Company: GULTU
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021996
Chunk: 8

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 expenses or liabilities, whether from the Depositor or from any other source, must be repaid before the Royalty Trust
unitholders will receive any distributions. During 2024, the Depositor loaned the Royalty Trust $200,000 on November 6, 2024. During
the nine months ended September 30, 2025, HOGA loaned the Royalty Trust $10,750 on May 16, 2025, $42,469 on June 27, 2025, $58,007 on
July 31, 2025 and $50,438 on September 26, 2025. As of September 30, 2025, the Royalty Trust has an outstanding note payable to HOGA
of $361,664.

Pursuant
to the Royalty Trust Agreement, the Depositor agreed to provide and maintain a $1.0 million stand-by reserve account or an equivalent
letter of credit for the benefit of the Royalty Trust to enable the Trustee to draw on such reserve account or letter of credit to pay
obligations of the Royalty Trust if its funds are inadequate to pay its obligations at any time. Currently, with the consent of the Trustee,
the Depositor may reduce the reserve account or substitute a letter of credit with a different face amount for the original letter of
credit or any substitute letter of credit. In connection with this arrangement, the Depositor provided $1.0 million to the Royalty Trust.
The $1.0 million, plus interest collected thereon, is reflected as reserve fund cash, with a corresponding reserve fund liability in
the accompanying Statements of Assets, Liabilities and Trust Corpus. Effective December 31, 2024, FCX assigned its right, title and interest
in the stand-by reserve account to HOGA, and HOGA assumed the responsibility to maintain the stand-by reserve account from FCX. The Royalty
Trust did not use any funds from the reserve account to pay administrative expenses during the three- and nine-month periods ended September
30, 2025. As of September 30, 2025, the Depositor had not requested a reduction of the reserve account.

Administration.

Compensation
of the Trustee.

   9  

5.
DISTRIBUTIONS

There
were no distributions for the three- and nine-month periods ended September 30, 2025 and 2024, as the Royalty Trust did not