Lewis v. Standard Oil Co. of California

88 F.2d 512, 1937 U.S. App. LEXIS 3180
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 23, 1937
DocketNo. 8086
StatusPublished
Cited by3 cases

This text of 88 F.2d 512 (Lewis v. Standard Oil Co. of California) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Standard Oil Co. of California, 88 F.2d 512, 1937 U.S. App. LEXIS 3180 (9th Cir. 1937).

Opinion

HANEY, Circuit Judge.

This is an appeal from a decree enjoining appellants from drilling for oil on a strip of land 40 feet wide, which decree was entered in a suit brought by appellee against appellants and another.

It appears from the findings that on and prior to March 1, 1909, one Baldwin was the owner in fee of the 40-foot strip, and on that day died. Pursuant to the terms of his last will and testament, one Unruh was appointed executor and sold a tract of land, consisting of approximately 60 acres, by deed dated October 1, 1912, to one Temple. The deed contains, after the description by metes and bounds, the following provision: “Excepting and reserving, however, for road purposes, a strip of land of a uniform width of forty (40) feet, immediately along and adjoining on the Easterly and Southeasterly side of the entire length of the Westerly and Northwesterly boundary line of said two parcels of land.”

Th’s deed was properly recorded thereafter.

Temple let the premises to one Kent by oil lease dated August 11, 1915, which lease contained the following provision after the description: “Excepting a strip of land of a uniform width of forty (40) feet immediately along and adjoining on the Easterly and South Easterly side of the entire length of the Westerly and Northwesterly boundary line of said two parcels of land, reserved for road purposes.”

By this provision, the trial court found that “the parties to said Temple lease intended to and did reserve to the party oi the first part therein an easement for road purposes-over said forty-foot strip and did not intend to, and did not, except any oi the oil, gas or other hydrocarbon substances in or under said forty-foot strip. * * * ”

Thereafter the lease was recorded in the proper county.

The lease was assigned in writing on November 6, 1916, by Kent to Standard Oil Company, the assignment being properly recorded. Standard Oil Company assigned the lease to appellee, the assign-' ment being properly recorded.

Thereafter, and on June 16, 1933, Temple made and delivered a quitclaim deed to appellants, which was properly recorded. Appellants made and delivered a “Gas and Oil Lease” to defendant Nance.

Appellee and its predecessor in interest have drilled seventeen oil wells on the property covered by the Temple lease, none of which are located on the 40-foot strip. All of these wells are capable of producing oil, gas, and other hydrocarbon substances in commercially paying quantities. The oil-producing horizons underlying the surface of the Temple lease are predominately sands of a coarse nature, which offer a minimum resistance to the movement of fluids. The trial court further found:

“Oil wells upon these leases have a drainage area in excess of a four hundred (400) foot radius for each well. The wells now drilled upon said premises are sufficient to economically take the oil from the whole of said premises. Any new wells which might be drilled would take oil that may be produced from existing wells.
“If wells are drilled upon said forty-foot strip, such wells will drain oil from * * * the Temple [lease] * * * within a distance of exceeding 380 feet from said forty-foot strip.”

Defendant Nance entered the 40-foot strip about August 26, 1933, and began preparations for drilling thereon.

Appellee thereupon filed this bill to enjoin appellants and defendant Nance from drilling or using said 40-foot strip, and for an adjudication that appellants and defendant Nance have no title to such 40-foot strip for drilling purposes.

The trial court entered a decree in conformity with the prayer of the com[514]*514plaint .from which this appeal is taken. Defendant Nance did not appeal.

Appellant states the questions' involved as follows: “First, did the clause ‘excepting’ the forty (40) foot strip in the lease from Temple to Kent constitute an ‘exception’ of the fee thereto from operation of the lease, or did it merely constitute a ‘reservation’ of an easement or right of way for road purposes, the fee passing under the lease and the ‘easement’ only remaining in the lessor; and second, was it proper for the trial court in the determination of this question to admit parol evidence.”

With respect to the first question, to which the first, second, seventh, and eighth assignments are directed, in Sears v. Ackerman, 138 Cal. 583, 586, 72 P. 171, 172, it is said: “The distinction between a reservation and an exception is this: An exception is always'of some part of the estate not granted at all. A reservation is always of something taken back out of that which is clearly granted.” See, also, Lange v. Waters, 156 Cal. 142, 103 P. 889, 19 Ann.Cas. 1207; Pitcairn v. Harkness, 10 Cal.App. 295, 298, 101 P. 809.

To determine whether a reservation or an exception has been made,- we must look to the substance of the right excepted or reserved, and make an independent determination, regardless of how the ' right is termed in the instrument — whether termed “exception” or “reservation.” Painter v. Pasadena L. & W. Co., 91 Cal. 74, 81, 27 P. 539; Lange v. Waters, 156 Cal. 142, 146, 103 P. 889, 19 Ann.Cas. 1207; Coon v. Sonoma Magnesite Co., 182 Cal. 597, 189 P. 271.

In construing the instrument, “the intention of the parties, is to be pursued, if possible.” Code Civ.Proc.Cal. § 1859. See, also, Sears v. Ackerman, supra, 138 Cal. 583, 586, 72 P. 171; Lange v. Waters, supra, 156 Cal. 142, 146, 103 P. 889, 19 Ann.Cas. 1207; Coon v. Sonoma Magnesite Co., supra; Pitcairn v. Harkness, supra, 10 Cal.App. 295, 298, 101 P. 809; Edward Barron Estate Co. v. Waterman, 32 Cal. App. 171, 173, 162 P. 410; Moakley v. Los Angeles Pac. Ry. Co., 139 Cal.App. 421, 34 P.(2d) 218, 220.

Civ.Code Cal. § 1069, provides: “A grant is to be interpreted in favor of the grantee, except that a reservation in any grant * * * is to be interpreted in favor of the grantor.” See, also, Sears v. Ackerman, supra, 138 Cal. 583, 586, 72 P. 171; Coon v. Sonoma Magnesite Co., supra, 182 Cal. 597, 600, 189 P. 271; Hartwig v. Central-Gaither Union School Dist., 200 Cal. 425, 428, 253 P. 733. Cf. Lange v. Waters, supra, 156 Cal. 142, 146, 103 P. 889, 19 Ann.Cas. 1207; Pitcairn v. Harkness, supra, 10 Cal.App. 295, 298, 101 P. 809.

With these rules in mind we consider the clause in question. Appellants concede that the deed from Unruh to Temple of the' land, “Excepting and reserving, however, for road purposes, a strip of land, * * * ” conveyed the fee to the 40-foot strip to Temple. They contend, however, that the lease of land, “Excepting a strip of land * * * reserved for road purposes,” did not include the 40-foot strip at all, but that it was entirely excepted from the property leased.

In Painter v. Pasadena L. & W. Co., 91 Cal. 74, 81, 27 P. 539, a conveyance of land, with the provision that “a strip ten feet wide * * * is hereby expressly reserved from the above sale,” excepted from the conveyance the 10-foot strip. In Los Angeles & R. R. Co. v. New Liverpool Salt Co., 150 Cal. 21, 87 P. 1029, a lease of land, “saving and reserving a strip of land twenty feet in width,” excepted the strip from the lease. In Lange v. Waters, supra, a contract of sale described 20 acres, reserving one acre of land, and the one acre of land was held excepted. In Hartwig v. Central-Gaither Union School Dist., supra, a conveyance of land “less one acre and 106 square rods deeded * * *

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Bluebook (online)
88 F.2d 512, 1937 U.S. App. LEXIS 3180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-standard-oil-co-of-california-ca9-1937.