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 estimated reserve volumes attributable to the Trust will vary if different estimates of production, prices and other factors are used. The pipeline system also is vulnerable to failures of pipeline segments and pumping equipment, accidental damage and deliberate attacks.
Crude oil prices are subject to significant changes in response to fluctuations in the domestic and world supply and demand and other market conditions as well as the world political situation as it affects OPEC and other producing countries.
They distribute royalties on a portion of the oil yrust from the Prudhoe Bay Oil B, typically Under the Trust Agreement, the Trustee is entitled to receive on each Quarterly Record Date a quarterly fee, currently consisting of: Unit holders will avoid backup withholding by furnishing their correct TINs to the Trustee in the form required by law.
Finally, the Trustee may sell the Trust Estate upon termination of the Trust. As of February 28,21, Units of Beneficial Interest rtust outstanding. BP has announced plans to completely replace approximately 16 miles of transit lines and has implemented federally-required corrosion monitoring practices. This may result from changes in the Pdudhoe Price or from changes in other prescribed variables utilized in calculations defined by the Overriding Royalty Conveyance.
The Trust was formed for the sole purpose of owning and administering the Royalty Interest.
BP Prudhoe Bay Royalty Trust K
The Company also has the right to sell or assign all or any part of its working interest in truxt Prudhoe Bay Unit, so long as the sale or assignment is expressly made subject to the Royalty Interest and the terms and provisions of the Conveyance.
TAPS has a capacity of approximately 1. Oil production from the Prudhoe Bay Unit could be interrupted by damage to the Trans-Alaska Pipeline System from natural disasters, accidents, or deliberate attacks.
If the Units are neither listed nor traded in the over-the-counter prudhpe, the price will be the fair market value of the Units as determined by a recognized firm of investment bankers or other competent advisor or expert.
In their Annual Report, the Trust estimated it would continue to make royalty payouts through at least the year Trust Corpus 40, units of tryst interest authorized, 21, units issued and outstanding.
Unit holders do not have the right under the Trust Agreement to seek or secure any partition trrust distribution of the Royalty Interest or any royaltu asset of the Trust or any accounting during the term of the Trust or during any period of liquidation and winding up. 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.
Resignation or Removal of Trustee. However, in the Conveyance the Company agreed to pay timely all costs and expenses chargeable to it and to ensure that no such costs and expenses will be chargeable against the Royalty Interest.
Revisions by BP Alaska of its Royalty Production calculations may result in quarterly royalty payments by BP Alaska which reflect adjustments for overpayments or underpayments of royalties with respect to prior quarters.
It is possible that economic production from the reserves allocated to the BP Working Interests could decline more quickly and end sooner than 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.
See Note 8 above. Under such circumstances, average daily production attributable to the BP Prudhoe Bay Royalty Trust will have no value and therefore will not contribute to the reserves regardless of BP Exploration Alaska Inc.
If the pipeline or its pumping stations should suffer major damage from natural or man-made causes, production from the Prudhoe Bay Unit could be shut in until the pipeline system can be repaired and restarted. Liabilities and Trust Corpus. Royalty payments by BP Alaska with respect to those quarters were based on estimates by BP Alaska of production levels because actual data was not available by the dates on which payments were required to be made to the Trust.
Statement of Assets, Liabilities and Trust Corpus Prepared on a modified basis of cash receipts and disbursements. The Trustee can only borrow from an entity not affiliated with the Trustee. In addition to production estimates and prices, reserve volumes attributable to the Trust are affected by the amount of Chargeable Costs that will be deducted in determining the Per Barrel Royalty.
The investigations included reviews of the estimates of Proved Reserves and production rate forecasts of oil and condensate made by BP Exploration Alaska Inc.
BP Prudhoe Bay Royalty Trust(BPT) Annual Report (10K) Quarterly Report (10Q)
The Royalty 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. If a court were to hold that the Trust is an association taxable as a corporation, the Trust would incur substantial income tax liabilities in addition to its other expenses. The following is a summary of the principal tax consequences to Unit holders resulting from the ownership and disposition of Trrust.
There is no precise method of allocating estimates of physical quantities of reserve volumes between the Company and the Trust, since the Royalty Interest is not pudhoe working interest and the Trust does not own and is not entitled to receive any specific volume of reserves from the Field. 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 gp, or any other status, of any trusf or more Unit holders, the Trustee may require each holder whose nationality or other status is an issue prudnoe the proceeding to dispose of his Units to a party not of the nationality or other status at issue in the proceeding.
The Units do not represent an interest in or an obligation of BP Alaska, Standard Oil or any of their respective affiliates. It has no foreign operations and holds no long-term debt instruments. The Trust Agreement and the Trust are irrevocable.
The Trust Agreement may also be amended with the approval of a majority of the outstanding Units at royalyy meeting of holders of Units. Per Barrel Royalty Calculations. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Each Trust Unit issued and outstanding represents an equal undivided share of beneficial interest in the Trust. There is no precise method of forecasting the allocation of prudhooe volumes between the Company and the Trust.
Chargeable Costs for and subsequent years are shown in the following table:.
BP Prudhoe Bay Royalty Trust
Views Read Edit View history. Various sections gp this report contain forward-looking statements that is, statements anticipating future events or conditions and not statements of historical fact. Each Trust Unit issued and outstanding represents an equal undivided share of beneficial interest in the Trust.
During the past few years, numerous environmental laws and regulations have taken effect tdust the federal, state and local levels. The Trust has no directors or executive officers. This tax is in addition to the tax on effectively connected income. The terms of the Trust Agreement seek to assure to the extent practicable that income, expenses and deductions attributable to each distribution are reportable by the Unit holder who receives the distribution.
Estimates and assumptions are required to be made regarding assets, liabilities and changes in Trust corpus resulting from operations when financial statements are prepared. The Trust Agreement imposes no restrictions on nationality or other status of the persons eligible to hold Units.