DALLAS, Sept. 16 /PRNewswire-FirstCall/ -- Williams Coal
Seam Gas Royalty Trust (NYSE: WTU) announced today updated
information regarding the status of the termination of the Trust.
Pursuant to the terms of the Trust Agreement, the trustee
solicited bids for the Trust's royalty interests, and bids were
received at the end of June. Contractual negotiations with
the highest bidder have proceeded, and as part of such
negotiations, the bidder requested certain revisions to its offer.
As a result, the trustee has directed Albrecht and Associates
(the "Advisor") to request updated bids from previous bidders to
confirm the highest bid.
Pursuant to the terms of the Trust Agreement, the Trust
terminated effective March 1, 2010
because the reserve report as of December 31, 2009, reflects
that, as of such date, the net present value (discounted at
10 percent) of the estimated future net revenues for proved
reserves attributable to the royalty interests but using the
average monthly Blanco Hub Spot Price for the past calendar year
less certain gathering costs was equal to or less than
$30 million thereby triggering a termination of the Trust.
Following termination, the trustee has continued to act as
trustee of the Trust until all Trust assets are sold and the net
proceeds from such sales distributed to unitholders. The
trustee has continued to use best efforts to sell the Trust's
assets in accordance with the procedures set forth in the Trust
Agreement. These procedures are described in more detail in
the Trust's most recent annual report on Form 10-K and quarterly
report on Form 10-Q filed with the Securities and Exchange
Commission.
If no acceptable offers are received for all remaining royalty
interests, the trustee may request Williams Production Company, LLC
("WPC") to submit an offer for consideration by the trustee and may
accept or reject such offer. Acceptance of an offer by the
trustee shall be conditioned upon the opinion of the Advisor of the
fairness of the offer.
The Trust owns net profits interests in certain proved coal seam
gas properties owned by WPC and located in the San Juan Basin of northwestern New Mexico (the "Working Interest Properties")
and southwestern Colorado,
including WPC's 35 percent net profits interest in 5,348 gross
acres in La Plata County, Colorado
(the "Farmout Properties").
The Trust is a grantor trust formed by The Williams Companies,
Inc., parent company of WPC, and was designed to provide
unitholders with quarterly cash distributions and tax credits under
Section 29 of the Internal Revenue Code, which has expired as of
12/31/2002, from certain coal seam gas properties. The units
are listed on The New York Stock Exchange under the symbol
"WTU".
Additional information including Williams' cash distribution
history, current and prior year financial reports, a link to
filings made with the Securities and Exchange Commission and more
can be found on its website at
http://www.wtu-williamscoalseamgastrust.com/.
SOURCE Williams Coal Seam Gas Royalty Trust
Copyright . 16 PR Newswire