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,
|Published (Last):||24 December 2010|
|PDF File Size:||5.64 Mb|
|ePub File Size:||18.79 Mb|
|Price:||Free* [*Free Regsitration Required]|
BP Prudhoe Bay Royalty Trust – Wikipedia
Except in certain circumstances, the Trustee is entitled to be indemnified out of the assets of the Trust for any liability, expense, 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.
It is not known whether the Internal Revenue Service will accept the allocation based on this method. The Trust Agreement may be amended without a vote of the Unit holders to cure an ambiguity, to correct or supplement any provision of the Trust Agreement that may be inconsistent with any other provision or to make any other provision with respect to matters arising under the Trust Agreement that does not adversely affect the Unit holders.
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.
Underlying the Sadlerochit Group are the oil-bearing Lisburne and Endicott formations.
Amortization of the Royalty Interest is calculated based on the units of production method. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
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. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
The Trust will terminate upon the first to occur of the following events:. The Tax, in addition to increasing the basic oil production tax rate and the progressivity factor, also eliminates or reduce many deductions and credits.
Alaska does not impose an income tax on individuals or estates and trusts. Disclosure Controls and Procedures. Any sale of Trust properties must be for cash unless otherwise authorized by the Unit holders. An electronic device including magnetic flux leakage and ultrasonic thickness testing systems that is propelled through a pipeline to inspect the pipeline wall.
Under the provisions of FASB 69, no consideration can be given to reserves not considered proved at the present time. These estimates are reasonable. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or trrust smaller reporting company. The interests of the Unit holders are based upon oil produced from the oil rim and condensate produced b; the gas cap, but not upon gas production which is currently uneconomic or natural gas liquids production stripped from gas produced.
This Item describes several such risks and uncertainties, but not necessarily all of them. The Trustee may borrow from a lender not affiliated with the Trustee if cash on hand is not sufficient to pay current liabilities and the Trustee has determined that it is not practical to pay such liabilities out of funds anticipated to be trist in subsequent quarters and that, without such borrowing, the Trust property is subject to the risk of loss or diminution in value.
Net changes in prices and production costs. BP Alaska’s net production of oil and condensate from proved reserves in the BP Working Interests was less than 90, barrels per day on an annual basis during A grantor trust is not subject to tax, and its beneficiaries the Unit holders in the case of the Trust are considered for tax purposes to own the assets of the trust directly.
This tax is imposed on U. The owner of an economic interest in producing oil and gas properties is entitled to deduct an allowance for the greater of cost depletion or if otherwise allowable percentage depletion on each such property.
Royalty payments are received by the Trust and distributed to Trust Unit holders, net of Trust expenses, in the month succeeding the end of each calendar quarter. The Tax changes the basic tax rate from If a Foreign Taxpayer makes this election, it is entitled to claim all deductions with respect to such income, but a United States federal income tax return nay be filed to claim such deductions. The Trust periodically holds short-term investments acquired with funds held by the Trust pending distribution to Unit holders and funds held in reserve for the payment of Trust expenses and liabilities.
Year Ended December 31. The estimated reserve volumes attributable to the Trust will vary if different estimates of production, prices and other factors are used.
The duties of the Trustee are specified in the Trust Agreement and the laws of the State of Delaware.
BP Prudhoe Bay Royalty Trust
This election once made is irrevocable unless an applicable treaty provides otherwise or unless the Secretary of the Treasury consents to a revocation. An audit also includes assessing the accounting principles used and significant estimates made by the trustee, and evaluating the overall financial statement presentation. Although allowances for unplanned upsets are also considered in the estimates, the studies do not provide for any impediments to crude oil production as a consequence of major disruptions.
All Trust income is Alaska source income to corporate Unit holders and pruchoe be reported accordingly. The following discussion assumes that the Trust is properly classified as a grantor trust under current law and is not an nay taxable as a corporation. For example, there is no requirement for annual meetings of Unit holders or for periodic bya of the Trustee.
EDGAR ONLINE – BP PRUDHOE BAY ROYALTY TRUST – SEC FILINGS
However, the discovery of additional defects in Royalyt Bay Unit oil flowlines and transit lines, and damage to or failures of separation facilities or other critical equipment, could result in future shutdowns of oil production royalfy all or portions of the Prudhoe Bay Unit and have an adverse effect on future royalty payments.
After the end of each calendar year, the Trustee mails a report to the persons who held Units of record during the year containing information to enable them to make the calculations necessary for federal and Alaska income tax purposes, including the calculation of any depletion trusy other deduction which may be available to them for the calendar year.
Even though WTI Prices have been rising generally in recent years, they nevertheless remain subject to significant periodic fluctuations.
In the event of such borrowings, no further Trust distributions may be made until the indebtedness created by such borrowings has been paid in full. Units redeemed by the Trustee will be cancelled. Royalty Production from the Prudhoe Bay field is projected to decline and will eventually cease. The Prudhoe Bay prjdhoe has been in production since BP subsequently determined to shut down only the Eastern Operating Area of the field and continue production from the Western Operating Area.
The Trust is a passive entity. The Trustees disclosure controls and procedures include ensuring that it receives on a timely basis the information and reports provided by the Company, that the appropriate responsible personnel of the Trustee examine such information and reports and that information requested from and provided by the Company is included in the reports that the Trust files or submits under the Exchange Act.