Can Chanterelle Mushrooms grow on the trunk of a Tan Oak Tree? I've found some that look incredibly like Chanterelle mushrooms but they are drier than the ones found on the ground because they are exposed to the air.

No. Chanterelles grow on the ground.

What you've probably found are Gerronema chrysophylla. They resemble small Chanterelles but grow from wood.

Yes...they only grow on the forest floor.

But a poisonous look-alike, the Omphalotus olearius, does grow on Oak trees ..... so be Careful.