What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-17 compared with 2021-03-16 · 98 added, 78 removed, 498 unchanged (26% of the section changed)

146 unchanged sentences

Tax counsel to the trust advised the trust at the time of formation that, for federal income tax purposes, in its opinion the trust will be treated as a grantor trust and not as an unincorporated business entity.

ruling has been or will be requested from the IRS with respect to the federal income tax treatment of the trust, including as to the status of the trust as a grantor trust for such purposes.

No ruling has been or will be requested from the IRS with respect to the federal income tax treatment of the trust, including as to the status of the trust as a grantor trust for such purposes.

Thus, no assurance can be provided that the tax treatment of the trust would be sustained by a court if contested by the IRS or another taxing authority.

12 unchanged sentences

Widely Held Fixed Investment Trust Reporting Information

The trustee assumes that some trust units are held by middlemen, as such term is broadly defined in Treasury regulations (and includes custodians, nominees, certain joint owners, and brokers holding an interest for a custodian in street name).

interest for a custodian in street name).

Therefore, the trustee considers the trust to be a non-mortgage widely held fixed investment trust (“WHFIT”) for U.S.

5 unchanged sentences

Available Trust Tax Information

In compliance with the reporting requirements for WHFITs and the dissemination of trust tax reporting information, the trustee provides a generic tax information reporting booklet that is intended to

be used only to assist unitholders in the preparation of their 2020 federal and state income tax returns.

In compliance with the reporting requirements for WHFITs and the dissemination of trust tax reporting information, the trustee provides a generic tax information reporting booklet that is intended to be used only to assist unitholders in the preparation of their 2021 federal and state income tax returns.

The projected payment schedule for the net profits interest is included with the tax information booklet.

19 unchanged sentences

One of the principal businesses of CG&A is providing detailed assessment of producing reservoirs.

CG&A is an independent firm of petroleum engineers, geologists, geophysicists and petrophysicists and does not own an interest in the

underlying properties and is not employed on a contingent basis.

Todd Brooker, Senior Vice President, is the technical person at CG&A who is primarily responsible for overseeing CG&A’s preparation of the reserve estimates.

CG&A is an independent firm of petroleum engineers, geologists, geophysicists and petrophysicists and does not own an interest in the underlying properties and is not employed on a contingent basis.

Todd Brooker, President, is the technical person at CG&A who is primarily responsible for overseeing CG&A’s preparation of the reserve estimates.

Brooker is a graduate of the University of Texas at Austin with a Bachelor of Science degree in Petroleum Engineering and has 30 years of experience in petroleum engineering.

27 unchanged sentences

Proved undeveloped reserves converted to proved developed reserves by drilling

Additional proved undeveloped reserves added during 2018

Proved undeveloped reserves removed from drilling plan

Additional proved undeveloped reserves added

Proved undeveloped reserves removed from drilling

Revisions of previous estimates

1 unchanged sentence

Proved undeveloped reserves converted to proved developed reserves by drilling

Additional proved undeveloped reserves added during 2019

Proved undeveloped reserves removed from drilling plan

Additional proved undeveloped reserves added

Proved undeveloped reserves removed from

drilling plan

Revisions of previous estimates

1 unchanged sentence

Proved undeveloped reserves converted to proved developed reserves by drilling

Additional proved undeveloped reserves added during 2020

Proved undeveloped reserves removed from drilling plan

Additional proved undeveloped reserves added

Proved undeveloped reserves removed from

drilling plan

Revisions of previous estimates

7 unchanged sentences

(dollars in thousands)

Non-Producing

(dollars in thousands)

Severance Taxes

1 unchanged sentence

Operating Expenses

Workover Expenses

COPAS Overhead

Future Development Costs

80% NPI Net Operating Income (1)

15 unchanged sentences

Severance tax rates were applied at normal state percentages of oil and gas revenue, except for those Kansas producing properties that are severance tax exempt.

Ad valorem taxes of 2.0% of total revenue were applied to each property as provided by MV Partners.

Ad valorem taxes of 2.0% of total revenue

were applied to each property as provided by MV Partners.

Oil and gas conservation tax rates were applied to all Kansas properties at the applicable rates.

5 unchanged sentences

Producing Acreage and Well Counts

For the following data, “gross” refers to the total wells or acres in which MV Partners owns a working interest and “net” refers to gross wells or acres multiplied by the percentage working interest owned by MV

Although many of MV Partners’ wells produce both oil and natural gas, a well is categorized as an oil well or a natural gas well based upon the ratio of oil to natural gas production.

13 unchanged sentences

As of December 31, 2021, no wells were being drilled.

Capital expenditures associated with converting proved undeveloped reserves to proved developed reserves for the year ended December 31, 2020, were $56,000.

Capital expenditures associated with converting proved undeveloped reserves to proved developed reserves for the year ended December 31, 2021, were approximately $780,000.

MV Partners continues to develop further proved undeveloped reserves pursuant to its planned development and workover program.

30 unchanged sentences

Vess Oil also plans to maintain its annual recompletion and workover program over the next five years.

Vess Oil has commenced a waterflood program to enhance production from the Whitecloud formation.

Vess Oil has commenced a waterflood program

to enhance production from the Whitecloud formation.

Vess Oil plans to convert wells as the infill developmental drilling program proceeds.

6 unchanged sentences

Each of Vess Oil and Murfin Drilling operate leases on behalf of MV Partners included in the underlying properties that are located in the Northwest Kansas Area.

The primary fields in this area are the

Bemis-Shutts, Trapp, Ray and Hansen Fields.

The primary fields in this area are the Bemis-Shutts, Trapp, Ray and Hansen Fields.

Vess Oil and Murfin Drilling have actively pursued polymer treatments, stimulation workovers and recompletion operations to reduce the natural decline in production from these fields.

3 unchanged sentences

Production has been from multiple pay zones with the primary formation being the Arbuckle interval at a depth of 3,300 feet and the Lansing-Kansas City interval at a depth of 2,800 feet.

Cumulative production of all producers from the Bemis-Shutts Field has exceeded 248 MMBbls of oil.

Both Vess Oil and Murfin Drilling have pursued polymer treatment programs with success in the Bemis-Shutts Field and plan to continue these workovers.

Cumulative production of all producers from the Bemis-Shutts Field has exceeded

248 MMBbls of oil.

Both Vess Oil and Murfin Drilling have pursued polymer treatment programs with success in the

Bemis-Shutts Field and plan to continue these workovers.

MV Partners has continued to acquire 3-D seismic surveys over portions of the field to further define the boundaries of the Arbuckle structure in the field and to evaluate undrilled infill locations.

This data is processed as received and currently there are over 6 potential infill drilling locations that have been identified.

MV Partners plans to drill these locations over the next five years.

The Trapp Field consists of 35,900 acres in Russell and Barton Counties, Kansas and was discovered in 1929.

4 unchanged sentences

Production from this field has primarily come from the Lansing-Kansas City limestone.

Cumulative production of all producers from the Hansen Field has exceeded 9.2 MMBbls of oil.

Cumulative production of all producers from the Hansen Field has exceeded

9.2 MMBbls of oil.

The Ray Field is located on the eastern flank of the Central Kansas Uplift and was discovered in 1940.

7 unchanged sentences

The terms of the conveyance that created the net profits interest do not permit MV Partners to charge any marketing fee when determining the net proceeds upon which the net profits interest is calculated.

As a result, the net proceeds to the trust from the sales of oil, natural gas and natural gas liquid production from the underlying properties are determined based on the same price that MV Partners receives for oil, natural gas and natural gas liquid production attributable to MV Partners’ remaining interest in the underlying properties.

As a result, the net proceeds to the trust from the sales of oil, natural gas and natural gas liquid production from the underlying properties are determined based on the same price that

MV Partners receives for oil, natural gas and natural gas liquid production attributable to MV Partners’ remaining interest in the underlying properties.

Vess Oil and Murfin Drilling, as contract operators, generally sell production from the underlying properties to several purchasers, including MV Purchasing, LLC, which we refer to herein as “MV Purchasing,” under short-term arrangements using market sensitive pricing.

3 unchanged sentences

For the years ended December 31, 2019, 2020 and 2021, MV Purchasing purchased 75%, 73% and 73%, respectively, of the production sold from the underlying properties.

MV Partners does not believe that loss of any of these parties as a purchaser

would have a material adverse impact on the business of MV Partners, as substitute purchasers are generally available;

MV Partners does not believe that loss of any of these parties as a purchaser would have a material adverse impact on the business of MV Partners, as substitute purchasers are generally available;

however, a purchaser’s failure to pay for purchased crude oil could have a significant adverse impact on MV Partners’ business.

16 unchanged sentences

The underlying properties are subject to certain burdens that are described in more detail below.

To the extent that these burdens and obligations affect MV Partners’ rights to production and the value of production from the underlying properties, they have been taken into account in calculating the trust’s interests and in estimating the size and the value of the reserves attributable to the underlying properties.

To the extent that these burdens and obligations affect MV Partners’ rights to production and the value of production

from the underlying properties, they have been taken into account in calculating the trust’s interests and in estimating the size and the value of the reserves attributable to the underlying properties.

MV Partners’ interests in the underlying properties are typically subject, in one degree or another, to one or more of the following:

19 unchanged sentences

MV Partners has recorded the conveyance of the net profits interest in the real property records of Colorado in accordance with local recording acts.

MV Partners has informed the trustee that MV Partners believes that if, during the term of the trust, MV Partners becomes involved as a debtor in a bankruptcy proceeding, the net profits interest relating to the underlying properties located in Colorado should be treated as a fully conveyed personal property interest under the laws of Colorado.

fully conveyed personal property interest under the laws of Colorado.

In such a proceeding, however, a determination could be made that the conveyance constitutes an executory contract and the net profits interest is not a fully conveyed personal property interest under the laws of Colorado, and if such contract were not to be assumed in a bankruptcy proceeding involving MV Partners, the trust would be treated as an unsecured creditor of MV Partners with respect to such net profits interest in the pending bankruptcy proceeding.

2 unchanged sentences

The oil and natural gas industry is highly competitive.

MV Partners competes with major oil and natural gas companies and independent oil and natural gas companies for oil and natural gas, equipment,

personnel and markets for the sale of oil and natural gas.

MV Partners competes with major oil and natural gas companies and independent oil and natural gas companies for oil and natural gas, equipment, personnel and markets for the sale of oil and natural gas.

Many of these competitors are financially stronger than MV Partners, but even financially troubled competitors can affect the market because of their need to sell oil and natural gas at any price to attempt to maintain cash flow.

16 unchanged sentences

While sales by producers of natural gas can currently be made at market prices, Congress could reenact price controls in the future.

Deregulation of wellhead natural gas sales began with the enactment of the NGPA and culminated in adoption of the Natural Gas Wellhead Decontrol Act which removed all price controls affecting wellhead sales of natural gas effective January 1, 1993.

Deregulation of wellhead natural gas sales began with the enactment of the NGPA

and culminated in adoption of the Natural Gas Wellhead Decontrol Act which removed all price controls affecting wellhead sales of natural gas effective January 1, 1993.

Sales of crude oil, condensate, and natural gas liquids are not currently regulated and are made at negotiated prices.

5 unchanged sentences

Rates generally are cost-based, although settlement rates agreed to by all shippers are permitted and market-based rates may be permitted in certain circumstances.

physical sales of natural gas and oil, MV Partners is required to observe anti-market manipulation laws and related regulations enforced by the FERC and/or the Commodity Futures Trading Commission, or the CFTC, and the Federal Trade Commission, or FTC.

Although the price at which MV Partners sells oil, natural gas and natural gas liquids is not currently subject to federal rate regulation and, for the most part, is not subject to state regulation, with regard to physical sales of natural gas and oil, MV Partners is required to observe anti-market manipulation laws and related regulations enforced by the FERC and/or the Commodity Futures Trading Commission, or the CFTC, and the Federal Trade Commission, or FTC.

If MV Partners were to violate the anti-market manipulation laws and regulations, MV Partners could also be subject to related third-party damage claims by, among others, sellers, royalty owners and taxing authorities.

15 unchanged sentences

The Resource Conservation and Recovery Act, or RCRA, and comparable state statutes, regulate the generation, transportation, treatment, storage, disposal and cleanup of hazardous and non-hazardous wastes.

Under the auspices of the federal Environmental Protection Agency, or EPA, the individual states administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements.

Drilling fluids, produced waters and most of the other wastes associated with the exploration, development and production of crude oil or natural gas are currently regulated under RCRA’s non-hazardous waste provisions.

In December 2016, the EPA and environmental groups entered into a consent decree to address the EPA’s alleged failure to timely assess its RCRA Subtitle D criteria regulations exempting certain exploration and production-related oil and natural gas wastes from regulation as hazardous wastes under RCRA.

Under the auspices of the federal Environmental Protection Agency, or EPA, the individual states administer some or all of the provisions of RCRA, sometimes in conjunction with their own,

more stringent requirements.

Nevertheless, it is possible that these wastes could be classified as hazardous wastes in the future.

For example, in December 2016, the EPA and environmental groups entered into a consent decree to address the EPA’s alleged failure to timely assess its RCRA Subtitle D criteria regulations exempting certain exploration and production-related oil and natural gas wastes from regulation as hazardous wastes under RCRA.

The consent decree required the EPA to propose a rulemaking no later than March 15, 2019 for revision of certain Subtitle D criteria regulations pertaining to oil and natural gas wastes or to sign a determination that revision of the regulations is not necessary.

2 unchanged sentences

Comprehensive Environmental Response, Compensation and Liability Act.

The Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, also known as the Superfund law, imposes joint and several liability, without regard to fault or legality of conduct, on classes of persons who are considered to be responsible for the release of a hazardous substance into the environment.

These persons include the owner or operator of the site where the release occurred, and anyone who disposed or arranged for the disposal of a hazardous substance released at the site.

Under CERCLA, such persons may be subject to joint and several liability for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural resources and for the costs of certain health studies.

In addition, it is not uncommon for neighboring landowners and other third-parties to file claims for personal injury and property damage allegedly caused by the hazardous substances released into the environment.

The Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, also known as the Superfund law, and comparable state laws impose liability without regard to fault or the legality of the original conduct on certain classes of persons who are considered to be jointly and severally responsible for the release of a “hazardous substance” into the environment.

These persons include current and prior owners or operators of the site where the release occurred and entities that disposed or arranged for the disposal of the hazardous substances found at the site.

Under CERCLA, these “responsible persons” may be liable for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural resources, and for the costs of certain health studies.

CERCLA also authorizes the EPA and, in some instances, third parties to act in response to threats to the public health or the environment and then to seek to recover from the responsible classes of persons the costs they incur.

In addition, it is not uncommon for neighboring landowners and other third-parties to file claims for personal injury and property damage allegedly caused by the release of hazardous substances or other pollutants into the environment.

The underlying properties may have been used for oil and natural gas exploration and production for many years.

2 unchanged sentences

These properties and the substances disposed or released on them may be subject to CERCLA, RCRA and analogous state laws.

Under such laws, MV Partners could be required to remove previously disposed substances and wastes, remediate contaminated property, or perform remedial plugging or pit closure operations to prevent future contamination.

Under these laws, MV Partners could be required to investigate, remove or remediate previously disposed wastes, to clean up contaminated property and to perform response actions to prevent future contamination.

Water Discharges.

The federal Clean Water Act, or CWA, and analogous state laws impose restrictions and strict controls with respect to the discharge of pollutants, including spills and leaks of oil and other substances, into waters of the United States and waters of the state, respectively.

The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or an analogous state agency.

Federal and state regulatory agencies can impose administrative, civil and criminal penalties for non-compliance with discharge permits or other requirements of the CWA and analogous state laws and regulations.

The federal Clean Water Act, or CWA, and analogous state laws impose restrictions and strict controls regarding the discharge of pollutants into waters of the United States and waters of the state, respectively.

Pursuant to the CWA and analogous state laws, permits must be obtained to discharge pollutants into state waters or waters of the United States.

Any such discharge of pollutants into regulated waters must be performed in accordance with the terms of the permit issued by the EPA or the analogous state agency.

The discharge of wastewater from most onshore oil and gas activities exploration and production activities is currently prohibited east of the 98 th meridian.

1 unchanged sentence

Unconventional extraction facilities are in certain circumstances allowed by federal regulations to send wastewater to an off-site private centralized wastewater treatment, or CWT, facility in most circumstances.

CWT facilities can either discharge treated water diretly to surface waters or send it to a POTW.

CWT facilities can either discharge treated water directly to surface waters or send it to a POTW.

In 2018, the EPA concluded a study of the treatment and discharge of oil and gas wastewater that could lead to changes in requirements for discharge of produced water under federal regulations, including more stringent requirements or a prohibition on discharge of produced water from CWT facilities.

Any restriction of disposal options for hydraulic fracturing waste and other changes to CWA discharge requirements may result in increased costs.

The discharge of dredge and fill material in waters of the United States, including wetlands, is also prohibited unless authorized by a permit issued by the U.S.

Army Corps of Engineers, or ACE.

CWA Section 401 provides that the applicant for an individual Section 404 ACE permit for the discharge of dredge and fill material must notify the state in which the discharge will occur and provide an opportunity for the state to determine if the discharge will comply with the state’s approved water quality program.

In some instances, this process could result in delay in issuance of the permit, more stringent permit requirements, or denial of the permit.

How the EPA and the ACE define “waters of the United States,” or WOTUS, can impact MV Partners’ regulatory and permitting obligations under the CWA.

The EPA and the ACE promulgated rules defining the scope of WOTUS that became effective in September 2015.

On October 22, 2019, the EPA and the ACE published a final rule that repealed the 2015 definition of WOTUS and recodified longstanding regulatory definitions of WOTUS that existed prior to the 2015 rule to promote regulatory consistency across the United States.

On April 21, 2020, the EPA and the ACE issued a revised regulation (“2020 rule”) that narrowed

the definition from the 2015 rule.

Litigation has been filed on the 2020 rule, but it is effective in all jurisdictions.

In January 2021, President Biden issued an Executive Order announcing that the new administration would review the 2020 rule, and the administration has asked that litigation on the 2020 rule be stayed while it considers how to proceed..

To the extent that MV Partners must obtain permits for the discharge of pollutants or for dredge and fill activities in wetland areas or other waters of the United States, MV Partners could face increased costs and delays associated with obtaining such permits under any broader definition of WOTUS that expands the scope of CWA jurisdiction.

The discharge of dredge and fill material in waters of the United States, including wetlands, is also prohibited unless authorized by a permit issued under CWA Section 404 by the U.S.

Army Corps of Engineers, or USACE.

CWA Section 401 provides that the applicant for an individual Section 404 USACE permit for the discharge of dredge and fill material must notify the state in which the discharge will occur and provide an opportunity for the state to determine if the discharge will comply with the state’s approved water quality program.

In some instances, this process could result in a delay in issuance of the permit, more stringent permit requirements, or denial of the permit.

How the EPA and the USACE define “waters of the United States,” or WOTUS, which defines the extent of geographic jurisdiction under the CWA, can impact MV Partners’ regulatory and permitting obligations under the CWA.

In 2020, the EPA and the USACE issued a final rule, or the 2020 rule, that narrowed the definition of WOTUS when compared to the prior definition of WOTUS that had been adopted in 2015.

In August 2021, however, a court vacated the 2020 rule.

In response, the EPA and the USACE reverted to the WOTUS definition in use prior to the 2015 WOTUS rulemaking.

That pre-2015 definition is broader than the definition from the 2020 rule, but was never formally codified because it was based on interpretation of a U.S.

Supreme Court decision.

On December 7, 2021, the agencies published a proposed rule that would codify the interpretation currently in use.

The comment period closed in February 2022 and a final rule is expected later in 2022.

At the same time, the U.S.

Supreme Court has taken up a case that may again revise the understanding of the WOTUS definition.

MV Partners’ regulatory obligations and permitting costs may increase under the current definition as opposed to the one in effect under the 2020 rule, and there will remain some uncertainty around the definition of WOTUS and the scope of CWA regulation, given expected challenges to the 2022 final rule and the pending Supreme Court case.

USACE Nationwide Permits, or NWPs, are a streamlined form of permitting used to authorize development activities with minimal individual or cumulative adverse effects in wetlands or other waters of the United States under the CWA and/or Rivers and Harbors Act.

The current administration has stated an intention to re-visit all or some of the USACE NWPs before their current expiration date of February 2026.

In addition, a federal court in Montana is currently hearing a challenge to NWP 12, which is used to authorize regulatory impacts related to oil and gas pipelines.

Revisions to the NWPs by USACE or an adverse decision in Montana may restrict or remove the ability to use NWP 12 or other NWPs to permit regulated impacts, resulting in the need to apply for a more time-consuming individual permit.

This could result in additional cost and time for permitting projects.

The Oil Pollution Act of 1990, or the OPA, as amended, which amends the CWA, establishes standards for prevention, containment and cleanup of oil spills into waters of the United States.

11 unchanged sentences

The EPA has established pollution control standards for oil and gas sources under the CAA.

In 2012, the EPA adopted federal New Source Performance Standards that require the reduction of volatile organic compound emissions from certain fractured and refractured natural gas wells for which well completion operations are conducted and further require that most wells use reduced emission completions, also known as “green completions.” These regulations also establish specific new requirements regarding emissions from production-related wet seal and reciprocating compressors, and from pneumatic controllers and storage vessels.

known as “green completions.” These regulations also establish specific new requirements regarding emissions from production-related wet seal and reciprocating compressors, and from pneumatic controllers and storage vessels.

The EPA is also charged with establishing National Ambient Air Quality Standards, or NAAQS, the implementation of which can indirectly impact MV Partners’ operations.

2 unchanged sentences

In December 2020, the EPA published a final rule that retained without revision the 2015 NAAQS ozone standard.

The new administration will have an opportunity to revisit the ozone NAAQS.

The current administration will have an opportunity to revisit the ozone NAAQS.

State or federal implementation of the NAAQS could result in stricter permitting or regulatory requirements, delay or prohibit MV Partners’ ability to obtain such permits, and result in increased expenditures for pollution control equipment, the costs of which could be significant.

1 unchanged sentence

There has been support in various regions of the country for legislation that requires reductions in greenhouse gas emissions, and some states have already adopted legislation addressing greenhouse gas emissions from various sources, primarily power plants.

In response to findings that emissions of carbon dioxide, methane and other greenhouse gases, or GHGs, present an endangerment to public health and the environment, the EPA has issued regulations to restrict emissions of greenhouse gases under existing provisions of the CAA.

In response to findings that emissions of carbon dioxide, methane and other greenhouse gases, or GHGs, may present an endangerment to public health and the environment, the EPA has issued regulations to restrict emissions of greenhouse gases under existing provisions of the CAA.

These regulations include limits on tailpipe emissions from motor vehicles, preconstruction and operating permit requirements for certain large stationary sources, and methane emissions standards for certain new, modified and reconstructed oil and gas sources.

3 unchanged sentences

The revisions also include the addition of well identification reporting requirements for certain facilities.

In addition, in June 2016 the EPA published a final rule that requires operators to reduce methane emissions from certain new, modified or reconstructed oil and gas facilities, including production, processing, transmission and storage activities, or the Methane Rule.

In addition, in June 2016 the EPA published a final rule that requires operators to reduce methane emissions from certain oil and gas facilities, including production, processing, transmission and storage activities, that are constructed, modified, or reconstructed after September 18, 2015, or the Methane Rule.

Following the November 2016 presidential election and change in administrations, the EPA convened a reconsideration proceeding that culminated in a 2020 final rule that eliminated the obligation to control methane emissions under the NSPS, while maintaining the rule’s substantive emissions control requirements because they serve to control emissions of other, non-methane pollutants.

However, on January 20, 2021, President Biden issued an executive order calling on the EPA to, among other things, consider a proposed rule suspending, revising or rescinding those 2020 amendments to the Methane Rule by September 2021.

That same order directs the EPA to propose new rules to establish standards of performance and emission guidelines for methane and volatile organic compound emissions from existing operations in the oil and gas sector, including the exploration and production, transmission, processing, and storage segments, by September 2021.

The ultimate fate of the Methane Rule and any related requirements for existing sources is unclear.

That 2020 final rule, however, was undone by a June 30, 2021 Congressional Review Act resolution that re-instituted the regulation of methane from new, modified, and reconstructed oil and gas sources.

Additionally, on November 15, 2021, the EPA published a proposed rule that would establish emissions guidelines for the control of methane from existing oil and gas sources for the first time under the CAA.

The EPA intends to adopt the existing source emissions guidelines as a final rule by the end of 2022, which would then trigger a requirement for states to develop rules that will make the federal emissions guidelines enforceable as state rules over a three- to four-year period.

The ultimate fate of the proposed GHG control requirements for existing oil and gas sources is unclear.

Nevertheless, regulations promulgated under the CAA may require MV Partners to incur development expenses to install and utilize specific equipment, technologies, or work practices to control methane emissions from its operations.

12 unchanged sentences

In a separate executive order issued on January 20, 2021, President Biden asked the heads of all executive departments and agencies to review and take action to address any federal regulations, orders, guidance documents, policies and any similar agency actions promulgated during the prior administration that may be inconsistent with or present obstacles to the administration’s stated goals of protecting public health and the environment, and conserving national monuments and refuges.

A preliminary list must be provided to the Office of Management and Budget within 30 days of the order.

Regulations specifically mentioned for review and possible suspension, revision or rescission include the Methane Rule, and the EPA was ordered to, among other things, propose new regulations to establish comprehensive standards for performance and emission guidelines for methane from existing oil and gas operations by September 2021.

damages associated with incremental increased in greenhouse gas emissions,” including “changes in net agricultural productivity, human health, property damage from increased flood risk, and the value of ecosystem services.” Various recommendations from the Working Group are due beginning June 1, 2021 and final recommendations no later than January 2022.

The executive order also established an Interagency Working Group on the Social Cost of Greenhouse Gases, which is called on to, among other things, capture the full costs of greenhouse gas emissions, including the “social cost of carbon,” “social cost of nitrous oxide” and “social cost of methane,” which are “the monetized damages associated with incremental increased in greenhouse gas emissions,” including “changes in net agricultural productivity, human health, property damage from increased flood risk, and the value of ecosystem services.” The Working Group is expected to issue its recommendations in early 2022.

The adoption and implementation of regulations imposing reporting obligations on, or limiting emissions of GHGs from, MV Partners’ equipment and operations could require MV Partners to incur costs to reduce emissions of GHGs associated with its operations or could adversely affect demand for the natural gas it produces.

7 unchanged sentences

If endangered species are located in areas of the underlying properties where seismic surveys, development activities or abandonment operations may be conducted, the work could be prohibited or delayed or expensive mitigation may be required.

On August 27, 2019, the U.

On August 27, 2019, the U.S.

Fish and Wildlife Service published a final rule adopting several changes to the federal regulations that implement the ESA, including changes to the procedures and criteria for listing or removing species from the Lists of Endangered and Threatened Wildlife and Plants and for designating critical habitat.

In January 2021, President Biden issued an Executive Order announcing that the new administration would initiate a review of the 2019 amendments to the ESA rules.

The designation of previously unidentified endangered or threatened species could cause MV Partners to incur additional costs arising from species protection measures or could result in limitations on exploration and production activities that could have an adverse impact on the ability to develop and produce reserves from the underlying properties.

The Biden Administration has rescinded one of the rules adopted by the prior administration, dealing with critical habitat, and has stated its intention to revise other rules.

Changes to these rules could make a federal review process occasioned by the application for permits, rights of way, or leases more complex.

Designation of new species as threatened or endangered could cause MV Partners to incur additional costs arising from species protection measures, could result in limitations on activities, and could require a more complex regulatory compliance process.

While some of MV Partners’ facilities or leased acreage may be located in areas that are designated as habitat for endangered or threatened species, MV Partners believes that it is in substantial compliance with the ESA.

TABLE OF CONTENTS

National Environmental Policy Act.

The National Environmental Policy Act, or NEPA, requires the federal government to undertake an environmental review prior to making a decision on most proposed federal actions — such as permits, leases, and rights-of-way.

The Trump Administration significantly revised the regulations implementing NEPA in 2020 in an effort to make the review process more efficient and more narrowly tailored to the agency’s specific action.

The Biden Administration is in the process of an initial revision to the NEPA regulations, and in October 2021 the White House Council on Environmental Quality published a proposed rule that would undo many of the changes adopted in 2020.

The current administration has also stated its intention to undertake a second and more comprehensive round of revisions.

The immediate changes may not have a significant impact on federal reviews related to MV Partners actions because the Trump Administration rule was never fully implemented by the agencies;

however, continued change may increase agency review times associated with federal actions as agencies adjust to changing requirements and react to any resulting litigation.

OSHA and Other Laws and Regulation.

MV Partners is subject to the requirements of the federal Occupational Safety and Health Act, or OSHA, and comparable state statutes.

The OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of CERCLA and similar state statutes require that MV Partners organize and/or disclose information about hazardous materials used or produced in its operations.

MV Partners is subject to the requirements of the federal Occupational Safety and Health Act, or OSHA, and comparable state statutes, whose purpose is to protect the health and safety of workers.

In addition, the OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of CERCLA and similar state statutes require in certain circumstances that information be maintained concerning hazardous materials used or produced in MV Partners’ operations and that this information be provided to employees, state and local government authorities and citizens.

MV Partners believes that it is in substantial compliance with these applicable requirements and with other OSHA and comparable requirements.

3 unchanged sentences

However, there is no assurance that the passage of more stringent laws or regulations in the future will not have a negative impact on the operations of the underlying properties and cash distributions to trust unitholders.

TABLE OF CONTENTS

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