Company: MTR
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001104659-25-111306
Chunk: 9

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 estates, and trusts with income above certain thresholds are subject under Section 1411 of the Code to an additional 3.8% tax  -  also known as the Net Investment Income Tax (“ NIIT”)  -  on their net investment income. Grantor trusts such as Mesa Royalty Trust are not subject 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.

9

Note 5  -   Excess Production Costs

                                                                 As of             As of  
                                                         September 30,      December 31,  
                                                                  2025              2024  
 ──────────────────────────────────────────────────────────────────────────────────────────
  Hugoton Properties                                           882,463           734,035  
  San Juan Basin – Colorado Properties – Simcoe                 23,797            36,622  
  San Juan Basin – Colorado Properties – Red Willow             23,186            23,181  
  San Juan Basin – New Mexico Properties – Hilcorp                   —                 —