895007--3/31/2010--WILLIAMS_COAL_SEAM_GAS_ROYALTY

related topics

{interest, director, officer}

{loss, insurance, financial}

{operation, international, foreign}

{tax, income, asset}

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 other operators developing the Underlying Properties do not perform additional development projects, the assets may deplete faster than expected. In addition, a reduction in depletion tax benefits may reduce the market value of the Units. Any distributions upon a termination and liquidation of the Trust may not equal or exceed the purchase price paid by a Unitholder for Units. Funds held by the Trustee are not insured by the Federal Deposit Insurance Corporation. The market price for the Units may not reflect the value of the Royalty Interests held by the Trust. Operational risks and hazards associated with the development of the Underlying Properties may decrease the price a buyer is willing to pay for the Royalty Interests resulting in a reduction of the amount paid to Unitholders upon liquidation of the Trust. Terrorism and continued hostilities in the Middle East could decrease the market price of the Units or the price a buyer is willing to pay for the Royalty Interests resulting in a reduction of the amount paid to Unitholders upon liquidation of the Trust. Unitholders and the Trustee have no influence over the operations on, or future development of, the Underlying Properties. The operator developing any Underlying Property may transfer its interest in the property without the consent of the Trust or the Unitholders. The operator developing any Underlying Property may abandon the property, thereby terminating the Royalty Interests. Trust Unitholders have limited voting rights and have limited ability to enforce the Trust s rights against the current or future operators developing the Underlying Properties.

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895007--3/31/2010--WILLIAMS_COAL_SEAM_GAS_ROYALTY_TRUST