Introduction | Pacific Coast

Introduction

Pacific Coast Oil Trust is a statutory trust formed in January 2012 under the Delaware Statutory Trust Act pursuant to a Trust Agreement among Pacific Coast Energy Company ("PCEC") as trustor and The Bank of New York Mellon Trust Company, N.A. ("BNY") as Trustee
The Trust was created to acquire and hold net profits and royalty interests in certain oil and natural gas properties located in California for the benefit of the Trust unitholders
On 8 May 2012, the Trust and PCEC entered into a Conveyance of Net Profits Interests and Overriding Royalty Interest ("Conveyance Agreement"), pursuant to which PCEC conveyed to the Trust the Conveyed Interests
The Conveyance Agreement can be found here; the Trust Agreement here
Between 2012 and 2018, the Trust averaged $30M per year in distributions. In the 12 months through June 2019 (the last time the Trust reported financials), distributions were $13M.
In 2019 PCEC came under new management. That management introduced new accounting for Asset Retirement Obligations ("ARO"), stopped reporting financials, and ceased all distributions to the Trust.
The following pages describe the disputes that followed, including a Unitholder class action in which a TRO was granted but which was ultimately dismissed for lack of standing