<PAGE>

                                                                    EXHIBIT 99.1

[LOGO FOR:
RYDER SCOTT COMPANY
PETROLEUM ENGINEERS]                                          FAX (713) 651-0849

1100 LOUISIANA  SUITE 3800  HOUSTON, TEXAS 77002-5218   TELEPHONE (713) 651-9191


                                          March 14, 1997



Dominion Resources Black Warrior Trust
NationsBank Center
901 Main Street, 12th Floor
Dallas, Texas 75202

Gentlemen:

           At your request, we have prepared an estimate of the reserves, future
production, and income attributable to certain royalty interests of Dominion
Resources Black Warrior Trust (the Trust) as of January 1, 1997. The subject
properties are located in Black Warrior Basin, Tuscaloosa County, Alabama. The
income data were estimated using the Securities and Exchange Commission (SEC)
guidelines for future cost and price parameters.

          The estimated reserves and future income amounts presented in this
report are related to hydrocarbon prices. December 1996 hydrocarbon prices
provided by Dominion Black Warrior Basin, Inc. (Dominion) were used in the
preparation of this report as required by SEC guidelines. However, future prices
may vary significantly from December 1996 prices. Therefore, volumes of reserves
actually recovered and amounts of income actually received may differ
significantly from the estimated quantities presented in this report. A summary
of the result of this study is shown below.


    DENVER OFFICE: 600 SEVENTEENTH  SUITE 900N  DENVER, COLORADO 80202-5401
                 TELEPHONE (303) 623-9147   FAX (303) 623-4258
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Dominion Resources Black Warrior Trust
March 29, 1996
Page 2


                   UNESCALATED PARAMETERS - YEAR END PRICING
                     Estimated Net Reserve and Income Data
                         Certain Royalty Interests of
                    Dominion Resources Black Warrior Trust
                        65% Overriding Royalty Interest
                             As of January 1, 1997

           --------------------------------------------------------
<TABLE>
<CAPTION>
                                          Total
                                          Proved
                                       ------------
<S>                                    <C>
Net Remaining Reserves
----------------------
  Gas - MMCF                                82,388

Income Data
-----------
  Future Gross Revenue                 $217,830,414
  Tax Credits                            47,929,114
                                       ------------
  Future Net Income (FNI)              $265,759,528

  Discounted FNI @ 10%                 $164,308,370
</TABLE>

          All gas volumes are sales gas expressed in millions of cubic feet
(MMCF) at the official temperature and pressure bases of the areas in which the
gas reserves are located.

          Al of the reserves included herein are comprised of the proved
producing category. The various producing status categories are defined in the
attached "Reserve Definitions and Pricing Assumptions" in this report.

          A Staff Accounting Bulletin (S.A.B.) issued September 18, 1989 allows
for oil and gas producing companies to include coalbed methane gas in their
estimate of proved reserves under SEC guidelines. In accordance with the S.A.B.
dated November 30, 1989 these reserves should be included provided they comply
in all other respects with the definition of proved oil and gas reserves.
Included is the requirement that methane production be economical at current
prices, costs (net of the tax credit) and existing operating conditions. At the
request of Dominion, the coalbed methane gas reserves presented herein are
based on economic parameters which include Dominion's estimates of the future
Section 29 Tax Credit. Dominion's estimates of the future tax credits are
presented in detail in the attached "Reserve Definitions and Pricing
Assumptions" in this report.

          The future gross revenue is after the deduction of production taxes
and before the addition of Dominion's estimate of Section 29 Tax Credit
(presented as "other income"). The future net income is before the deduction of
state and federal income taxes and general overhead, and has not been adjusted
for outstanding loans that may exist nor does it include any adjustment for cash
on hand or undistributed income. No attempt has been made to quantify or
otherwise account for any accumulated gas production imbalances that may exist.
Gas reserves account for 100 percent of total future gross revenue from proved
reserves.

          The discounted future net income shown above was calculated using a
discount rate of 10 percent per annum compounded monthly. Future net income was
discounted at four other discount rates which were also compounded monthly.
These results are shown on each estimated projection of future production and
income presented in a later section of this report and in summary form below.



                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS
<PAGE>

Dominion Resources Black Warrior Trust
March 29, 1996
Page 3


<TABLE>
<CAPTION>
                                           Year End Pricing
                                Dominion Resources Black Warrior Trust
                                    65% Overriding Royalty Interest
                                      Discounted Future Net Income
                                         As of January 1, 1997
                                             Total Proved
                                ---------------------------------------
                Discount Rate                    Total
                  Percent                       Proved
                -------------              ----------------
                <S>                        <C>
                      5                      $202,809,862
                     15                      $138,431,720
                     20                      $119,810,044
                     25                      $105,725,076
</TABLE>

Reserves Included in This Report
--------------------------------

          The proved reserves included herein conform to the definition
              ---------------
as set forth in the Securities and Exchange Commission's Regulation S-X
Part 210.4-10 (a) as clarified by subsequent Commission Staff Accounting
Bulletins.

          Our definition of proved reserves is included in the attached "Reserve
Definitions and Pricing Assumptions" in this report.

Estimates of Reserves
---------------------

          In general, the reserves included herein were estimated by
performance methods or the volumetric method; however, other methods were used
in certain cases where characteristics of the data indicated such other methods
were more appropriate in our opinion. The reserves estimated by the performance
method utilized extrapolations of various historical data in those cases where
such data were definitive. Reserves were estimated by the volumetric method in
those cases where there were inadequate historical performance data to establish
a definitive trend or where the use of production performance data as a basis
for the reserve estimates was considered to be inappropriate.



                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS
<PAGE>

Dominion Resources Black Warrior Trust
March 29, 1996
Page 4

          The reserves included in this report are estimates only and should
not be construed as being exact quantities. They may or may not be actually
recovered, and if recovered, the revenues therefrom and the actual costs
related thereto could be more or less than the estimated amounts. Moreover,
estimates of reserves may increase or decrease as a result of future
operations.

Future Production Rates
-----------------------

          Initial production rates are based on the current producing rates for
those wells now on production. Test data and other related information were
used to estimate the anticipated peak production rates for those wells or
locations which are not currently producing at peak rates. If no production
decline trend has been established, future production rates were held constant,
or adjusted for the effects of dewatering where appropriate, until a decline in
ability to produce was anticipated. An estimated rate of decline was then
applied to depletion of the reserves. If a decline trend has been established,
this trend was used as the basis for estimating future production rates. For
reserves not yet on production, sales were estimated to commence at an
anticipated date furnished by Dominion.

          In general, we estimate that future gas production rates will
continue to be the same as the average rate for the latest available 12 months
of actual production until such time that the well or wells are incapable of
producing at this rate. The well or wells where then projected to decline at
their decreasing delivery capacity rate. Our general policy on estimates of
future gas production rates is adjusted when necessary to reflect actual gas
market conditions in specific cases.

          The future production rates from wells now on production may be more
or less than estimated because of changes in market demand or allowables set by
regulatory bodies. Wells or locations which are not currently producing may
start producing earlier or later than anticipated in our estimates of their
future production rates.

Hydrocarbon Prices
------------------

          Dominion furnished us with contract gas prices in effect at December
31, 1996 and these prices were held constant to depletion of the reserves. In
accordance with Securities and Exchange Commission guidelines, changes in gas
prices subsequent to December 31, 1996 were not taken into account in this
report. Future prices used in this report are discussed in detail in the
attached "Reserve Definitions and Pricing Assumptions" in this report.



                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS
<PAGE>

Dominion Resources Black Warrior Trust
March 29, 1996
Page 5


Costs
-----

          The income attributable to Dominion Resources Black Warrior Trust is
based on a 65 percent overriding royalty interest, and has no associated
deductions or costs.  The costs utilized in the evaluation of the leasehold
interest are presented below.

          Operating costs for the leases and wells in the unescalated case are
based on the operating expense reports of Dominion and include only those costs
directly applicable to the leases or wells. When applicable, the operating costs
include a portion of general and administrative costs allocated directly to the
leases and wells under terms of operating agreements. The current operating
and development costs were held constant throughout the life of the properties.
At the request of Dominion, their estimate of zero net abandonment costs after
salvage value for the properties was used in this report. Ryder Scott has not
performed a detailed study of the abandonment costs nor the salvage value and
makes no warranty for Dominion's estimate. No deduction was made for indirect
costs such as general administration and overhead expenses, loan repayments,
interest expenses, and exploration and development prepayments that are not
charged directly to the leases or wells.

General
-------

          The attached tables 1 through 3 present the grand summaries of our
estimated projection of production and income by years beginning January 1, 1997
by category.

          The estimates of reserves presented herein are based upon a detailed
study of the properties in which the Trust owns an interest; however, we have
not made any field examination of the properties. No consideration was given in
this report to potential environmental liabilities which may exist nor were any
costs included for potential liability to restore and clean up damages, if any,
caused by past operating practices. Dominion has informed us that they have
furnished us all of the accounts, records, geological and engineering data, and
reports and other data required for this investigation. The ownership interests,
prices, and other factual data furnished by Dominion were accepted without
independent verification. The estimates presented in this report are based on
data available through December 1996.



                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS
<PAGE>

Dominion Resources Black Warrior Trust
March 22, 1996
Page 6

          Neither we nor any of our employees have any interest in the subject
properties and neither the employment to make this study nor the compensation is
contingent on our estimates of reserves and future income for the subject
properties.

          This report was prepared for the exclusive use of the Trust. The
data, work papers, and maps used in the preparation of this report are
available for examination by authorized parties in our offices. Please contact
us if we can be of further service.

                                               Very truly yours,

                                               RYDER SCOTT COMPANY
                                               PETROLEUM ENGINEERS


                                               /s/ LARRY P. CONNOR

                                               Larry P. Connor, P.E.
                                               Petroleum Engineer

LPC/sw


                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS
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                           DEFINITIONS OF RESERVES



SEC DEFINITIONS
---------------

          Proved reserves of crude oil, condensate, natural gas, and natural
          ---------------
gas liquids are estimated quantities that geological and engineering data
demonstrate with reasonable certainty to be recoverable in the future from known
reservoirs under existing operating conditions using the cost and price
parameters discussed in other sections of this report. Reservoirs are
considered proved if economic producibility is supported by actual production or
formation tests. In certain instances, proved reserves are assigned on the
basis of a combination of core analysis and electrical and other type logs
which indicate the reservoirs are analogous to reservoirs in the same field
which are producing or have demonstrated the ability to produce on a formation
test. The area of a reservoir considered proved includes (1) that portion
delineated by drilling and defined by fluid contacts, if any, and (2) the
adjoining portions not yet drilled that can be reasonably judged as economically
productive on the basis of available geological and engineering data. In the
absence of data on fluid contacts, the lowest known structural occurrence of
hydrocarbons controls the lower proved limit of the reservoir. Proved reserves
are estimates of hydrocarbons to be recovered from a given date forward. They
may be revised as hydrocarbons are produced and additional data become
available. Proved natural gas reserves are comprised of non-associated,
associated and dissolved gas. An appropriate reduction in gas reserves has been
made for the expected removal of natural gas liquids, for lease and plant fuel,
and for the exclusion of non-hydrocarbon gases if they occur in significant
quantities and are removed prior to sale.

          Reserves that can be produced economically through the application of
improved recovery techniques are included in the proved classification when
these qualifications are met: (1) successful testing by a pilot project or the
operation of an installed program in the reservoir provides support for the
engineering analysis on which the project or program was based, and (2) it is
reasonably certain the project will proceed. Improved recovery includes all
methods for supplementing natural reservoir forces and energy, or otherwise
increasing ultimate recovery from a reservoir, including (1) pressure
maintenance, (2) cycling, and (3) secondary recovery in its original sense.
Improved recovery also includes the enhanced recovery methods of thermal,
chemical flooding, and the use of miscible and immiscible displacement fluids.

          Estimates of proved reserves do not include crude oil, natural gas,
or natural gas liquids being held in underground or surface storage.




                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS
<PAGE>

                  DEFINITIONS OF PRODUCING STATUS CATEGORIES



Developed Producing
-------------------

          Producing reserves are recoverable from completion intervals
          ---------
currently open and producing to market. Improved recovery reserves are
considered to be producing only after an improved recovery project has been
installed and is in operation.

Developed Non-Producing
-----------------------

          Shut-in reserves are recoverable from completion intervals now open,
          -------
but which had not started producing as of the date of our estimate.

          Behind pipe reserves are recoverable from zones behind casing in
          -----------
existing wells, which will require additional completion work or a future
recompletion prior to the start of production.

Undeveloped
-----------

          Undeveloped reserves are recoverable by new wells on undrilled
          -----------
acreage, from existing wells where a relatively large expenditure is required
for recompletion and from acreage where the application of an improved recovery
project is planned and the costs required to place the project in operation are
relatively large. Reserves on undrilled acreage are limited to those drilling
units offsetting productive units that are reasonably certain of production
when drilled. Proved reserves for other undrilled units are included only where
it can be demonstrated with certainty that there is continuity of production
from the existing productive formation.



                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS
<PAGE>

                   HYDROCARBON PRICING AND COST PARAMETERS

                    Dominion Resources Black Warrior Trust
         Dominion Black Warrior Basin, Inc.'s Pricing and Cost Policy
                            Unescalated Parameters
                          Effective January 1, 1997


Gas
---

          Dominion has furnished the pricing scenario to use at January 1, 1997.

<TABLE>
<CAPTION>

                   Year                     $/MMBTU
                ----------                -----------
                <S>                       <C>
                   1997                       2.84
                   1998                       2.84
                   1999                       2.84
                   2000                       2.84
                   2001                       2.84
                   2002                       2.84
                   2003                       2.84
                   2004                       2.84

</TABLE>


<TABLE>
<CAPTION>

                    Lease Operating 1,2  Compression 1
                        Expense             Costs
       Year          $/Well/Month           $/MCF
    ----------      ---------------      -----------
    <S>             <C>                  <C>
       1997               1,266              .179
       1998               1,214              .176
       1999               1,136              .175
       2000               1,020              .172
       2001                 903              .172
       2002                 808              .168
       2003                 791              .161
       2004                 623              .153

</TABLE>


<TABLE>
<CAPTION>

                   Estimated Section 29 Tax Credit
                -------------------------------------
                   Year                     $/MMBTU
                ----------                -----------
                <S>                       <C>
                   1997                      1.056
                   1998                      1.056
                   1999                      1.056
                   2000                      1.056
                   2001                      1.056
                   2002                      1.025

</TABLE>

---------------
1 All prices and costs are held constant after the year 2004.



                   RYDER SCOTT COMPANY    PETROLEUM ENGINEERS