Company: GULTU
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001201
Chunk: 32

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 32
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alty Trust Agreement, the Depositor also 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,
HOGA 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 in the form of a reserve fund
cash account to the Royalty Trust, which amount is reflected as reserve fund cash (and short-term investments) with a corresponding reserve
fund liability in the accompanying Statements of Assets, Liabilities and Trust Corpus. As of December 31, 2024, the Royalty Trust had
used $151,632 from the reserve account, and the Depositor had not requested a reduction of such reserve account. 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.

  44  

Compensation
of the Trustee.

6.
DISTRIBUTIONS

There
was not any distributable income for the year ended December 31, 2024. Distributable income totaled $197,331 for the year ended December
31, 2023. A summary of quarterly per unit distributions for the years ended December 31, 2024 and 2023 is set forth in the table below.

  Three-month             2024                                                                                      
  period ended:                                                                                                     
                        Amount      Record Date      Payment Date                    Record Date      Payment Date  
  March 31,          $0.000000      4/30/2024        N/A               0.000857      4/28/2023        5/12/2023     
  June 30,           $0.000000      7/31/2024        N/A               0.000000      7/28/2023        N/A           
  September 30,      $0.000000      10/31/2024       N/A               0.000000      10/30/2023