##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 Form 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to  .
 Commission file number 000-08677
 Tidelands Royalty Trust B
  Texas
    
    75-6007863(State or other jurisdiction
    
    (I.R.S. Employerof incorporation or organization)
    
    Identification No.)
 c/o The Corporate TrusteeU.S. Trust, Bank of America Private Wealth ManagementP.O. Box 830650, Dallas, Texas
    
    75283-0650(Address of principal executive offices)
    
    (Zip Code)
    
 o þ
 o þ
  þ o
  o o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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##### 



TABLE OF CONTENTS
 PART IItem 1. Business
    
    
    2Item 1A. Risk Factors
    
    
    4Item 1B. Unresolved Staff Comments
    
    
    8Item 2. Properties
    
    
    9Item 3. Legal Proceedings
    
    
    10Item 4. Reserved
    
    
    10PART IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    11Item 6. Selected Financial Data
    
    
    11Item 7. Trustees Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    16Item 8. Financial Statements and Supplementary Data
    
    
    16Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    16Item 9A(T). Controls and Procedures
    
    
    17Item 9B. Other Information
    
    
    17PART IIIItem 10. Directors and Executive Officers and Corporate Governance
    
    
    17Item 11. Executive Compensation
    
    
    17Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    18Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    18Item 14. Principal Accountant Fees and Services
    
    
    18PART IVItem 15. Exhibits and Financial Statement Schedules
    
    
    19EX-31.1EX-32.1




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##### Table of Contents



Part I
 
 Item 1. Business
 Organization
     The 1951 Contract
  2




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##### Table of Contents



Lease
    
    
    
    
    
    Royalty
    
    2009
    
    
    
    Working InterestArea
    
    Block
    
    Number
    
    Acres
    
    Interest
    
    Royalties
    
    Operator(s)
    
    Owner(s)Galveston
    
    
    303
    
    
    
    4565
    
    
    
    5,760
    
    
    
    4.1662
    %
    
    $
    206,512
    
    
    W&T Offshore Inc.
    
    W&T Offshore Inc.
(75.00% Ownership
Interest);
Sterling Energy,
Inc. (15.75%
Ownership
Interest);
Barron Petroleum
Company (9.25%
Ownership Interest)Sabine Pass
    
    
    13
    
    
    
    3959
    
    
    
    3,438
    
    
    
    4.1662
    %
    
    $
    460,777
    
    
    NOEX Energy, Inc.
    
    NOEX Energy, Inc. (100.00%
Ownership Interest)West Cameron
    
    
    165
    
    
    
    758
    
    
    
    5,000
    
    
    
    4.1662
    %
    
    $
    2,178,735
    
    
    Devon Energy
Production Company
LP
    
    Devon Energy
Production Company LP (100.00%
Ownership Interest)West Cameron
    
    
    225
    
    
    
    900
    
    
    
    3,750
    
    
    
    1.0416
    %
    
    $
    4,131
    
    
    ENI US Operating
Co. Inc.; Breton Engineering LLC
    
    ENI Petroleum USA
LLC (68.00%
Ownership
Interest);
Mariner Energy
Resources, Inc.
(32.00% Ownership
Interest)West Cameron
    
    
    291
    
    
    
    4397
    
    
    
    5,000
    
    
    
    4.1662
    %
    
    $
    283,124
    
    
    Devon Energy Production Company LP
    
    Devon Energy
Production Company LP (100.00%
Ownership Interest)Total
    
    
    
    
    
    
    
    
    
    
    22,948
    
    
    
    
    
    
    $
    3,133,279
  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
    %
 
 *
    
    Indicates less than 1% 3




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Tidelands derives no revenues from foreign sources and has no export sales. Trust Functions
     Widely Held Fixed Investment Trust Reporting Information.
 
  
 Item 1A.
    
    Risk Factors
  Tidelands is unable to acquire royalty interests in any more leases.
  4




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Royalty interests are depleting assets and may deplete faster than expected or entirely.
   Oil and natural gas prices are volatile and fluctuate due to a number of factors, and lower prices
will reduce royalty payments to Tidelands and distributions to its unitholders.
  
    
    political conditions worldwide, in particular political disruption, war or other armed
conflicts in oil producing regions;
    
    worldwide economic conditions;
    
    weather conditions;
    
    the supply and price of domestic and foreign oil and natural gas;
    
    the level of consumer demand;
    
    the price and availability of alternative fuels;
    
    the proximity to, and capacity of, transportation facilities; and
    
    the effect of worldwide energy conservation measures.
   The market price for the units may not reflect the value of the royalty interests held by
Tidelands.
  5




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Operating risks for the working interest owners interests in the Royalty Area can adversely affect
distributions.
  Failure to collect royalty payments from working interest owners could adversely affect Tidelands
distributions to its unitholders.
  The owner of any properties in the Royalty Area may transfer any of the properties in the Royalty
Area to another unrelated third party.
  The owner of any properties in the Royalty Area may abandon any property, terminating the related
royalty interest Tidelands may hold.
  The Trustee, Tidelands and the Trusts unitholders do not control the operation or development of
the properties in the Royalty Area and have little influence over operation or development.
  6




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Important reserve and other information with respect to the particular leases subject to Tidelands
royalty interest is difficult to obtain.
  Terrorism and continued geopolitical hostilities could adversely affect Tidelands distributions to
its unitholders or the market price of its units.
  Unitholders have limited voting rights.
  The limited liability of the unitholders is uncertain.
  Tidelands royalty interest can be sold and the Trust can be terminated.
  7




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The operators of the working interest owner are subject to extensive governmental regulation.
  Cash held by the Trustee is not insured by the Federal Deposit Insurance Corporation.
  Financial information of Tidelands is not prepared in accordance with accounting principles
generally accepted in the United States, or GAAP.
  If it is determined that the Trust is subject to the Texas franchise tax, the Trustee may have to
withhold an amount from future distributions to pay the tax liability.
  i.e.
  
 Item 1B.
    
    Unresolved Staff Comments
  8




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Item 2.
    
    Properties
 General
 Reserves
   Production
 Year Ended December 31,2009
    
    2008
    
    2007Quantity of oil and natural gas sold:Oil (in barrels (bbls))
    
    
    6,662
    
    
    
    4,603
    
    
    
    7,071Natural gas (in thousand cubic feet (mcf))
    
    
    513,880
    
    
    
    428,728
    
    
    
    515,260Weighted average sales price for oil and natural gas sold:Oil (per bbl) (1)
    
    $
    57.00
    
    
    $
    107.98
    
    
    $
    66.19Natural gas (per mcf) (1).
    
    $
    5.36
    
    
    $
    9.51
    
    
    $
    7.29
 
 (1)
    
    The weighted average sales price is calculated from data provided by the operators.  Interests in Properties
 Productive Properties.
 Gross Productive Wells:Oil.
    
    
    3Natural Gas
    
    
    15Total Wells
    
    
    18Gross Leased Acres:Productive
    
    
    22,948Non-Productive
    
    
    Total Leased Acres
    
    
    22,948
 9




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Present Activities
  Galveston Block 303 Field
 Sabine Pass Block 13
 West Cameron Blocks 165 and 291
 West Cameron Block 225
 Difficulty in Obtaining Certain Data
 
 Item 3.
    
    Legal Proceedings
  
 Item 4.
    
    Reserved
 10




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Part II
 
 Item 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
   Bid Quotation
    
    DistributionsYear Ended December 31,
    
    High
    
    Low
    
    (Per Unit)2008First quarter
    
    $
    25.24
    
    
    $
    19.00
    
    
    $
    0.69Second quarter
    
    
    29.50
    
    
    
    22.86
    
    
    
    0.63Third quarter
    
    
    29.95
    
    
    
    16.00
    
    
    
    0.76Fourth quarter
    
    
    18.90
    
    
    
    8.50
    
    
    
    0.892009First quarter
    
    $
    15.49
    
    
    $
    8.60
    
    
    $
    0.85Second quarter
    
    
    22.74
    
    
    
    12.00
    
    
    
    0.55Third quarter
    
    
    18.75
    
    
    
    13.75
    
    
    
    0.41Fourth quarter
    
    
    19.00
    
    
    
    15.34
    
    
    
    0.44
      
 Item 6.
    
    Selected Financial Data
  11




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Year Ended December 31,(In Thousands, Except Per Unit Amounts)2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005(Audited)
    
    
    (Audited)
    
    
    (Audited)
    
    
    (Audited)
    
    
    (Audited)Statement of Distributable Income
Selected Data:Income  oil and natural gas royalties
    
    $
    3,133
    
    
    $
    4,575
    
    
    $
    4,226
    
    
    $
    1,329
    
    
    $
    2,624Expense  General and administrative
expenses
    
    $
    289
    
    
    $
    326
    
    
    $
    172
    
    
    $
    136
    
    
    $
    141Expense  Federal income taxes of
subsidiary
    
    $
    13
    
    
    $
    46
    
    
    $
    52
    
    
    $
    19
    
    
    $
    18Distributable income
    
    $
    2,831
    
    
    $
    4,230
    
    
    $
    4,068
    
    
    $
    1,216
    
    
    $
    2,504Distributable income per unit
    
    $
    2.04
    
    
    $
    3.05
    
    
    $
    2.93
    
    
    $
    0.88
    
    
    $
    1.81Distributions to unitholders
    
    $
    3,127
    
    
    $
    4,115
    
    
    $
    4,028
    
    
    $
    1,039
    
    
    $
    2,663Distributions per unit
    
    $
    2.26
    
    
    $
    2.97
    
    
    $
    2.91
    
    
    $
    0.75
    
    
    $
    1.922009
(Audited)
    
    
    2008
(Audited)
    
    
    2007
(Audited)
    
    
    2006
(Audited)
    
    
    2005
(Unaudited)Statement of Assets, Liabilities and Trust Corpus Selected Data:Total assets
    
    $
    1,532
    
    
    $
    2,470
    
    
    $
    2,034
    
    
    $
    1,835
    
    
    $
    1,662Trust corpus
    
    $
    938
    
    
    $
    1,233
    
    
    $
    1,118
    
    
    $
    1,079
    
    
    $
    903
 
 Item 7.
    
    Trustees Discussion and Analysis of Financial Condition and Results of Operations
 Critical Accounting Policies
 
    
    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.
 The financial statements of Tidelands differ from financial statements prepared in conformity
with GAAP because of the following:
 
    
    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.
   12




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Results of Operations
    Hurricane Damage.
 Summary.
  2009 as Compared to 2008.
 13




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For Year Ended December 31,2009
    
    
    2008
    
    
    %ChangeIncome:Oil royalties .
    
    $
    379,750
    
    
    $
    497,023
    
    
    
    (23.6
    )%Natural gas royalties
    
    
    2,753,529
    
    
    
    4,077,687
    
    
    
    (32.5
    )%$
    3,133,279
    
    
    $
    4,574,710
    
    
    
    (31.5
    )%Net production quantities:Oil (bbls)
    
    
    6,662
    
    
    
    4,603
    
    
    
    44.7
    %Natural gas (mcf)
    
    
    513,880
    
    
    
    428,728
    
    
    
    19.9
    %Average net prices:Oil (per bbl)(1)
    
    $
    57.00
    
    
    $
    107.98
    
    
    
    (47.2
    )%Natural gas (per mcf)(1)
    
    $
    5.36
    
    
    $
    9.51
    
    
    
    (43.6
    )%
 
 (1)
    
    These amounts are net of the cost of transportation from offshore leases to onshore receiving points.     2008 as Compared to 2007.
 For Year Ended December 31,2008
    
    
    2007
    
    
    %ChangeIncome:Oil royalties
    
    $
    497,023
    
    
    $
    468,042
    
    
    
    6.2
    %Natural gas royalties
    
    
    4,077,687
    
    
    
    3,757,570
    
    
    
    8.5
    %$
    4,574,710
    
    
    $
    4,225,612
    
    
    
    8.3
    %Net production quantities:Oil (bbls)
    
    
    4,603
    
    
    
    7,071
    
    
    
    (34.9
    )%Natural gas (mcf)
    
    
    428,728
    
    
    
    515,260
    
    
    
    (16.8
    )%Average net prices:Oil (per bbl)(1)
    
    $
    107.98
    
    
    $
    66.19
    
    
    
    63.1
    %Natural gas (per mcf)(1)
    
    $
    9.51
    
    
    $
    7.29
    
    
    
    30.5
    %
 
 (1)
    
    These amounts are net of the cost of transportation from offshore leases to onshore receiving points.  14




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Capital Resources and Liquidity.
    Forward-Looking Statements
 15




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Website
 www.tirtz-tidelandsroyaltytrust.com
 
 Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
     
 Item 8.
    
    Financial Statements and Supplementary Data
  Page Report of Independent Registered Public Accounting Firm
    
    
    20 Consolidated Statements of Assets, Liabilities and Trust Corpus as of December 31, 2009 and 2008
    
    
    21 Consolidated Statements of Distributable Income for the Three Years Ended December 31, 2009
    
    
    22 Consolidated Statements of Changes in Trust Corpus for the Three Years Ended December 31, 2009
    
    
    23 Notes to Consolidated Financial Statements
    
    
    24
  
 Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
  16




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Item 9A(T).
    
    Controls and Procedures
 Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
  Changes in Internal Control Over Financial Reporting
  Trustees Report on Internal Control Over Financial Reporting
  
 Item 9B.
    
    Other Information
  
 Part III
 
 Item 10.
    
    Directors and Executive Officers and Corporate Governance
 Directors and Officers.
 Section 16(a) Beneficial Ownership Reporting Compliance
 Code of Ethics. th
 Committees.
 
 Item 11.
    
    Executive Compensation
  17




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Other AnnualName of Individual or Entity
    
    Year
    
    Compensation(1)U.S. Trust, Bank of America Private Wealth Management, the Trustee
    
    
    2009
    
    
    $
    20,6662008
    
    
    $
    20,5602007
    
    
    $
    20,611
 
 (1)
    
    Under the Indenture, the Trustee is entitled to reasonable and customary fees and compensation
for its services. 
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
  Amount BeneficiallyName and Address of
    
    Owned as of
    
    PercentTitle of Class
    
    Beneficial Owner
    
    December 31, 2009
    
    of ClassUnits of Beneficial
Interest
    
    Marine Petroleum Trust
P.O. Box 830650
Dallas, Texas 75283-0650
    
    
    452,366
    
    
    
    32.6
    %
  
 Item 13.
    
    Certain Relationships and Related Transactions, and Director Independence
  Name of Individual or Entity
    
    Year
    
    Amount PaidMarine Petroleum Corporation
    
    
    2009
    
    
    $
    48,9002008
    
    
    $
    47,9012007
    
    
    $
    50,363
 
 Item 14.
    
    Principal Accountant Fees and Services
  2009
    
    2008Audit Fees
    
    $
    85,242
    
    
    $
    100,242Audit-Related Fees
    
    
    
    
    
    
    Tax Fees
    
    
    
    
    
    
    All Other Fees
    
    
    
    
    
    
    
 18




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Part IV
 
 Item 15.
    
    Exhibits and Financial Statement Schedules
 (a)
    
    Financial Statements  See Financial Statements and Supplementary Data above.(b)
    
    Exhibits
 4.1
    
    Indenture of Trust dated June 1, 1954, as amended, filed as an Exhibit to
the Trusts Quarterly Report on Form 10-Q for the period ended September 30, 2001,
filed with the Securities and Exchange Commission on November 14, 2001, and
incorporated herein by reference.21.1
    
    Subsidiaries of the Trust, filed as Exhibit 21.1 to the Trusts Annual
Report on Form 10-K of for the fiscal year ended December 31, 2006, filed with the
Securities and Exchange Commission on April 2, 2007, and incorporated herein by
reference.31.1*
    
    Certification of the Corporate Trustee pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1*
    
    Certification of the Corporate Trustee pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    Filed herewith.  19




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
 20




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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)
 Assets
 December 31,
    
    
    December 31,2009
    
    
    2008Current 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
  21




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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
  22




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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
  23




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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
 (a)
    
    General
     (b)
    
    Unitholder Voting Matters
  (c)
    
    Principles of Consolidation
  (d)
    
    Producing Oil and Gas Properties
   (e)
    
    Federal Income Taxes
  24




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##### Table of Contents



(f)
    
    Credit Risk Concentration and Cash Equivalents
  (g)
    
    Use of Estimates
  (h)
    
    Distributable Income per Unit
  (i)
    
    Significant Royalty Sources
  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 Inc.
    
    
    
    
    
    
    3
    %
    
    
    2
    %McMoran Oil & Gas
    
    
    
    
    
    
    4
    %
    
    
    Dominion Exploration & Production, Inc.
    
    
    
    
    
    
    
    
    
    
    1
    %Newfield Exploration Co.
    
    
    
    
    
    
    
    
    
    
    10
    %100
    %
    
    
    100
    %
    
    
    100
    %
 (2) BASIS OF ACCOUNTING
  25




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##### Table of Contents




    
    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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##### Table of Contents



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 Natural Gas
    
    
    Distributable
    
    
    DistributableRoyalties
    
    
    Income
    
    
    Income Per 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
  27




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##### Table of Contents



e.g. e.g.
   28




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##### Table of Contents



SIGNATURES
  Date: March 25, 2010
    Tidelands Royalty Trust B

 (Registrant)
By: U.S. Trust, Bank of America Private WealthManagement (in its capacity as Corporate Trustee
of Tidelands Royalty Trust B and not in
its individual capacity or otherwise) By:
    /s/ Ron E. HooperRon E. HooperSenior Vice President  NAME
    
    CAPACITIES
    
    DATEU.S. Trust, Bank of America Private
    
    Corporate Trustee
    
    March 25, 2010Wealth Management
 By:
    /s/ Ron E. HooperRon E. HooperSenior Vice President  29




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description4.1
    
    Indenture of Trust dated June 1, 1954, as amended, filed as an Exhibit to the Trusts
Quarterly Report on Form 10-Q for the period ended September 30, 2001, filed with the
Securities and Exchange Commission on November 14, 2001, and incorporated herein by reference.21.1
    
    Subsidiaries of the Trust, filed as Exhibit 21.1 to the Trusts Annual Report on Form 10-K of
for the fiscal year ended December 31, 2006, filed with the Securities and Exchange Commission
on April 2, 2007, and incorporated herein by reference.31.1*
    
    Certification of the Corporate Trustee pursuant to Section 302 of the Sarbanes-Oxley of Act
of 2002.32.1*
    
    Certification of the Corporate Trustee pursuant to Section 906 of the Sarbanes-Oxley of Act
of 2002.
 
 *
    
    Filed herewith. 30