Trial is well into its third week. The most recent filings include summaries of LL&E's damage models under various scenarios, the high end of the range (which includes future cash flow) is now $96 million.
It's too bad Trust units can't be found anywhere, OTC or otherwise. There's a private equity fund out of Detroit backing the play, but I don't know how much of the Trust they actually picked up.
Interestingly, Maverick's attorneys have admitted to years of errors in the Trust proceeds calculation. Depending on how other items land, the impact could be large or small--but notably, Maverick has admitted for the first time that it should have paid LL&E after 2008.
September 13, 2023
RE: NPI Calculation Corrections
Dear Joe,
This letter provides the LL&E Royalty Partnership (“LL&E Partnership”) notice that Breitburn Operating, LP (“Breitburn”) has identified certain historical errors in the monthly NPI calculation:
1. Interest calculated by Breitburn’s predecessors related to the “Special Cost Escrow
Account” or “SCEA” under the Conveyance. Funds were first placed in the Wells Fargo
depository agency account in May 2014. Because there was no depository agency account
or escrow account before that date, Breitburn agrees that interest on the SCEA calculated
balance from September 2010 through May 2014 should be based on the Prime Rate
formula described in Article VIII(h) (instead of T-Bill rates). Had the Prime Rate formula
been applied during that period, the LL&E Partnership would have received a payment of
$322,554.48 in June 2014 and a payment of $483,630.86 in July 2014. Those interest rates
will be corrected retroactively in the next monthly calculation.
2. Outdated interest rates. The Chase Bank rates and T Bill Rates used in the calculation
most recently have been listed at 3.25% and 0.05%, respectively. Those will be corrected
retroactively to reflect recent changes in the next monthly calculation. Incorporating this
change into the NPI calculation does not result in any additional payments to the
Partnership after July 2014.
3. Set amount for Treating Facility Overhead. For several years, $2,897.08 has been listed
each month under Jay Gas Plant Expenses as “Treating Facility Overhead.” While there is still a gas plant at the St. Regis facility that processes natural gas liquids, this specific amount appears to have been included in error. Those amounts will be removed retroactively in the next monthly calculation. Incorporating this change into the NPI calculation does not result in any additional payments to the Partnership after July 2014.
