Exhibit 99.1
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
      
 1




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TIDELANDS ROYALTY TRUST B AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
As of December 31, 2009 and 2008
(Audited)
 December 31,
    
    
    December 31,2009
    
    
    2008AssetsCurrent assets:Cash and cash equivalents
    
    $
    1,531,808
    
    
    $
    2,468,920Oil, gas and other mineral properties
    
    
    2
    
    
    
    2Federal income tax refundable
    
    
    15,934
    
    
    
    1,433Total assets
    
    $
    1,547,744
    
    
    $
    2,470,355Liabilities and Trust CorpusCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    Federal income taxes payable
    
    
    
    
    
    
    Income distributable to unitholders
    
    
    609,840
    
    
    
    1,236,980Total current liabilities
    
    $
    609,840
    
    
    $
    1,236,980Trust corpus  authorized 1,386,525 units of
beneficial interest, issued
1,386,375 at nominal value
    
    
    937,904
    
    
    
    1,233,375$
    1,547,744
    
    
    $
    2,470,355
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TIDELANDS ROYALTY TRUST B AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME
For the Three Years Ended December 31, 2009
(Audited)
 2009
    
    
    2008
    
    
    2007Income:Oil and gas royalties
    
    $
    3,133,279
    
    
    $
    4,574,710
    
    
    $
    4,225,612Interest income
    
    
    769
    
    
    
    27,039
    
    
    
    65,439Total income
    
    $
    3,134,048
    
    
    $
    4,601,749
    
    
    $
    4,291,051Expenses:General and administrative expenses
    
    $
    289,261
    
    
    $
    325,871
    
    
    $
    171,807Distributable income before Federal
income taxes
    
    
    2,844,787
    
    
    
    4,275,878
    
    
    
    4,119,244Federal income taxes of subsidiary
    
    
    13,000
    
    
    
    45,670
    
    
    
    51,600Distributable income
    
    $
    2,831,787
    
    
    $
    4,230,208
    
    
    $
    4,067,644Distributable income per unit
    
    $
    2.04
    
    
    $
    3.05
    
    
    $
    2.93Distributions per unit
    
    $
    2.26
    
    
    $
    2.97
    
    
    $
    2.91Units outstanding
    
    
    1,386,375
    
    
    
    1,386,375
    
    
    
    1,386,375
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TIDELANDS ROYALTY TRUST B AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS
For the Three Years Ended December 31, 2009
(Audited)
 2009
    
    
    2008
    
    
    2007Trust corpus, beginning of period
    
    $
    1,233,375
    
    
    $
    1,118,498
    
    
    $
    1,078,721Distributable income
    
    
    2,831,787
    
    
    
    4,230,208
    
    
    
    4,067,644Distributions to unitholders
    
    
    (3,127,258
    )
    
    
    (4,115,331
    )
    
    
    (4,027,867
    )Trust corpus, end of period
    
    $
    937,904
    
    
    $
    1,233,375
    
    
    $
    1,118,498
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TIDELANDS ROYALTY TRUST B AND SUBSIDIARY
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL
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Working Interest Owners
    
    2009
    
    
    2008
    
    
    2007Devon Energy Production Company LP
    
    
    78
    %
    
    
    77
    %
    
    
    74
    %NOEX Energy, Inc.
    
    
    15
    %
    
    
    8
    %
    
    
    7
    %W&T Offshore Inc.
    
    
    7
    %
    
    
    7
    %
    
    
    6
    %ENI Petroleum USA LLC
    
    
    *
    
    
    
    1
    %
    
    
    Mariner Energy Resources, Inc.
    
    
    *
    
    
    
    
    
    
    
    Sterling Energy, Inc.
    
    
    
    
    
    
    
    
    
    
    Barron Petroleum Company
    
    
    
    
    
    
    3
    %
    
    
    2
    %McMoran Oil & Gas
    
    
    
    
    
    
    4
    %
    
    
    Dominion Exploration & Production, Inc.
    
    
    
    
    
    
    
    
    
    
    1
    %Newfield Exploration Co.
    
    
    
    
    
    
    
    
    
    
    10
    %100
    %
    
    
    100
    %
    
    
    100
    %
 (2) BASIS OF ACCOUNTING
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
    
    Royalty income is recognized when received by Tidelands.
    
    Tidelands expenses (which include accounting, legal, and other professional
fees, trustees fees and out-of-pocket expenses) are recorded on an accrual basis.
Reserves for liabilities that are contingent or uncertain in amount may also be
established if considered necessary.
    
    Distributions to unitholders are recognized when declared by the Trustee of the
Trust.
  
    
    Royalty income is recognized in the month received rather than in the month of
production.
    
    Reserves may be established for contingencies that would not be recorded under
GAAP.
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TIDELANDS ROYALTY TRUST B AND SUBSIDIARY
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (CONTINUED)
 (3) SUPPLEMENTAL INFORMATION RELATING TO OIL AND NATURAL GAS RESERVES (UNAUDITED)
  For Year Ended December 31,2009
    
    
    2008
    
    
    2007Net production quantities:Oil (bbls)
    
    
    6,662
    
    
    
    4,603
    
    
    
    7,071Natural gas (mcf)
    
    
    513,880
    
    
    
    428,728
    
    
    
    515,260
 (4) SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED)
  Oil and
    
    
    
    
    
    
    DistributableNatural Gas
    
    
    Distributable
    
    
    Income PerRoyalties
    
    
    Income
    
    
    UnitQuarter ended:March 31, 2008
    
    $
    1,041,493
    
    
    $
    951,070
    
    
    $
    0.69June 30, 2008
    
    
    987,340
    
    
    
    914,886
    
    
    
    0.66September 30, 2008
    
    
    1,383,855
    
    
    
    1,269,745
    
    
    
    0.92December 31, 2008
    
    
    1,162,022
    
    
    
    1,094,507
    
    
    
    0.78$
    4,574,710
    
    
    $
    4,230,208
    
    
    $
    3.05Quarter ended:March 31, 2009
    
    $
    1,172,076
    
    
    $
    1,088,388
    
    
    $
    0.79June 30, 2009
    
    
    634,411
    
    
    
    548,452
    
    
    
    0.39September 30, 2009
    
    
    793,293
    
    
    
    722,686
    
    
    
    0.52December 31, 2009
    
    
    533,499
    
    
    
    472,261
    
    
    
    0.34$
    3,133,279
    
    
    $
    2,831,787
    
    
    $
    2.04
 (5) TEXAS FRANCHISE TAX
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e.g. e.g.
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