Differding v. Ballagh

This is an action instituted to establish the claim of appellant to a five per cent “over-riding royalty” clear of operating and maintenance expenses, in the oil, gas or other hydrocarbon substances produced from 120 acres of land described in a government oil lease in Kern County, California. The terms of the lease are similar to those usually found in government oil leases executed at about the same time. Counsel have assumed that the term “over-riding royalty” means a certain percentage of the gross production of an oil or gas producing property, payable to some person other than the…