Hanna Mining Co. v. State Tax Commission

Edward H. Howell, Judge.

Plaintiff as a sublessee is engaged in mining nickel ore deposits near Riddle, Oregon, under a lease from a California mining corporation, the owner of the fee interest in the mine. Plaintiff’s deduction of a percentage depletion for the years 1957, 1958 and 1959 was disallowed by defendant.

The parties have stipulated that the issue is whether a sublessee of a metal mine is entitled to a deduction for percentage depletion under ORS 317.290 or whether the right to the deduction is restricted solely to the fee owner of the mine. In deciding this issue it does not appear…