What changed in this filing

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Item 1A. Risk Factors

2023-09-26 compared with 2022-08-31 · 93 added, 79 removed, 139 unchanged (55% of the section changed)

27 unchanged sentences

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.

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.

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

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.

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

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.

The spread of a pandemic, such as coronavirus

( COVID-19 ) and its variants, and measures taken to mitigate the impact of such a pandemic could have an adverse effect on trust distributions.

The spread of a pandemic such as COVID-19, and the continually changing measures taken to

mitigate the impact of such a 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 pandemics,

as well as measures that could be taken to mitigate the impact of such pandemics.

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

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 future pandemics will or may negatively impact the global economy and the oil and gas industry is uncertain, but pandemics or other

significant public health events could 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.

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

The owner of any properties in the leases may abandon any property, terminating the related royalty interest Marine may hold.

The current working interest owners or any transferee may abandon any well or property that is subject to Marines royalty interest if it

believes that the well or property can no longer produce in commercially economic quantities or for any other reason.

This would terminate Marines royalty interest relating to the abandoned well or property.

The Trustee, Marine and the Trusts unitholders do not control the operation or development of the properties in the leases and have little

influence over their operation or development.

The Trustee, Marine and the Trusts unitholders have little, if any,

influence or control over the operation or future development of the underlying properties of the leases.

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.

The owner of any properties in the leases may abandon any property, terminating the

related royalty interest Marine may hold.

The current working interest owners or any transferee may abandon any well or property

that is subject to Marines royalty interest if it believes that the well or property can no longer produce in commercially economic quantities or for any other reason.

This would terminate Marines royalty interest relating to the

abandoned well or property.

The Trustee, Marine and the Trusts unitholders do not control the operation or development of the properties in

the leases and have little influence over their operation or development.

The Trustee, Marine and the Trusts unitholders

have little, if any, influence or control over the operation or future development of the underlying properties of the leases.

The properties underlying the leases are owned by independent working interest owners.

The working interest owners manage the underlying

properties and handle the receipt and payment of funds relating to the leases and payments to Marine for its royalty interests.

The working interest owners

manage the underlying properties and handle the receipt and payment of funds relating to the leases and payments to Marine for its royalty interests.

The current working interest owners are under no obligation to continue operating the properties.

The failure of a

working interest owner to conduct its operations, discharge its obligations, cooperate with regulatory agencies or comply with laws, rules and regulations in a proper manner could have an adverse effect on net proceeds payable to Marine.

Trustee, Marine and the Trusts unitholders do not have the right to replace an operator.

Risks Related to the Units

The failure of a working interest owner to conduct its operations, discharge its obligations, cooperate with regulatory agencies or comply with laws, rules and regulations in a proper manner could have an adverse effect on net proceeds payable to

The Trustee, Marine and the Trusts unitholders do not have the right to replace a working interest owner.

Risks Related to

The market price for the units may not reflect the value of the royalty interests held by Marine.

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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 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.

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

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.

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.

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interest owners of these leaseholds and such information is unreasonably difficult for Marine to obtain.

Terrorism and continued geopolitical hostilities could adversely affect Marines distributions to

its unitholders or the market price of its units.

Terrorist attacks and the threat of terrorist attacks, whether domestic or

foreign, as well as military or other actions taken in response to such attacks or threats, could cause instability in the global financial, oil and natural gas markets.

Terrorism and other geopolitical hostilities could adversely affect the

Trusts distributions to its unitholders or the market price of its units in unpredictable ways, including through the disruption of oil and natural gas supplies and markets, increased volatility in oil and natural gas prices, or the

possibility that the infrastructure on which the operators of the underlying properties rely could be a direct target or an indirect casualty of an act of terror.

The Trustee may be subject to attempted

cybersecurity disruptions from a variety of sources including state-sponsored actors.

The Trustee maintains cybersecurity

protocols to secure sensitive, non-public information.

If the measures taken to protect against cybersecurity disruptions prove to be insufficient or if proprietary data is otherwise not protected, the Trustee

or customers, employees, or third parties could be adversely affected.

The Trust is also exposed to potential harm from cybersecurity events that may affect the operations of third-parties, including suppliers, service providers (including providers

of cloud-hosting services for our data or applications), and customers.

Cybersecurity disruptions could cause harm to people or the environment;

damage or destroy assets;

compromise business systems;

result in proprietary information being altered,

lost, or stolen;

result in employee, customer, or third-party information being compromised;

or otherwise disrupt business operations.

The Trust could incur significant costs to remedy the effects of a major cybersecurity disruption in addition to

costs in connection with resulting regulatory actions, litigation, or reputational harm.

As a result, such costs could decrease the Trusts distributions to its unitholders.

Terrorism and continued geopolitical hostilities, including the war in Ukraine, could adversely affect

Marines distributions to its unitholders or the market price of its units.

Terrorist attacks and the threat of terrorist

attacks, whether domestic or foreign, as well as military or other actions taken in response to such attacks or threats, could cause instability in the global financial, oil and natural gas markets.

Terrorism and other geopolitical hostilities,

including the war in Ukraine, could adversely affect the Trusts distributions to its unitholders or the market price of its units in unpredictable ways, including through the disruption of oil and natural gas supplies and markets, increased

volatility in oil and natural gas prices, or the possibility that the infrastructure on which the operators of the underlying properties rely could be a direct target or an indirect casualty of an act of terror.

Unitholders have limited voting rights.

45 unchanged sentences

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).

to current and future years in which the Trust fails to qualify for an exemption and has total revenues in excess of the applicable no tax due threshold, which is currently $1,230,000.

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

6 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 1A. Risk Factors