SJT Proxy Proposes New Trustee

We are gratified to receive credit for our role in nominating a successor trustee.  In turn we are thankful to the investors who supported our recommendation of the successor nominee by signing the nomination letter and/or otherwise communicating their preferences.  Here are excerpts from the preliminary proxy statement filed by the current trustee of the San Juan Basin Royalty Trust: 

“On June 11, 2002, the Trustee submitted a letter of its resignation as trustee of the Trust to the Unit Holders. …………..The Trustee formed a committee to solicit, investigate and choose a nominee. …………The committee reviewed the materials submitted by the interested candidates and decided to nominate Bank of America. However, the Trustee then received a notice from Unit Holders collectively owning more than 15% of the Units nominating TexasBank for appointment as successor trustee of the Trust at the Special Meeting (the "Nominee"). The Unit Holders who nominated the Nominee are: McDep Associates; [bold facing added; other holders listed in filing, but omitted here]. Upon receipt of the notice, the committee met, consulted with counsel and determined that the subject Unit Holders were qualified and entitled to nominate the Nominee under the terms of the Indenture, that the Nominee was qualified to serve as successor trustee under the terms of the Indenture, and that the Nominee was willing to serve as trustee if appointed as the successor trustee. After reviewing the qualifications of the Unit Holders and the Nominee, the committee determined that it was in the best interests of the Trust to defer to the nomination of the Unit Holders. The committee's decision was based on several factors including, but not limited to, the fact that the Nominee met the qualifications set forth in the Indenture, and the committee did not think that it was in the best interest of the Trust to have competing nominees.”

August 19, 2002; Natural Gas Royalty Trusts: SJT Proxy Proposes New Trustee