NORTH
EUROPEAN OIL ROYALTY TRUST
Suite
19A, 43 West Front Street
Red
Bank, New Jersey 07701
________________
NOTICE
OF ANNUAL MEETING OF UNIT OWNERS
February
12, 2007
To
the Unit Owners of
NORTH
EUROPEAN OIL ROYALTY TRUST:
NOTICE
IS
HEREBY GIVEN that the Annual Meeting of Unit Owners of NORTH EUROPEAN OIL
ROYALTY TRUST (the "Trust"), pursuant to Article 14 of its Agreement of Trust
will be held on Monday, February 12, 2007, at 1:30 P.M., in Rooms 3 and 4,
Ninth
Floor, at The University Club, 1 West 54th Street, New York, New York 10019
(corner of Fifth Avenue; entrance on 54th Street) for the following
purposes:
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(1)
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To
elect five persons as Trustees to serve until the next annual meeting
of
unit owners or until their respective successors are duly elected
and
qualified.
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(2)
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To
transact such other business as may properly come before the
meeting.
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The
transfer books of the Trust will not be closed. Only unit owners of record
as of
the close of business on December 29, 2006 will be entitled to notice of
and to
vote at the annual meeting.
BY
ORDER
OF THE TRUSTEES:
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|
|
|
ROBERT
P. ADELMAN
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Managing
Trustee
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January
10, 2007
________________
If
you plan to attend the meeting, please note that The University Club has
a dress
code. Gentlemen are required to wear a jacket and tie, and ladies are required
to wear business attire. The University Club does not make
exceptions.
If
you do not expect to be present in person, you are urged to sign and return
the
enclosed proxy in the enclosed postage-paid envelope as soon as
possible.
NORTH
EUROPEAN OIL ROYALTY TRUST
Suite
19A, 43 West Front Street
Red
Bank, New Jersey 07701
(732)
741-4008
________________
PROXY
STATEMENT
This
proxy statement is furnished in connection with the solicitation of proxies
by
the Trustees of NORTH EUROPEAN OIL ROYALTY TRUST (the "Trust") to be used
at the
Annual Meeting of Unit Owners to be held on Monday, February 12, 2007 and
any
adjournment or adjournments thereof for the purposes set forth in the
accompanying notice of annual meeting. Only unit owners of record at the
close
of business on December 29, 2006 will be entitled to vote at such meeting.
Proxies properly executed and received in time to be presented at the meeting
will be voted as specified in such proxies. If no instructions are specified
in
such proxies, units of beneficial interest in the Trust ("units") will be
voted
for the election of the Trustees. The Trustees do not know of any matters,
other
than as described in the Notice of Annual Meeting of Unit Owners, which are
to
come before the annual meeting. If any other matters are properly presented
at
the annual meeting for action, the persons named in the enclosed form of
proxy
and acting thereunder will have the discretion to vote on such matters in
accordance with their best judgment.
Any
proxy
may be revoked at any time prior to its being exercised by filing with the
Managing Trustee, at the address of the Trust above, written notice of such
revocation or a duly executed proxy bearing a later date, or by attending
and
voting in person at the annual meeting. Owners of units registered in the
name
of a nominee (e.g. units held by brokers in "street name") who wish to vote
in
person at the annual meeting should contact the nominee to obtain appropriate
authority to vote such units at the annual meeting. Attendance at the annual
meeting will not in and of itself constitute revocation of a proxy. This
proxy
statement and the proxy included herewith are being mailed to unit owners
on or
about January 10, 2007.
The
Trust
was formed on September 10, 1975, pursuant to a vote of the shareholders
of
North European Oil Company, a predecessor corporate entity. There were 9,190,590
units of the Trust outstanding on December 29, 2006. This number of units
represents all authorized units. Each unit owner is entitled to one vote
for
each unit he or she holds or represents. Any number of units represented
in
person or by proxy will constitute a quorum for all purposes at the annual
meeting.
The
affirmative vote of a majority of units represented in person or by proxy
at the
annual meeting is required to elect any person a Trustee of the Trust. With
regard to the election of Trustees, votes may be cast in favor or withheld
with
respect to all nominees; votes that are withheld will be counted as present
for
purposes of the election of Trustees and, thus, will have the same effect
as a
vote "against" such election. In the event of a broker non-vote with respect
to
any issue coming before the annual meeting arising from the absence of
authorization by the beneficial owner to vote as to that issue, such non-voting
units will not be deemed present and entitled to vote as to that issue for
purposes of determining the total number of units of which a majority is
required for adoption.
The
Trustees do not expect that the cost of soliciting proxies will exceed the
amount normally expended for a proxy solicitation for an election of directors
or trustees and all such costs will be borne by the Trust. In addition to
the
use of the mail, some proxies may be solicited personally by the Trustees
without additional compensation. The Trustees may reimburse persons holding
units in their names or in the names of their nominees for their expenses
in
sending the soliciting materials to their principals.
ELECTION
OF TRUSTEES
The
persons named in the accompanying proxy intend to vote for the election of
the
five individuals named on the following page to serve until the next annual
meeting of unit owners, or until their successors have been duly elected
and
qualified. All of the nominees are presently serving as Trustees. The Trustees
are informed that all nominees are willing to serve, but if any such person
shall decline or shall become unable to serve as a Trustee for any reason,
votes
will be cast instead for a substitute nominee, if any, designated by the
present
Trustees, or, if none is so designated prior to election, said votes will
be
cast according to the judgment of the person or persons voting the
proxy.
During
the fiscal year ended October 31, 2006, the Trustees met six times. The Trustees
have designated a standing Audit Committee of the Trustees of North European
Oil
Royalty Trust (the “Audit Committee”) and a standing Compensation Committee of
the Trustees of North European Oil Royalty Trust (the “Compensation Committee”).
The Trust does not have a nominating or governance committee. Samuel M.
Eisenstat serves as the Chairman of both committees and Robert P. Adelman,
Willard B. Taylor and Rosalie J. Wolf serve as members of both committees.
Lawrence A. Kobrin is a member of the Compensation Committee. During fiscal
2006
the Audit Committee and the Compensation Committee met formally six times
and
one time, respectively, and each had additional informal meetings and
communications.
As
more
fully discussed in the following pages, the function of the Audit Committee
is
to review the internal financial management and control procedures of the
Trust,
to appoint and remove independent auditors for the Trust, and to consult
with
the auditors. The function of the Compensation Committee is to determine
the
separate compensation of the Managing Trustee, to determine the compensation
of
the Managing Director and to determine any separate compensation for additional
services as they deem necessary. All of the Trustees attended all of the
meetings of the Trustees and the meetings of the Audit Committee and the
Compensation Committee (if a member thereof) during the fiscal year ended
October 31, 2006. It is the expectation of the Trustees that all of the Trustees
attend each Annual Meeting of Unit Owners in person. All of the Trustees
attended last year’s Annual Meeting.
The
following table sets forth certain information, including ownership of Trust
units as of December 1, 2006, about the nominees for election as Trustees,
the
Managing Director and the former Managing Trustee:
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Trustee
or
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Units
|
|
|
|
|
|
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Director
of
|
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Beneficially
|
|
Percent
|
|
|
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Principal
Occupation or
|
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Predecessor
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Owned
as of
|
|
of
|
|
|
|
Employment
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|
Or
Officer,
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December
1,
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Units
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Age
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for
Past Five Years
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|
Since
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2006
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(1)
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|
|
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Nominees
for Election as Trustees
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|
|
|
|
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|
|
|
|
|
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|
Robert
P. Adelman
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76
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|
Director,
Trustee of various
|
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1987
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7,000
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(2)
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profit
and non-profit
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companies
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|
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Samuel
M. Eisenstat
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66
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Attorney;
CEO, Abjac
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1996
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5,000
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(2)
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Energy
Corp.; Director or
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|
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|
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Trustee
of a number of open
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and
closed end funds
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managed
by AIG
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SunAmerica
Asset
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Management
Corp.
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Lawrence
A. Kobrin
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73
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Partner,
Cahill Gordon &
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2006(3)
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600(4)
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(2)
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Reindel
LLP
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|
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Willard
B. Taylor
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66
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Partner,
Sullivan &
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1974(5)
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6,619
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(2)
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Cromwell,
LLP
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|
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|
|
|
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Rosalie
J. Wolf
|
65
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|
Managing
Member, Botanica
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2001
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2,000
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(2)
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Capital
Partners LLC;
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formerly
Senior Advisor and
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Managing
Director,
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Offit
Hall Capital
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Management
LLC
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(and
predecessor entity);
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formerly
Chief Investment
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Officer
of The Rockefeller
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Foundation
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Managing
Director
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John
R. Van Kirk
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54
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Managing
Director (6)
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1990
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7,551
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(2)
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Former
Managing
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|
Trustee
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John
H. Van Kirk
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82
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Managing
Trustee (7)
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1954
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78,000(8)
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0.85%
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All
Trustees, the Managing Director and the
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Former
Managing Trustee, as a group
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106,770
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1.16%
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____________________
(1)
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Percentage
computations are based upon all outstanding units. Percentage computations
for each Trustee and the Managing Director include units deemed
to be
owned indirectly even when beneficial ownership has been disclaimed
as set
forth in notes (4) and (8).
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(3)
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As
of January 1, 2007, Lawrence A. Kobrin is Senior Counsel at Cahill
Gordon
& Reindel LLP which serves as counsel to the
Trust.
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(4)
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Including
300 units owned by Lawrence A. Kobrin’s wife, in which units he disclaims
beneficial interest.
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(5)
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Mr.
Taylor also served as a director of North European Oil Company
from 1970
to 1972.
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(6)
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John
R. Van Kirk, the Managing Director of the Trust, provides office
space and
office services to the Trust at cost. During fiscal 2006, the Trust
reimbursed him a total of $19,151.75 for such office space and
office
services.
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(7)
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John
H. Van Kirk retired as Managing Trustee and chief executive officer
effective October 31, 2006. John H. Van Kirk is the father of John
R. Van
Kirk.
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(8)
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Including
13,800 units owned by John H. Van Kirk's wife, in which units he
disclaims
beneficial interest.
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No
person
known to the Trust owns beneficially more than 5% of the Trust’s
units.
____________________
Section
16(a) Beneficial Ownership Reporting Compliance
In
accordance with the Securities Exchange Act of 1934 and rules adopted by
the
Securities and Exchange Commission (the "SEC"), the Trustees, the Managing
Director and persons owning more than 10% of the Trust's units (the "Reporting
Persons") are required to file reports of ownership of, and changes in ownership
of, Trust units with the SEC, the New York Stock Exchange and the
Trust.
Based
solely on a review of such forms furnished to it and written representations
from certain Reporting Persons the Trust believes that during the fiscal
year
ended October 31, 2006, all filing requirements applicable to the Reporting
Persons have been complied with.
Report
of the Compensation Committee of the Trustees of North European
Oil
Royalty Trust
Under
the provisions of the Trust Agreement approved by the Delaware
Court of
Chancery and the shareholders of the Trust's predecessor at the
formation
of the Trust, each Trustee receives a yearly fee equal to 0.2%
of the
gross royalties and interest received during the year by the Trust.
The
Managing Trustee receives additional compensation which is set
by the
Compensation Committee. The Compensation Committee also fixes the
annual
compensation of the Managing Director. Until the end of fiscal
2006, when
John H. Van Kirk retired as Managing Trustee, the Managing Trustee
also
served as the chief executive officer of the Trust. Effective November
1,
2006, the Managing Trustee is no longer an executive of the Trust.
In
setting the compensation amounts of the Managing Trustee (prior
to fiscal
2007) and the Managing Director, the Compensation Committee takes
into
account the amount of time these two executives are expected to
devote to
the Trust's affairs. The Compensation Committee also takes into
consideration the allocation of administrative and management
responsibilities between the Managing Trustee and the Managing
Director.
The Managing Director handles day-to-day matters of the Trust.
For
calendar 2007, the Managing Director will receive a bonus of $5,000
payable in January and an increase of $5,000 in his annual
compensation.
The
Trust's financial results are determined primarily by factors not
within
the control of its executives or the Trustees, including energy
prices in
Europe, currency exchange rates, energy supply contracts and the
operating
companies' production and sales levels. The Compensation Committee
continues to believe that the time required and the level of skill
with
which the Managing Director handles the administrative and financial
affairs of the Trust, rather than the Trust's financial results,
are the
significant factors in determining his compensation.
Samuel
M. Eisenstat, Chairman
Robert
P. Adelman
Lawrence
A. Kobrin
Willard
B. Taylor
Rosalie
J. Wolf
|
MANAGEMENT
COMPENSATION
Trustee
and Officer Compensation
Set
forth
below is a table summarizing the compensation paid to the Managing Trustee
and
the Managing Director during the indicated fiscal years of the
Trust.
SUMMARY
COMPENSATION TABLE
Name
and
|
|
|
|
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Principal
Positions
|
|
Year
|
|
Compensation
|
|
|
|
|
|
John
H. Van Kirk
|
|
2006
|
|
$ 92,208
|
Managing
Trustee (1)
|
|
2005
|
|
$ 66,165
|
|
|
2004
|
|
$ 68,265
|
|
|
|
|
|
John
R. Van Kirk
|
|
2006
|
|
$105,000
|
Managing
Director
|
|
2005
|
|
$103,000
|
|
|
2004
|
|
$ 99,167
|
(1) John
H.
Van Kirk retired as Managing Trustee and chief executive officer effective
October 31, 2006. The compensation amounts indicated for John H. Van Kirk
include both the amounts paid to him in accordance with the Trust Agreement
as a
Trustee and the separately fixed compensation paid to him as Managing Trustee
and chief executive officer.
During
fiscal 2006, each Trustee was paid a fee of $56,207.74 pursuant to a formula
contained in the Trust Agreement. Robert P. Adelman received additional
compensation at an annual rate of $10,000 for serving as Audit Committee
Chairman. In addition, the Trustees are reimbursed for reasonable out-of-pocket
expenses incurred in connection with travel and accommodations for meetings
of
the Trustees. For fiscal 2006, total out-of-pocket expenses for all the Trustees
were $3,343.05. The Trustees do not receive, either directly or indirectly,
securities or property, retirement or insurance benefits or personal benefits
or
other similar forms of compensation.
Compensation
Committee Interlocks and Insider Participation
None.
Comparison
of Five Year Returns
The
graph
set forth below compares, for the last five years, the cumulative return
on
Trust Units, the securities in a peer group index, and the S&P 500 Composite
Index. Because no published peer group index exists, the Trustees have developed
a peer group consisting of the following three domestic oil royalty trusts:
Mesa
Royalty Trust, Sabine Royalty Trust and San Juan Basin Royalty Trust (the
"Royalty Peer Group"). The composition of the Royalty Peer Group has been
the
same since the Trust's proxy statement for its 1993 Annual Meeting of Unit
Owners.
The
reserves and sales attributed to the royalty trusts comprising the Royalty
Peer
Group are located in the United States, while the reserves and sales attributed
to North European Oil Royalty Trust are located in Germany. There are
fundamental differences between the energy markets in the United States and
Germany that affect commodity pricing and as a result severely restrict the
usefulness of any comparison of their cumulative returns. The Trust has been
unable to locate any royalty trusts publicly traded in the U.S. with reserves
and sales in Europe. In determining the cumulative return on investment,
it has
been assumed that on October 31, 2001, an equal dollar amount was invested
in
the Trust Units, in the securities of the trusts of the Royalty Peer Group,
and
in the S&P 500 Composite Index. The comparisons assume in all cases the
reinvestment of all dividends or distributions on the respective payment
dates.
The cumulative returns shown for the Trust and the Royalty Peer Group do
not
reflect any differences between the tax treatment of Trust distributions,
due to
permitted cost depletion, and dividends on securities in the S&P 500
Composite Index.
![COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN](graph80768.jpg)
AUDIT
COMMITTEE
All
of
the Trustees, with the exception of Lawrence A. Kobrin, constitute the Audit
Committee of the Trustees of North European Oil Royalty Trust. The Audit
Committee meets the definition of an audit committee set forth in Section
3(a)(58)(A) of the Exchange Act. All of the members of the Audit Committee
are
“independent” as that term is defined in the rules of the Securities &
Exchange Commission and the applicable listing standards of New York Stock
Exchange. The Trustees have determined that both Robert P. Adelman and Rosalie
J. Wolf are financial experts, as the term is defined in the Commission rules.
The Audit Committee is chaired by Samuel M. Eisenstat. The Trustees of North
European Oil Royalty Trust have adopted a written Charter outlining the duties
and responsibilities of the Audit Committee. Mr. Eisenstat serves on the
audit
committees of several funds managed by AIG Sun America Asset Management Corp.
The Trustees have determined that such service by Mr. Eisenstat does not
impair
his ability to effectively serve on the Trust’s Audit Committee.
Pursuant
to the Audit Committee Charter and the requirements of the Securities and
Exchange Commission, the Audit Committee has provided the following report
for
inclusion in this proxy statement:
Report
of the Audit Committee of the Trustees of North European Oil Royalty
Trust
The
undersigned constitute the members of the Audit Committee. In connection
with the proxy statement in which this report appears and the distribution
to unit owners of the financial reports for the Trust’s fiscal year ended
October 31, 2006, the Audit Committee reports as follows:
1.
The Audit Committee has reviewed and discussed the audited financial
statements for the Trust for the fiscal year ended October 31,
2006 with
the Managing Director of the Trust, constituting its ongoing management.
2.
The Audit Committee has discussed with representatives of Weiser
LLP
(“Weiser”), the independent auditors of the Trust, the matters which are
required to be discussed with them under the provisions of SAS
61. The
Statement of Accounting Standards requires the auditors to ensure
that the
Audit Committee received information regarding the scope and results
of
the audit.
3.
The Audit Committee has received the written disclosures and the
letter
from Weiser, the independent auditors, required by Independence
Standards
Board Standard No. 1 (Independence Discussion with Audit Committees)
and
has discussed with Weiser their independence.
4.
Based on the review and discussions described in this report, the
Audit
Committee recommended to the Trustees that the audited financial
statements be included in the Trust’s Annual Report on Form 10-K for the
fiscal year ended October 31, 2006 for filing with the Securities
and
Exchange Commission.
Samuel
M. Eisenstat, Chairman
Robert
P. Adelman
Willard
B. Taylor
Rosalie
J. Wolf
|
AUDITOR
MATTERS
A
representative of Weiser is expected to attend the annual meeting and to
be
available to respond to appropriate questions from unit owners. The
representative from Weiser will also have the opportunity to make a statement
at
the meeting if he/she chooses to do so.
Resignation
and Appointment of Independent Auditors
Effective
July 18, 2006 the Audit Committee approved the appointment of Weiser as the
Trust’s new independent registered public accounting firm replacing Ernst &
Young LLP (“E&Y”). This action was taken primarily to reduce the Trust’s
audit and audit-related expenses.
With
respect to the audits of the Trust’s financial statements for the fiscal years
ended October 31, 2005 and 2004 and the subsequent interim periods through
April
30, 2006 and through the date of replacement, there were no disagreements
with
E&Y on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of E&Y, would have caused E&Y to make reference to
the subject matter of the disagreements in connection with its report. Further,
the audit reports of E&Y on the financial statements of the Trust for the
years ended October 31, 2005 and 2004 did not contain an adverse opinion
or a
disclaimer of opinion and were not qualified or modified as to uncertainty,
audit scope or, except as noted in the following sentence, as to accounting
principles. E&Y noted in its opinion that the Trust’s financial statements
have been prepared on the modified cash basis of accounting, which is a
comprehensive basis of accounting other than U.S. generally accepted accounting
principles. In the opinion of the Trustees and the Trust’s management the use of
the cash basis provides a more meaningful presentation to unit owners of
the
results of operations of the Trust.
During
the Trust’s fiscal years ended October 31, 2005 and 2004 and the subsequent
interim period through the date of engagement, neither the Trust nor anyone
acting on its behalf consulted with Weiser regarding (1) the application
of
accounting principles to a specified transaction, either completed or proposed,
or the type of audit opinion that might be rendered on the Trust’s financial
statements or (2) any of the matters or events set forth in Item 304(a)(2)(ii)
of Regulation S-K.
Weiser
assumed audit responsibilities for the Trust on July 18, 2006 and has conducted
a review of the financial statements for the Trust’s four quarters of fiscal
2006 and has performed an audit of the Trust’s 2006 fiscal year financial
statements.
Fees
Billed by Independent Auditors
Audit
Fees
For
the
fiscal year ended October 31, 2005, the Trust agreed to pay $47,800 as the
aggregate amount for audit services to E&Y. For the fiscal year ended
October 31, 2006, E&Y proposed a significantly higher audit fee of
$75,000-$80,000. Following subsequent discussions, E&Y agreed to bill the
trust at the prior year’s rate pending the retention of a new auditor. At the
time of the replacement of E&Y prior to the third quarter review, the Trust
had already paid $23,900 to E&Y. With respect to fiscal 2006, the Trust
agreed to pay Weiser $49,000 for the review of the first three fiscal quarters,
the year-end audit and the attestation to the sufficiency of the Trust’s
internal control over financial reporting to be performed by Weiser.
Audit-Related
Fees and Tax Fees
No
fees
were billed during the fiscal years ending October 31, 2005 and 2006 for
services rendered by the Trust’s independent accountants for audit-related fees
or tax fees.
All
Other Fees
At
the
Trust’s direction and as part of its monitoring process, the German affiliate of
E&Y, Ernst & Young AG, reviewed the basis for royalty payments and
allowable cost deductions for Mobil Erdgas Erdol GmbH and BEB Erdgas und
Urdol
GmbH in Germany for the period 2003-04 and has been paid $8,041.72 by the
Trust
in fiscal 2006.
Pre-Approval
Policies
It
is the
policy of the Audit Committee that all audit and non-audit services provided
to
the Trust must be pre-approved by the Audit Committee. All of the audit and
non-audit services described above were pre-approved by the Audit
Committee.
GOVERNANCE
AND NOMINATIONS
With
the
exception of the Lawrence A. Kobrin, none of the Trustees have a financial
relationship with the Trust other than as Trustees under the terms of the
Trust
Agreement. Until December 31, 2006, Mr. Kobrin was a partner of the law firm
of
Cahill Gordon & Reindel LLP in New York, New York, a position he has held
since 1984. Cahill Gordon & Reindel LLP has provided legal services to the
Trust since that time. Mr. Kobrin is currently senior counsel to Cahill Gordon
& Reindel LLP. The Trustees have determined that all the current Trustees
are considered independent according to the rules of the New York Stock
Exchange. Prior to his retirement as Managing Trustee effective October 31,
2006, John H. Van Kirk was not considered independent. The independent Trustees
of North European Oil Royalty Trust met in executive session twice during
fiscal
2006 and had additional communications.
The
Trustees have created a Code of Conduct and Business Ethics. All the Trustees
and the Managing Director have signed the Code of Conduct and Business Ethics.
The Code of Conduct and Business Ethics, the Trustees’ Regulations and the
Trust’s Audit Committee Charter are available on the Trust’s website,
www.neort.com. A copy of any of these documents will be furnished without
charge
to any unit owner who sends a written request to John R. Van Kirk, P.O. Box
456,
Red Bank, NJ 07701.
The
Trustees have not created and do not intend to create a separate Nominating
Committee. The ongoing supervision of the Trust requires continuity of
experience and familiarity with its unique structure. The Trust is precluded
from business activities and would not benefit from the rotation of its member
Trustees. Rotation of the Trustees would, in the opinion of the Trustees,
substantially increase costs and be counter to the best interests of the
unit
owners. Accordingly, absent the retirement, resignation, incapacity or death
of
any Trustee, the Trustees have customarily been re-nominated every
year.
At
such
time as a vacancy occurs in the Trustees by reason of retirement, resignation
or
death of any Trustee, all of the remaining Trustees serve the function of
a
nominating committee and do so pursuant to the provisions of the Trust Agreement
and the orders of the Delaware Court of Chancery.
Any
unit
owner may at any time communicate in writing with either the Managing Trustee,
or the senior Trustee then serving, to make a nomination and such nominee
will
be considered by the Trustees without differentiation as to the source of
the
suggestion. In the event of a vacancy among the Trustees, nominees would
be
sought who had the background, experience and competence in those areas where
the former
Trustee
was proficient. They would include business experience in the extractive
industries, experience with royalty trust management and general business
and
accounting experience.
The
Trustees have not created and do not intend to create a Governance Committee.
It
is the opinion of the Trustees that, since the Trust Agreement and orders
of the
Delaware Court of Chancery provide the framework for governance of the Trust,
no
such Committee is necessary. A copy of the Trust Agreement, as amended, is
on
file with the Securities and Exchange Commission.
OTHER
MATTERS
The
Trustees are not aware of any other matter to be presented for action at
the
annual meeting. If any other matter is brought before the meeting, it is
the
intention of the persons named in the proxy to vote in accordance with their
discretion pursuant to the terms of the proxy.
Communications
Any
unit
owner may communicate with an individual Trustee, or the Trustees as a group,
or
with the Audit Committee Chairman in writing. All such communications will
be
treated in confidence and an appropriate response or action will be taken.
Communications to an individual Trustee or the Trustees as a group may be
sent
to the office of the Trust at P.O. Box 456, Red Bank, NJ 07701 and will be
forwarded to them. Communications to the Audit Committee Chairman may also
be
sent by mail to the office of the Trust, marked “confidential.” The Managing
Director and Audit Committee Chairman can also be reached directly through
the
Trust’s website, www.neort.com.
Form
10-K
The
Trust
will have filed with the SEC prior to the Annual Meeting of Unit Owners an
Annual Report on Form 10-K. A copy of the report for the period ended October
31, 2006, including the financial statements, will be furnished without charge
to any unit owner who sends a written request to John R. Van Kirk, Managing
Director, P.O. Box 456, Red Bank, New Jersey 07701. A copy of the report
is also
accessible through the Trust’s website, www.neort.com.
Unit
Owner Proposals for the 2008 Annual Meeting
The
2008
Annual Meeting of Unit Owners is tentatively scheduled to be held on February
13, 2008. Any proposals of the unit owners intended to be presented at the
2008
annual meeting must be received by the Trust by September 12, 2007 for inclusion
in the Trust's proxy statement and form of proxy relating to that meeting.
Any
proposals of the unit owners intended to be presented at the 2008 annual
meeting
that are not to be included in the Trust’s proxy statement and form or proxy
relating to that meeting must be received by the Trust by November 26, 2007.
Such proposals should be sent to John R. Van Kirk, Managing Director, P.O.
Box
456, Red Bank, New Jersey 07701. If the date of the 2008 annual meeting is
changed by more than 30 days from February 13, 2008, unit owners will be
advised
of such change and of the new dates for submission of proposals.
Unit
owners are urged to sign and return their proxies without delay.
BY
ORDER
OF THE TRUSTEES:
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|
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ROBERT
P. ADELMAN
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Managing
Trustee
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January
10, 2007