Company: MTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001104659-25-029944
Chunk: 24

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 24
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 pollutants from new and existing sources in the oil and gas industry with a particular focus on methane (the “ Methane Rule”) in March 2024 seeking to reduce methane from oil and natural gas operations, the EPA announced that it will be reconsidering the rule in March 2025. On reconsideration, the EPA is likely to significantly pare the rule and its requirements back. In March 2024, the SEC adopted rules that will require public issuers to disclose specific climate-related information in their filings with the SEC. In February 2025, the SEC announced that it would no longer be defending challenges to its rules pertaining to the disclosure of climate specific information. While climate policies may be further rolled back at the federal level, some states have taken or proposed legal measures to reduce emissions of greenhouse gases. For example, a number of states, including states in which the Royalty Properties are located, have indicated an intent to reduce greenhouse gases through state action or regional partnerships. Similarly, Vermont and New York have enacted climate superfund laws that create strict liability compensatory damages on oil and gas producers that are deemed responsible for greenhouse gas emissions above a certain threshold for a period of time. Several other states have announced their intent to enact similar legislation which effectively seek to regulate global greenhouse gas emissions.

Safety. The Working Interest Owners are also subject to the requirements of the federal Occupational Safety and Health Act, known as “ OSHA,” and comparable state statutes that regulate the protection of the health and safety of workers. In addition, the OSHA hazard communication standard requires that information be maintained about hazardous materials used or produced by oil and gas operations and that this information be provided to employees, state and local government authorities and the public.

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TABLE OF CONTENTS

Item 1A. Risk Factors.

Although risk factors are described elsewhere in this Form 10-K together with the Disclosures Regarding Forward-looking Statements, the following is a summary of the principal risks associated with an investment in the Trust’s units.

BUSINESS AND OPERATIONAL RISKS

Oil and natural gas prices fluctuate due to a number of factors, and declines in commodity prices will reduce Net Proceeds available to the Trust and distributions to Trust unitholders.

Net Proceeds and the Trust’s quarterly distributions are highly dependent upon the prices realized from the sale of natural gas, and any material decrease in such prices could reduce the amount of Trust distributions. Natural gas prices can fluctuate widely on a month-to-month basis in response to a variety of factors that are beyond the control of the Trust