Texas O&GL's Section 9--Explaination in plain English please! Thanks

Texas O&GL's Section 9--Explaination in plain English please! Thanks

Sorry out of touch awhile and you're certainly not dense. I figured TRRC had standard forms to use but guess O&G lease contracts can be all shapes & sizes, content, etc. refering to the following:

9. Lessor hereby warrants and agrees to defend the title to said land and agrees that Lessee at its option may discharge any tax, mortgage or other lien upon said land, either in whole or in part, and in the event the Lessee does so, it shall be subrogated to such lien with the right to enforce same and apply royalties accruing hereunder toward satisfying same. Without impairment of Lessees rights under the warranty in the event of failure of title, it is agreed that if the lease covers a less interest in the oil, gas, sulfur, or other minerals in all or any part of said land than the entire and undivided fee simple estate (whether Lessor’s interest is herein specified or not), or no interest therein, then the royalties, and other monies accruing from any part as to which this lease covers less than such full interest, shall be paid only in the proportion which the interest therein, if any, covered by this lease (whether or not owned by Lessor) shall be paid out of they royalty herein provided. Should any one or more of the parties named as Lessors fail to execute this lease, it shall be neverless be binding upon the party or parties executing the same. (Producers 88 (4/76 Revised Paid Up with 640 acres Pooling Provision)

Does this mean before further monies are paid out they get all further payouts until they recoup their monies they feel their entitled to?

Cliff Williams said:

I'm just dense but I'd take a stab at it if you will present me a little more information.