Company: MTR
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001104659-25-049448
Chunk: 9

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 to the NIIT; however, the unitholders may be subject to the tax. For these purposes, investment income would generally include certain income derived from investments, such as the royalty income derived from the units and gain realized by a unitholder from a sale of the units.

The Trustee assumes that some Trust units are held by a middleman, as such term is broadly defined in U. S. Treasury Regulations (and includes custodians, nominees, certain joint owners, and brokers holding an interest for a custodian in street name). Therefore, the Trustee considers the Trust to be a non-mortgage widely held fixed investment trust (“ WHFIT”) for U. S. federal income tax purposes. Bank of New York Mellon Trust Company, N. A., 601 Travis Street, Floor 16, Houston, Texas 77002, telephone number 713-483-6020, is the representative of the Trust that will provide tax information in accordance with applicable U. S. Treasury Regulations governing the information reporting requirements of the Trust as a WHFIT.

Notwithstanding the foregoing, the middlemen holding units on behalf of unitholders, and not the Trustee of the Trust, are solely responsible for complying with the information reporting requirements under the Treasury Regulations with respect to such units, including the issuance of IRS Forms 1099 and certain written tax statements. Unitholders whose units are held by middlemen should consult with such middlemen regarding the information that will be reported to them by the middlemen with respect to the units.

Note 5  -   Excess Production Costs

                                                             As of             As of  
                                                         March 31,      December 31,  
                                                              2025              2024  
 ──────────────────────────────────────────────────────────────────────────────────────
  Hugoton Properties                                       840,349           734,035  
  San Juan Basin – Colorado Properties – Simcoe             32,925            36,622  
  San Juan Basin – Colorado Properties – Red Willow         23,672            23,181  
  San Juan Basin – New Mexico Properties – Hilcorp               —                 —  
  Total                                                    896,946           793,838  

Excess production costs result when costs, charges, and expenses attributable to a Royalty Property exceed the revenue received from the sale of oil, gas, and other hydrocarbons produced from such property.

9

The excess production costs are recoverable by the Working Interest Owners before any distribution of