About North European Oil Royalty Trust

North European Oil Royalty Trust, a grantor trust, holds overriding royalty rights covering gas and oil production in certain concessions or leases in the Federal Republic of Germany. The rights are held under contracts with local German exploration and development subsidiaries of ExxonMobil Corp. (ExxonMobil) and the Royal Dutch/Shell Group of Companies (Royal Dutch/Shell Group). Under these contracts, the company receives various percentage royalties on the proceeds of the sales of certain products from the areas involved. Royalties are received for the sales of gas well gas, oil well gas, crude oil, condensate and sulfur. The company's primary royalty rights are based on a government granted concession and remain in effect as long as there are continued production activities and/or exploration efforts within the concession. The company holds other royalty rights, which are based on leases which have passed their original expiration dates. The company receives the royalty payments exclusively in Euros. The company, in cooperation with a parallel royalty owner (Unitarian Universalist Congregation at Shelter Rock), arranges for periodic examinations of the books and records of the operating companies to verify compliance with the computation provisions of the applicable agreements. The properties of the company, which the company and Trustees hold pursuant to the Trust Agreement on behalf of the unit owners, are overriding royalty rights on the sales of gas, sulfur and oil under a concession in the Federal Republic of Germany (the Oldenburg concession). The Oldenburg concession covers approximately 1,386,000 acres, is located in the German federal state of Lower Saxony, and is the area from which natural gas, sulfur and oil are extracted. The Oldenburg concession provides 100% of all the royalties received by the company. The Oldenburg concession is held by Mobil Erdgas-Erdol GmbH (Mobil Erdgas), a German operating subsidiary of ExxonMobil, and by Oldenburgische Erdolgesellschaft (OEG). As a result of direct and indirect ownership, ExxonMobil owns two-thirds of OEG and the Royal Dutch/Shell Group of Companies owns one-third of OEG. BEB Erdgas und Erdol GmbH (BEB), a joint venture in which ExxonMobil and the Royal Dutch/Shell Group each own 50%, administers the concession held by OEG. In 2002, Mobil Erdgas and BEB formed ExxonMobil Production Deutschland GmbH to carry out all exploration, drilling and production activities. All sales activities upon which the calculation of royalties is based are still handled by either Mobil Erdgas or BEB (the operating companies). Under one set of rights covering the western part of the Oldenburg concession (approximately 662,000 acres), the company receives a royalty payment of 4% on gross receipts from sales by Mobil Erdgas of gas well gas, oil well gas, crude oil and condensate. The company is also entitled under an agreement with Mobil Erdgas to receive a 2% royalty on gross receipts of the sales of sulfur obtained as a by-product of sour gas produced from the western part of Oldenburg. The company is also entitled under an agreement with Mobil Erdgas to receive a 2% royalty on gross receipts of the sales of sulfur obtained as a by-product of sour gas produced from the western part of Oldenburg. History North European Oil Royalty Trust was founded in 1975.