Be aware of the following language in a top lease. This may not stop a current operator from drilling, but the operator you sign a top lease with can file a lawsuit and WILL result in holding your royalty payment until it’s settled. Any legal experts out there tell me if I’m wrong, but this is happening as we speak in Cass County, TX.
The Lessor understands a legal action may be filed on the mineral owners’ behalf seeking a judgment that the prior or existing lease to (XYZ Company) has expired, or in the alternative that (XYZ Company) has pooled the lease to them in bad faith. Lessor appoints Lessee as their special agent with full and complete power to take all necessary steps to obtain a release or judicial termination of the lease to (XYZ Company) on the leased premises. Said power of agency shall include the power to hire and retain counsel to file the litigation in the name of the Lessor; and the power to pursue such legal action in the courts of the State of Texas in the name of and on behalf of the Lessor