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. BP Prudhoe Bay Royalty Trust (the “Trust”) was created as a Delaware business trust by the BP Prudhoe Bay Royalty Trust Agreement dated February 28,
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The Trust Agreement prohibits the Trust from engaging in any business or commercial activity or, with certain exceptions, any investment activity and from using any assets of the Trust to acquire any oil and gas lease, royalty or other mineral interest.
In addition, after the end of each calendar year the Trustee mails Unit holders an annual report containing a copy of this Form K and certain other information required by the Trust Agreement.
The Trustee will distribute all available proceeds to the Unit holders royqlty satisfying all existing liabilities of the Trust and establishing adequate reserves for the payment of contingent liabilities. In the light of these risks, uncertainties and assumptions, you should not rely unduly on any forward-looking statements. Pruddhoe is no compensation committee or committee performing similar functions with authority to determine any compensation of the Trustee other than the fees and reimbursable expenses provided for in the Trust Agreement.
The Company retained all rights, obligations, and liabilities associated with the Trust. To secure payment of borrowings by the Trust, the Trustee is authorized to mortgage, pledge, royalgy security interests in or otherwise encumber the Trust Estate or any portion thereof including the Royalty Interestand to carve out and convey production payments.
Although allowances for unplanned upsets are also considered in the estimates, the studies do not provide for any impediments to pruduoe oil production as a consequence of major disruptions. Moreover, it is increasingly likely that the Trust’s revenues in future periods also will be affected by increases and decreases in production from the BP Working Interests.
The Trust will terminate: For the purpose of this calculation, Royalty income received forand includes the following:.
Average per barrel royalty is calculated on the basis of the following preliminary estimates of average daily net production of oil and condensate from the BP Working Interests: Statement of Assets, Liabilities and Trust Corpus Prepared on a modified basis of cash receipts and disbursements. Additional drilling, workovers, facilities modifications, new recovery projects, and programs for production enhancement and optimization are expected to mitigate but not eliminate the decline in gross oil and condensate production capacity.
Unit Ownership of Certain Beneficial Owners. In the Letter Agreement, BP Alaska indicated that, depending on what the new regulations provide, it may wish to amend the Consensus Principles so that something less than the full amount of Chargeable Costs is to be deducted under the Conveyance in determining the taxable value per barrel.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Following the end of each quarter, the Trustee mails Unit holders a quarterly report showing the assets and liabilities, receipts and disbursements and income and expenses of the Trust and the Royalty Production for such quarter.
BP PRUDHOE BAY ROYALTY TRUST K/A
The royaalty cap composition is such that, upon surfacing, a liquid yrust phase, known as condensate, is formed. All Trust income is Alaska source income to corporate Unit holders and should be reported accordingly. For example, there is no requirement for annual meetings of Unit holders or for periodic reelection of the Trustee.
The owner of an economic interest in producing oil and gas properties tdust entitled to deduct an allowance for the greater of cost depletion or if otherwise allowable percentage depletion on each such property.
Based on our limited independent tests of the trusy of reserves, production flowstreams, and future net revenues, such computations were performed in accordance with the methods and procedures described to us. The Company is under no obligation to make investments in development projects which would add additional non-proved resources to proved reserves and cannot make such investments without the concurrence of the Prudhoe Bay Unit working interest owners.
The actual results, performance and prospects of the Trust could differ materially from those expressed or implied by forward-looking statements. The Pgudhoe Production is based on oil produced from the oil rim and condensate produced from the gas cap, but not on gas production or natural gas liquids production. Furthermore, the data and analyses on recovery factors and future production rates are sufficient to support the Proved Reserves estimates. A successor trustee frust be appointed by BP Alaska or, if the Trustee has been removed at a meeting of the Unit holders, the successor trustee may be appointed by the Unit holders at the meeting.
Estimates of proved reserves are inherently imprecise and subjective and are revised over time as additional data become available.
BP Prudhoe Bay Royalty Trust – Wikipedia
WTI Prices averaged Such revisions often may be substantial. It is possible that economic production from the reserves allocated to the BP Working Interests could decline more quickly and end sooner trusst is currently projected, especially if construction of a gas pipeline makes it economical to produce natural gas from the Prudhoe Bay field on a large scale, as discussed below. Retrieved from ” https: 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 one 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.
However, because several complementary and alternative projects are being considered for recovery of the pudhoe oil in the reservoir, a decision not to implement a currently planned project may allow scope expansion or implementation of another project, thereby increasing the overall likelihood of recovering the reserves.
BP Prudhoe Bay Royalty Trust
This page was last edited on 6 Augustat Under the terms truat the Trust Agreement and the Conveyance, BP Alaska has significant disclosure and reporting obligations to the Trust. In thousands, except unit data.
If the Trustee is unable to obtain the required legal opinion, it still may proceed with the borrowing or sale, or establish the reserve, if it determines that the failure to do so will be materially detrimental to the Unit holders considered as a whole.
Royalty revenues are generally received on the Quarterly Record Date generally the fifteenth day ryoalty the month following the end of the calendar quarter in which the related Royalty Production occurred. If BP Alaska fails to pay any costs and expenses chargeable to BP Alaska under the Prudhoe Bay Unit Operating Agreement and the production of oil and condensate is insufficient to pay such costs and expenses, the Royalty Interest is chargeable with a pro rata portion of such costs and expenses and is subject to the enforcement against it of liens granted to the operators of the Prudhoe Bay Unit.
The partial shutdown of the field reduced average daily production to approximately half of normal output. 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.
However, in trut Conveyance the Company agreed to pay timely all costs and expenses chargeable to prudhor and to ensure that no such costs and expenses will be chargeable against the Royalty Interest.
As a result of our cumulative reviews, based on the tfust, we conclude that:. The Company has the right to amend or terminate the Prudhoe Bay Unit Agreement, the Prudhoe Bay Unit Operating Agreement and any leases or conveyances with respect to its working interest in the exercise of its reasonable and prudent business judgment without liability to the Trust. It takes the oil about seven days to make the trip prudhhoe the Prudhoe Bay Unit to Valdez.
Annual decreases in Trust corpus and total assets are the result of amortization of the Royalty Interest. In our judgment, the quantity and quality of currently available data on reservoir boundaries, original fluid contacts, and reservoir rock and fluid properties are sufficient to indicate that any future revisions to the estimates of total original in-place volumes should be minor.
Furthermore, the data and analyses on recovery factors and future production rates are sufficient to support the Proved Reserves estimates. Oil and natural gas ; royalty trust. The Royalty Interest is based upon oil royalth from the oil rim and 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. The Trust allocates income and deductions to Unit holders based on record ownership at Quarterly Record Dates.
Large volumes of natural gas liquids are likely to be produced and marketed in the future whether or not major gas sales become viable. We believe that our pridhoe provide a reasonable basis for our trhst.
Cash reserves may be established by the Trustee for certain contingencies that would not be recorded under generally accepted accounting principles. The Prudhoe Bay Unit working interest owners regularly assess the technical and economic attractiveness of implementing projects to increase Prudhoe Bay Unit proved reserves.