97148--3/31/2010--TEL_OFFSHORE

related topics

{interest, director, officer}

{gas, price, oil}

{loss, insurance, financial}

{operation, international, foreign}

{operation, natural, condition}

{cost, contract, operation}

Natural gas and oil prices fluctuate due to a number of factors, and lower prices will reduce Net Proceeds available to the Trust and distributions to Trust Unit holders. Increased production and development costs for the Royalty will result in decreased or no Trust distributions. Trust reserve estimates depend on many assumptions that may prove to be inaccurate, which could cause both estimates of reserves and estimated future revenues to be too high or too low. Operating risks for the Working Interest Owners' interests in the Royalty Properties can adversely affect Trust distributions. Terrorism and continued hostilities in the Middle East could decrease Trust distributions or the market price of the units of beneficial interest of the Trust. The operators of the working interests are subject to extensive governmental regulation. Regulation of greenhouse gases and climate change could adversely affect Trust distributions The Trustees and the Unit holders have no control over the operation or development of the Royalty Properties and have little influence over operation or development. The Trustees rely upon the Working Interest Owners and Managing General Partner for information regarding the Royalty Properties. The owner of any Royalty Property may abandon any property, terminating the related Royalty. The Royalty can be sold and the Trust can be terminated. Trust assets are depleting assets and, if the Working Interest Owners or other operators of the Royalty Properties do not perform additional development projects, the assets may deplete faster than expected. Unit holders have limited voting rights. Unit holders have limited ability to enforce the Trust's rights against the current or future owners of the Royalty Properties.

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97148--3/31/2010--TEL_OFFSHORE_TRUST