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 April 30, 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
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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
Class Outstanding at April 30, 2003
- ---------------------------- -------------------------------
Units of Beneficial Interest 8,931,414
PART I -- FINANCIAL INFORMATION
-------------------------------
Item 1. Financial Statements
--------------------
STATEMENTS OF INCOME AND EXPENSES ON A CASH BASIS (NOTE 1)
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FOR THE THREE MONTHS ENDED APRIL 30, 2003 AND 2002
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2003 2002
------------ ------------
German gas, oil and sulfur
royalties received $ 4,699,755 $ 4,504,767
----------- -----------
Interest income 7,520 12,551
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Trust expenses ( 178,732) ( 25,020)
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Net income on a cash basis $ 4,528,543 $ 4,492,298
=========== ===========
Net income per unit on a cash basis $ .51 $ .50
====== ======
Cash distributions paid or to be paid:
Distributions per unit to be paid to
unit owners $ .50 $ .50
====== ======
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (NOTE 1)
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APRIL 30, 2003 AND OCTOBER 31, 2002
-------------------------------------
2003 2002
------------ ------------
Current assets - - Cash and
cash equivalents (Note 1) $ 4,556,397 $ 3,458,577
Producing gas and oil royalty rights,
net of amortization (Notes 1 and 2) 1 1
----------- -----------
$ 4,556,398 $ 3,458,578
=========== ===========
Current liabilities - - Cash distributions
payable to unit owners $ 4,465,707 $ 3,393,937
Contingent liability (Note 3)
Trust corpus (Notes 1 and 2) 1 1
Undistributed earnings 90,690 64,640
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$ 4,556,398 $ 3,458,578
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The accompanying notes to financial statements
should be read in conjunction with these statements.
STATEMENTS OF INCOME AND EXPENSES ON A CASH BASIS (NOTE 1)
------------------------------------------------------------
FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND 2002
--------------------------------------------------
2003 2002
------------ ------------
German gas, oil and sulfur
royalties received $ 9,466,319 $ 9,269,851
----------- -----------
Interest income 16,040 36,853
----------- -----------
Trust expenses ( 433,449) ( 271,561)
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Net income on a cash basis $ 9,048,910 $ 9,035,143
=========== ===========
Net income per unit on a cash basis $1.01 $1.01
===== =====
Cash distributions paid or to be paid:
Distributions per unit to be paid
to unit owners $1.01 $1.01
===== =====
The accompanying notes to financial statements
should be read in conjunction with these statements.
STATEMENTS OF CHANGES IN CASH AND CASH EQUIVALENTS (NOTE 1)
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FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND 2002
----------------------------------------------------
2003 2002
------------ ------------
Sources of cash and cash equivalents:
German gas, oil and sulfur royalties $ 9,466,319 $ 9,269,851
Interest income 16,040 36,853
----------- -----------
9,482,359 9,306,704
=========== ===========
Uses of cash and cash equivalents:
Payment of Trust expenses 433,449 271,561
Distributions and dividends paid (Note 3) 7,951,090 9,887,104
----------- -----------
8,384,539 10,158,665
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Net increase(decrease)in cash and
cash equivalents during the period 1,097,820 (851,961)
Cash and cash equivalents,
beginning of period 3,458,577 5,391,320
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Cash and cash equivalents,
end of period $ 4,556,397 $ 4,539,359
=========== ===========
STATEMENTS OF UNDISTRIBUTED EARNINGS (NOTE 1)
---------------------------------------------
FOR THE SIX MONTHS ENDED APRIL 30, 2003 AND 2002
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2003 2002
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Balance, beginning of period $ 64,640 $ 59,237
Net income on a cash basis 9,048,910 9,035,143
----------- -----------
9,113,550 9,094,380
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Less:
Current year distributions paid or
to be paid to unit owners (Note 3) 9,022,860 9,020,728
----------- -----------
9,022,860 9,020,728
----------- -----------
Balance, end of period $ 90,690 $ 73,652
=========== ===========
The accompanying notes to financial statements
should be read in conjunction with these statements.
NORTH EUROPEAN OIL ROYALTY TRUST
--------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
(1) Summary of significant
accounting policies:
----------------------
Basis of accounting -
-------------------
The accompanying financial statements of North European Oil Royalty
Trust (the "Trust") 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.
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. As of April 30, 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 ExxonMobil 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 North European Oil Corporation (the "Corporation")
and North European Oil Company, corporate predecessors of the Trust.
From the liquidation of the Company to October 31, 2002, 721,364
units were issued in exchange for Corporate and Company shares and
dividends of $354,101 and distributions of $4,236,544 were paid to
former unlocated Corporation and Company shareholders. For the
six-month period ended April 30, 2003 no units were 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 ("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 predecessor corporations. 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) have 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 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 May, 2003 distribution, the maximum liability of the Delaware
Escheator will be $13,095,661.
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 New York state addresses were shown in
predecessor corporation records. The New York 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 of any costs relating to any claims which are allowed. As of
the receipt of the May, 2003 distribution, the maximum liability
of the New York Administrator will be $967,591.
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 April 30, 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 $30,641,320 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 be adequate
to cover 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.
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.
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.
Although the Trust itself does not have access to the specific
sales contracts under which the Oldenburg gas is sold, these contracts
are reviewed periodically by our auditors. They have informed the
Trust that these contracts contain pricing mechanisms which use a
number of factors with varying time delays to price the gas being sold.
For the Trust there are two elements of these contracts that are very
significant. The first element is the utilization of the price of
light heating oil in Germany as the primary pricing factor in many of
these contracts. The price of light heating oil is in turn affected by
the price of oil on the international market. The second element is a
three to six month delay before changes in pricing factors are
translated into changes in the price of gas.
For unit owners changes in the value of the Euro have both an
immediate and a long term impact. The immediate impact relates to the
determination of the dollar amount the Trust receives when Euros are
converted into dollars at the time of the transfer of the royalties
from Germany to the U.S. At the time of the exchange a higher exchange
rate would yield more dollars and a lower exchange rate fewer. The
long term impact comes into play through the mechanism of gas pricing.
With the price of light heating oil used as a component in the
calculation of gas prices in the various contracts under which the gas
is sold, changes in world crude oil prices are eventually reflected in
gas prices. Since oil on the international market is priced in dollars,
a lower exchange rate for the Euro means that oil imported into Germany
is more expensive which results in higher local oil prices. A higher
exchange rate for the Euro means that oil imported into Germany is less
expensive which results in lower local oil prices. These higher or
lower local oil prices are in turn reflected in higher or lower gas
prices.
For the second quarter of fiscal 2003 ended April 30, 2003, the
Trust's net royalty income was $4,528,543, showing a slight increase of
$36,245 over the prior year's period. This royalty income was derived
from sales of gas, sulfur and oil from the Trust's overriding royalty
areas in Germany during the first calendar quarter of 2003. This level
of income allowed a distribution of 50 cents per unit payable on May 28,
2003 to owners of record as of May 16, 2003. For the six month period,
the Trust's net royalty income was $9,048,910 virtually identical to
last year's equivalent period. For the six month period ended April 30,
2003 total distributions were equal to $1.01 per unit.
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. For the quarter just
ended the exchange rate had the most substantial impact on Trust
royalties and the resulting distribution of all these factors.
Under the lower percentage royalty rate agreement with BEB, the
joint venture between the German subsidiaries of ExxonMobil and the
Royal Dutch Group, covering the entire Oldenburg concession gas sales
were slightly above gas sales during the second quarter of fiscal 2002.
Gas sales increased 0.35% from 52.7 to 52.9 billion cubic feet ("Bcf").
While gas sales were relatively unchanged, the average gas price for
gas sold under this agreement showed a significant drop, falling 13.6%
from 1.5107 Euro cents per Kilowatt hour ("Ecents/Kwh") in the average
for the second quarter of fiscal 2002 to 1.3051 Ecents/Kwh for the
quarter just ended. The situation under the higher percentage royalty
rate agreement with the German subsidiary of ExxonMobil covering
western Oldenburg was reversed with gas prices relatively unchanged but
gas sales falling off by a larger margin. Under this agreement gas
sales declined 11.6% from 23.0 Bcf for the second quarter of fiscal
2002 to 20.3 Bcf for the quarter just ended. The average price for
gas sold under this agreement was 1.3761 Ecents/Kwh, down just 0.8%
from the average price for the second quarter of fiscal 2002 of 1.3878
Ecents/Kwh.
Under the lower percentage royalty rate agreement the average
value of the Euro based on the monthly transfer of royalties to the
U.S. during the quarter just ended was $1.0882 an increase of 23.9%
from $0.8783, the average value for the second quarter of fiscal 2002.
Under the higher percentage royalty rate agreement the average value of
the Euro based on the monthly transfer of royalties to the U.S. for the
quarter just ended was $1.0778 an increase of 22.9% from $0.8767, the
average value for the second quarter of fiscal 2002. Converting the
average gas prices using the average exchange rates for the quarter
into more familiar terms yields an average gas price under both the
lower and higher percentage royalty rate agreements of $3.98 and $4.23
per thousand cubic feet, respectively.
The current Statement of Assets, Liabilities and Trust Corpus of
the Trust at April 30, 2003, compared to that at fiscal year end
(October 31, 2002), shows an increase in assets due to higher royalty
receipts during the quarter.
Interest income was lower reflecting the reduced interest rates
applicable during the period on funds available for investment. Trust
expenses for the second quarter were significantly higher in comparison
to the expenses recorded for the second quarter of fiscal 2002 due to
the receipt by the Trust of a reimbursement by the New York Stock
Exchange for Trust expenses associated with the Trust's symbol change
from "NET" to "NRT" on January 29, 2002.
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 were to be 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.
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.
Part II -- OTHER INFORMATION
----------------------------
Item 5. Other Information.
-----------------
REPORT ON DRILLING AND GEOPHYSICAL WORK
The Trust's long time consultant in Germany, Dr. Wolfgang Sohn,
passed away in mid March 2003. The Trust has been in contact with a
very qualified candidate whom Dr. Sohn had selected as his eventual
successor and the negotiations are proceeding. Normally the Trust's
consultant provides both a translation and an analysis of the report
supplied by the operating companies outlining the drilling and seismic
activity completed in 2002 and planned for 2003. With Dr. Sohn's
death, the Trust was only able to obtain a translation of the report.
Any analysis of the operating companies' drilling and seismic
activities will have to wait until Dr. Sohn's successor is confirmed.
As in 2002, there is no seismic field work planned for 2003. However,
plans are proceeding for 3-D seismic exploration of the Zwischenahn
area that was discussed last year at this time. Any seismic work that
is contemplated by the operating companies involves a long lead time
as extensive governmental permits are required as well as the necessity
of obtaining access to privately held properties to conduct the actual
seismic work. Once the seismic work is completed and fully analyzed it
is hoped that a series of wells will be drilled in the future to
exploit any gas reserves found. The operating companies had completed
one well Doetlingen Z-13a during 2002 on which they experienced
numerous difficulties. As part of the operating companies drilling
activities a complete "after action" report is being prepared to fully
analyze the problems they encountered and explore ways in which such
difficulties might be avoided in the future. In addition to the post
drilling analysis, pre-drilling planning is proceeding on two
additional wells Sage Z-4 and Doetlingen Ost Z-2 with completion
expected in 2003. Finally, one well Hemmelte Z-8a is planned for 2003.
This well which will be located in the higher percentage royalty rate
area of western Oldenburg continues the development of the very
productive Hemmelte gas field. Hemmelte Z-8a is a horizontal deviation
off an existing well and thus did not require any additional permits.
Over the long term the operating companies have had a high rate of
success with their horizontal drilling activities and it is hoped that
their success will continue with this well. Historically both levels
of production and recoverable reserves increase significantly with a
successful horizontal deviation.
------------------------------------------
This report on Form 10-Q contains forward looking statements
concerning business, financial performance and financial condition of
the Trust, which are subject to certain risks and uncertainties that
could cause actual results to differ materially from those anticipated
in any forward looking statement. The statements contained herein are
based on the Trustees' current beliefs, expectations and assumptions
and are subject to a number of risks and uncertainties. Actual results
and events may vary significantly from those discussed in the forward
looking statements.
Item 6. Exhibits and Reports on Form 8-K.
---------------------------------
(a) Exhibits.
None.
(b) Reports on Form 8-K.
None.
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
--------------------------------
(Registrant)
By: /S/ John R. Van Kirk
----------------------------
John R. Van Kirk
Managing Director
Dated: June 3, 2003
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.
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: June 3, 2003
/s/ John H. Van Kirk
---------------------------------------------
John H. Van Kirk
Managing Trustee (Chief Executive Officer)
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.
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: June 3, 2003
/s/ John R. Van Kirk
-----------------------------------------------
John R. Van Kirk
Managing Director (Chief Financial Officer)
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 April 30, 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: June 3, 2003
/s/ John H. Van Kirk
---------------------------------------
John H. Van Kirk
Managing Trustee (Chief Executive Officer)
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 April 30, 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: June 3, 2003
/s/ John R. Van Kirk
----------------------------------------------
John R. Van Kirk
Managing Director (Chief Financial Officer)