FHE Oil Co. v. Commissioner of Internal Revenue

(specially concurring) .

I think that the Tax Court was justified in holding that the cost of drilling a well on each of the nine tracts was a part of the consideration for the assignment of the lease to the taxpayer where, as in this case, the lease could not be kept alive by the payment of an annual rental but required drilling, termination, or reversion within a certain time, so long as the holdings of this Court in Hardesty v. Commissioner of Internal Revenue, 5 Cir., 127 F. 2d 843, Hunt v. Commissioner of Internal Revenue, 5 Cir., 135 F.2d 697, Stansylvania Oil & Gas Co. v. Commissioner…