What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2020-09-28 compared with 2019-08-30 · 54 added, 53 removed, 62 unchanged (63% of the section changed)

4 unchanged sentences

which the Trust was created (the Indenture) provides that the term of the Trust will expire on June 1, 2021, unless extended by the vote of the holders of a majority of the outstanding units of beneficial interest.

The Trust is not

permitted to engage in any business activity because it was organized for the sole purpose of providing an efficient, orderly and practical means for the administration and liquidation of rights to payments from certain oil and natural gas leases in

the Gulf of Mexico, pursuant to license agreements and amendments between the Trusts predecessors and Gulf Oil Corporation (Gulf).

As a result of various transactions that have occurred since 1956, these interests were largely held

by Chevron Corporation (Chevron) and are now predominantly held by its assignees, including Arena Energy, LP (Arena, and collectively with Chevron and its assignees, the Interest Owners).

The Indenture provides that the corporate trustee is to distribute all cash in the Trust, less an amount reserved for the payment of accrued

liabilities and estimated future expenses, to unitholders of record on the last business day of February, May, August and November.

Payments are to be made on the 28 th day of September, December,

March and June of each fiscal year.

If the 28 th falls on a Saturday, Sunday or legal holiday, the distribution is payable on the next succeeding business day.

The Indenture prohibits the operation of any kind of trade or business by the Trust and also provides that the term of the Trust will expire

on June 1, 2021, unless extended by the vote of the holders of a majority of the outstanding units of beneficial interest.

October 19, 2017, Simmons First National Corporation (SFNC) completed its acquisition of First Texas BHC, Inc., the parent company of Southwest Bank.

Following the

filing of this Annual Report, the unitholders will be asked to approve an amendment to the Indenture to extend the life of the Trust beyond the expiration date.

The Trust is not permitted to engage in any business activity because it was organized for the sole purpose of providing an efficient, orderly

and practical means for the administration and liquidation of rights to payments from certain oil and natural gas leases in the Gulf of Mexico, pursuant to license agreements and amendments between the Trusts predecessors and Gulf Oil

Corporation (Gulf).

As a result of various transactions that have occurred since 1956, these interests were largely held by Chevron Corporation (Chevron) and are now predominately held by its assignees, including Arena

Energy, LP (Arena, and collectively with Chevron and its assignees, the Interest Owners).

The Indenture provides

that the corporate trustee is to distribute all cash in the Trust, less an amount reserved for the payment of accrued liabilities and estimated future expenses, to unitholders of record on the last business day of February, May, August and November.

Payments are to be made on the 28 th day of September, December, March and June of each fiscal year.

If the 28 th falls on a Saturday, Sunday or

legal holiday, the distribution is payable on the next succeeding business day.

The Indenture prohibits the operation of any kind of

trade or business by the Trust and also provides that the term of the Trust will expire on June 1, 2021, unless extended by the vote of the holders of a majority of the outstanding units of beneficial interest.

Effective October 19, 2017, Simmons First National Corporation (SFNC) completed its acquisition of First Texas BHC, Inc., the

parent company of Southwest Bank.

SFNC is the parent of Simmons Bank.

SFNC merged Southwest Bank, the former

corporate Trustee of the Trust, with Simmons Bank effective February 20, 2018.

The defined term Trustee as used herein shall refer to Southwest Bank for periods through February 19, 2018 and to Simmons Bank for periods on and

after February 20, 2018.

The Trusts wholly owned subsidiary, Marine Petroleum Corporation (MPC, and collectively

with the Trust, Marine), holds title to interests in properties that are situated offshore of Louisiana, because at the time the Trust was created, trusts could not hold these interests under Louisiana law.

Ninety-eight percent of all

oil, natural gas, and other mineral royalties collected by MPC, less the receiving and collection costs, are retained by and delivered to the Trust.

MPC retains the remaining two percent of the overriding royalties along with other items of income

and expense until the board of directors declares a dividend out of the corpus.

MPC, like the Trust, is prohibited from engaging in a trade or business and only takes those actions that are necessary for the administration and liquidation of its

Marines only industry segment or purpose is the administration and collection of royalties.

Marines rights are generally referred to as overriding royalty interests in the oil and natural gas industry, and are sometimes referred to as overriding royalty interests in this Annual Report on Form

An overriding royalty interest is created by an assignment by the owner of a working interest in an oil or natural gas lease.

All production and marketing functions are conducted by the working interest

owners of the leases.

Income from overriding royalties is paid to Marine either (i) on the basis of the selling price of oil, natural gas and other minerals produced, saved or sold, or (ii) at the value at the wellhead as determined by

industry standards, when the selling price does not reflect the value at the wellhead.

Marine holds an overriding royalty interest equal

to three-fourths of 1% of the value at the well of any oil, natural gas, or other minerals produced and sold from the leases described in the Properties section below.

Marines overriding royalty interest applies only to existing

leases and does not apply to new leases that the Interest Owners may acquire.

SFNC merged Southwest Bank, the former corporate Trustee of the Trust, with Simmons Bank effective February 20, 2018.

The defined term Trustee as used herein

shall refer to Southwest Bank for periods through February 19, 2018 and to Simmons Bank for periods on and after February 20, 2018.

The Trusts wholly owned subsidiary, Marine Petroleum Corporation (MPC, and collectively with the Trust, Marine),

holds title to interests in properties that are situated offshore of Louisiana, because at the time the Trust was created, trusts could not hold these interests under Louisiana law.

Ninety-eight percent of all oil, natural gas, and other mineral

royalties collected by MPC, less the receiving and collection costs, are retained by and delivered to the Trust.

MPC retains the remaining two percent of the overriding royalties along with other items of income and expense until the board of

directors declares a dividend out of the corpus.

MPC, like the Trust, is prohibited from engaging in a trade or business and only takes those actions that are necessary for the administration and liquidation of its properties.

Marines only

industry segment or purpose is the administration and collection of royalties.

Marines rights are generally

referred to as overriding royalty interests in the oil and natural gas industry, and are sometimes referred to as overriding royalty interests in this Annual Report on Form 10-K.

An overriding royalty interest

is created by an assignment by the owner of a working interest in an oil or natural gas lease.

All production and marketing functions are conducted by the working interest owners of the leases.

Income from overriding royalties is paid to Marine

either (i) on the basis of the selling price of oil, natural gas and other minerals produced, saved or sold, or (ii) at the value at the wellhead as determined by industry standards, when the selling price does not reflect the value at the

Marine holds an overriding royalty interest equal to three-fourths of 1% of the value at the well of any oil, natural gas, or

other minerals produced and sold from the leases described in the Properties section below.

Marines overriding royalty interest applies only to existing leases and does not apply to new leases that the Interest Owners may acquire.

Marine also owns a 32.6% interest in Tidelands Royalty Trust B

31 unchanged sentences

Fieldwood Energy LLC

Walter Energy, Inc.

In addition, Marines revenues from its interest in Tidelands accounted for approximately 0%, 0% and

0.01% of Marines revenues for the fiscal years ended June 30, 2020, 2019 and 2018, respectively.

Marine derives no revenues from

foreign sources and has no export sales.

Marine derives no revenues

from foreign sources and has no export sales.

Trust Functions .

The Trust is administered by officers and employees of its Trustee.

Trust has no employees.

The Trust has no employees.

See Item 10.

5 unchanged sentences

American Stock Transfer and Trust Company, LLC is the transfer agent for Marine and is responsible for reviewing, processing and paying distributions.

The ability of Marine to receive revenues is entirely dependent upon its rights with respect to the leases held by the Interest Owners in the

Gulf of Mexico (as more fully described in Item 2.

The ability of Marine to receive revenues is entirely dependent upon its rights with respect

to the leases held by the Interest Owners in the Gulf of Mexico (as more fully described in Item 2.

Properties below).

Moreover, no revenues are payable to Marine until sales of production commence from any such lease.

The royalty interests held by Marine are depleting with each barrel of oil and cubic foot of

natural gas produced.

No funds are reinvested by Marine;

The royalty interests held by Marine are depleting with each barrel of oil and cubic foot of natural gas produced.

No funds are reinvested by

thus, these depleting assets are not being replaced.

Widely Held Fixed

Investment Trust Reporting Information .

Widely Held Fixed Investment Trust Reporting

Information .

The Trustee assumes that some units of beneficial interest are held by middlemen, as such term is broadly defined in U.S.

Treasury Regulations (and includes custodians, nominees,

certain joint owners and brokers holding an interest for a customer in street name).

Treasury Regulations (and includes custodians, nominees, certain joint owners and brokers holding an

interest for a customer in street name).

Therefore, the Trustee considers the Trust to be a widely held fixed investment trust (WHFIT) for U.S.

federal income tax purposes.

Accordingly, the

Trust will provide tax information in accordance with applicable U.S.

Accordingly, the Trust will provide tax information in

accordance with applicable U.S.

Treasury Regulations governing the information reporting requirements of the Trust as a WHFIT.

The Trustee that will provide the required information and the contact information

for the Trustee is as follows:

2911 Turtle Creek Blvd., Suite 850

The Trustee that will provide the required information and the contact information for the Trustee is as follows:

2911 Turtle Creek

Blvd., Suite 850

Dallas, Texas 75219

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business