Beverly Hills Oil Co. v. Beverly Hills Unified School District

The question in this case is whether the trial court’s interpretation of an oil and gas lease, whereby the judge decided, after admitting extrinsic evidence, that the ■word “rentals”- does :not mean “royalties” but refers' to “delayed rentals” or payments for deferring of drilling, may be sustained.

General Facts

On June 2, 1959, the Beverly Hills Unified School District leased to Allen Guiberson about 22 acres of land which were largely occupied on the surface by facilities of a high school. The lease was for the exploitation of oil and gas. The allowable drillsite was but 0.459 acres.…