Analyze up to 10 years of full 10K Annual Reports and Quarterly 10Q SEC filings for Bp Prudhoe Bay Royalty Trust (BPT) using our online tools to quickly find. BP Prudhoe Bay Royalty Trust (the “Trust”), a grantor trust, was created as a Delaware business trust pursuant to the BP Prudhoe Bay Royalty Trust Agreement. Prudhoe Bay Unit Operation and Ownership. Since several oil companies besides BP Alaska hold acreage within the Prudhoe Bay field, The Trust’s Royalty Interest pertains only to.
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BP Alaska has the right to amend or terminate the Prudhoe Bay Unit Agreement, the Prudhoe Bay Unit Operating Agreement and truet leases or conveyances with respect to the Working Interests in the exercise of its reasonable and prudent business judgment without liability to tust Trust. However, it provides that if at any time the Trust or the Trustee is named a party in any judicial or administrative proceeding seeking the cancellation or forfeiture of any property in which the Trust has an interest because of the nationality, or any other status, of any bzy or more Unit holders, the Trustee may require each holder whose nationality or other status is an issue in the proceeding to dispose of his Units to a party not of the nationality or other status at issue in the proceeding.
Evaluation of Disclosure Controls and Procedures. In AugustBP Alaska shut down the eastern side of the Prudhoe Bqy Unit following the discovery of unexpectedly severe corrosion and a small spill from the pruvhoe transit line on that side of the Unit. The Trustee assumes that some Trust Units are held by a middleman, as such term is broadly defined in the U.
Unit holders thus are subject to the risk that cash distributions with respect to their Units may vary widely from quarter to quarter. The Trustee may, in its sole discretion, cause the Trust to borrow any amount required to redeem the Units.
To the extent that average net production from the Working Interests is below 90, barrels per day, calculation by BP Alaska of actual Royalty Production data may result in revisions of prior Royalty Production estimates. The Trust has no directors, officers or employees to whom it pays compensation. Prudhoe Bay field oil production could be shut in partially or entirely from time to time as a result of damage to or failures of field pipelines or equipment. Royalty payment as calculated.
The decrease in Production Taxes during the twelve-month period was primarily due to the modest decline in the production levels from the Working Interest for the twelve-month period. Whether the Trust will be entitled to future distributions during the remainder of will depend on WTI Prices prevailing during the remainder of the year.
The Trustee, to the extent possible, pays all expenses of the Trust for each quarter on the Quarterly Record Date on which the revenues for the quarter are received. Remo Reale, Corporate Trust Department; if by telephone, to: Table of Contents does not exceed the liabilities and expenses of the Trust, and will replenish the reserve from future quarterly distributions, if any.
Revisions of previous estimates 2. Unit holders do not have the right under the Trust Agreement to seek or secure any partition or distribution of the Royalty Interest or any other asset of the Trust or any accounting during the term of the Trust or during any period of liquidation and winding up. Standardized measure of discounted future net cash flow relating to proved reserves.
The production of oil and gas in Alaska is affected by many state and federal regulations with respect to allowable rates of production, marketing, environmental matters and pricing.
Even if expected reservoir performance does not change, the estimated reserves, economic life, and future revenues attributable to the Trust may change significantly in the future.
Views Read Edit View history. Estimates and assumptions are required to be made regarding assets, liabilities and changes in Trust corpus resulting from operations when financial statements are prepared. Standard Oil and the Company are indirect wholly owned subsidiaries of the BP p.
However, pursuant to Internal Revenue Code sectioncertain depletion deductions claimed with respect to the Units must be recaptured as ordinary income upon sale or disposition of such interest.
Limited Liability of Unit Holders.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Rather, reserve volumes attributable to the Trust at any given date are estimated by allocating to the Trust its share of estimated future production from the Field based on WTI Prices and other economic parameters in effect on the date of the evaluation.
Unit Ownership of Certain Beneficial Owners. As described in note 2 to the financial statements, these financial statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Increase decrease in accrued expenses.
BP Prudhoe Bay Royalty Trust
This expansion of pipeline capacity from Cushing to Gulf Coast refineries relieved the mid-continent bottleneck by transporting the excessive inventories that had built up in Cushing, thereby helping to reduce supplies from For example, there is no requirement for annual meetings of holders of Units or annual or other periodic reelection of the Trustee. The Royalty Interest entitles the Trust to a royalty on The Prudhoe Bay field, which was discovered in by BP and others, has been in production since prudhhoe is the largest producing oil field in North America.
However, several royapty investments which would augment Prudhoe Bay projects are already in progress. Includes proved undeveloped reserves of Alaska does not impose an income tax on individuals or estates and trusts. Treasury Regulations which includes custodians, nominees, certain joint owners, and brokers holding an interest for a custodian in street name.
BP Prudhoe Bay Royalty Trust –
Unit holders possess certain voting rights, but their voting rights are not comparable to those of shareholders of a corporation. The Trust will terminate: However, the Per Barrel Royalty will not have a positive value if the West Texas Intermediate Price is less than the sum of the per barrel Chargeable Costs and per barrel Production Taxes, appropriately adjusted in accordance with the Overriding Royalty Conveyance.
Unless the Trust already has a trustee that is a resident of or has 10-o principal office in the State of Delaware, then any successor trustee will be such a resident or have such a principal office. The Trustee, subject to certain conditions, is obligated to establish cash reserves and borrow funds to pay liabilities of the Trust when they become due.