Trust files today with SEC to extend life for 2 years
: WHAT IS THE SHAREHOLDER PROPOSAL?
A: The Shareholder Proposal is a proposal to amend Section 3.02(b) of the
Indenture. Section 3.02(b) provides that, in the event the Trust's cash
receipts are less than $3 million per year for three successive years, the
Trustee must sell the Trust's interest in the Freeport-McMoRan Oil and Gas
Royalty Partnership (the "Partnership") or cause the Partnership to sell the
assets of the Partnership, which assets consist solely of the oil and gas
royalty interest transferred to the Partnership by Freeport-McMoRan Inc. on
September 30, 1983 (the "Royalty"). The Royalty burdens certain offshore oil
and gas properties and is the only potential source of income for the Trust,
other than minor amounts of interest earned on cash reserves. The Trust
received no payments in respect of the Royalty in 1996, 1997 or 1998.
Therefore, unless the Shareholder Proposal is approved, the Trustee will
endeavor to sell the Trust's interest in the Partnership or cause the
Partnership to sell the Royalty. Upon such sale the Trust will be terminated.
Upon termination of the Trust, the Trustee will as promptly as possible
distribute the net proceeds, if any, of such sale according to the respective
interests and rights of the Unitholders after discharging all of the
liabilities of the Trust and, if necessary, setting up reserves in such
amounts as the Trustee in its discretion deems appropriate for contingent
liabilities. If the Shareholder Proposal is approved, no such sale and Trust
termination will occur prior to 2001, and, if the Trust's cash receipts in
either 2000 or 2001 are $3 million or more, the life of the Trust will be
extended beyond 2001. Q: WHEN AND WHERE WILL THE SPECIAL MEETING OCCUR?
A: Friday, March 12, 1999, at 10:00 a.m., local time, at ,
, Houston, Texas |
