Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Fluctuations in oil and natural gas prices due to various uncontrollable factors.
• Depleting assets (royalty interests) that are not being replaced.
• Spread of pandemics and their impact on oil and natural gas demand.
• Extensive governmental regulation of oil and natural gas operators.
• Potential transfer of properties by lease owners to unrelated third parties.
• Potential abandonment of properties by lease owners.
• Limited control over the operation and development of the underlying properties.
• Thinly traded units, potentially leading to price volatility.
• Difficulty in obtaining reserve and other information from leasehold owners.
• Potential cybersecurity disruptions.
• Geopolitical hostilities and terrorism.
• Limited voting rights for unitholders.
• Uncertainty regarding the limited liability of unitholders.
• Cash held by the Trustee is not FDIC insured.
• Financial information not prepared in accordance with US GAAP.
• Potential liability for Texas franchise tax.

Mitigation Strategies

• The Trust distributes all cash accumulated each quarter, less an amount reserved for accrued liabilities and estimated future expenses.
• The Trust places cash investments with financial institutions considered creditworthy and limits credit exposure from any one institution.
• The Trust maintains cybersecurity protocols to secure sensitive information.
• The Trust is treated as a non-taxable grantor trust for US Federal income tax purposes.

Supply Chain Management

Climate-Related Risks & Opportunities