710752--3/2/2009--SABINE_ROYALTY

related topics

{interest, director, officer}

{loss, insurance, financial}

{operation, international, foreign}

{operation, natural, condition}

Trust reserve estimates depend on many assumptions that may prove to be inaccurate, which could cause both estimated reserves and estimated future net revenues to be too high, leading to write-downs of estimated reserves. The assets of the Trust are depleting assets and, if the operators developing the Royalty Properties do not perform additional development projects, the assets may deplete faster than expected. Eventually, the assets of the Trust will cease to produce in commercial quantities and the Trust will cease to receive proceeds from such assets. In addition, a reduction in depletion tax benefits may reduce the market value of the Units. The market price for the Units may not reflect the value of the royalty interests held by the Trust. Terrorism and continued hostilities in the Middle East could decrease Trust distributions or the market price of the Units. Cash held by the Trustee is not fully insured by the Federal Deposit Insurance Corporation, and future royalty income may be subject to risks related to the creditworthiness of third parties. Unit holders and the Trustee have no influence over the operations on, or future development of, the Royalty Properties.

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710752--3/2/2009--SABINE_ROYALTY_TRUST