San Juan Basin Royalty Trust operates as an express trust.
The company owns a 75% net overriding royalty interest (the Royalty) that burdens certain of Hilcorp San Juan L.P.’s oil and natural gas interests (the Subject Interests) in properties located in the San Juan Basin of northwestern New Mexico (the San Juan Basin). The Subject Interests consist of working interests, royalty interests, overriding royalty interests and other contractual rights in 151,900 gross (119,000 net) producing acres...
San Juan Basin Royalty Trust operates as an express trust.
The company owns a 75% net overriding royalty interest (the Royalty) that burdens certain of Hilcorp San Juan L.P.’s oil and natural gas interests (the Subject Interests) in properties located in the San Juan Basin of northwestern New Mexico (the San Juan Basin). The Subject Interests consist of working interests, royalty interests, overriding royalty interests and other contractual rights in 151,900 gross (119,000 net) producing acres in San Juan, Rio Arriba and Sandoval Counties of northwestern New Mexico.
The Royalty conveyed to the company was carved out of Hilcorp San Juan L.P.’s (Hilcorp) working interests and royalty interests in certain properties situated in the San Juan Basin. Hilcorp’s sales contracts with Chevron Natural Gas (Chevron) and EDF Trading North America LLC (EDF) automatically renewed for an additional one-year term and expire on March 31, 2024. Hilcorp’s natural gas sales contract with New Mexico Gas Company, Inc. automatically renewed for an additional one-year term and expires on March 31, 2024.
Marketing
Hilcorp’s sales contracts with Chevron Natural Gas (Chevron) and EDF Trading North America LLC (EDF) automatically renewed for an additional one-year term and now expire on March 31, 2025. Each of Hilcorp’s sales contracts with EDF and Chevron provides for the delivery of such natural gas at various delivery points through their respective termination dates and the sale of such natural gas at prices that fluctuate in accordance with published indices for natural gas sold in the San Juan Basin. Hilcorp’s natural gas sales contract with New Mexico Gas Company, Inc. automatically renewed for an additional one-year term and now expires on March 31, 2025.
Hilcorp contracts with Enterprise Field Services, LLC (EFS) for the gathering and processing of certain natural gas produced from the Subject Interests. Hilcorp’s predecessor signed an agreement with EFS which was effective November 1, 2011, for a term of 15 years.
Hilcorp’s predecessor entered into four contracts with Williams Four Corners, LLC (WFC), each of which is effective for a term of 15 years commencing April 1, 2010. The EFS and WFC contracts covered the gathering and processing of virtually all of the natural gas produced from the Subject Interests. On October 1, 2018, Harvest Midstream I, L.P., an affiliated midstream company of Hilcorp, completed the acquisition of WFC’s gas pipeline and processing facilities in the San Juan Basin.
History
San Juan Basin Royalty Trust was founded in 1980.