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, 2003 or
[ ] 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
----------------------- --------------------------
(State of organization) (I.R.S. Employer I.D. No.)
Suite 19A, 43 West Front Street, Red Bank, New Jersey 07701
-------------------------------------------------------------
(Address of principal executive offices)
(732) 741-4008
----------------------------------------------------
(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
----- -----
Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 126-2 of the Exchange Act).
Yes X No
----- -----
Class Outstanding at February 28, 2003
- ----- --------------------------------
Units of Beneficial Interest 8,931,414
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PART I -- FINANCIAL INFORMATION
-------------------------------
Item 1. Financial Statements
--------------------
STATEMENTS OF REVENUE COLLECTED AND EXPENSES PAID (NOTE 1)
-----------------------------------------------------------
FOR THE THREE MONTHS ENDED JANUARY 31, 2003 AND 2002
-----------------------------------------------------
2003 2002
-------------- -------------
(unaudited)
German gas, oil and sulfur
royalties received $ 4,766,564 $ 4,765,084
----------- -----------
Interest income 8,520 24,302
----------- -----------
Trust expenses ( 254,717) ( 246,541)
----------- -----------
Net income on a cash basis $ 4,520,367 $ 4,542,845
=========== ===========
Net income per unit on a cash basis $ .51 $ .51
====== ======
Cash distributions paid or to be paid:
Distributions per unit to be paid to
unit owners $ .51 $ .51
====== ======
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (NOTE 1)
-----------------------------------------------------------
JANUARY 31, 2003 AND OCTOBER 31, 2002
-------------------------------------
2003 2002
-------------- -------------
(unaudited)
Current assets - - Cash and
cash equivalents (Note 1) $ 4,585,007 $ 3,458,577
Producing gas and oil royalty rights,
net of amortization (Notes 1 and 2) 1 1
----------- -----------
Total Assets $ 4,585,008 $ 3,458,578
=========== ===========
Current liabilities - - Cash distributions
payable to unit owners $ 4,555,021 $ 3,393,937
Contingent liability (Note 3)
Trust corpus (Notes 1 and 2) 1 1
Undistributed earnings 29,986 64,640
----------- -----------
Total Liabilities and Trust Corpus $ 4,585,008 $ 3,458,578
=========== ===========
The accompanying notes to financial statements
should be read in conjunction with these statements.
-3-
STATEMENTS OF CHANGES IN CASH AND CASH EQUIVALENTS (NOTE 1)
-----------------------------------------------------------
FOR THE THREE MONTHS ENDED JANUARY 31, 2003 AND 2002
----------------------------------------------------
2003 2002
-------------- -------------
(unaudited)
Sources of cash and cash equivalents:
German gas, oil and sulfur royalties $ 4,766,564 $ 4,765,084
Interest income 8,520 24,302
----------- -----------
$ 4,775,084 $ 4,789,386
=========== ===========
Uses of cash and cash equivalents:
Payment of Trust expenses 254,717 246,541
Distributions and dividends paid (Note 3) 3,393,937 5,332,083
----------- -----------
3,648,654 5,578,624
----------- -----------
Net increase(decrease) in cash and
cash equivalents during the period 1,126,430 ( 789,238)
Cash and cash equivalents,
beginning of period 3,458,577 5,391,320
----------- -----------
Cash and cash equivalents,
end of period $ 4,585,007 $ 4,602,082
=========== ===========
STATEMENTS OF UNDISTRIBUTED EARNINGS (NOTE 1)
---------------------------------------------
FOR THE THREE MONTHS ENDED JANUARY 31, 2003 AND 2002
----------------------------------------------------
2003 2002
------------- -------------
(unaudited)
Balance, beginning of period $ 64,640 $ 59,237
Net income on a cash basis 4,520,367 4,542,845
----------- -----------
4,585,007 4,602,082
----------- -----------
Less:
Current year distributions paid or
to be paid to unit owners (Note 3) 4,555,021 4,555,021
----------- -----------
4,555,021 4,555,021
----------- -----------
Balance, end of period $ 29,986 $ 47,061
=========== ===========
The accompanying notes to financial statements
should be read in conjunction with these statements.
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NORTH EUROPEAN OIL ROYALTY TRUST
--------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(Unaudited)
-----------
(1) Summary of significant accounting policies:
-------------------------------------------
Basis of accounting -
-------------------
The accompanying financial statements present financial statement
balances and financial results on a cash basis of accounting, which is
a comprehensive basis of accounting other than accounting principles
generally accepted in the United States ("GAAP basis"). Cash basis
financial statements report income when cash is received and expenses
when cash is paid. GAAP basis financial statements report income as
earned and expenses as incurred, without regard to receipts or
payments. The sole exception to the use of the cash basis of
accounting is 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 cash basis provides a more meaningful
presentation to unit owners of the results of operations of the Trust.
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 and state income taxes -
------------------------------
The Trust, as a grantor trust, is exempt from federal and state
income taxes under a private letter ruling issued by the Internal
Revenue Service.
Cash and cash equivalents -
-------------------------
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 maturities of three months or less from the date
of purchase.
-5-
Net income per unit
on the cash basis -
-------------------
Net income per unit on the cash basis is based upon the number of
units outstanding at the end of the period (see Note 3). As of
January 31, 2003 and 2002, there were 8,931,414 and 8,931,414 units
of beneficial interest outstanding, respectively.
(2) Formation of the Trust:
-----------------------
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 Exxon
Mobil Corp. and the Royal Dutch Group. 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, distillate and sulfur.
(3) Contingent liability:
---------------------
The Trust serves as fiduciary for certain unlocated or unknown
shareholders of the Trust's corporate predecessors North European Oil
Corporation (the "Corporation") and North European Oil Company.
From the liquidation of the Company to October 31, 2002, 721,364 Trust
units were issued in exchange for Corporate or Company shares and
dividends of $354,101 and distributions of $4,236,544 were paid to
former unlocated Corporation and Company shareholders. For the three-
month period ended January 31, 2003, there were no units issued in
exchanges and no dividends and no distributions were paid to former
unlocated Corporation and Company shareholders.
On February 26, 1996 the settlement of litigation between the Trust
and the Delaware State Escheator (the "Delaware Escheator") was
approved by the Delaware Court of Chancery. As of that date, there
were a total of 875,748 authorized but unissued units representing the
unexchanged shares of the Trust's corporate predecessors. Out of this
total 760,560 units were subject to the settlement. Under the
settlement 380,280 units were issued to the Delaware Escheator on
April 17, 1996. Of the Trust units remaining to be issued to the
Delaware Escheator, approximately 50% (190,128 units) had been issued
to the Delaware Escheator as of June 30, 2000 and the remaining
balance will be issued by June 30, 2005. Through June 30, 2000 claims
by unlocated or unknown shareholders of the Trust's corporate
predecessors for units and past dividends and distributions thereon
("subsequent claims") were paid by the Delaware Escheator and the
Trust on a 50:50 basis. From July 1, 2000 to June 30, 2005
subsequent claims will be paid by the Delaware Escheator and the Trust
on a 75:25 basis. Any subsequent claims will reduce the number of
units to be issued to the Delaware Escheator in 2005. Following the
-6-
final issuance of units to the Delaware Escheator in 2005, the Trust's
contingent liability for past dividends and distributions attributable
to all unexchanged Corporation and Company shares subject to the
settlement will be completely eliminated. Under the terms of the
settlement, the maximum liability of the Delaware Escheator for
subsequent claims is limited to the value of the units received, plus
current distributions on units retained, less the Delaware Escheator's
share of subsequent claims. As of the receipt of the February 2003
distribution, the maximum liability of the Delaware Escheator will be
$12,881,340.
In addition to the agreement reached with the Delaware Escheator, on
December 4, 2001 the Trust reached a parallel agreement with the
Administrator of Unclaimed Property, Office of the New York State
Comptroller (the "New York Administrator") covering units for which
owners were unlocated but for whom New York state addresses were shown
in predecessor corporation records. The New York Settlement Agreement
(the "Settlement Agreement") covers 89,220 units attributable to stock
ownership by unlocated shareholders of predecessor corporate
entities. Of the units covered by the Settlement Agreement, 44,610
were issued to the New York Administrator on December 21, 2001 and the
balance of 44,610 will be issued on or before June 30, 2005. The
Settlement Agreement provides for processing of claims in the period
until June 30, 2005 and the sharing on a 50:50 basis of any costs
relating to any claims which are allowed. Any subsequent claims will
reduce the number of units to be issued to the New York Administrator
in 2005. Following the final issuance of units to the New York
Administrator in 2005, the Trust's contingent liability for past
dividends and distributions attributable to all unexchanged
Corporation and Company shares subject to the Settlement Agreement
will be completely eliminated. Under the terms of the Settlement
Agreement, the maximum liability of the New York Administrator for
subsequent claims is limited to the value of the units received, plus
current distributions on units retained, less the New York
Administrator's share of subsequent claims. As of the receipt of the
February 2003 distribution, the maximum liability of the New York
Administrator will be $945,286.
Under the Trust Agreement, as deemed amended by the February 26, 1996
Delaware Court Order, the Trust is not required to make payments of
arrearages of Company dividends or Trust distributions with respect to
units issued or to be issued to the Delaware Escheator or the New York
Administrator. As of January 31, 2003, there remained a total of
259,176 units that could be issued to unlocated or unknown Corporation
and Company shareholders. Of this total, 234,732 units are subject to
the settlements and remain to be issued to the Delaware Escheator or
the New York Administrator. If all shares represented by the units
already issued as well as the units remaining to be issued were
presented for exchange, $487,023 in dividends and $30,511,732 in
distributions would be payable. In the opinion of the Trustees, based
in part on the history of exchanges during the last ten fiscal years,
the maximum liability of the Delaware Escheator and the New York
Administrator would not be less than their respective share of any
subsequent claims. In any event, the Trust's contingent liability for
all claims for arrearages will be eliminated in 2005.
-7-
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
-------------------------------------------------
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. 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 any such involvement 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.
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 not material to the regular annual income
received under the royalty rights.
The operating companies, subsidiaries of ExxonMobil Corp. and the
Royal Dutch Group, pay monthly royalties to the Trust based on their sales
of natural gas, sulfur and oil. The Oldenburg concession is the primary area
from which these products are extracted and provides nearly 100% of all the
royalties received by the Trust. Of these three products, natural gas
provides approximately 98% of the total royalties.
Net income of the Trust for the first quarter of fiscal 2003 was
$4,520,367. This level of income permitted a distribution of 51 cents per
unit which was paid on February 26, 2003 to owners of record as of February
14, 2003. Gross royalty income of $4,766,564 for the quarter ended January
31, 2003 was virtually unchanged from the same period last year. This
royalty income was based on sales of gas, oil and sulfur from the Trust's
overriding royalty areas in Germany during the fourth calendar quarter of
2002.
With both gas sales and gas prices declining in comparison to the
first quarter of fiscal 2002, it was only the impact of higher exchange
rates that enabled the distribution for the quarter just ended to equal that
of the prior year's equivalent quarter. The amount of gas sold under the
higher royalty rate agreement covering western Oldenburg declined by 10.46%
from 23.29 billion cubic feet ("Bcf") in the first quarter of fiscal 2002
to 20.86 Bcf in the quarter just ended. Gas sales from the entire Oldenburg
concession covered under the lower royalty rate agreement fell by 7.55%
from 57.98 Bcf to 53.61 Bcf. The average price for gas sold under the
higher royalty rate agreement declined 9.89% from 1.5001 Euro cents per Kwh
("Ecents/Kwh") to 1.3517 Ecents/Kwh. The average price for gas sold under
the lower royalty rate agreement declined 6.29% from 1.3999 Ecents/Kwh to
1.3119 Ecents/Kwh. The impact of the decline in both gas sales and gas
prices is shown in the amount of royalties in Euros paid to the Trust.
Royalties paid to the Trust under the higher royalty rate agreement declined
18.7% from 4,029,724 Euros to 3,275,614 Euros. Royalties paid to the Trust
under the lower royalty rate agreement declined 15.6% from 1,391,854 Euros
to 1,175,022 Euros. The average value of the Euro for the fiscal quarter
just ended increased 18.98% compared to the first quarter of fiscal 2002
from a dollar equivalent of $0.8728 to $1.0385. Using this average value
for the Euro and converting gas prices into more familiar terms, gas prices
in the first quarter of fiscal 2003 under the higher and lower royalty rate
agreements averaged $4.05 per Mcf and $3.88 per Mcf, respectively.
-8-
The decline in gas sales appears to be related to a combination of
reduced demand caused by the economic slowdown in the world in general and
in Germany specifically. The increase in the value of the Euro would seem
to be a result of a combination of the continuing economic difficulties in
the United States, the historically low interest rates and the uncertainty
posed by the possibly impending conflict in the Middle East.
With the start of 2002 the operating companies indicated that they
would be resuming a more active drilling program, with two horizontal
production wells planned for 2002. In the previous two years only one well
had been drilled despite other active measures to support the continued
development of the reserves. The operating companies had postponed until
2002 the commencement of drilling of the two planned wells due to the
complex drilling problems they presented. The operating companies have
advised the Trust that they underestimated the extent of the drilling
difficulties and, because of a required re-drilling of the horizontal
deviation, exhausted their drilling budget for the year. The Trust expects
to have more information available for the second quarter's report by which
time it expects to have received the operating companies' annual reports on
actual and proposed drilling and seismic work for 2002 and 2003. The
operating companies have advised the Trust that, for an extended period of
time their drilling program has been concentrated on the task of ensuring
sufficient sour gas to permit the Grossenkneten desulfurization plant to
operate at capacity. The previous success of their use of horizontal
drilling within the Zechstein zone, the sour gas bearing strata, has ensured
that they have sufficient excess capacity in the gas wells to operate the
plant at capacity for an extended period of time. This has allowed the
operating companies to be more flexible in their drilling program in the
last few years.
First fiscal quarter Trust expenses of $254,717 were marginally
higher than the prior year, due primarily to the earlier payment of the
listing fee with the New York Stock Exchange. Most other categories of
expenses showed declines or only minor dollar increases. Interest income
declined, reflecting the reduced funds available for investment and the
lower interest rates on those funds.
The current Statement of Assets, Liabilities and Trust Corpus of
the Trust at January 31, 2003 compared to that at fiscal year end (October
31, 2002) shows an increase in assets due to higher royalty receipts
during the quarter.
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 the funds on hand after provision is
made for Trust expenses then anticipated. As permitted by the Trust
Agreement, no provision is made for the retention of reserve funds of any
kind. If funds are required for payments to owners of units not previously
presented for issuance, quarterly distributions would be reduced to the
extent required to provide funds for such payments.
-----------------------------------
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
-9-
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 prices, general economic conditions and currency
exchange rates. Actual results and events may vary significantly from those
discussed in the forward looking statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
----------------------------------------------------------
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.
Item 4. Controls and Procedures.
-----------------------
Within the 90-day period prior to the date of this report, an
evaluation was carried out under the supervision and with the participation
of the Trust's management, which consists of the Managing Trustee and the
Managing Director, of the effectiveness of the design and operation of the
Trust's disclosure controls and procedures pursuant to Rule 13a-15 of the
Securities Exchange Act of 1934. Based upon that evaluation, the Managing
Trustee and the Managing Director concluded that the Trust's disclosure
controls and procedures were effective, in all material respects, with
respect to the recording, processing, summarizing and reporting, within the
time periods specified in the Securities and Exchange Commission's rules
and forms, of information required to be disclosed by the Trust's management
in the reports that are filed or submitted under the Exchange Act.
There have been no changes in the Trust's internal controls or in
other factors that could significantly affect internal controls subsequent
to the date of the evaluation described herein.
-10-
Part II -- OTHER INFORMATION
----------------------------
Item 5. Submission of Matters to a Vote of Security Holders.
----------------------------------------------------
(a) The Annual Meeting of Unit Owners was held on February 12, 2003.
(b) The following persons were elected as Trustees of the Trust to
serve until the 2004 Annual Meeting of Unit Owners:
Robert P. Adelman (6,623,935 votes for; 590,484 withheld)
Samuel M. Eisenstat (6,630,196 votes for; 584,223 withheld)
Willard B. Taylor (6,633,576 votes for; 580,843 withheld)
John H. Van Kirk (6,530,806 votes for; 683,613 withheld)
Rosalie J. Wolf (6,631,733 votes for; 582,686 withheld)
Item 6. Exhibits and Reports on Form 8-K.
---------------------------------
(a) Exhibits.
None.
(b) Reports on Form 8-K.
None.
-11-
SIGNATURE
---------
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
/s/ John R. Van Kirk
---------------------------------
John R. Van Kirk
Managing Director
Dated: March 12, 2003
-12-
CERTIFICATIONS
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, John H. Van Kirk, certify that:
1. I have reviewed this quarterly report on Form 10-Q of North European
Oil Royalty Trust;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report; and
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the Registrant as of, and for, the periods presented in
this quarterly report.
4. The Registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant
and we have:
a) designed such disclosure controls and procedures to ensure
material information relating to the Registrant, including its
consolidated subsidiaries, as made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the Registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The Registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the Registrant's auditors and the
audit committee of Registrant's board of directors (or persons
performing the equivalent function):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the Registrant's
ability to record, process, summarize and report financial data
and have identified for the Registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Registrant's
internal controls; and
-13-
6. The Registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were any significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: March 12, 2003
/s/ John H. Van Kirk
---------------------------------------------
John H. Van Kirk
Managing Trustee (Chief Executive Officer)
-14-
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, John R. Van Kirk, certify that:
1. I have reviewed this quarterly report on Form 10-Q of North European
Oil Royalty Trust;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report; and
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the Registrant as of, and for, the periods presented in
this quarterly report.
4. The Registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant
and we have:
a) designed such disclosure controls and procedures to ensure
material information relating to the Registrant, including its
consolidated subsidiaries, as made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the Registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The Registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the Registrant's auditors and the
audit committee of Registrant's board of directors (or persons
performing the equivalent function):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the Registrant's
ability to record, process, summarize and report financial data
and have identified for the Registrant's auditors any material
weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Registrant's
internal controls; and
-15-
6. The Registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were any significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: March 12, 2003
/s/ John R. Van Kirk
-----------------------------------------------
John R. Van Kirk
Managing Director (Chief Financial Officer)
-16-
Certification of Chief Executive Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chapter 63,
Title 18 U.S.C. 1350(a) and (b)), the undersigned hereby certifies that
the Quarterly Report on Form 10-Q for the period ended January 31, 2003 of
North European Oil Royalty Trust (the "Trust") fully complies with the
requirements of Section 13(a) or Section 15(d) of the Securities Exchange
Act of 1934 and that the information contained in such Report fairly
presents, in all material respects, the financial condition and results of
operations of the Trust.
Dated: March 12, 2003
/s/ John H. Van Kirk
---------------------------------------
John H. Van Kirk
Managing Trustee (Chief Executive Officer)
-17-
Certification of Chief Financial Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chapter 63,
Title 18 U.S.C. 1350(a) and (b)), the undersigned hereby certifies that
the Quarterly Report on Form 10-Q for the period ended January 31, 2003 of
North European Oil Royalty Trust (the "Trust") fully complies with the
requirements of Section 13(a) or Section 15(d) of the Securities Exchange
Act of 1934 and that the information contained in such Report fairly
presents, in all material respects, the financial condition and results of
operations of the Trust.
Dated: March 12, 2003
/s/ John R. Van Kirk
----------------------------------------------
John R. Van Kirk
Managing Director (Chief Financial Officer)