<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarterly Period Ended March 31, 2000
--------------
Commission File No. 1-10476
-------
HUGOTON ROYALTY TRUST
Texas I.R.S. No. 58-6379215
Bank of America, N.A.
P.O. Box 830650
Dallas, Texas 75283-0650
Telephone Number 877/228-5083
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 and (2) has been subject to such filing requirements for
the past 90 days. Yes X No
----- -----
Number of units of beneficial interest outstanding at May 1, 2000: 40,000,000
----------
<PAGE>
HUGOTON ROYALTY TRUST
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
- -------------------------------------------------------
INDEX
Page
----
Glossary of Terms............................................ 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements......................................... 4
Report of Independent Public Accountants..................... 5
Condensed Statements of Assets, Liabilities and Trust
Corpus at March 31, 2000 and December 31, 1999............. 6
Condensed Statements of Distributable Income for the
Three Months Ended March 31, 2000 and 1999................. 7
Condensed Statements of Changes in Trust Corpus for
the Three Months Ended March 31, 2000 and 1999............. 8
Notes to Condensed Financial Statements...................... 9
Item 2. Trustee's Discussion and Analysis............................ 12
Item 3. Quantitative and Qualitative Disclosures about Market Risk... 15
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............................. 16
Signatures................................................... 17
2
<PAGE>
HUGOTON ROYALTY TRUST
GLOSSARY OF TERMS
- -----------------
The following are definitions of significant terms used in this Form 10-Q:
Bbl Barrel (of oil)
Mcf Thousand cubic feet (of natural gas)
Mcfe Thousand cubic feet (of natural gas) equivalent,
computed with one barrel of oil as the energy equivalent
of six Mcf of natural gas
MMBtu One million British Thermal Units, a common energy
measurement
net profits interest An interest in an oil and gas property measured by net
profits from the sale of production, rather than a
specific portion of production
net proceeds Gross proceeds received by Cross Timbers Oil Company
from sale of production from the underlying properties,
less applicable costs
royalty income Net proceeds, multiplied by the net profits percentage
of 80%, that is paid to the trust
underlying properties Cross Timbers' interest in certain oil and gas
properties from which the net profits interests were
carved. The underlying properties include working
interests in predominantly gas-producing properties
located in Kansas, Oklahoma and Wyoming.
working interest An operating interest in an oil and gas property that
provides the owner a specified share of production that
is subject to all production and development costs
3
<PAGE>
HUGOTON ROYALTY TRUST
PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements.
The condensed financial statements included herein are presented, without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in annual
financial statements have been condensed or omitted pursuant to such rules and
regulations, although the trustee believes that the disclosures are adequate to
make the information presented not misleading. These condensed financial
statements should be read in conjunction with the trust's financial statements
and the notes thereto included in the trust's annual report of Form 10-K. In
the opinion of the trustee, all adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the assets, liabilities and trust
corpus of the Hugoton Royalty Trust at March 31, 2000, and the distributable
income and changes in trust corpus for the three-month periods ended March 31,
2000 and 1999, have been included. Distributable income for such interim
periods is not necessarily indicative of the distributable income for the full
year.
4
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
Bank of America, N.A., as Trustee
for the Hugoton Royalty Trust:
We have reviewed the accompanying condensed statements of assets, liabilities
and trust corpus of the Hugoton Royalty Trust as of March 31, 2000 and the
related condensed statements of distributable income and changes in trust corpus
for the three-month periods ended March 31, 2000 and 1999. These financial
statements are the responsibility of the trustee.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with auditing standards generally accepted in the United States, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
The accompanying condensed financial statements are prepared on a modified cash
basis as described in Note 1 which is a comprehensive basis of accounting other
than accounting principles generally accepted in the United States.
Based on our review, we are not aware of any material modifications that should
be made to the financial statements referred to above for them to be in
conformity with the basis of accounting described in Note 1.
We have previously audited, in accordance with auditing standards generally
accepted in the United States, the statement of assets, liabilities and trust
corpus of the Hugoton Royalty Trust as of December 31, 1999 included in the
trust's annual report on Form 10-K, and in our report dated March 1, 2000, we
expressed an unqualified opinion on that statement. In our opinion, the
information set forth in the accompanying condensed statement of assets,
liabilities and trust corpus as of December 31, 1999 is fairly stated in all
material respects in relation to the statement of assets, liabilities and trust
corpus included in the trust's financial statements from which they have been
derived.
ARTHUR ANDERSEN LLP
Fort Worth, Texas
May 5, 2000
5
<PAGE>
HUGOTON ROYALTY TRUST
- --------------------------------------------------------------------------------
Condensed Statements of Assets, Liabilities and Trust Corpus
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash and short-term investments........................ $ 3,350,120 $ 4,551,840
Net profits interests in oil and gas properties - net.. 229,616,953 233,428,609
------------ ------------
$232,967,073 $237,980,449
============ ============
LIABILITIES AND TRUST CORPUS
Distribution payable to unitholders.................... $ 3,350,120 $ 4,551,840
Trust corpus (40,000,000 units of beneficial
interest authorized and outstanding)................. 229,616,953 233,428,609
------------ ------------
$232,967,073 $237,980,449
============ ============
</TABLE>
The accompanying notes to condensed financial statements are
an integral part of these statements.
6
<PAGE>
HUGOTON ROYALTY TRUST
- --------------------------------------------------------------------------------
Condensed Statements of Distributable Income (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
---------------------------
2000 1999
----------- ----------
<S> <C> <C>
Royalty income....................................... $10,981,680 $3,565,075
Interest income...................................... 21,906 -
----------- ----------
Total income......................................... 11,003,586 3,565,075
Administration expense............................... 64,306 3,000
----------- ----------
Distributable income................................. $10,939,280 $3,562,075
=========== ==========
Distributable income per unit (40,000,000 units)..... $ 0.273482 $ 0.089052
=========== ==========
</TABLE>
The accompanying notes to condensed financial statements are
an integral part of these statements.
7
<PAGE>
HUGOTON ROYALTY TRUST
- --------------------------------------------------------------------------------
Condensed Statements of Changes in Trust Corpus (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
---------------------------
2000 1999
------------ ------------
<S> <C> <C>
Trust corpus, beginning of period................ $233,428,609 $247,067,951
Amortization of net profits interests............ (3,811,656) (1,596,300)
Distributable income............................. 10,939,280 3,562,075
Distributions declared........................... (10,939,280) (3,562,075)
------------ ------------
Trust corpus, end of period...................... $229,616,953 $245,471,651
============ ============
</TABLE>
The accompanying notes to condensed financial statements are
an integral part of these statements.
8
<PAGE>
HUGOTON ROYALTY TRUST
- -------------------------------------------------------------------------------
Notes to Condensed Financial Statements (Unaudited)
1. Basis of Accounting
The financial statements of the trust are prepared on the following basis
and are not intended to present financial position and results of
operations in conformity with generally accepted accounting principles
("GAAP"):
- Royalty income recorded for a month is the amount computed and paid by
the interest owner, Cross Timbers Oil Company, to Bank of America,
N.A., as trustee for the trust. Royalty income consists of net
proceeds received by Cross Timbers from the underlying properties in
the prior month, multiplied by a net profits percentage of 80%.
- Costs deducted in the calculation of net proceeds for the
80% net profits interests generally include applicable taxes,
transportation, marketing and legal costs, production expenses,
development costs, operating charges and other costs.
- Royalty income is computed separately for each of three conveyances
under which the net profits interests were conveyed to the trust. If
monthly costs exceed revenues for any conveyance, such excess costs
cannot reduce royalty income from other conveyances, but are carried
forward with accrued interest to be recovered from future net proceeds
of that conveyance.
- Trust expenses are recorded based on liabilities paid and cash
reserves established by the trustee for liabilities and contingencies.
- Distributions to unitholders are recorded when declared by the
trustee.
The trust's financial statements differ from those prepared in conformity
with GAAP because revenues are recognized when received rather than accrued
in the month of production, expenses are recognized when paid rather than
when incurred and certain cash reserves may be established by the trustee
for contingencies which would not be recorded under GAAP.
The initial carrying value of the net profits interests of $247,066,951
represents Cross Timbers' historical net book value for the interests on
December 1, 1998, the date of the transfer to the trust. Amortization of
the net profits interests is calculated on a unit-of-production basis and
charged directly to trust corpus. Accumulated amortization was $17,449,998
as of March 31, 2000 and $13,638,342 as of December 31, 1999.
2. Distributions to Unitholders
The trustee determines the amount to be distributed to unitholders each
month by totaling royalty income, interest income and other cash receipts,
and subtracting liabilities paid and adjustments in cash reserves
established by the trustee. The resulting amount is distributed to
unitholders of record generally within ten business days after the monthly
record date, the last business day of the month.
9
<PAGE>
Royalty income received by the trustee is equal to the net proceeds
received in the prior month by Cross Timbers from the underlying
properties, multiplied by 80%. Net proceeds are the gross proceeds received
from the sale of production from the underlying properties, less applicable
costs. Such costs generally include applicable taxes, transportation, legal
and marketing charges, production expenses, development and drilling costs,
and overhead (Note 4).
For monthly trust distributions declared through March 2000, the related
royalty income was based on gross proceeds equal to the greater of:
- the actual amount received from sales of production, or
- the imputed amount that would be received from sales of production at
a gas price of $2.00 per Mcf.
Cross Timbers, as owner of the underlying properties, computes royalty
income separately for each of the three conveyances. If costs exceed gross
proceeds for any conveyance, such excess costs cannot be used to reduce the
amounts to be received under the other conveyances. The trust is not liable
for excess costs; however, future royalty income from the net profits
interests created by that conveyance will be reduced by such excess costs
plus accrued interest.
3. Federal Income Taxes
Tax counsel has advised the trust that, under current tax laws, the trust
will be classified as a grantor trust for federal income tax purposes and
therefore is not subject to taxation at the trust level. However, the
opinion of tax counsel is not binding on the Internal Revenue Service.
For federal income tax purposes, unitholders are considered to own the
trust's income and principal as though no trust were in existence. The
income of the trust is deemed to be received or accrued by the unitholders
at the time such income is received or accrued by the trust, rather than
when distributed by the trust.
Cross Timbers has advised the trustee that the trust receives royalty
income from tight sands gas wells. Certain tight sands gas produced and
sold through 2002 qualifies for the federal income tax credit for producing
nonconventional fuels under Section 29 of the Internal Revenue Code. This
tax credit is recalculated annually based on each year's qualifying
production. The 1999 tight sands tax credit was $0.016 per unit. Tight
sands tax credit data for 2000 will be provided to unitholders with year-
end tax information. Unitholders should consult their tax advisors
regarding use of this credit and other trust tax compliance matters.
4. Litigation
Cross Timbers is a defendant in two separate lawsuits that could, if
adversely determined, decrease future trust distributable income. Damages
relating to production prior to the formation of the trust will be borne by
Cross Timbers.
On April 3, 1998, a class action lawsuit, Booth, et al. v. Cross Timbers
Oil Company, was filed in the District Court of Dewey County, Oklahoma by
royalty owners of natural gas wells in Oklahoma. The
10
<PAGE>
plaintiffs allege that since 1991 Cross Timbers has underpaid royalty
owners as a result of reducing royalties for improper charges for
production, marketing, gathering, processing and transportation costs and
selling natural gas through affiliated companies at prices less favorable
than those paid by third parties. Cross Timbers believes that it has strong
defenses to this lawsuit and intends to vigorously defend its position.
However, if Cross Timbers ultimately makes any settlement payments, the
trust will bear its 80% share of such settlement related to production from
the underlying properties for periods since December 1, 1998. Additionally,
if a judgment or settlement increases the amount of future payments to
royalty owners, the trust would bear its proportionate share of the
increased payments through reduced net proceeds. The amount of any
reduction in net proceeds is not presently determinable, but, in Cross
Timbers management's opinion, is not currently expected to be material to
the trust's annual distributable income, financial position or liquidity.
A second lawsuit, United States of America ex rel. Grynberg v. Cross
Timbers Oil Company, et al., was filed in the United States District Court
for the Western District of Oklahoma. This action alleges that Cross
Timbers underpaid royalties on natural gas produced from federal leases and
lands owned by Native Americans by at least 20% during the past 10 years as
a result of mismeasuring the volume of natural gas and wrongfully analyzing
its heating content. The suit, which was brought under the qui tam
provisions of the U.S. False Claims Act, seeks treble damages for the
unpaid royalties (with interest), civil penalties between $5,000 and
$10,000 for each violation of the U.S. False Claims Act, and an order for
Cross Timbers to cease the allegedly improper measuring practices. Cross
Timbers and other defendants have filed a motion to dismiss the lawsuit.
Cross Timbers believes that the allegations of this lawsuit are without
merit and intends to vigorously defend the action. However, an order to
change measuring practices or a related settlement could adversely affect
the trust by reducing net proceeds in the future by an amount that is
presently not determinable, but, in Cross Timbers management's opinion, is
not expected to be material to the trust's annual distributable income,
financial position or liquidity.
11
<PAGE>
Item 2. Trustee's Discussion and Analysis.
The following discussion should be read in conjunction with the trustee's
discussion and analysis contained in the trust's 1999 annual report, as well as
the condensed financial statements and notes thereto included in this quarterly
report on Form 10-Q.
Distributable Income
For the quarter ended March 31, 2000 royalty income was $10,981,680, as compared
to $3,565,075 for the same prior year quarter. Increased royalty income is
primarily because of the lag effect on cash receipts for first quarter 1999, the
trust's initial accounting period. After adding interest income of $21,906 and
deducting administration expense of $64,306, distributable income for the
quarter ended March 31, 2000 was $10,939,280, or $0.273482 per unit of
beneficial interest. Distributions to unitholders for the quarter ended March
31, 2000 were:
<TABLE>
<CAPTION>
Distribution
Record Date Payment Date per Unit
------------------- ----------------- ------------
<S> <C> <C>
January 31, 2000 February 14, 2000 $ 0.109364
February 29, 2000 March 14, 2000 0.080365
March 31, 2000 April 14, 2000 0.083753
------------
$ 0.273482
============
</TABLE>
Royalty Income
Royalty income is recorded when received by the trust, which is the month
following receipt by Cross Timbers, and generally two months after oil and gas
production. Royalty income is generally affected by three major factors:
- oil and gas sales volumes,
- oil and gas sales prices, and
- costs deducted in the calculation of royalty income.
12
<PAGE>
The following is a summary of the calculation of royalty income received by the
trust:
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
March 31, 2000 (a) March 31, 1999 (a)
------------------------ ------------------------
<S> <C> <C> <C> <C>
Sales Volumes
Gas (Mcf)
Underlying properties.. 9,709,634 5,514,787
Average per day....... 105,540 88,948
Net profits interests.. 4,701,389 1,824,004
Oil (Bbls)
Underlying properties.. 100,205 65,524
Average per day....... 1,089 1,057
Net profits interests.. 49,605 25,552
Mcfe.................... 10,310,864 5,907,931
Average per day....... 112,075 95,289
Average Sales Prices
Gas (per Mcf) (b)...... $ 2.32 $ 2.00
Oil (per Bbl).......... $25.19 $10.86
Per Mcfe Per Mcfe
-------- --------
Revenues
Gas sales.............. $22,501,491 $11,029,574
Oil sales.............. 2,524,047 711,868
----------- -----------
25,025,538 $2.43 11,741,442 $1.99
----------- ----- ----------- -----
Costs
Taxes, transportation
and other............ 2,415,586 0.23 1,384,948 0.23
Production expense..... 3,286,303 0.32 2,314,225 0.39
Development costs...... 3,866,107 0.38 1,960,301 0.33
Overhead............... 1,730,442 0.17 1,625,624 0.28
----------- ----- ----------- -----
Total Costs........... 11,298,438 1.10 7,285,098 1.23
----------- ----- ----------- -----
Net Proceeds............ 13,727,100 $1.33 4,456,344 $0.76
===== =====
Net Profits Percentage.. 80% 80%
----------- -----------
Royalty Income.......... $10,981,680 $ 3,565,075
=========== ===========
</TABLE>
- --------------------
(a) Because of the two-month interval between time of production and receipt of
royalty income by the trust, 1) oil and gas sales for the quarter ended
March 31, 2000 generally represent production for the period November 1999
through January 2000 and 2) oil and gas sales for the quarter ended March
31, 1999 generally represent production for the period December 1998 (the
trust's initial month) and January 1999.
(b) See Note 2 to condensed financial statements.
13
<PAGE>
The following are explanations of significant variances:
Sales Volumes
Daily gas sales volumes were 19% higher for first quarter 2000 than first
quarter 1999 volumes. This is primarily because of the time lag effect on cash
receipts in the trust's initial accounting period, which resulted in receipt of
less than two full months production in first quarter 1999. Also, some proceeds
were not received until second quarter 1999 from underlying properties that
Cross Timbers acquired in November 1998 and from several development projects
completed in late 1998 and early 1999.
Sales Prices
Gas
The first quarter 2000 average gas price was $2.32 per Mcf. The first quarter
1999 average gas price of $2.00 per Mcf was the minimum price contractually
provided to unitholders for distributions declared through March 2000. As of
April 2000, there are no longer any minimum price provisions. See Note 2 to
condensed financial statements. The first quarter 1999 actual average gas price
of $1.81 reflects high levels of gas in storage resulting from an abnormally
warm winter experienced throughout the U.S. Gas prices increased during 1999 as
gas in storage declined. After dropping briefly at year end, gas prices have
continued to strengthen in 2000, as gas storage remains lower than prior year
levels. At May 1, 2000, the average NYMEX price for the following twelve months
was $3.21 per MMBtu.
Oil
The average oil price for first quarter 2000 was $25.19 per Bbl, which is a 132%
increase over the first quarter 1999 average oil price of $10.86. The first
quarter 1999 price reflects depressed oil prices during late 1998 and early
1999. Prices began to rise in second quarter 1999 and continued to strengthen
through first quarter 2000 due largely to the effect of production cuts by OPEC
members and other leading oil exporters. OPEC members met on March 27, 2000 and
agreed to increase production by 6.3%. The average West Texas Intermediate
posted price for April 2000 was $22.77.
Costs
Costs deducted in the calculation of royalty income for first quarter 2000
totaled $11,298,438. Total costs for first quarter 2000 were 55% higher than
for the same 1999 quarter primarily because of the time lag effect on cash
disbursements in the trust's initial accounting period. Costs per Mcfe for
first quarter 2000 are lower than in the 1999 period for production expense and
overhead since first quarter 1999 includes more than two months of costs but
less than two months of sales volumes. Higher development costs in first
quarter 2000 are primarily associated with drilling and workovers on operated
properties in Oklahoma and Wyoming.
Forward Looking Statements
This report on Form 10-Q includes "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements other
than statements of historical fact included in this Form 10-Q, including,
without
14
<PAGE>
limitation, statements contained in this "Trustee's Discussion and Analysis"
regarding the net profits interests and industry conditions, are forward looking
statements. Although Cross Timbers believes that the expectations reflected in
such forward looking statements are reasonable, neither Cross Timbers nor the
trustee can give any assurance that such expectations will prove to be correct.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
There have been no material changes in the trust's market risks, as disclosed in
the trust's Form 10-K for the year ended December 31, 1999.
15
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
Items 1 through 5. Not applicable.
Item 6. (a) Exhibits.
Exhibit Number
and Description Page
--------------- ----
(4) (a) Hugoton Royalty Trust Indenture by and between NationsBank,
N.A. (now Bank of America, N.A.), as trustee and Cross
Timbers Oil Company heretofore filed as Exhibit 4.1 to the
trust's Registration Statement No. 333-68441 on Form S-1
filed with the Securities and Exchange Commission on
December 4, 1998, is incorporated herein by reference.
(b) Net Overriding Royalty Conveyance (Hugoton Royalty Trust,
80% - Kansas) as amended and restated from Cross Timbers
Oil Company to NationsBank, N.A. (now Bank of America, N.A.),
as trustee, dated December 1, 1998 heretofore filed as
Exhibit 10.1.1 to Amendment No. 2 to the trust's
Registration Statement No. 333-68441 on Form S-1 filed with
the Securities and Exchange Commission on March 16, 1999, is
incorporated herein by reference.
(c) Net Overriding Royalty Conveyance (Hugoton Royalty Trust,
80% - Oklahoma) as amended and restated from Cross Timbers
Oil Company to NationsBank, N.A. (now Bank of America, N.A.),
as trustee, dated December 1, 1998, heretofore filed as
Exhibit 10.2.1 to Amendment No. 2 to the trust's Registration
Statement No. 333-68441 on Form S-1 filed with the Securities
and Exchange Commission on March 16, 1999, is incorporated
herein by reference.
(d) Net Overriding Royalty Conveyance (Hugoton Royalty Trust,
80% - Wyoming) as amended and restated from Cross Timbers Oil
Company to NationsBank, N.A. (now Bank of America, N.A.), as
trustee, dated December 1, 1998, heretofore filed as Exhibit
10.3.1 to Amendment No. 2 to the trust's Registration Statement
No. 333-68441 on Form S-1 filed with the Securities and
Exchange Commission on March 16, 1999, is incorporated herein
by reference.
(15) Awareness letter of Arthur Andersen LLP 18
(b) Reports on Form 8-K.
No reports on Form 8-K have been filed during the quarter for which
this report is filed.
16
<PAGE>
SIGNATURES
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 thereunto duly authorized.
HUGOTON ROYALTY TRUST
By BANK OF AMERICA, N.A., TRUSTEE
By RON E. HOOPER
----------------------------------------
Ron E. Hooper
Vice President
CROSS TIMBERS OIL COMPANY
Date: May 11, 2000 By LOUIS G. BALDWIN
----------------------------------------
Louis G. Baldwin
Executive Vice President
and Chief Financial Officer
17
<PAGE>
EXHIBIT 15
Bank of America, N.A. as Trustee
for the Hugoton Royalty Trust:
We are aware that Cross Timbers Oil Company has incorporated by reference in its
Registration Statement No. 333-81849 on Form S-8, and that Cross Timbers Oil
Company and Hugoton Royalty Trust have incorporated by reference in their
Registration Statement No. 333-35830-01 on Form S-8, Hugoton Royalty Trust's
Form 10-Q for the quarter ended March 31, 2000, which includes our report dated
May 5, 2000, covering the unaudited interim financial information contained
therein. Pursuant to Regulation C of the Securities Act of 1933, that report is
not considered a part of the registration statements prepared or certified by
our firm or a report prepared or certified by our firm within the meaning of
Sections 7 and 11 of the Act.
ARTHUR ANDERSEN LLP
Fort Worth, Texas
May 11, 2000
18
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 3,350,120
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,350,120
<PP&E> 247,066,951
<DEPRECIATION> 17,449,998
<TOTAL-ASSETS> 232,967,073
<CURRENT-LIABILITIES> 3,350,120
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 229,616,953
<TOTAL-LIABILITY-AND-EQUITY> 232,967,073
<SALES> 10,981,680
<TOTAL-REVENUES> 11,003,586
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 64,306
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 10,939,280
<INCOME-TAX> 0
<INCOME-CONTINUING> 10,939,280
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,939,280
<EPS-BASIC> 0.273
<EPS-DILUTED> 0.273
</TABLE>
