Click the questions to see the answers. Disclaimer: The information contained in this section of our website is concise and is intended to only be a summary. Therefore, any information provided may not be complete. Unitholders are encouraged to read the Trust Agreement which is the document that describes the rights of Unitholders. Also, in the event of a conflict between anything described on our website and the terms of the Trust Agreement, the Trust Agreement shall control. Furthermore, the federal, state and local tax consequences, and associated tax filing responsibilities, to a Unitholder of the ownership and sale of Units is dependent in part on each Unitholder’s specific tax circumstances; therefore, Unitholders should consult their own tax advisors regarding all tax issues concerning the ownership and sale of Units. The Trust exercises thorough effort to ensure the accuracy of the content of this website, but makes no warranties as to the site’s accuracy or completeness and shall in no way be responsible for any loss or damages resulting from inaccuracies in information or any alterations made by third parties. What is a "unit?" It is a unit of beneficial interest, but basically it is the same thing as a share of stock. The units of the Trust are traded on NASDAQ in the over-the-counter market. Can I purchase/sell the units directly from/to you? No. The Trust cannot buy or sell the units. You will need to do that through your broker. Can I set up a DRIP (distribution reinvestment program?) No. The Trust cannot have a DRIP program set up. You may be able to set that up through your broker. Are there a minimum number of units that I have to purchase? No. That is a decision that you should make in conjunction with your financial advisor or broker. Is this a master limited partnership? No. The Trust is a grantor trust. Is there an end date to the Trust? How will the Trust end? The term of the Trust is set to expire on April 30, 2021, unless extended by the vote of the holders of a majority of the outstanding units of beneficial interest. There are, however, other events that could bring the Trust to terminate at a future unscheduled time: Once the existing overriding royalty leases with Chevron or its assignees (acquired prior to the Acquisition Expiration Date; see Form 10-K for detail) terminate or expire, any overriding royalties payable to Tidelands will terminate and Tidelands cannot acquire any additional or replacement interests. The royalty interest held by Tidelands are depleting with each barrel of oil and cubic foot of natural gas. These depleting assets and are not being replaced, A unitholder vote of 80% or more. What happens when the Trust terminates? Once the decision has been made to terminate the Trust, the net proceeds from any sale or liquidation will be distributed in a final distribution to the Unitholders of record at that time. My address information is incorrect or has changed. Can you please update your records? No. Neither the Trust nor the Trustee maintain any Unitholder records. You will want to contact your investment broker or the transfer agent (if you have a registered account) to make sure that they have the correct address in their records.     When will the tax information be available? Although the deadline imposed by the IRS is not until April 1st, we generally have the generic tax report and yellow worksheets (for registered Unitholders) mailed by March 1st. For nominee Unitholders, the generic tax report will be posted by March 1st on the Trust website or mailed upon request. Is the cash I receive from the Trust a qualified dividend? No. The distributions are considered royalty income and are ordinary income, taxed at your marginal rate. Are the cash distributions taxed at the 15% rate? No. The distributions are considered ordinary income and taxed at your marginal rate. Why aren't you providing me with a K-1? We are considered a grantor trust, not a partnership and do not have the same reporting requirements that a partnership does. The cash distributions are reported on a 1099-Misc form by your broker, or by the transfer agent for registered Unitholders. Why did I receive this/these yellow worksheet(s) and tax report? The yellow worksheet (provided to registered Unitholders) contains important tax information for the current year just ended. You should compare the information regarding the number of units and dates you were a unitholder of record (located under the heading “Quarterly Record Date Positions of Units” on the yellow sheet) to determine that the correct information was reported to the Trust. Once you have determined that the information is correct, then you can use the dollar amounts (located in the center of the yellow sheet) to report on the appropriate schedules on your tax return. If the information is not correct, then you must determine your proportionate share of the Trust revenues and expenses using the tax report that was included with the yellow worksheets. Please consult your tax advisor regarding all tax issues for your specific situation. I received two (or more) yellow worksheets with different amounts. Why? If you made changes to your account(s) registration you will receive a yellow worksheet for the units under each registration. Typically, if you add the dollar amounts and ownership dates on both sheets together, it will equal the total units you own for the period your records show you owned those units. If adding the yellow worksheets together does not match the information in your records, then use your records and the tax booklet to calculate your proportionate share of the trust income. In 2008 the change of transfer agents caused registered Unitholders to receive two yellow worksheets because they received revenue from both entities in that tax year. Going forward, and barring registration changes made, those Unitholders should receive one yellow worksheet for the tax year. The yellow worksheet I received has the incorrect number of units on it. Can you provide me with a corrected one? No. This information is contained in a static database that cannot be changed or amended. You will need to calculate your proportionate share of the revenues and expenses for the Trust manually using the tax report that came with the yellow worksheet. The yellow worksheet I received has the incorrect times I owned the Trust units on it. Can you provide me with a corrected one? No. This information is contained in a static database that cannot be changed or amended. You will need to calculate your proportionate share of the revenues and expenses for the Trust manually using the tax report that came with the yellow worksheet. Can you tell me how to input the information from the tax report into my tax preparation software? No. Your best course of action is to calculate your information using the forms provided in the tax report and then try and duplicate the forms in your software. If that doesn't work, you should call the software manufacturer and speak to them about the specific forms used and how to fill them out. I own my units in an IRA/tax-deferred account. Do I need to report this information on my tax return? No, you do not report any trust income in an IRA or other tax-deferred account.     What is the definition of "cost basis?" The cost basis is the total purchase price plus any commissions paid. Can you tell me what the cost basis for my units is? No. Since we don't maintain any Unitholder records, you should consult your broker or review your files for that information. I purchased more than one block of units. Can I input the basis for all of those units at one time? No. You will need to calculate the depletion for each block of units purchased separately.