Wells v. Union Oil Co.

Plaintiffs brought this action for declaratory relief and an accounting. The controversy arose over the terms of an oil lease executed in April, 1919. It concerned the legal liability of the parties to pay local improvement assessments levied on leased lands. The trial court held such assessments payable by plaintiffs and they have appealed.

The determination of this issue depends on the interpretation to be placed on paragraph eight of the oil lease which provides as follows:

“TAXES: The Lessee (defendant) shall, during the term of this lease, pay all taxes which may be levied upon or assessed…