Harlan F. Stone

“ But appellants insist that it was erroneous to tax the lessor's interest as realty in Wichita county, instead of personalty taxable in Tarrant county, the residence of the taxpayer. As they rely on the allegation in the bill that the board intentionally and systematically exempted from taxation other personal property in Wichita county, it is implicit in this contention that the taxing authorities, by treating these interests as realty instead of personalty, denied them the equal protection of the laws. ”

“ It is to be noted that the leases contain no words of grant of the minerals as such, but the lands are demised solely for the purpose of drilling and mining. The lessees are in terms given neither title, right of appropriation nor power of disposition of the share of the oil which is to be delivered to the lessor when severed from the soil. The covenant of the lessees to pay seven-eighths of all increase in tax 'by virtue of gas and oil' is inconsistent with the contention that the lessor retained no interest in the minerals in place in the soil. ”

“ It thus conferred on the lessee the essentials of ownership-possession, with unrestricted power of appropriation and disposition of the oil. The lessee was therefore properly taxed as owner. The considerations which led to that result lead to the conclusion here that the ownership of the royalty oil remained in the lessor who retained the power of disposition and the right to receive possession, and that his interest was properly taxed as realty. ”