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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A market valuation determination would include, among other things, anticipated price changes and the value of additional reserves not considered proved at the present time or reserves that may be produced after the currently anticipated end of field life. Table of Contents Other pipeline projects from the mid-continent to Gulf Coast refining centers have also helped reduce the cost of transporting crude oil to refiners. The Trust has no rogalty or executive officers.
The laws and regulations affecting these matters are complex, and are subject to change by future legislation or regulations or new interpretations by the Internal Revenue Service, state taxing authorities or the courts. The Royalty Interest is based upon oil produced from the oil rim pruhdoe condensate produced from the gas cap, but not upon gas production which is currently uneconomic on a large scale or natural gas liquids production stripped from gas produced. Roaylty interests of the Unit holders are based upon oil produced from the oil rim and condensate produced from the gas rrust, but not upon gas production which is currently uneconomic or natural gas liquids production stripped from gas produced.
Except in certain circumstances, the Trustee is entitled to be indemnified out of the assets of the Trust for any liability, bl, claim, damage or other loss incurred by it in the performance of its duties unless such loss results from its negligence, bad faith or fraud or from its expenses in carrying out such duties exceeding the compensation and reimbursement it is entitled to under the Trust Agreement.
A market valuation determination would include, among other things, anticipated price changes and the value of additional reserves not considered proved at the present time or reserves that The Units do not represent an interest in or an obligation of 10-o Alaska, Standard Oil or any of their respective affiliates.
The Prudhoe Bay field extends approximately 12 miles by 27 miles and contains nearlygross productive acres. Earlier in an application was submitted to the U. In the event of such borrowings, no further Trust distributions may tryst made until the indebtedness created by such borrowings has been paid in full. All Trust income is Alaska source income royaly corporate Unit holders and should be reported accordingly.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Oil production from the Prudhoe Bay Unit could be interrupted by damage to the Trans-Alaska Pipeline System from natural causes, accidents, deliberate attacks or declining oil flows.
All administrative functions of the Trust are performed by the Trustee. royxlty
BP Prudhoe Bay Royalty Trust
Unit Ownership of Management. The production of oil and gas in Alaska is affected by many state and federal regulations with respect to allowable rates of production, marketing, pruddhoe matters and pricing.
The Trust has no other authorized or outstanding class of securities. The Prudhoe Bay Unit Operating Agreement also defines operator responsibilities and voting requirements and is unusual in its establishment of separate participating areas for the gas cap and oil rim. The Company retained all rights, obligations, and liabilities baay with the Trust. Each Unit represents an equal undivided share of beneficial interest in the Trust.
Subsequent events royalth been evaluated through the date of the annual report on Form K in which these financial statements are included. These estimates are reasonable.
Trust Corpus 40, units of beneficial interest authorized, 21, units issued and outstanding. This tax is imposed on U. The operation of the Prudhoe Bay Unit is subject to normal operating hazards incident to the production and transportation of oil in Alaska.
BP Prudhoe Bay Royalty Trust(BPT) Annual Report (10K) Quarterly Report (10Q)
Units are evidenced by transferable certificates issued by the Trustee. Foreign holders owning more than five percent of the outstanding Units are subject to United States federal income tax on the gain on the disposition of their Units. When global markets have excess supply, traders may store excess crude in anticipation of selling it in the future when prices have increased. Irrevocability; Amendment of the Trust Agreement.
In accordance with generally accepted accounting principles, the Trust amortized the value of the Royalty Interest based on the units of production method. Royalty revenues are generally received on the Quarterly Record Date generally the fifteenth day of the month following the end of the calendar quarter in which the related Royalty Production occurred.
Royalty payments to the Trust are projected to cease after Production of oil and condensate from the field has been declining during recent years and the decline is expected to continue. This page was last edited on 6 Augustat This may result from changes in the West Texas Intermediate Price or from changes in other prescribed variables utilized in calculations defined by the Overriding Royalty Conveyance.
The Company has not conveyed any additional royalty interests to the Trust, and the Trust has not issued any additional Units, since the inception of the Trust.
However, if the sale is made in order to pay specific liabilities of the Trust then due and involves a part, but not all or substantially all, of the Trust properties, the sale only needs to be approved by the vote of holders of a majority of the Units. The Trust prydhoe not have internal controls to ensure that BP Alaska paid royalties in compliance with the terms of the Overriding Royalty Conveyance Agreement. In their Annual Report, the Trust estimated it would continue to make royalty payouts through at least the year Because of the short-term nature of these investments and limitations on the types of investments which may be held by the Trust, the Trust is not subject to any material interest rate risk.
Revisions of previous estimates 2. Resignation or Removal of Trustee. In Junethe U. However, the Trust Agreement provides that if prudoe 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 one or more holders, the following procedures will be applicable: The Trustee also bills the Trust for certain reimbursable expenses.
Standard Oil and the Company are indirect wholly owned subsidiaries of the BP p.
Ba sale must be effected at a price which in the opinion of an investment banking firm or commercial banking firm is at least equal to the fair market value of the interest sold and is effected pursuant to commercially reasonable terms when compared to other available alternatives. The Trust will terminate upon the first to occur of the following events: The Royalty Interest is a property right under Alaska law which burdens production, but there is no other security interest in the reserves or production revenues assigned to it.