Thank you for your email regarding the Black Warrior Trust. These units were issued at $20 per unit back in June of 1994. Today they trade at $15 per unit. The units of beneficial interest are supposed to decline over time because this is a "depleting" asset. As the natural gas is produced and sold, the reserves in the Black Warrior Basin are depleted over time. Please refer to the prospectus which shows you a hypothetical production schedule over the expected life of these reserves. Dominion has no current plans to dissolve the trust.
I trust this is helpful to you. If you have questions regarding your investment, please contact the trustee - NationsBank of Texas at 1-800-365-6548.
Sincerely, Mark C. Stevens Coordinator - Treasury Services
You must have picked up some bad info somewhere....DOM has never paid a distribution even close to 9 cents. To the best of my recollection, they have always paid at least $0.50. A reasonable distribution range for 1999 would be $0.50 - $0.60 per quarter. By the way, the total distribution for 1995 was $2.65, according to my records.
The prospectus states that "as of June 1, 1994, net proved reserves....were estimated by Ryder Scott....to be 63.3 Bcf...."At year-end 1997, net proved reserves were over 90 Bcf. Dominion has consistently added net proved reserves each year. Obviously, there will come a time when this does not happen. However, since the number is nearly 50% greater at 12/31/97 than on 6/1/97, the life of the trust is likely to be longer than originally projected. The current weakness in share price is a tremendous buying opportunity. I have successfully traded DOM since it went public. The key to DOM is to buy in late December and sell in March. Take a look at the charts, and you will see what I mean.