The Trust is a royalty trust that was created on June 1, 1954 under the laws of the State of Texas. Bank of America, N.A. serves as corporate trustee (the "Trustee"). The Indenture provides that the term of Trust will expire on April 30, 2021, unless extended by the vote of the holders of a majority of the outstanding units of beneficial interest. The Trust was organized for the sole purpose of providing an efficient, orderly and practical means for the administration and liquidation of rights to interests in certain oil, natural gas or other mineral leases obtained by Gulf Oil Corporation ("Gulf") in a designated area of the Gulf of Mexico. These rights are evidenced by a contract between the Trust's predecessors and Gulf dated April 30, 1951 (the "1951 Contract"), which is binding upon the assignees of Gulf. As a result of various transactions that have occurred since 1951, the Gulf interests that were subject to the 1951 Contract now are held by Chevron U.S.A., Inc. ("Chevron"), which is a subsidiary of Chevron Corporation, Elf Exploration, Inc. ("Elf") and their respective assignees. The Trust holds title to interests in properties subject to the 1951 Contract that are situated offshore of Louisiana.

The Trust's wholly-owned subsidiary, Tidelands Corporation, holds title to interests in properties subject to the 1951 Contract that are situated offshore of Louisiana. Ninety-five percent of all oil, natural gas, and other mineral royalties collected by Tidelands Corporation, less the cost of receiving and collecting, are paid to the Trust. Approximately 12 percent of Tidelands royalty revenues are attributable to oil and approximately 88 percent are attributable to natural gas. The production payments and royalty revenues received by Tidelands are affected by the producing capabilities of the wells, seasonal fluctuations in demand, and by changes in the market price for oil and natural gas.

The royalty interests held by Tidelands are depleting with each barrel of oil and cubic foot of natural gas produced. No funds are reinvested by Tidelands; thus, these depleting assets are not being replaced. Both Tidelands Corporation and the Trust are prohibited from engaging in a trade or business and does only those things necessary for the administration and liquidation of its properties.

For more information including risk factors, properties, and financial data, please review the Form-10K located under the tab "Financial Reports".