When all the oil/gas in a particular trust is exhausted, I'm told the trust "goes away." My question is what happens to the dollar value of the units one holds at that time? Does it go to zero? Are you told by the trust that it is "ending" and to get your money out? I know my question sounds simplistic, but better that way than not asking. Thanks for the help in advance.
The Trust will exist until it is terminated by (i) two successive fiscal years in which the Trust’s gross revenues from the Royalty Properties are less than $2,000,000 per year, (ii) a vote of Unit holders as described below under “Voting Rights of Unit Holders” or (iii) operation of provisions of the Trust Agreement intended to permit compliance by the Trust with the “rule against perpetuities.”
I have no idea what the "rule against perpetuities" is and this term does not appear again in the document.
Upon the termination of the Trust, the Trustee will continue to act in such capacity until all the assets of the Trust are distributed. The Trustee will sell all Trust properties for cash (unless the Unit holders authorize the sale for a specified non-cash consideration, in which event the Trustee may, but is not obligated to, consummate such non-cash sale) in one or more sales and, after satisfying all existing liabilities and establishing adequate reserves for the payment of contingent liabilities, will distribute all available proceeds to the Unit holders.