In the District Court of the 12th Judicial District of the State of California, in and for the City and County of San Francisco

The California Star Oil Works Company
Plaintiff

Vs.

R.S. Baker, E.F. Beale, F.B. Taylor and John Doe
Defendants


COMPLAINT

Now come the plaintiffs in the above entitled action and, by leave of Court, show this, the second amended complaint therein, and alleges as follows:

That it is a corporation duly incorporated and organized under the laws of the State of California, and having its principal office in the City and County of San Francisco.

And plaintiff further alleges, on information and belief, that heretofore, to wit: on or about the 8th day of August, A.D. 1865, the defendants Baker and Beale, together with Sanford Lyon, Pio Pico, Juan Forster and Francisco P. Forster, located jointly and in common, upon what were then public lands of the United States, the same being placer mineral lands, all those certain mining claims, situated in the “San Fernando Petroleum Mining District,” State of California, and bounded and described as follows, to-wit:

“Commencing fifteen hundred feet due North of what is called the Pico Spring, thence East five hundred feet, thence South three thousand feet, thence West twenty-three hundred and thirty-three and one-third feet, thence North three thousand feet, thence to the place of beginning.”

That said location was made under and in pursuance of the laws of the United States of the State of California, and of the regulations, or local laws, of said District, and that, at the time thereof, the said locators were all citizens of the United States; that heretofore, to wit: on or about the 28th day of May, A.D. 1868, Sanford Lyon, one of the original locators, conveyed to one Christopher Leaming, by indenture duly made, executed and delivered, one-fourth (1/4) of his, the said Lyon’s, undivided interest in and to the said lands and mining claims so located as aforesaid.

And plaintiff further alleges that heretofore, to wit: on or about the 12th day of April, A.D. 1876, three of the said original locators, to wit: R.S. Baker and Edward F. Beale, the above named defendants, and Sanford Lyon, together with Christopher Leaming, as parties of the first part, and Ruben [sic] Denton, as party of the second part, made and executed a certain agreement in writing in words and figures as follows, to-wit:

This Lease, made the 12th day of April, A.D. 1876, between R.S. Baker, E.F. Beale, Sanford Lyon and Christopher Leaming, parties of the first part, and Ruben Denton, party of the second part, witnesseth, that the said parties of the first part, for and in consideration of the stipulations, rents, and covenants hereinafter contained, on the part of the said party of the second part, his executors, administrators and assigns, to be paid, kept and performed, have granted, demised and let, unto the said party of the second part, his executors, administrators and assigns, for the sole and only purpose of mining and excavating for petroleum, coal, rock or carbon oil, or other valuable mineral or volatile substances, all of that certain tract of land, situated in Los Angeles County, and State of California, and bounded and described as follows, to-wit:

Commencing at a point five hundred (500) feet due east from what is known as the Pico oil springs, said point being a stake marked No. 1, from thence north five hundred (500 ft.) feet to a stake marked No. 2, thence west one thousand feet (1000 ft.) to a stake marked No. 3, thence south one thousand feet (1000 ft.) to a stake marked No. 4, thence east one thousand feet (1000 ft.) to a stake marked No. 5, thence north five hundred feet (500 ft) to a stake marked No. 1, the place of beginning; the same being one thousand feet of what is known as the Pico oil springs claim.

To have and to hold the said premises, for the said purposes only, unto the said party of the second part, his executors, administrators and assigns, for, during and until the full term of three (3) years, next ensuing the day and year above written. The said party of the second part hereby covenants, in consideration of the said grant and demise, to deliver up to the said parties of the first part, their heirs and assigns, the full one-eighth part of the petroleum, coal, rock or carbon oil, or other valuable minerals or volatile substances, discovered, excavated, pumped and raised on the premises herein leased, as produced, excavated or pumped, in the crude state, in tanks at the well, the party of the second part to furnish said tanks, and in case the party of the second part shall pipe from said wells to the plain below, at or near the line of the railroad, to be constructed through the place known as the San Fernando tunnel, that then the said party of the second part will pipe down through their piping aforesaid, to the end of said piping, as above stated, at the option of the parties of the first part, all or any of their oil, being the proportion as hereinbefore set forth, at the rate and charge not exceeding twenty-five cents per barrel therefor, each barrel to consist of forty-two gallons.

The party of the second part further covenants and agrees at the election of the parties of the first part, to take all oil which may be set apart to the parties of the first part, under the agreement aforesaid, and in the condition aforesaid, at its market value, during each calendar month of the term of this lease, or any portion thereof, and to pay therefor every thirty days that the parties of the first part shall elect to sell, the market value of the oil to which the parties of the first part shall be entitled, under the covenants above specified. The part of the second part is to have the use of the four wells now in process of construction upon said premises, and no more, for the purpose of taking oil and petroleum from the said premises without the written consent and further agreement of the said R.S. Baker; one of the said wells to be by the said party of the second part sunk to a depth of five hundred feet (500 ft.), unless a full flowing well be struck at a less depth.

It is expressly understood and agreed, by the parties hereto, that the well now on said premises, known as the Sanford Lyons well, shall be, and hereby is, exempt and reserved from the operation of this lease to Sanford Lyons, or any other person or persons by him thereunto authorized for any and all purposes for which the same was sunk, and especially for the purpose of taking oil and petroleum from the premises aforesaid, and the said Sanford Lyons, his heirs and assigns shall, during the full period of this lease, be allowed free access across and over said premises to said well, for all purposes necessary for the use and free enjoyment of the uses and purposes for which said well is constructed.

It is further covenanted and agreed that the parties of the first part, during the time of the continuance of this lease, shall have free and uninterrupted passage and right of way over and all of the premises hereby leased, to any and all lands claimed, occupied or owned by the said parties of the first part, at or near the above demised premises, and for which it may be necessary or convenient to pass over or above the above demised premises, for necessary or convenient ingress or egress, or either.

And the party of the second part covenants and agrees, at the expiration of this Lease, to give and surrender up the said premises and the said wells peaceably and without consideration.

It is further mutually understood and agreed, that in case the said party of the second part shall fail or neglect, for the space of ninety days, at any time during the continuance of this Lease, to properly and in a workmanlike manner, operate and use said wells that then this shall terminate, be and of no further force and effect, and the parties of the first part will thereupon be restored to all their rights, privileges and estates, in like manner as though this Lease had never been executed. Time is hereby declared and expressly agreed to be of the essence of this Lease.

In witness whereof, the said parties hereto have hereunto set their hands and seals, this 12th day of April, A.D. 1876.

Robert S. Baker
E. F. Beale, By his attorney in fact, Robert S. Baker
Sanford Lyon
Christopher Leaming
Ruben Denton

That the premises in said agreement described were part and parcel of the lands and mining claims embraced in said original location; that afterwards, to wit: on or about the 5th day of May, 1876, the plaintiff, by due assignment and conveyance in writing, became, and now is, the assignee and transferee of all the right, title and interest of Ruben Denton, the said party of the second part, in, to and under said agreement, and as plaintiff alleges on information and belief, said parties of the first part have, at all times, had knowledge of the said assignment and transfer, and have acquiesced in the same and recognized the plaintiff as the assignee of said Denton’s said interest.
And plaintiff further alleges, on information and belief, that heretofore, to wit: on or about the 28th day of October, 1876, the said Lyon and Leaming, by indenture duly made, executed and delivered, assigned and conveyed to said defendant Taylor all their, and each of their, right, title and interest in and to an undivided on-seventh (1-7th) of the said lands and mining claims so located as aforesaid, and all their undivided right, title and interest in and to the said premises mentioned in the said agreement, as well as in and under said agreement, and that said Taylor is now the owner thereof; that, heretofore, to wit: on or about the 23d day of June, A.D. 1876, Juan Forster and Francisco P. Forster, two of the said original locators, assigned and conveyed to Romolo Pico, by indenture duly made, executed and delivered, all their, and each of their, right, title and interest in and to an undivided two-sevenths (2-7) of the said lands and mining claims so located as aforesaid, and in and to the premises described in said agreement; that heretofore, to wit: on or about the 28th day of September, A.D. 1876, the said Romolo Pico, by indenture duly made, executed and delivered, assigned and conveyed to F.B. Taylor, the above named defendant, all his, the said Pico’s, right, title and interest in and to an undivided two-sevenths (2-7) of the said lands and mining claims so located as aforesaid, and in and to the premises described in the said agreement, and that said Taylor is now the owner thereof.

And plaintiff further alleges that said Taylor claims, under and by virtue of the assignments and conveyances aforesaid, the right, title and interest in and to the undivided three-sevenths (3-7ths) of the said lands and mining claims so located as aforesaid and in and to the undivided three-sevenths (3-7ths) of the premises described in said agreement and of the oil and other considerations agreed to be delivered up by plaintiff, under and in pursuance of said agreement, and that said Taylor also claims, in addition to the undivided three sevenths (3-7ths) last above mentioned, and equitable right, title and interest in and to an undivided one-seventh (1/7th) of all the aforesaid premises, oil and other considerations in said agreement mentioned, the legal title to the same being in said defendant John Doe, whose real name is to plaintiff unknown, an, with respect to whom, plaintiff prays that, when his true name is discovered, it may be inserted, by proper amendments, in this complaint; that plaintiff now is and, ever since the 12th day of April, 1876, has been, through itself, or its predecessors in interest, in possession of the said premises, in said agreement mentioned, under and by virtue of said agreement, and has, under and in pursuance of said agreement, made various improvements on said premises and dug and bored wells thereon and, in all things, performed all conditions on its part to be performed under said agreement; that said oil is being extracted from the wells on said premises daily; that, as plaintiff is informed and believes, said oil is part of the freehold of said premises in said agreement described, being contained in natural reservoirs below the surface of the land, and that said premises are valuable on account of said oil and, without the same, have no value whatever, and that, when such oil is extracted, said premises will be valueless; that, acting under said agreement, it has extracted a quantity of oil and is ready and willing to render and deliver up the amount which it agreed to deliver up under said agreement to the parties entitled thereto, but that said defendant Taylor has notified plaintiff that said defendants Beale and Baker are entitled, together, to only three-sevenths (3/7ths) thereof, and that he, said Taylor, is entitled to four-sevenths (4/7ths), by reason of his rights, conveyances and assignments above mentioned, and not to pay or deliver to said Beale and Baker more than said three-sevenths, and that said Taylor threatens to sue plaintiff for such oil, and will, as plaintiff is informed and believes and so states the fact to be, hold it accountable for his proportion of such oil; the said Beale and Baker dispute and deny the rights of said Taylor and have notified plaintiff of that fact, and that, on account of said conflicting claims to the said oil and considerations agreed to be delivered up under said agreement, plaintiff does not know whether the same legally belong to the said Beale and Baker or to the said Taylor, or to whom to deliver up the same, and that, without the aid of the Court to determine to whom the same should be delivered, plaintiff would be obliged to deliver the same to one of the said conflicting claimants and be harassed and vexed by the suit or suits of the other claimant or claimants, or to hold the said oil and considerations agreed to be deliver up under said agreement and be vexed and harassed by the several suits of all the said conflicting claimants, and that plaintiff cannot safely render or deliver up the same until said adverse rights and claims are settled and determined; that neither the said defendants Beale and Baker, nor the said defendant Taylor, nor any of them, contest or dispute the rights claimed by plaintiff, under and by virtue of said agreement; but that said Beale, Baker and Taylor each recognizes and admits the right of the plaintiff to occupy and use the premises in said agreement described for the purposes and upon the conditions therein mentioned and for the full term thereof; that plaintiff is, and has always been, willing and ready to pay, render and deliver to the parties entitled thereto all the oil and other considerations mentioned in said agreement to be rendered, paid and delivered by it, by and under the same, and is ready and willing to account to any and all parties who may be entitled thereto; that plaintiff has no interest or claim whatever in, to, or upon any of the said oil, or other considerations to be rendered paid and delivered, under and by virtue of said agreement, except to deliver the same according to the terms, true intent and meaning of said agreement, to the person, or persons, legally entitled to receive the same, in such manner as to be protected from injury or damage, by the conflicting claims or said claimants, and plaintiff hereby offers to deposit in Court said oil and other considerations to be rendered, paid and delivered, under and by virtue of said agreement, or to deliver the same to such person or persons, and in such way, as the Court shall direct.

That the plaintiff never has been, and is not now, in collusion with, and that this action is not brought or prosecuted by collusion with the defendants, or any of them, or with any of their predecessor or predecessors in interest.

Wherefore, plaintiff prays judgment:

First: That the defendants, and each of them, be required to severally set forth and discover the right or title they and each of them have in and to the said oil and other considerations to be rendered and delivered up on the part of plaintiff, under and by virtue of said agreement, as well as the right and title which they, and each of them, have in, to and under said agreement, and how they, and each of them, derive and make out the same, and that they, and each of them, be required to set forth to which of them the said oil and other considerations and the arrears thereof, do of right belong, or is, or are payable, and to interplead, settle and adjust their demands and claims between themselves, and that plaintiff may be at liberty to pay, render and deliver said oil and other considerations to such of the said claimants as shall appear to be entitled thereto.

Secondly: That the rights of the defendants in the premises be adjudicated and settled, and that it be determined to whom the plaintiff shall render and deliver up the oil and other considerations to be rendered and delivered up, and under and by virtue of said agreement.

Thirdly: For costs of suit.

Fourthly: For all other relief, general and special, to which it may be entitled.

C. R. Greathouse
Attorney for Plaintiff
Duly verified by Joseph S. Taylor, Secretary of Cal. S. O. W. Co.

Filed March 20, 1878