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To: yard_man who wrote (92008)	4/10/2001 7:49:19 PM
From: Ken98	Respond to of 436258

Your guy is correct and that is why it is important to track where the field is in terms of its production history. The production will generally taper off and the field will "die" and the royalty interest along with it. The tricky part about estimating the life of the field is that the calculation is non-linear and based on the price of the oil/gas, the cost to recover it, and the volume of production. Each of these royalty trusts publishes a report from an independent analyst estimating the life of the field in question in their 10K. Take a look at a couple of the 10K docs for a couple of different trusts and you will get a good feel for it. Ken