What changed in this filing

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Item 1A. Risk Factors

2022-08-31 compared with 2021-09-24 · 84 added, 78 removed, 134 unchanged (55% of the section changed)

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The following discussion of risks is not exclusive and

is designed to highlight what the we believe are the material factors to consider when evaluating its business or an investment in units of the Trust.

is designed to highlight what we believe are the material factors to consider when evaluating its business or an investment in units of the Trust.

Additional risks and uncertainties not presently known to us or that we currently deem immaterial

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political conditions worldwide, and in particular, political disruptions, terrorist activities, wars or other

armed conflicts in oil producing regions;

armed conflicts in oil producing regions, including the war in Ukraine;

worldwide economic conditions;

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the effect of worldwide energy conservation measures.

Moreover, government regulations, such as the regulation of natural gas transportation and

price controls, can affect oil and natural gas prices in the long term.

Lower prices may reduce the amount of oil and natural gas that is

economical to produce and reduce distributable income available to Marine.

As a result, a substantial decline in the production or price of oil and natural gas could result in Marine being unable to make distributions to unitholders in future

The volatility of oil and gas prices reduces the predictability of future cash distributions to unitholders.

Substantially all of the oil and natural gas produced from the leases are being sold under short-term or multi-month contracts at

market clearing prices or on the spot market.

Moreover, government regulations, such as the regulation of natural gas transportation and price controls, can affect oil and natural gas

prices in the long term.

Lower prices may reduce the amount of oil and natural gas that is economical to produce and reduce distributable

income available to Marine.

As a result, a substantial decline in the production or price of oil and natural gas could result in Marine being unable to make distributions to unitholders in future quarters.

The volatility of oil and gas prices

reduces the predictability of future cash distributions to unitholders.

Substantially all of the oil and natural gas produced from the leases are being sold under short-term or multi-month contracts at market clearing prices or on the spot market.

Marine is unable to acquire royalty interests in any more leases.

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will stop producing in commercial quantities, and Marine will cease to be entitled to receive any distributions of net proceeds therefrom.

recent spread of the novel strain of coronavirus, or COVID-19, and its variants, and the continually changing measures taken to mitigate the impact of single or multiple waves of the COVID-19 pandemic could have an adverse effect on trust distributions.

The spread of different

variants of the COVID-19, or the novel coronavirus, and the continually changing measures taken to mitigate the impact of single or multiple waves of the COVID-19

pandemic, could have an adverse effect on the demand for oil and natural gas and the business and operations of the operators of the properties, which in turn could have an adverse effect on trust distributions.

Demand for oil and natural gas, and the business and operations of the operators of the properties could be adversely impacted by the

different variants of the COVID-19 pandemic and measures being taken to mitigate its impact, especially to the extent areas experience multiple waves of the pandemic.

As the coronavirus pandemic and government

responses are rapidly escalating and de-escalating, the extent of the impact on domestic sales of crude oil and natural gas remains unknown and is constantly evolving.

The industry experienced a sharp and

rapid decline in the demand for crude oil and natural gas as the U.S.

spread of coronavirus, or COVID-19, and its variants, and the continually changing measures taken to mitigate the impact of the COVID-19 pandemic could have an adverse

effect on trust distributions.

The spread of different variants of the COVID-19, or

coronavirus, and the continually changing measures taken to mitigate the impact of the COVID-19 pandemic, could have an adverse effect on the demand for oil and natural gas and the business and operations of

the operators of the properties, which in turn could have an adverse effect on trust distributions.

Demand for oil and natural gas, and

the business and operations of the operators of the properties could be adversely impacted by the COVID-19 pandemic and measures being taken to mitigate its impact.

The extent of the impact of the coronavirus

pandemic and government responses on domestic sales of crude oil and natural gas remains unknown and is constantly evolving.

During 2020 and part of 2021, the industry experienced a sharp and rapid decline in the demand for crude oil and natural gas

and global economy, and commodity prices, were negatively impacted as economic activity was curtailed in response to the COVID-19 pandemic.

Official restrictions on non-essential activities, including shelter in place and stay at home orders, were introduced throughout the U.S.

and the world, which impacted operators

production activities and the reintroduction of and length of time such renewed measures are in place may further adversely affect Trust distributions.

At this time, the full extent to which COVID-19 (including the emergence of different COVID-19 variants) will negatively impact the global economy and the oil and gas industry is uncertain, but pandemics or other significant public health events will most likely have a material adverse effect on

operators business and financial condition which would likely have an adverse effect on Trust distributions.

The operators of the oil and natural gas leases are subject to extensive governmental regulation.

Oil and natural gas operators have been, and in the future will be, affected by Federal, state and local laws and regulations and

other political developments, such as price or gathering rate controls, drilling regulations, and environmental protection regulations, including the regulation of hydraulic fracturing.

Although Marine is unable to predict changes to existing

laws and regulations, such changes could significantly impact Marines overriding royalty interests.

The owner of any properties in the leases

may transfer any of the properties to another unrelated third party, which could reduce the amount of royalty payments that are received.

The working interest owners may at any time transfer all or part of the property in a lease to another unrelated third party.

Unitholders are

not entitled to vote on any transfer, and Marine will not receive any proceeds of any such transfer.

Following any transfer, the lease will continue to be subject to Marines royalty interest, but the net proceeds from the transferred property

would be calculated separately and paid by the transferee.

The transferee would be responsible for all of the obligations relating to calculating, reporting and paying to Marine its royalty interest on the transferred portion of the lease, and the

transferor of the transferred property would have no continuing obligation to Marine for that property.

Official restrictions on

essential activities, including shelter in place and stay at home orders, were introduced throughout the U.S.

and the world, which impacted operators production

activities and the reintroduction of and length of time such renewed measures are in place may further adversely affect Trust distributions.

At this time, the full extent to which COVID-19 (including the

emergence of different COVID-19 variants) will negatively impact the global economy and the oil and gas industry is uncertain, but pandemics or other significant public health events will most likely have a

material adverse effect on operators business and financial condition which would likely have an adverse effect on Trust distributions.

operators of the oil and natural gas leases are subject to extensive governmental regulation.

Oil and natural gas operators have

been, and in the future will be, affected by Federal, state and local laws and regulations and other political developments, such as price or gathering rate controls, drilling regulations, and environmental protection regulations, including the

regulation of hydraulic fracturing.

Although Marine is unable to predict changes to existing laws and regulations, such changes could significantly impact Marines overriding royalty interests.

The owner of any properties in the leases may transfer any of the properties to another unrelated third party, which could reduce the amount of royalty

payments that are received.

The working interest owners may at any time transfer all or part of the property in a lease to another

unrelated third party.

Unitholders are not entitled to vote on any transfer, and Marine will not receive any proceeds of any such transfer.

Following any transfer, the lease will continue to be subject to Marines royalty interest, but the net

proceeds from the transferred property would be calculated separately and paid by the transferee.

The transferee would be responsible for all of the obligations relating to calculating, reporting and paying to Marine its royalty interest on the

transferred portion of the lease, and the transferor of the transferred property would have no continuing obligation to Marine for that property.

Any such transferee may not be as financially sound as the current working interest owner.

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indicative of the value that Marine would realize if it sold its interest in the properties on the leases to a third party buyer and distributed the net proceeds to its unitholders.

In addition, the market price of the units is not necessarily

reflective of the fact that Marines assets are depleting assets, and a portion of each cash distribution paid on the units should be considered by investors as a return of capital, with the remainder being considered as a return on investment.

There is no guarantee that distributions made to a unitholder over the life of these depleting assets will equal or exceed the purchase price paid by the unitholder for the unit.

In addition, the public stock markets have traditionally experienced price and trading

volume volatility.

In addition, the market

price of the units is not necessarily reflective of the fact that Marines assets are depleting assets, and a portion of each cash distribution paid on the units should be considered by

investors as a return of capital, with the remainder being considered as a return on investment.

There is no guarantee that distributions made to a unitholder over the life of these depleting assets will equal or exceed the purchase price paid by

the unitholder for the unit.

In addition, the public stock markets have traditionally experienced price and trading volume volatility.

This volatility has had a significant effect on the market prices of securities issued by many companies for reasons that may or may not be related to operating performance.

If the public stock markets continue to experience price

and trading volume volatility in the future, the market price of the units could be adversely affected.

Our units have been thinly traded and an

active trading market for our units may not develop.

If the public stock markets continue to experience price and trading volume

volatility in the future, the market price of the units could be adversely affected.

Our units have been thinly traded and an active trading market

for our units may not develop.

The trading volume of our units has historically been low.

As a result, sales

of small amounts of the units in the public market could cause the price of the units to fluctuate greatly, including in a materially adverse manner.

In addition, a more active trading market for our units may not develop, or if it does develop, may

not continue, and a unitholder may find it difficult to dispose of, or to obtain accurate quotations as to the market value of, our units.

Operating risks for the working interest owners interests on the leases can adversely affect distributions.

The occurrence of drilling, production or transportation accidents and other natural disasters on the properties underlying the leases can

reduce distributions.

These occurrences include blowouts, cratering, explosions, environmental and hurricane damage that may result in personal injuries, property damage, damage to productive formations or equipment and environmental damages.

these occurrences could have a material adverse effect on the amount of our distributions or the market value of the units.

Failure to collect

royalty payments from working interest owners could adversely affect Marines distributions to its unitholders.

A significant

portion of Marines royalties are attributable to a limited number of working interest owners.

For the fiscal year ended June 30, 2021, three working interest owners accounted for approximately 100% of the royalty payments to Marine.

As a result, sales of small amounts of

the units in the public market could cause the price of the units to fluctuate greatly, including in a materially adverse manner.

In addition, a more active trading market for our units may not develop, or if it does develop, may not continue, and a

unitholder may find it difficult to dispose of, or to obtain accurate quotations as to the market value of, our units.

Operating risks for the

working interest owners interests on the leases can adversely affect distributions.

The occurrence of drilling, production

or transportation accidents and other natural disasters on the properties underlying the leases can reduce distributions.

These occurrences include blowouts, cratering, explosions, environmental and hurricane damage that may result in personal

injuries, property damage, damage to productive formations or equipment and environmental damages.

Any of these occurrences could have a material adverse effect on the amount of our distributions or the market value of the units.

Failure to collect royalty payments from working interest owners could adversely affect Marines distributions to its unitholders.

A significant portion of Marines royalties are attributable to a limited number of working interest owners.

For the fiscal year ended

June 30, 2022, two working interest owners accounted for 100% of the royalty payments to Marine.

Marine does not require working interest owners to pledge collateral or otherwise post security for royalty payments.

At any time, Marine may encounter collection issues with one or more of the working interest owners, which could result in Marine

not receiving payments for some or all of its royalty interests.

Any reduction in royalty payments would reduce the distributable income to Marines unitholders.

At any time, Marine may

encounter collection issues with one or more of the working interest owners, which could result in Marine not receiving payments for some or all of its royalty interests.

Any reduction in royalty payments would reduce the distributable income to

Marines unitholders.

Marines royalty interest can be sold and the Trust can be terminated.

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than in the month incurred and reserves may be established for contingencies that would not be recorded under GAAP.

If Marine becomes subject to

the Texas franchise tax, the Trustee may have to withhold amounts from future distributions to pay the tax liability.

Texas imposes a franchise tax that applies to most business entities doing business in Texas.

If Marine becomes subject to the Texas franchise tax, the Trustee may have to withhold amounts from

future distributions to pay the tax liability.

The State of Texas imposes a franchise tax that applies to most business entities

doing business in Texas.

Trusts, however, other than business trusts (as defined in U.S.

Treasury Regulation section 301.7701-4(b)), that

meet certain statutory requirements are exempt from the franchise tax as passive entities.

The Trustee does not expect that the Trust will be required to pay any amounts under the

Texas franchise tax for the 2021 tax year based on the Trustees belief that the Trust is exempt from the franchise tax as a passive entity ( i.e.

, the Trust is not a business trust, it receives at least 90% of its federal gross income

from certain passive sources, and no more than 10% of its income is derived from an active trade or business).

If it is subsequently determined that the Trust is not exempt from the franchise tax, the Trust will be required to reduce distributions

by the amount required to satisfy and pay the Trusts franchise tax liability for the years for which the applicable statute of limitations has not yet expired.

In addition, the Trust would be required to timely pay franchise tax liability due

with respect to current and future years in which the Trust fails to qualify for an exemption and has total revenues in excess of $1,000,000 (subject to adjustment pursuant to Texas Tax Code section 171.006).

Treasury Regulation section 301.7701-4(b)), that meet certain statutory requirements are exempt from the franchise tax

as passive entities.

The Trustee does not expect that the Trust will be required to pay any amounts under the Texas franchise

tax for the 2022 tax year based on the Trustees belief that the Trust is exempt from the franchise tax as a passive entity ( i.e.

, the Trust is not a business trust, it receives at least 90% of its federal gross income from certain

passive sources, and no more than 10% of its income is derived from an active trade or business).

If it is subsequently determined that the Trust is not exempt from the franchise tax, the Trust will be required to reduce distributions by the amount

required to satisfy and pay the Trusts franchise tax liability for the years for which the applicable statute of limitations has not yet expired.

In addition, the Trust would be required to timely pay franchise tax liability due with respect

to current and future years in which the Trust fails to qualify for an exemption and has total revenues in excess of $1,000,000 (subject to adjustment pursuant to Texas Tax Code section 171.006).

If the Trust is exempt from the Texas franchise tax as a passive entity, each unitholder that is subject to the Texas franchise tax as a

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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 1A. Risk Factors