Union Pacific Railroad v. City of Los Angeles

This case was tried upon stipulated facts. Plaintiff Union Pacific Railroad Company owns and operates a number of oil wells and plaintiff Las Vegas Land and Water Company owns one well, which is operated for it by its co-plaintiff, drilled from locations within the city of Los Angeles directionally so as to penetrate an oil producing zone at points wholly within the adjoining city of Long Beach. The entire production of the wells comes from this zone and from *826depths of from 3,000 to 4,000 feet. The casing is so perforated and packed that one of the wells produces from a section of the zone in…