Boltzen v. Clowdsley

SCHOTTKY, J. Sue Clowdsley, as administratrix with the will annexed of the estate of Fred G. Emry, deceased; Charles E. Walker; and Eunice C. Emry have appealed from a judgment in favor of Antoinette Boltzen in an action brought by her to quiet title to certain property in San Joaquin County.

In August 1930 Sarah Ann Donlin, respondent’s predecessor in interest, leased 200 acres of land she owned to the Union Oil Company. This lease was the customary oil and gas lease and provided that the lessee could quitclaim the lease at any time.

A short time later appellant Walker, acting on behalf of himself and Emry, contacted Mrs. Donlin and obtained an oil and gas lease to the remaining 40 acres of farm land. At about the same time Walker negotiated with Mrs. Donlin for an assignment of a portion of the royalties payable under the Union Oil Company lease. Walker prepared an “Assignment of Royalty” which read as follows:

“For and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, to me in hand paid by Charles E. Walker and Fred G. Emry, the receipt whereof is hereby acknowledged, I hereby sell, assign and transfer to Charles E. Walker and Fred G. Emry, their heirs, admr’s. and assigns all of my right, title and interest in [1872]%% (1/5 of my 12%% Royalty) in all oil, gas and byproducts produced on my tract of land in San Joaquin County, California, described as follows:

“. . . [description], and according to that certain oil and gas lease, dated August 26, 1930, given by me to the Union Oil Company of California and recorded in Book 337, page 297, in the records of the Recorder’s Office at Stockton, San Joaquin County, California.”

The Union Oil Company quitclaimed its lease in 1930. Walker and Emry quitclaimed their lease in 1936.

In 1958 respondent Antoinette Boltzen executed an oil and gas lease in favor of one Kenneth H. Hunter, Jr. This lease is currently in effect and respondent is receiving royalty payments for gas produced.

Respondent then learned of appellants’ claim to a share of the royalties and brought this action.

The main issue in the case, as stated by the trial court, was “whether by the terms of the instrument Charles E. Walker and Fred G. Emry were granted a perpetual interest in the oil, gas and by-products produced on the real property referred to in the instrument, or whether the term of their interest in the oil and gas was co-existent with the term of the oil and gas lease dated August 26th, 1930 and entered into between Sarah Ann Donlin and the Union Oil Company.” The trial court found “That the term of the interest granted to the said Fred G. Emry and Charles E. Walker by said ‘Assignment of Royalty’ was limited in duration to the term of the Union Oil Company lease which is referred to in said Assignment of Royalty.”