Forney
Forney v. Shell Oil Co.
Opinion
lead Opinion
Barnard, J.
On August 5, 1927, the appellants leased a certain parcel of land in Kern County to the Shell Oil Company under a lease providing for the development and production of oil upon the property. Subsequently the Shell Oil Company transferred the lease to L. C. Osborn, who transferred it to Thomas B. Leddy, and he, in turn, transferred it to William H. Allen, Jr., who will herein be referred to as the respondent. The lease provided for a royalty to the appellants of one-eighth of all oil produced and saved from the land, and that the lessee should purchase and pay for said portion of the oil produced, rendering an account and making payment on or before the twen tieth day of each calendar month covering the royalty oil produced and saved during the preceding calendar month.
A producing well was brought in on November 19, 1930, and two payments on account of said royalty were made to the appellants. On October 10, 1931, the appellants gave notice of a violation of the terms of the lease, the material portion reading as follows:
Within the ninety days specified in the notice the respondent paid to the First National Bank of Bakersfield, for the appellants, an amount covering the…