SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended January 31, 2011 or
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[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from __________ to ___________ .
Commission file number 1-8245
NORTH EUROPEAN OIL ROYALTY TRUST
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(Exact name of registrant as specified in its charter)
Delaware 22-2084119
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(State of organization) (I.R.S. Employer I.D. No.)
Suite 19A, 43 West Front Street, Red Bank, New Jersey 07701
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(Address of principal executive offices)
(732) 741-4008
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No
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Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule
405 of Regulation S-T (Section 232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to
submit and post such files). Yes No
----- -----
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of "large accelerated filer,"
"accelerated filer," and "smaller reporting company" in Rule 12b-2 of the
Exchange Act. (Check one):
Large accelerated filer Accelerated filer X
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Non-accelerated filer Smaller reporting company
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Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes No X
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Class Outstanding at January 31, 2011
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Units of Beneficial Interest 9,190,590
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PART I -- FINANCIAL INFORMATION
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Item 1. Financial Statements.
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STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (NOTE 1)
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JANUARY 31, 2011 AND OCTOBER 31, 2010
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2011 2010
----------------- ----------------
(Unaudited)
ASSETS
Current assets - - Cash and
cash equivalents $ 5,149,373 $ 5,211,965
Producing gas and oil royalty rights,
net of amortization (Notes 1 and 2) 1 1
------------ ------------
Total Assets $ 5,149,374 $ 5,211,966
============ ============
LIABILITIES AND TRUST CORPUS
Current liabilities - - Distributions
to be paid to unit owners, paid
February 2011 and November 2010 $ 5,054,825 $ 5,146,731
Trust corpus (Notes 1 and 2) 1 1
Undistributed earnings 94,548 65,234
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Total Liabilities and Trust Corpus $ 5,149,374 $ 5,211,966
============ ============
The accompanying notes are an integral part
of these financial statements.
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STATEMENTS OF REVENUE COLLECTED AND EXPENSES PAID (NOTE 1)
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FOR THE THREE MONTHS ENDED JANUARY 31, 2011 AND 2010
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2011 2010
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(Unaudited)
German gas, sulfur and oil
royalties received $ 5,396,283 $ 4,894,409
Interest income 2,383 181
Trust expenses (314,527) (278,299)
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Net income $ 5,084,139 $ 4,616,291
============ ============
Net income per unit $ .55 $ .50
====== ======
Distributions per unit paid or
to be paid to unit owners $ .55 $ .50
====== ======
The accompanying notes are an integral part
of these financial statements.
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STATEMENTS OF UNDISTRIBUTED EARNINGS (NOTE 1)
---------------------------------------------
FOR THE THREE MONTHS ENDED JANUARY 31, 2011 AND 2010
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2011 2010
----------------- ----------------
(Unaudited)
Balance, beginning of period $ 65,234 $ 93,773
Net income 5,084,139 4,616,291
------------ ------------
5,149,373 4,710,064
Less:
Current year distributions paid
or to be paid to unit owners 5,054,825 4,595,295
------------ ------------
Balance, end of period $ 94,548 $ 114,769
============ ============
The accompanying notes are an integral part
of these financial statements.
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STATEMENTS OF CHANGES IN CASH AND CASH EQUIVALENTS (NOTE 1)
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FOR THE THREE MONTHS ENDED JANUARY 31, 2011 AND 2010
----------------------------------------------------
2011 2010
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(Unaudited)
Sources of cash and cash equivalents:
------------------------------------
German gas, sulfur and oil royalties $ 5,396,283 $ 4,894,409
Interest income 2,383 181
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5,398,666 4,894,590
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Uses of cash and cash equivalents:
---------------------------------
Payment of Trust expenses 314,527 278,299
Distributions paid 5,146,731 3,492,424
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5,461,258 3,770,723
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Net increase (decrease) in cash and
cash equivalents during the period (62,592) 1,123,867
Cash and cash equivalents,
beginning of period 5,211,965 3,586,197
------------ ------------
Cash and cash equivalents,
end of period $ 5,149,373 $ 4,710,064
============ ============
The accompanying notes are an integral part
of these financial statements.
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NORTH EUROPEAN OIL ROYALTY TRUST
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NOTES TO FINANCIAL STATEMENTS
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(Unaudited)
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(1) Summary of significant accounting policies:
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Basis of accounting -
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The accompanying financial statements of North European Oil Royalty Trust
(the "Trust") present financial statement balances and financial results on
a modified cash basis of accounting, which is a comprehensive basis of
accounting other than accounting principles generally accepted in the United
States ("GAAP basis"). On a modified cash basis, revenue is earned when cash
is received and expenses are incurred when cash is paid. GAAP basis
financial statements disclose revenue as earned and expenses as incurred,
without regard to receipts or payments. The modified cash basis of
accounting is utilized to permit the accrual for distributions to be paid to
unit owners (those distributions approved by the Trustees for the Trust).
The Trust's distributable income represents royalty income received by the
Trust during the period plus interest income less any expenses incurred by
the Trust, all on a cash basis. In the opinion of the Trustees, the use of
the modified cash basis of accounting provides a more meaningful
presentation to unit owners of the results of operations of the Trust.
These financial statements should be read in conjunction with the
financial statements that were included in the Trust's Annual Report on
Form 10-K for the period ended October 31, 2010. The Statement of Assets,
Liabilities and Trust Corpus included herein contains information from the
Trust's 2010 Form 10-K.
Producing gas and oil royalty rights -
--------------------------------------
The rights to certain gas and oil royalties in Germany were transferred
to the Trust at their net book value by North European Oil Company (the
"Company") (see Note 2). The net book value of the royalty rights has been
reduced to one dollar ($1) in view of the fact that the remaining net book
value of royalty rights is de minimis relative to annual royalties received
and distributed by the Trust and does not bear any meaningful relationship
to the fair value of such rights or the actual amount of proved producing
reserves.
Federal income taxes -
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The Trust, as a grantor trust, is exempt from federal income taxes
under a private letter ruling issued by the Internal Revenue Service.
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Cash and cash equivalents -
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Included in cash and cash equivalents are amounts deposited in bank
accounts and amounts invested in certificates of deposit and U. S. Treasury
bills with original maturities of three months or less from the date of
purchase. The investment options available to the Trust are limited in
accordance with specific provisions of the Trust Agreement. As of January
31, 2011, the uninsured amounts held in the Trust's U.S. bank accounts were
approximately $4,750,000. In addition, approximately $7,310 was held in the
Trust's German account at January 31, 2011.
Net income per unit -
---------------------
Net income per unit is based upon the number of units outstanding at
the end of the period. As of both January 31, 2011 and 2010, there were
9,190,590 units of beneficial interest outstanding.
New Accounting Pronouncements -
-----------------------------
The Trust is not aware of any recently issued, but not yet effective,
accounting standards that would be expected to have a significant impact
on the Trust's financial position or results of operations.
(2) Formation of the Trust:
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The Trust was formed on September 10, 1975. As of September 30, 1975,
the Company was liquidated and the remaining assets and liabilities of the
Company, including its royalty rights, were transferred to the Trust. The
Trust, on behalf of the owners of beneficial interest in the Trust, holds
overriding royalty rights covering gas and oil production in certain
concessions or leases in the Federal Republic of Germany. These rights are
held under contracts with local German exploration and development
subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of
Companies. Under these contracts, the Trust receives various percentage
royalties on the proceeds of the sales of certain products from the areas
involved. At the present time, royalties are received for sales of gas well
gas, oil well gas, crude oil, condensate and sulfur.
(3) Related party transactions:
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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. For such office space and
office services, the Trust reimbursed the Managing Director $6,454 and $6,172
in the first quarter of fiscal 2011 and 2010, respectively.
Lawrence A. Kobrin, a Trustee of the Trust, is a Senior Counsel at Cahill
Gordon & Reindel LLP, which serves as counsel to the Trust. For the first
quarter of fiscal 2011 and 2010, the Trust paid Cahill Gordon & Reindel LLP
$37,887 and $14,605 for legal services, respectively.
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(4) Employee benefit plan:
----------------------
The Trust has established a savings incentive match plan for employees
(SIMPLE IRA) that is available to both employees of the Trust, one of whom
is the Managing Director. The Trustees authorized the making of
contributions by the Trust to the accounts of the employees, on a matching
basis, of up to 3% of cash compensation paid to each employee effective for
the 2010 and 2011 calendar years.
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Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
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Executive Summary
-----------------
The Trust is a passive fixed investment trust which holds overriding
royalty rights, receives income under those rights from certain operating
companies, pays its expenses and distributes the remaining net funds to its
unit owners. As mandated by the Trust Agreement, distributions of income are
made on a quarterly basis. These distributions, as determined by the
Trustees, constitute substantially all of the funds on hand after provision
is made for Trust expenses then anticipated.
The Trust does not engage in any business or extractive operations
of any kind in the areas over which it holds royalty rights and is precluded
from engaging in such activities by the Trust Agreement. There are no
requirements, therefore, for capital resources with which to make capital
expenditures or investments in order to continue the receipt of royalty
revenues by the Trust.
The properties of the Trust, which the Trust and Trustees hold
pursuant to the Trust Agreement on behalf of the unit owners, are overriding
royalty rights on sales of gas, sulfur and oil under certain concessions or
leases in the Federal Republic of Germany. The actual leases or concessions
are held either by Mobil Erdgas-Erdol GmbH ("Mobil Erdgas"), a German
operating subsidiary of the ExxonMobil Corp. ("ExxonMobil"), or by
Oldenburgische Erdolgesellschaft ("OEG"). The Oldenburg concession is the
primary area from which the natural gas, sulfur and oil are extracted and
provides nearly 100% of all the royalties received by the Trust. The
Oldenburg concession (1,398,000 acres) covers virtually the entire former
Principality of Oldenburg and is located in the federal state of Lower Saxony.
In 2002, Mobil Erdgas and BEB Erdgas und Erdol GmbH ("BEB"), a joint
venture of ExxonMobil and the Royal Dutch/Shell Group of Companies, formed a
company ExxonMobil Production Deutschland GmbH ("EMPG") to carry out all
exploration, drilling and production activities. All sales activities are
still handled by the operating companies, either Mobil Erdgas or BEB.
The operating companies pay monthly royalties to the Trust based on
their sales of natural gas, sulfur and oil. Of these three products, natural
gas provides approximately 97% of the total royalties. The amount of
royalties paid to the Trust is primarily based on four factors: the amount of
gas sold, the price of that gas, the area from which the gas is sold, and the
exchange rate.
Effective with the Trust's third quarter of fiscal 2010, a new
royalty payment schedule was fully implemented. At approximately the 25th
of the months of January, April, July and October, the operating companies
calculate the amount of gas sold during the previous calendar quarter and
determine the amount of royalties that were payable to the Trust based on
those sales. This amount forms the basis for royalty payments for the Trust's
upcoming fiscal quarter and for any adjustment for the prior calendar quarter.
For example, on January 25th the operating companies calculate gas sales and
attributable royalties payable for the months of October through December.
This amount is divided into thirds and forms the monthly royalty payments
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(payable on the 15th of each month) to the Trust for its fiscal quarter
running from February through April. Continuing in this example, at the same
time that the operating companies determine the actual amount of royalties
that were payable for months of October through December, they look at the
actual amount of royalties that were paid to the Trust during that same
period and calculate the difference between what was paid and what was
payable. Additional amounts payable by the operating companies would be paid
immediately in January and any overpayment would be deducted from the February
payment. The operating companies continue their calculations through the
calendar year. In September of each year, the operating companies make the
final determination of any necessary royalty adjustments for the prior
calendar year. The Trust's German accountants review the royalty
calculations on a biennial basis, with the next examination scheduled to
begin in October 2011 covering calendar years 2009 and 2010.
There are two types of natural gas found within the Oldenburg
concession, sweet gas and sour gas. Sweet gas has little or no contaminants
and needs no treatment before it can be sold. In recent years sweet gas has
assumed the role of swing producer. During periods of high demand, the
production of sweet gas is increased as necessary. During the summer months
sweet gas production is reduced due to a general decline in demand. On the
other hand, sour gas must be processed at either the Grossenkneten or the
Norddeutsche Erdgas-Aufbereitungs GmbH ("NEAG") desulfurization plants before
it can be sold. The desulfurization process removes hydrogen sulfide and
other contaminants. The hydrogen sulfide in gaseous form is converted to
sulfur in a solid form and sold separately. For efficiency purposes, the
desulfurization plants are operated at capacity on a continual basis. Any
excess production from the plants is stored in underground storage for higher
demand periods. As needed, the operators conduct maintenance on the plants,
generally during the summer months when demand is lower.
Under one set of rights covering the western part of the Oldenburg
concession (approximately 662,000 acres), the Trust receives a royalty payment
of 4% on gross receipts from sales by Mobil Erdgas of gas well gas, oil well
gas, crude oil and condensate (the "Mobil Agreement"). Under the Mobil
Agreement, there is no deduction of costs prior to the calculation of
royalties from gas well gas and oil well gas, which together account for
approximately 99% of all the royalties under this agreement. Historically,
as compared to the OEG Agreement described below, the Trust has received
significantly greater royalty payments under the Mobil Agreement due to the
higher royalty rate specified by that agreement.
The Trust is also entitled under the Mobil Agreement to receive a
2% royalty on gross receipts of sales of sulfur obtained as a by-product of
sour gas produced from the western part of Oldenburg. The payment of the
sulfur royalty is conditioned upon sales of sulfur by Mobil Erdgas at a
selling price above an agreed upon base price. This base price is adjusted
annually by an inflation index. The Trust received no sulfur royalties
under this agreement in the first quarter of either fiscal 2010 or 2011.
Under another set of rights covering the entire Oldenburg
concession and pursuant to the agreement with OEG, the Trust receives
royalties at the rate of 0.6667% on gross receipts from sales by BEB of gas
well gas, oil well gas, crude oil, condensate and sulfur (removed during the
processing of sour gas) less a certain allowed deduction of costs (the "OEG
Agreement"). Under the OEG Agreement, 50% of the field handling, treatment
and transportation costs, as reported for state royalty purposes, are
deducted from the gross sales receipts prior to the calculation of the
royalty to be paid to the Trust. NV Nederlandse Gasunie (the state owned
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Dutch gas distribution company) purchased BEB's North German gas distribution
and transmission network in 2008. As part of its normal biennial examination
of the operating companies, the Trust's German accountants, on behalf of the
Trust, completed their examination of the royalty payments for 2007-08.
While the pipeline sale occurred in the latter half of 2008, the accountants
confirmed that transportation costs continued in accordance with the
authorized indexed flat rate throughout this period and that the method of
royalty calculation has not been affected. The Trust will continue to
monitor the situation but, to date, the Trust has not received any
indications that this pipeline sale would affect the method of royalty
calculations.
Intermittently, the Trust receives small amounts of royalties from
a private lease area, Grosses Meer, outside the Oldenburg concession. No
royalties based on gas sales from Grosses Meer were paid to the Trust in the
first quarter of either fiscal 2010 or 2011.
Under the Mobil and OEG Agreements, the gas is sold to various
distributors under long term contracts which delineate, among other
provisions, the timing, manner, volume and price of the gas sold. The
pricing mechanisms contained in these contracts include a delay factor of
three to six months and use the price of light heating oil in Germany as one
of the primary pricing components. Since Germany must import a large
percentage of its energy requirements, the U.S. dollar price of oil on the
international market has a significant impact on the price of light heating
oil and a delayed impact on the price of gas. The Trust itself does not have
access to the specific sales contracts under which gas from the Oldenburg
concession is sold. Working under a confidentiality agreement with the
operating companies, the Trust's German accountant reviews these contracts
periodically on behalf of the Trust to verify the correctness of application
of the Agreement formulas for the computation of royalty payments.
For unit owners, changes in the dollar value of the Euro have both
an immediate and long-term impact. The immediate impact is from the exchange
rate that is applied at the time the royalties, paid to the Trust in Euros,
are converted into U.S. dollars at the time of their transfer from Germany to
the United States. In relation to the dollar, a stronger Euro would yield
more dollars and a weaker Euro would yield less dollars. The long-term
impact relates to the mechanism of gas pricing contained in the gas sales
contracts negotiated by the operating companies. These gas sales contracts
often use the price of German light heating oil as one of the primary pricing
factors by which the price of gas is determined. The price of German light
heating oil, which is a refined product, is largely determined by the price
of the imported crude oil from which it was refined. Oil on the international
market is priced in dollars. However, when oil is imported into Germany it
is purchased in Euros, and at this point the dollar value of the Euro becomes
relevant. A weaker Euro would buy less oil making that oil and the
subsequently refined light heating oil more expensive. A stronger Euro would
buy more oil making that oil and the subsequently refined light heating oil
less expensive. Since changes in the price of German light heating oil are
subsequently reflected in the price of gas through the gas sales contracts,
the dollar/Euro relationship can make the prices of gas higher or lower. The
changes in gas prices that result from changes in the prices of German light
heating oil are only reflected after a built-in delay of three to six months
as specified in the individual gas sales contracts.
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Seasonal demand factors affect the income from royalty rights
insofar as they relate to energy demands and increases or decreases in prices,
but on average they are generally not material to the regular annual income
received under the royalty rights.
The Trust has no means of ensuring continued income from overriding
royalty rights at their present level or otherwise. The Trust's consultant
in Germany provides general information to the Trust on the German and
European economies and energy markets. This information provides a context
in which to evaluate the actions of the operating companies. In his position
as consultant, he receives reports from the operating companies with respect
to current and planned drilling and exploration efforts. However, the
unified exploration and production venture, EMPG, which provides the reports
to the Trust's consultant, continues to limit the information flow to that
which is required by German law.
The low level of administrative expenses of the Trust limits the
effect of inflation on its costs. Sustained price inflation, which would be
reflected in sales prices, along with sales volumes form the basis on which
the royalties paid to the Trust are computed. The impact of inflation or
deflation on energy prices in Germany is delayed by the use, in certain
long-term gas sales contracts, of a delay factor of three to six months prior
to the application of any changes in light heating oil prices to gas prices.
Results: First Quarter Fiscal 2011 Versus First Quarter Fiscal 2010
-------------------------------------------------------------------
For the first quarter of fiscal 2011, the Trust's net income was
$5,084,139, an increase of 10.13% from the net income of $4,616,291 for the
first quarter of fiscal 2010. Gross royalties received for the first quarter
of fiscal 2011 were $5,396,283, an increase of 10.25% as compared to
$4,894,409 for the first quarter of fiscal 2010. Royalties received during
the first quarter of fiscal 2011 were derived from sales of gas, sulfur and
oil from the Trust's overriding royalty areas in Germany during the fourth
calendar quarter of 2010. A distribution of $0.55 per unit was paid on
February 23, 2011 to owners of record as of February 11, 2011.
The amount of royalties paid to the Trust is based on four primary
factors: the amount of gas sold, the price of that gas, the area from which
the gas is sold, and the exchange rate. Gas sales are measured in billion
cubic feet ("Bcf"). Gas prices are reported in Euro cents per Kilowatt hour
("Ecents/Kwh") and dollars per thousand cubic feet ("$/Mcf"). The primary
factor affecting royalty revenue for the quarter just ended was the increase
in gas prices under both the Mobil and the OEG Agreements. Lower gas sales
and the lower average exchange rates combined to reduce the positive impact
of the higher gas prices, but did not offset it entirely.
1st Fiscal Qtr. 1st Fiscal Qtr. Percentage
Mobil Agreement Ended 1/31/2011 Ended 1/31/2010 Change
--------------- ---------------- ---------------- ----------
Gas Sales (Bcf) 11.707 11.861 - 1.30%
Gas Prices (Ecents/Kwh) 2.3753 1.6491 + 44.04%
Gas Prices ($/Mcf) $ 9.16 $ 6.88 + 33.14%
Average Exchange Rate 1.3431 1.4493 - 7.33%
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1st Fiscal Qtr. 1st Fiscal Qtr. Percentage
OEG Agreement Ended 1/31/2011 Ended 1/31/2010 Change
------------- --------------- --------------- ----------
Gas Sales (Bcf) 30.213 30.616 - 1.32%
Gas Prices (Ecents/Kwh) 2.5404 1.9151 + 32.65%
Gas Prices ($/Mcf) $ 9.55 $ 7.74 + 23.39%
Average Exchange Rate 1.3436 1.4405 - 6.73%
Excluding the effects of differences in prices and average exchange
rates, the combination of royalty rates on gas sold from western Oldenburg
results in an effective royalty rate approximately seven times higher than
the royalty rate on gas sold from eastern Oldenburg. This is of particular
significance to the Trust since gas sold from western Oldenburg provides the
bulk of royalties paid to the Trust. For the quarter just ended, gas sales
from western Oldenburg accounted for only 38.75% of all gas sales.
However, royalties on these gas sales provided approximately 81.39% or
$4,259,728 out of a total of $5,233,878 in Oldenburg royalties attributable
to gas.
Interest income was higher than the prior year's equivalent quarter
but remained minimal reflecting the low interest rates applicable during the
period. Trust interest income increased to $2,383 from $181 in the first
quarter of fiscal 2010. Trust expenses for the first quarter of fiscal 2010
increased 13.02% or $36,228 to $314,527 in comparison to $278,299 in the
prior year's equivalent period. The increase in costs reflects a timing
difference in insurance costs, additional fees for legal services and an
increase in Trustee's fees (which are calculated based on provisions
specified in the Trust Agreement).
The current Statement of Assets, Liabilities and Trust Corpus of
the Trust at January 31, 2011, compared to that at fiscal year-end (October
31, 2010), shows a decrease in assets due to the lower royalty receipts
during the first quarter of fiscal 2011.
-----------------------------------
This report on Form 10-Q contains forward looking statements
concerning business, financial performance and financial condition of the
Trust. Many of these statements are based on information provided to the
Trust by the operating companies or by consultants using public information
sources. These statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those anticipated in any
forward-looking statements. These include uncertainties concerning levels of
gas production and gas sale prices, general economic conditions and currency
exchange rates and the risks described in Item 1A, "Risk Factors," in the
Trust's Annual Report on Form 10-K for the fiscal year ended October 31, 2010.
Actual results and events may vary significantly from those discussed in the
forward-looking statements.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
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The Trust does not engage in any trading activities with respect to
possible foreign exchange fluctuations. The Trust does not use any financial
instruments to hedge against possible risks related to foreign exchange
fluctuations. The market risk is negligible because standing instructions at
its German bank require the bank to process conversions and transfers of
royalty payments as soon as possible following their receipt.
The Trust does not engage in any trading activities with respect to possible
commodity price fluctuations.
Item 4. Controls and Procedures.
-----------------------
The Trust maintains disclosure controls and procedures that are
designed to ensure that information required to be disclosed by the Trust is
recorded, processed, summarized, accumulated and communicated to its
management, which consists of the Managing Director, to allow timely
decisions regarding required disclosure, and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms.
The Managing Director has performed an evaluation of the
effectiveness of the design and operation of the Trust's disclosure controls
and procedures as of January 31, 2011. Based on that evaluation, the
Managing Director concluded that the Trust's disclosure controls and
procedures were effective as of January 31, 2011.
There have been no changes in our internal control over financial
reporting identified in connection with the evaluation described above that
occurred during the first quarter of fiscal 2011 that have materially
affected or are reasonably likely to materially affect our internal control
over financial reporting.
PART II -- OTHER INFORMATION
----------------------------
Item 6. Exhibits.
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Exhibit 31. Certification of Chief Executive Officer
Chief Financial Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 2002
Exhibit 32. Certification of Chief Executive Officer and
Chief Financial Officer pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NORTH EUROPEAN OIL ROYALTY TRUST
---------------------------------
(Registrant)
/s/ John R. Van Kirk
---------------------------------
John R. Van Kirk
Managing Director
Dated: February 25, 2011