Johnston v. Courtial

SHENK, J.

Appeal from a judgment in favor of the plaintiff in an action to quiet title.

On the 23d of September, 1929, the plaintiff was the owner of 2,743 acres of land in Alameda County. On that day, as lessor, she executed a lease of the premises to the defendant, Alexis W. Courtial and Walter S. Kings-bury as lessees. The lease recites “that the lessor, for and in consideration of ten dollars to her in hand paid, the receipt whereof is hereby acknowledged, leases to the lessees” the land which is particularly described; and further provides in respects pertinent to this controversy that “this lease is for a period of one year from the date hereof and no longer unless the further conditions as to extensions of time by additional rental payments have been complied with by said lessees, or the drilling for oil has been commenced and continued within the first one year period in good faith, and all other conditions and covenants of this lease are fully complied with by said lessees, and said lease shall be on the following terms and conditions ... (3) the lessees agree to start the drilling of a well for oil upon the premises herein leased within one (1) year from the date of this agreement, and to faithfully con

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tiirae the work of drilling said well, after commencing the same, with due diligence. ... If said lessees have not complied with paragraph three (3) within the first year of this lease, viz.: if said lessees have not commenced the drilling of a well for oil upon the premises herein leased within one (1) year from the date of this agreement, and shall not have continued the work of drilling said well after commencing the same, with due diligence . . . then . . . said lessees may extend the period of commencing the first well for an additional period of four (4) years by paying to the lessor, in advance, upon the fifteenth day of September, 1930, and upon the fifteenth day of September of each year thereafter until said four (4) years shall have elapsed, a rental of $2743 per annum, which shall be rental paid in advance for each year of said four (4) year period, which said rental shall cease when drilling operations are commenced in good faith. and continued with due diligence in good faith as provided in paragraph three (3) . . . ■ (20) Any breach of any of the terms or conditions of said lease by the lessees or their assigns before discovery of oil upon said premises ... in paying quantities ... or if the said lessees or their assigns shall fail to pay the rent of $2743 per annum as herein provided when due, shall absolutely, without notice, terminate, annul, set aside and forfeit this lease, and said lessees or their assigns shall have no further right or interest of any kind whatsoever in and to said premises, and all of said premises shall immediately, without notice, revert to said lessor, and all interest of said lessees or their assigns shall be forfeited, annulled and said lessees hereby absolutely agree without any qualification to said forfeiture and waive all notice in event of any breach or failure to pay rent as aforesaid.”