Company: MTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001104659-25-029944
Chunk: 18

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 18
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 competitors in these areas include the major oil and gas companies, independent oil and gas companies, and individual producers and operators. There are numerous producers in the Hugoton field and the San Juan Basin. The Working Interest Owners have indicated that they believe that their competitive position in their respective areas is affected by price, contract terms and quality of service. Market conditions in the San Juan Basin may be negatively affected by the fact that most of the gas produced from such areas is transported on a limited number of major pipelines.

REGULATION AND PRICES

General

The production and sale of natural gas from the Royalty Properties are affected from time to time in varying degrees by political developments and federal, state and local laws and regulations. In particular, oil and gas production operations and economics, including levels of demand and pricing, are, or in the past have been, affected by price controls, taxes, conservation, safety, environmental and other laws relating to the petroleum industry, by changes in such laws, and by constantly changing administrative regulations. For example, on January 26, 2024, President Biden announced a temporary pause on pending decisions on new exports of liquified natural gas to countries that the United States does not have free trade agreements with, pending Department of Energy review of the underlying analyses for authorization. On January 21, 2025, President Trump reversed the pause on liquified natural gas and directed the Office of Fossil Energy and Carbon Management to resume consideration of pending applications to export liquified natural gas to countries without free trade agreements with the United States.

In March 2025, the EPA announced several regulatory actions seeking to alleviate the regulatory burden on the oil and gas industry. While the EPA reconsiders several rules impacting the exploration and production of oil and gas, it is likely that the current versions of the regulations will remain the effect during the process. Additionally, states remain active in environmental regulation and implementing climate related initiatives.

FERC Regulation

In general, the Federal Energy Regulatory Commission (the “ FERC”) regulates the sale of natural gas in interstate commerce for resale and the transportation of natural gas in interstate commerce by pipelines, but does not regulate natural gas gathering facilities. Over thirty years ago, the FERC adopted regulations resulting in a restructuring of the natural gas industry. The principal elements of this restructuring were the requirement that interstate pipelines separate, or “unbundle,” into individual components the various services offered on their systems, with all transportation services to be provided on a nondiscriminatory basis, and the prohibition against an interstate pipeline providing gas