of Los Angeles County against him in the sum of $14,000 and costs.
On or about June 2, 1923, plaintiff, as lessor, and defendant, as lessee, entered into a written oil and gas lease of certain real property for a term of twenty years (unless said period be terminated earlier under the provisions thereof). The lessee agreed “to pay the Lessor a monthly rental of $800.00 per month from June 25, 1923, payable on the 25th day of each and every calendar month, the first monthly payment to be made on June 25, 1923, and said rental to continue until the said lessee shall have actually commenced drilling operations on the first well provided for herein, at which time the said monthly rental shall cease, the said rental shall also cease in the event the lease be terminated as herein provided. ...” The lease then provided in substance that if lessee did not commence drilling operations within twelve months thereafter, the lessor could declare the lease terminated on thirty days’ notice; also, that “lessee may at any time before the discovery of oil on the demised premises, quitclaim the said property, or any part thereof,…