We received information that our owner/operator has gone bankrupt. They are 6 month behind on royatly payments. In our lease it states:
"Security Interest. Lessor hereby retains a security interest in all of (i) the oil and gas produced and saved from the Leased Premises or lands pooled therewith, under and pursuant to this lease, and (ii) all proceeds of sale of such oil and gas and all accounts arising therefrom (the "Collateral"), to secure Lessee's payment of royalties and compliance with the other terms and provisions of this lease. In addition to any other remedies provided in this lease, Lessor, as a secured party, may in event of Lessee's default hereunder proceed under the Texas Uniform Commercial Code as to the Collateral, in any manner permitted by said Code. In the event of default by Lessee, Lessor shall have the right to take possession of the Collateral, and to receive the proceeds attributable thereto and to hold same as security for Lessee's obligations or to apply it on the amounts owing to Lessor hereunder. The Collateral includes minerals to be financed at the wellhead of the wells and accounts from the sale thereof, and this lease shall be deemed a financing statement under the Code. The addresses of Lessor, as Secured Party, and Lessee, as Debtor, are as set forth at the beginning of this lease."
Do we not have a right to take possession of operators mineral rights they retained? and or the revenue from such? When a home owner defaults on a home mortgage , they take the home. Am I not afforded this concept with the above stated clause?