ECTM 10-K & 10-Q changes, risk factors and insider trading

Natural gas prices fluctuate due to a number of factors that are beyond the control of the Trust and Greylock Production, and lower prices would reduce proceeds to the Trust and cash distributions to Trust unitholders.

Actual reserves and future production may be less than current estimates, which could reduce cash distributions by the Trust and the value of the Trust units.

Any limitation in the availability of gathering, transportation and processing facilities could interfere with sales of natural gas production from the Underlying Properties.

Adverse developments in the Trust’s existing area of operation could adversely impact its financial condition, results of operations and cash flows and reduce its ability to make distributions to Trust unitholders.

Natural gas wells are subject to operational hazards that can cause substantial losses.

Declines in the financial position of Greylock Production could impede the operation of wells.

The Trust units may lose value as a result of title deficiencies with respect to the Underlying Properties.

The natural gas reserves estimated to be attributable to the Underlying Properties of the Trust are depleting assets and production from those reserves will diminish over time.

The amount of cash available for distribution by the Trust will be reduced by the amount of post-production costs, applicable taxes associated with the Trust’s interest, and Trust expenses.

The Trust has established a cash reserve for contingent liabilities and to pay expenses in accordance with the Trust Agreement, which would reduce proceeds payable to the Trust and distributions to Trust unitholders.

An increase in the negative basis differential between the price realized by Greylock Production for natural gas produced from the Underlying Properties and the NYMEX or other benchmark price of natural gas could reduce the proceeds to the Trust and therefore the cash distributions by the Trust and the value of the Trust units.

The Trust has no hedges in place to protect against the price risk inherent in holding interest in natural gas.

The ability of Greylock Production to satisfy its obligations to the Trust depends on the financial position of Greylock Production.

The Trust is passive in nature and has no stockholder voting rights in Greylock Production, managerial, contractual or other ability to influence Greylock Production, or control over the field operations of, sale of natural gas from, or development of, the Underlying Properties.

Greylock Production may sell all or a portion of the Underlying Properties, subject to and burdened by the Royalty Interests. A purchaser of such Underlying Properties could have a weaker financial position and/or be less experienced in natural gas development and production than Greylock Production.

The Trustee may, under certain circumstances, sell the Royalty Interests and dissolve the Trust. Unless sooner terminated, the Trust will begin to terminate following the end of the 20-year period in which the Trust owns the Term Royalty Interests.

Conflicts of interest could arise between Greylock Production and the Trust unitholders.

The Trust is administered by a Trustee who cannot be replaced except at a special meeting of Trust unitholders.

Financial information of the Trust is not prepared in accordance with GAAP.

The Trust is a smaller reporting company and benefits from certain reduced governance and disclosure requirements, which could make the Trust Units less attractive to investors.

Because the Trust units are traded on the OTC market, Trust unitholders may have more difficulty selling Trust units or obtaining accurate quotations of the Trust units.

The Private Investors may sell additional Trust units, which could adversely affect the trading price of the Trust units.

Trust unitholders have limited ability to enforce provisions of the Royalty Interests, and Greylock Production’s liability to the Trust is limited.

Courts outside of Delaware may not recognize the limited liability of Trust unitholders.

Greylock Production is subject to complex federal, state, local and other laws and regulations, including environmental laws and regulations, that could adversely affect the cost, manner or feasibility of conducting its operations or expose Greylock Production to significant liabilities.

Climate change laws and regulations restricting emissions of “greenhouse gases” could result in increased operating costs and reduced demand for the natural gas that Greylock Production produces while the physical effects of climate change could disrupt Greylock Production’s production and cause Greylock Production to incur significant costs in preparing for or responding to those effects.

Cyber-attacks or other failures in telecommunications or information technology systems could result in information theft, data corruption and significant disruption of Greylock Energy’s or the Trustee’s business operations.

The Trust’s tax treatment depends on its status as a partnership for United States federal income tax purposes. At the inception of the Trust, the Trust received an opinion from tax counsel that the Trust will be treated as a partnership for United States federal income tax purposes. If the IRS were to treat the Trust as a corporation for United States federal income tax purposes, then its cash available for distribution would be substantially reduced.

If the Trust were subjected to a material amount of additional entity-level taxation by Pennsylvania or any other states, the Trust’s cash available for distribution to Trust unitholders would be reduced.

If enacted, severance taxes in Pennsylvania could materially increase the applicable taxes that are borne by the Trust.

The tax treatment of publicly traded partnerships or an investment in the Trust units could be affected by recent and potential legislative, judicial or administrative changes and differing interpretations, possibly on a retroactive basis.

The Trust prorates items of income, gain, loss and deduction between transferors and transferees of the Trust units each month based upon the ownership of the Trust units on the first day of each month, instead of on the basis of the date a particular Trust unit is transferred.

If the IRS contests the United States federal income tax positions the Trust takes, the market for the Trust units may be adversely impacted and the cost of any IRS contest will reduce the Trust’s cash available for distribution.

Each Trust unitholder is required to pay taxes on the Trust unitholder’s share of the Trust’s income even if a Trust unitholder does not receive any cash distributions from the Trust.

Tax gain or loss on the disposition of the Trust units could be more or less than expected.

Tax-exempt organizations and non-United States persons face unique tax issues from owning the Trust units that may result in adverse tax consequences to them.

The IRS may challenge the Trust’s treatment of each purchaser of Trust units as having the same economic attributes without regard to the actual Trust units purchased.

A Trust unitholder whose Trust units are loaned to a “short seller” to cover a short sale of Trust units may be considered as having disposed of those Trust units. If so, he would no longer be treated for tax purposes as a partner with respect to those Trust units during the period of the loan and may recognize gain or loss from the disposition.

The IRS may challenge the Trust’s adoption of certain valuation methodologies that may affect the income, gain, loss and deduction allocable to the Trust unitholders.

Certain United States federal income tax preferences currently available with respect to natural gas production may be eliminated as a result of future legislation.

weather conditions and seasonal trends;

regional, domestic and foreign supply and perceptions of supply of natural gas;

availability of imported liquefied natural gas, or LNG;

the level of demand and perceptions of demand for natural gas;

anticipated future prices of natural gas, LNG and other commodities;

technological advances affecting energy consumption and energy supply;

U.S. and worldwide political and economic conditions;

trade barriers and tariffs;

the armed conflicts between Russia and Ukraine and between Israel and Iran and its proxies and the potential destabilizing effects such conflicts may pose for the global natural gas markets;

the occurrence or threat of epidemic or pandemic diseases or other public health event, or any government response to such occurrence or threat;

the price and availability of alternative fuels;

the proximity, capacity, cost and availability of gathering and transportation facilities;

the volatility and uncertainty of regional pricing differentials;

acts of force majeure;

governmental regulations and taxation; and energy conservation and environmental measures.

historical production from the area compared with production rates from other producing areas;

natural gas prices, production levels, Btu content, production expenses, transportation costs, severance and excise taxes and capital expenditures;

the availability of enhanced recovery techniques;

relationships with landowners, operators, pipeline companies and others; and the assumed effect of governmental regulation.