First National Bank v. Standard Oil Co.

This is a suit in equity for declaratory relief, under the provisions of section 1060 of the Code of Civil Procedure. A decree was entered declaring the rights of the parties under the provisions of a certain lease between them. Certain parties to said lease now prosecute this appeal from the judgment.

The appeal is taken by the so-called “alternative method” and there is no controversy as to the facts, which are all agreed upon in a stipulation filed in the cause.

It appears from the briefs of respondents that on October 26, 1921, a number of land owners in the vicinity of Redondo, entered into a certain lease with Standard Oil Company of California, hereinafter referred to as the “Oil Company.” The lands were separately owned, but they formed a compact area of some seventy-five acres. Certain rents and royalties, accruing under this lease, were to be paid by the Oil Company to the First National Bank of Redondo, as depositary. Only two paragraphs of said lease contain matter which give rise to this controversy, and they are:

Pursuant to the provisions of said paragraph 12, the Oil Company duly gave written notice to all the lessors that it elected to cease drilling upon and…