Bailey v. Fed. Land Bank of N.O.

On January 1, 1946, appellee was the owner of undivided interests in oil, gas and mineral rights in and under certain lands in Madison County, Mississippi. These mineral interests were leased by appellee prior to said date under the usual ten year oil, gas and mineral lease whereby appellee, as lessor, received an initial cash consideration which is usually termed a bonus, and this kept the lease alive for a period of one year; the obligation of drilling by the lessee could be deferred and the lease kept in effect thereafter from year to year by the payment of an annual delay rental; in the…