Williams Coal Seam Gas Royalty Trust (WTU) News

Williams Coal Seam Gas Royalty Trust Announces Sale of Trust Assets in Connection With Termination of The Trust

DALLAS, Oct. 28 /PRNewswire-FirstCall/ -- Williams Coal Seam Gas Royalty Trust (NYSE: WTU) announced today that it has completed a sale of the assets of the Trust in connection with the termination of the Trust. As previously announced, the trustee solicited bids for the Trust's royalty interests in June and requested updated bids from previous bidders in October to confirm the highest acceptable offer. Following receipt of updated bids and determination of the highest acceptable offer, Williams Production Company, LLC ("WPC") had the right under the Trust Agreement to acquire the royalty interests at a purchase price of 105% of the highest acceptable offer. Williams exercised this right and purchased the royalty interests for a purchase price of $23,100,000.

The effective date of the sale of the royalty interests is September 1, 2010. On November 4, the trustee will announce the fourth quarter distribution, which will include only the months of July and August through the effective date of the sale. The trustee will announce the date for a closing of the books for the final distribution, as well as the amount of the final distribution, which will include the proceeds from the sale, less any remaining trust expenses once the final distribution amount has been determined.

Pursuant to the terms of the Trust Agreement, the Trust terminated effective March 1, 2010 because the reserve report as of December 31, 2009, reflected that, as of such date, the net present value (discounted at 10 percent) of the estimated future net revenues for proved reserves attributable to the royalty interests but using the average monthly Blanco Hub Spot Price for the past calendar year less certain gathering costs was equal to or less than $30 million thereby triggering a termination of the Trust.

Following termination, the trustee has continued to act as trustee of the Trust until all Trust assets are sold and the net proceeds from such sales distributed to unitholders in accordance with the procedures set forth in the Trust Agreement. These procedures are described in more detail in the Trust's most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the Securities and Exchange Commission.

Prior to the sale of assets, the Trust owned net profits interests in certain proved coal seam gas properties owned by WPC and located in the San Juan Basin of northwestern New Mexico (the "Working Interest Properties") and southwestern Colorado, including WPC's 35 percent net profits interest in 5,348 gross acres in La Plata County, Colorado (the "Farmout Properties").

The Trust is a grantor trust formed by The Williams Companies, Inc., parent company of WPC, and was designed to provide unitholders with quarterly cash distributions and tax credits under Section 29 of the Internal Revenue Code, which has expired as of 12/31/2002, from certain coal seam gas properties. The units are listed on The New York Stock Exchange under the symbol "WTU."

Additional information including the Trust's cash distribution history, current and prior year financial reports, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.wtu-williamscoalseamgastrust.com/.

SOURCE Williams Coal Seam Gas Royalty Trust

RELATED LINKS
http://www.wtu-williamscoalseamgastrust.com/

Link to Full Story:

http://www.prnewswire.com/news-releases/williams-coal-seam-gas-royalty-trust-announces-sale-of-trust-assets-in-connection-with-termination-of-the-trust-106102133.html

Yes, but it's still trading.

that profile was from Yahoo Finance.

Please note from my previous post, the trust is now terminated.

Williams Coal Seam Gas Royalty Trust holds royalty interests in proved natural gas properties in the San Juan Basin of New Mexico and Colorado. The company?s royalty interests include net profits interests in the Fruitland coal formation in the San Juan Basin, located in northwest New Mexico and southwest Colorado. As of December 31, 2009, its total proved reserves included 6,497 MMcf comprising proved developed producing reserves. Williams Coal Seam Gas Royalty Trust was founded in 1972 and is based in Dallas, Texas.

http://finance.yahoo.com/q/pr?s=WTU+Profile

PR Newswire

DALLAS, Aug. 4

DALLAS, Aug. 4 /PRNewswire-FirstCall/ -- Williams Coal Seam Gas Royalty Trust (NYSE: WTU) announced today that, pursuant to the governing trust documents, there will be a cash distribution to the holders of its units of beneficial interest of $0.132276 per unit, payable August 27, 2010 to unitholders of record on August 16, 2010.

Termination and Liquidation of the Trust

Pursuant to the terms of the Trust Agreement, the Trust has been terminated effective March 1, 2010 because the reserve report as of December 31, 2009, reflects that, as of such date, the net present value (discounted at 10 percent) of the estimated future net revenues for proved reserves attributable to the royalty interests but using the average monthly Blanco Hub Spot Price for the past calendar year less certain gathering costs was equal to or less than $30 million thereby triggering a termination of the Trust. Based on a report prepared by independent petroleum engineers, the Trust's computed termination present value (discounted at 10 percent) of the estimated future net revenues for proved reserves calculated in accordance with the Trust Agreement was approximately $8.4 million.

Following termination, the trustee will continue to act as trustee of the Trust until all Trust assets are sold and the net proceeds from such sales distributed to unitholders. The trustee will use best efforts to sell the Trust's assets in accordance with the procedures set forth in the Trust Agreement. These procedures are described in more detail in the Trust's most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

Williams Production Company, LLC ("WPC") had the option, within 60 days following the March 1, 2010 termination date, to make a cash offer to purchase all of the remaining royalty interests then held by the Trust. As of April 30, 2010, WPC declined to make an initial offer for the assets of the Trust.

The trustee has used best efforts, assisted by Albrecht and Associates (the "Advisor"), to obtain alternative offers for the remaining royalty interests. At the end of a 120-day period following the March 1, 2010 termination date, the trustee notified WPC of the highest of any other offers acceptable to the trustee, received during such period. WPC then had the exclusive right, but not the obligation, to purchase all remaining royalty interests for a cash purchase price equal to 105 percent of the highest acceptable offer. WPC declined to do so.

Currently, the trustee is attempting to negotiate the terms of a sale of the remaining royalty interests; however, no assurances can be given as to when or if such sale will occur.

If no acceptable offers are received for all remaining royalty interests, the trustee may request WPC to submit an offer for consideration by the trustee and may accept or reject such offer. Acceptance of an offer by the trustee shall be conditioned upon the opinion of the Advisor of the fairness of the offer.

In accordance with the Trust Agreement, all proceeds of production attributable to the Trust's royalty interests have been deposited into a separate account effective as of the March 1, 2010 termination date. Because a sale of the royalty interests was not made or a definitive contract for sale of the royalty interests was not entered into within a 150-day period following the March 1, 2010 termination date, the Trust or the unitholders, and not any buyer of the royalty interests, will be entitled to all proceeds of production attributable to the royalty interests following the termination date. The Trust is withholding an additional $200,000 for anticipated expenses relating to this termination process.