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Open Letter to GULTU Unitholders


Open Letter to GULTU Unitholders, dated November 29, 2021

Unitholders are (Once Again) Urged to Organize to Replace our
Trustee

Dear Unitholders,

A little over one year ago, on October 8, 2020, I wrote you a
letter urging you to replace The Bank of New York Mellon as the
trustee for the Gulf Coast Ultra Deep Royalty Trust (GULTU). In this letter, I said the following:

The GULTU Trustee...has siphoned off OUR money (in
other words, in my opinion rightfully belonging to the
unitholders). Why has the Trustee made approximately
as much money off of the Trust as the unitholders have
(collectively), and indeed in some quarters (such as
the most recently reported quarter) FAR MORE than we
have??? It makes no sense.

Well, here we are over year later and sadly nothing has changed.
In fact, things today are even worse for GULTU unitholders
versus a year ago, because on page 7 of the most recent Form 10-
Q filing we find the following new disclosure from the Trustee:

In November 2021, the Trustee notified HOGA that the
Trustee intends to withhold a portion of the funds
otherwise available for distribution each quarter to
gradually build a cash reserve for the payment of
future known, anticipated or contingent expenses or
liabilities, commencing with the distribution payable
in the first quarter of 2022. The Trustee may increase
or decrease the targeted cash reserve amount at any
time, and may increase or decrease the rate at which
it is withholding funds to build the cash reserve at
any time, without advance notice to the unitholders.
Cash held in reserve will be invested as required by
the royalty trust agreement. Any cash reserved in
excess of the amount necessary to pay or provide for
the payment of future known, anticipated or contingent
expenses or liabilities eventually will be distributed
to unitholders, together with interest earned on the
funds.

Yes, believe it or not the Trustee has promised to siphon off
even more of our money going forward! For no apparent reason.
Just as natural gas prices have been skyrocketing and GULTU
unitholders should be reaping the reward for our collective
patience. But, no, it is simply not to be according to our
Trustee, who claims that the additional amounts withheld from us
(how much??? and for what anticipated or contingent expenses or
liabilities???) will eventually be distributed to us with
(possibly) 0.01% annual interest (the going rate for savings
accounts at the three largest US banks, according to US News).
WHY ARE WE TOLERATING THIS NONSENSE FROM AN ENTITY THAT IS
SUPPOSED TO ACT IN OUR INTERESTS (NOT THEIR OWN), FELLOW
UNITHOLDERS????

IF YOU AGREE WITH ME AND OBJECT TO HAVING YOUR DISTRIBUTIONS
CONFISCATED BY THE TRUSTEE UNTIL SOME UNKNOWN DATE IN THE
FUTURE, I URGE YOU TO VOICE YOUR CONCERNS DIRECTLY TO THE
TRUSTEE (AS I HAVE DONE RECENTLY). THE CONTACT INFO FOR THE TRUSTEE
IS AS FOLLOWS:

Gulf Coast Ultra Deep Royalty Trust
The Bank of New York Mellon Trust Company,
N.A., as Trustee
Attention: Sarah C. Newell
Email: Sarah.Newell@bnymellon.com
Tel: (512) 236-6555
601 Travis Street, 16th Floor
Houston, TX 77002

SOURCE: https://www.sec.gov/Archives/edgar/data/1565146/000176902221000011/gultu11292021.txt 

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