Hale v. Harbor Petroleum Corp.

THE COURT.

In 1925 the Flower Street Investment Company, a corporation, leased to plaintiff and another certain lots in Los Angeles County. The lease provided that the lessees should pay as rental twenty per cent of all oil, gas and other hydrocarbon substances produced therefrom. Later plaintiff acquired the interest of his eolessee. Thereafter and prior to February 9, 1926, plaintiff assigned fractional undivided interests in all the oil and gas to be produced aggregating fifteen per cent thereof. These interests were sold without the permission of the state corporation commissioner. Wells…