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8-K - FORM 8-K - DOMINION RESOURCES BLACK WARRIOR TRUST | d79874e8vk.htm |
Exhibit 99.1
DOMINION RESOURCES BLACK WARRIOR TRUST
Dominion Resources Black Warrior Trust
Announces 1st Quarter Cash Distribution
Announces 1st Quarter Cash Distribution
DALLAS, TEXAS, February 18, 2011Dominion Resources Black Warrior Trust (NYSE: DOM)
today announced a quarterly cash distribution to the holders of its units of beneficial interest of
$0.228656 per unit. The distribution will be payable March 11, 2011 to unitholders of record on
March 1, 2011. Dominions cash distribution history, current and prior year financial reports, a
link to filings made with the Securities and Exchange Commission and more can be found on its
website at
http://www.dom-dominionblackwarriortrust.com/.
http://www.dom-dominionblackwarriortrust.com/.
This distribution represents the quarterly royalty payment from Walter Black Warrior Basin LLC
(WBWB) reflecting production from October 1, 2010 to December 31, 2010. WBWB reported that
production attributable to the Trusts overriding royalty interests was approximately 583 million
cubic feet (MMcf) during this period compared to 600 MMcf in the previous quarter. Prices for
this quarter to the trust averaged $3.81 per mcf compared to $4.39 per mcf for the previous
quarter.
The Trust owns overriding royalty interests burdening certain proved developed coal seam gas
properties owned by WBWB and located in the Black Warrior Basin of Alabama. The Trust is a grantor
trust originally formed by Dominion Resources, Inc. In 2007, the underlying properties were
acquired by HighMount Black Warrior Basin LLC (HBWB), an indirect subsidiary of Loews
Corporation.
On May 18, 2010, HBWB notified the Trustee that Walter Natural Gas, LLC, a wholly owned
subsidiary of Walter Energy, Inc., entered into a definitive purchase agreement dated April 28,
2010 to acquire certain Alabama natural gas interests of HighMount Exploration & Production LLC,
effective March 1, 2010. On May 28, 2010 HighMount completed the sale of the membership interests
of HighMount Exploration & Production Alabama LLC to Walter Natural Gas, LLC. As a result of this
transaction, Walter changed the name of HighMount Black Warrior Basin LLC to Walter Black Warrior
Basin LLC. The acquisition included HBWBs Alabama coal bed methane operations, including
approximately the 532 existing conventional gas wells in which the Trust has a net profits
interest. At this time, the Trust anticipates no change in operations or reporting that will
significantly impact the Trust or its future revenue stream.
The Trust is designed to provide unitholders with quarterly cash distributions from its
royalty interests in certain coal seam gas properties. The units are listed on The New York Stock
Exchange under the symbol DOM.
The 2010 tax information packets are expected to begin mailing directly to unitholders in
early, and through, mid-March. A copy of Dominions 2010 Tax Information booklet will be posted on
Dominions website by March 1, 2011. In addition to the tax booklet, and new this year, the
Dominion website will also offer two simple calculators for computing the income and expense
amounts and the cost depletion. The calculators will also be available on Dominions website by
March 1, 2011.
* * *
Contact:
Ron E. Hooper, Senior Vice President
U.S. Trust, Bank of America Private Wealth Management, Trustee
Toll-free 1.800.365.6548
U.S. Trust, Bank of America Private Wealth Management, Trustee
Toll-free 1.800.365.6548