<PAGE> 1
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
AMENDMENT NO. 22
BURLINGTON RESOURCES COAL SEAM GAS ROYALTY TRUST
(NAME OF ISSUER)
UNITS OF BENEFICIAL INTEREST
(TITLE OF CLASS OF SECURITIES)
122016 10 8
(CUSIP NUMBER)
C. N. O'SULLIVAN
910 TRAVIS STREET
SUITE 2150
HOUSTON, TEXAS 77002
(713) 759-2030
WITH A COPY TO:
BRIAN D. BARNARD
HAYNES AND BOONE, LLP
201 MAIN STREET
SUITE 2200
FORT WORTH, TEXAS 76132
(817) 347-6600
(NAME, ADDRESSES AND TELEPHONE NUMBERS OF PERSONS AUTHORIZED
TO RECEIVE NOTICES AND COMMUNICATIONS)
September 17, 1998
(DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
================================================================================
<PAGE> 2
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 2 of 17 Pages
------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
San Juan Partners, L.L.C.
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
AF, BK
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0 Units
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0 Units
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
OO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE> 3
================================================================================
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 3 of 17 Pages
------- --------
- -----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
EnCap Energy Capital Fund III, L.P.
- -----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- -----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- -----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- -----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- -----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- -----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
------------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY ------------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH ------------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- -----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- -----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- -----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- -----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE> 4
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 4 of 17 Pages
------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
EnCap Energy Acquisition III-B, Inc.
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE> 5
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 5 of 17 Pages
------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ECIC Corporation
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE> 6
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 6 of 17 Pages
------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
BOCP Energy Partners, L.P.
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 7
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 7 of 17 Pages
------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
First Union Investors, Inc.
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
(b) [ ]
2
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
North Carolina
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 8
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 8 of 17 Pages
------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
Andover Group, Inc.
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 9
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 9 of 17 Pages
------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
Charles T. McCord III
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
PF
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 10
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 10 of 17 Pages
-------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
O'Sullivan Oil & Gas Company, Inc.
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 11
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 11 of 17 Pages
-------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
Christopher P. Scully
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
PF
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 12
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 12 of 17 Pages
-------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
Scott W. Smith Funding, L.L.C.
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
WC
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
OO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 13
SCHEDULE 13D
<TABLE>
<S> <C>
CUSIP No. 122016 10 8 Page 13 of 17 Pages
-------- --------
- ----------------------------------------------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
John V. Whiting
- ----------------------------------------------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) (a) [x]
2 (b) [ ]
- ----------------------------------------------------------------------------------------------------------------------
SEC USE ONLY
3
- ----------------------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (See Instructions)
4
PF
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
5
- ----------------------------------------------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
United States
- ----------------------------------------------------------------------------------------------------------------------
SOLE VOTING POWER
7
0
-----------------------------------------------------------------------------------
NUMBER OF SHARED VOTING POWER
SHARES 8
BENEFICIALLY 5,331,468 Units
OWNED BY -----------------------------------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
REPORTING 9
PERSON 0
WITH -----------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
5,331,468 Units
- ----------------------------------------------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12
- ----------------------------------------------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
60.58%
- ----------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 14
This Amendment No. 22 amends the Statement on Schedule 13D of San Juan
Partners, L.L.C., a Texas limited liability company (the "Purchaser"), and
EnCap Energy Capital Fund III, L.P., a Texas limited partnership ("EnCap
Energy"), EnCap Energy Acquisition III-B, Inc., a Texas corporation ("EnCap
B"), ECIC Corporation, a Texas corporation ("ECIC"), BOCP Energy Partners,
L.P., a Texas limited partnership ("BOCP"), First Union Investors, Inc. a
North Carolina corporation ("First Union Investors"), Andover Group, Inc., a
Texas corporation ("Andover"), Charles T. McCord III, O'Sullivan Oil & Gas
Company, Inc., a Texas corporation ("O'Sullivan Oil"), Christopher P. Scully,
Scott W. Smith Funding, L.L.C., a Texas limited liability company ("Smith
Funding"), and John V. Whiting (EnCap Energy, EnCap B, ECIC, BOCP, First Union
Investors, Andover, McCord, O'Sullivan Oil, Scully, Smith Funding and Whiting
collectively referred to herein as "Parents") with respect to Units of
Beneficial Interest (the "Units") of Burlington Resources Coal Seam Gas Royalty
Trust, a Delaware business trust (the "Trust").
ITEM 4. PURPOSE OF TRANSACTION
Item 4 is amended and restated in its entirety as follows:
The purpose of the Purchaser is to pursue the termination of the
Trust. Because termination of the Trust requires the affirmative vote in favor
of such termination by the holders of at least 66 2/3% of the outstanding
Units, the Purchaser may (i) acquire additional Units, either through
open-market acquisitions or privately negotiated transactions, or (ii) seek
consents from a limited number of other Unit holders, such that the Purchaser
owns or has the right to vote at least 66 2/3% of the outstanding Units.
Whether the Purchaser acquires any additional Units or obtains any such
consents, it is the Purchaser's intention to request that a meeting of the Unit
holders be called for the purpose of voting on the termination of the Trust. If
a meeting of the Unit holders is held concerning the termination of the Trust,
the Purchaser intends to vote any Units owned by it or over which it has voting
control at the time of such meeting in favor of terminating the Trust.
The information in the following paragraphs has been taken or derived
from the Trust Agreement, which was filed as Exhibit 3.1 to the Registration
Statement on Form S-3 (Registration No. 33-61164), as amended, filed by
Burlington Resources Inc. with the Commission on its own behalf and as sponsor
of the Trust. More comprehensive information concerning meetings of Unit
holders and the termination of the Trust is included in the Trust Agreement,
and the information set forth in the following paragraphs is qualified in its
entirety by reference to the Trust Agreement.
According to the terms of the Trust Agreement, the Trust may terminate
prior to January 1, 2003, only upon the affirmative vote in favor of termination
of the Trust by the holders of at least 66 2/3% of the outstanding Units. A
meeting of the Unit holders may be called by the Trustee or by Unit holders
owning of record not less than 10% of the then outstanding Units. The notice of
such meeting must be distributed at least 20, but not more than 60, days prior
to the date of the meeting. At such meeting, if the holders of at least 66 2/3%
of the Units vote to terminate the Trust, the Trustee will commence the
liquidation process, and the Trust will still continue until all of the affairs
of the Trust are liquidated and wound up.
Within five business days of the date the Unit holders vote to
terminate the Trust (the "Termination Date"), the Trustee must (i) provide
BROG, Burlington Resources Inc. and Mellon Bank (DE) National Association (the
"Delaware Trustee") or its successor with written notice of the termination of
the Trust and (ii) engage an investment banking firm (the "Advisor") to assist
the Trustee in selling the remaining Royalty Interests then owned by the Trust
(the "Remaining Royalty Interests").
14
<PAGE> 15
BROG may, but is not obligated to, make a written cash offer to
purchase the Remaining Royalty Interests, which offer must be delivered to the
Trustee within 60 days following the Termination Date (the "Option Period
Termination Date"). If BROG does make an offer to purchase the Remaining
Royalty Interests, the Trustee must decide, based on the recommendation of the
Advisor, whether to accept the offer. The Trustee must provide written notice
to BROG of the decision by the later of (i) the Option Period Termination Date
or (ii) the tenth business day after the date the Trustee receives BROG's
offer. The Trustee's notice must state that the Trustee (i) accepts the offer
(which acceptance is conditional on the receipt of an opinion of the Advisor of
the fairness of BROG's offer to the Unit holders from a financial point of
view) or (ii) defers action on the offer. If the Trustee accepts BROG's offer,
BROG and the Trustee must use their best efforts to close the purchase within
30 days of BROG's receipt of notice of acceptance. See below and "Item
6--Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer."
If the Trustee defers action on BROG's offer, the Trustee must use its
best efforts, with the Advisor's assistance, to obtain other cash offers for the
Remaining Royalty Interests. The Trustee must notify BROG of the highest offer,
if any, received by the Trust within 120 days following the Termination Date. If
the highest offer is more than 105% of BROG's original offer, or if BROG did not
make an offer, BROG may, but is not obligated to, purchase all of the Remaining
Royalty Interests for a cash purchase price equal to 105% of the highest offer.
If the highest offer is equal to or less than 105% of BROG's original offer,
BROG may, but is not obligated to, purchase all of the Remaining Royalty
Interests for a cash purchase price equal to the highest offer. BROG must
provide written notice of its election to purchase the Remaining Royalty
Interests within five business days of BROG's receipt of notice of the highest
offer. BROG and the Trustee must use their best efforts to close the purchase
within 30 days of BROG's receipt of notice of the highest offer.
If no other acceptable cash offers are received for the Remaining
Royalty Interests, the Trustee may request that BROG submit another offer. If
BROG makes an offer, and the Trustee accepts it, the acceptance will be
conditional upon receipt of an opinion of the Advisor of the fairness of the
offer to the Unit holders. BROG and the Trustee must use their best efforts to
close the purchase within 30 days of BROG's receipt of notice of acceptance of
the offer.
If any assets or property of the Trust estate have not been sold, or
no definitive agreement for their sale has been entered into, within one year
after the Termination Date, the Trustee will cause the property to be sold at
public auction to the highest bidder (which may be BROG or any of its
affiliates). Notice of such auction must be mailed to each Unit holder at
least 30 days prior to the sale.
15
<PAGE> 16
Pursuant to the Letter of Intent (as defined below), BROG has agreed
in principle that, so long as the Closing (as defined below) has not occurred
on or prior to the time BROG would have the right under the Trust Agreement to
make a cash offer to purchase all of the Remaining Royalty Interests, and so
long as the Letter of Intent or the Agreement (as defined below), as the case
may be, remains in full force and effect, BROG would not exercise such right at
any time prior to the Option Period Termination Date. See "Item 6--Contracts,
Arrangements, Understandings or Relationships with Respect to Securities of the
Issuer."
Except as provided herein, the Purchaser has no present plans or
proposals (i) to vote its Units for the removal of either the Trustee or the
Delaware Trustee, (ii) to materially change the distributions of the Trust, or
(iii) that relate to or that would result in any of the actions specified in
clauses (a) through (j) of Item 4 of Schedule 13D promulgated under the
Securities Exchange Act of 1934, as amended.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
Item 6 is amended as follows:
On September 17, 1998, the Purchaser entered into a letter of intent
(the "Letter of Intent") with Burlington Resources Oil & Gas Company ("BROG").
The Letter of Intent contemplates the purchase of certain interests of BROG in
and to the Fruitland coal formation in the Northeast Blanco Unit ("NEBU"), San
Juan and Rio Arriba Counties, New Mexico, including, without limitation, (i)
certain interests in leases covering the lands in NEBU that are burdened by a
Net Profits Interest Conveyance to Burlington Resources Coal Seam Gas Royalty
Trust (the "Trust Interest"), (ii) certain other interests in leases covering
lands in NEBU (the "Non-Trust Interest"), and (iii) associated rights and
obligations of BROG and its affiliates in the Trust (collectively, the
"Properties").
Pursuant to the Letter of Intent, the parties would enter (before
October 17, 1998) into a purchase and sale agreement (the "Agreement"), which
would provide for an effective date of July 1, 1998 for the transactions
contemplated by the Agreement. The Agreement would govern the transactions
described in the Letter of Intent. The Letter of Intent also provides that the
Agreement would include an indemnification of BROG and its affiliates by the
Purchaser from all liabilities accruing on or after July 1, 1998, that relate
to claims by any Unit holder of any interest in the Trust in connection with
the transactions contemplated by the Letter of Intent, the termination or
liquidation of the Trust and any regulatory compliance associated with such
termination or liquidation, and any applicable federal, state or local
securities laws, other than liabilities arising from the gross negligence or
willful misconduct of BROG or its affiliates.
16
<PAGE> 17
The Letter of Intent contemplates that the closing of the transactions
(the "Closing") would take place on or before the date that is ten business
days following the Termination Date (as defined below). The Termination Date
is the effective date on which all of the following conditions are fully
satisfied: (i) the Unit holders have approved, by an affirmative vote or
consent, of the termination and liquidation of the Trust in accordance with
Article VIII and Sections 9.02 and 9.03 of the Trust Agreement and (ii) the
clearance or approval of the transactions contemplated in the preceding clause
(i) and any connected filings that may be required or advisable under
applicable laws, rules or regulations by all applicable governmental
authorities having jurisdiction and the compliance of such transactions and
filings with any applicable stock exchange requirements. In addition, the
Letter of Intent contemplates that the following will be conditions to the
closing: (i) the occurrence of the Termination Date, (ii) the approval by the
Board of Directors of BROG's parent, Burlington Resources Inc. ("BRI"), of the
contemplated transactions, (iii) the delivery to, and acceptance by, the
Purchaser of a legal opinion by BROG's legal counsel opining that all of the
rights under Section 9.03 of the Trust Agreement are assignable, (iv) the
termination of all obligations under the Trust Agreement of BRI other than
those relating to the wind-up of the Trust as set forth in the Trust Agreement
and/or that certain Administrative Services Agreement dated May 1, 1993, by and
between BRI and the Trust (the "Administrative Services Agreement") and (v) the
absence of any pending legal or equitable action seeking to enjoin, prohibit or
declare illegal the transactions contemplated by the Letter of Intent. In the
event Closing has not occurred on or prior to the time BROG would have the
right under Section 9.03(c) of the Trust Agreement to make a cash offer to
purchase all of the Remaining Royalty Interests (as defined in the Trust
Agreement), and so long as the Letter of Intent or the Agreement remains in
full force and effect, BROG would agree not to exercise such right at any time
prior to the Option Period Termination Date (as defined in the Trust
Agreement).
The Letter of Intent also provides that, in addition to the Trust
Interest and the Non-Trust Interest, the Purchaser would acquire (i) to the
extent assignable, all of BRI's duties, obligations and rights under and
pursuant to the Trust Agreement and the Administrative Services Agreement and
(ii) from BROG's affiliate, Burlington Resources Trading Inc. ("BRTI"), all
rights in and to the Price Credit Account as defined in that certain Gas
Purchase Contract (the "Gas Contract"), dated May 1, 1993, by and between
Meridian Oil Trading Inc. (now known as BRTI), and Meridian Oil Production Inc.
(now known as BROG). Upon the last day of the month in which the Termination
Date occurs, the Gas Contract would terminate and no longer burden the Trust
Interest. Thereafter, the Purchaser would be free to market its natural gas
from the Trust Interest; provided, however, that prior to committing to sell its
gas, the Purchaser would give BRTI the opportunity to make a proposal to buy its
natural gas. After termination of the Gas Contract, if the Purchaser receives an
offer from any third party to purchase the gas for a term of greater than six
months, the
17
<PAGE> 18
Purchaser would provide BRTI with a right of first refusal to purchase such gas
upon the same terms and conditions.
At Closing, the Purchaser would also receive an assignment of that
certain Gathering, Dehydrating and Treating Agreement (as amended, the "GGTA"),
dated May 3, 1990, between Meridian Oil Gathering Inc. and Meridian Oil Trading
Inc. At the Purchaser's request, the GGTA would be restated and amended to
provide for a fee of $0.365/MCF for the Middle Mesa Receipt Point and
$0.341/MCF for the Sims/Pump Mesa Receipt Points with an annual $0.01 per MCF
increase, effective January 1, 1999 and with an ultimate cap on the fee for the
Middle Mesa Receipt Point of $0.415/MCF and on the fee for the Sims/Pump Mesa
Receipt Points of $0.381/MCF. Additionally, the GGTA would be restated and
amended to provide that the term of the GGTA would continue until December 31,
2007, and thereafter month to month unless cancelled by 30 days' prior written
notice from one party to the other.
Except as set forth below in this paragraph, the Letter of Intent
expressly provides that it does not constitute a binding offer to purchase the
Properties nor an agreement to sell the Properties and that neither Purchaser
nor BROG shall be legally bound by the terms of the Letter of Intent. Pursuant
to the Letter of Intent, BROG agrees to cease discussions or negotiations with
any third parties concerning the sale of the Properties and to hold the
Properties exclusively for the sale to the Purchaser under the terms of the
Agreement. In the event the Purchaser fails to initiate proceedings to
terminate or liquidate the Trust in a timely manner as contemplated in the
definition of Termination Date, the Letter of Intent provides that the
Purchaser shall pay BROG $2,000,000. The Letter of Intent further provides
that in the event a definitive Agreement is not finalized within thirty days
after receipt by the Purchaser of notification that the terms of the Letter of
Intent are acceptable, the Letter of Intent shall, by its terms, be thereupon
void and of no further force and effect.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
(a)(17) Letter of Intent between San Juan Partners, L.L.C. and
Burlington Resources Oil & Gas Company.
- 18 -
<PAGE> 19
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: September 17, 1998 SAN JUAN PARTNERS, L.L.C.
--------------------
By: /s/ C. N. O'Sullivan
----------------------------------------
Name: C. N. O'Sullivan
Title: President - O'Sullivan Oil & Gas
Company, Inc., Manager
ENCAP ENERGY CAPITAL FUND III, L.P.
By: /s/ Robert L. Zorich
----------------------------------------
Name: Robert L. Zorich
Title: Managing Director
ENCAP ENERGY ACQUISITION III-B, INC.
By: /s/ Robert L. Zorich
----------------------------------------
Name: Robert L. Zorich
Title: Managing Director
ECIC CORPORATION
By: /s/ Robert L. Zorich
----------------------------------------
Name: Robert L. Zorich
Title: Director
BOCP ENERGY PARTNERS, L.P.
By: /s/ Robert L. Zorich
----------------------------------------
Name: Robert L. Zorich
Title: Managing Director
FIRST UNION INVESTORS, INC.
By: /s/ Ted A. Gardner
----------------------------------------
Name: Ted A. Gardner
Title: Managing Partner
19
<PAGE> 20
ANDOVER GROUP, INC.
By: /s/ A. John Knapp, Jr.
----------------------------------------
Name: A. John Knapp, Jr.
Title: President
/s/ Charles T. McCord III
-------------------------------------------
Charles T. McCord III
O'SULLIVAN OIL & GAS COMPANY, INC.
By: /s/ C. N. O'Sullivan
----------------------------------------
Name: C. N. O'Sullivan
Title: President
/s/ Christopher P. Scully
-------------------------------------------
Christopher P. Scully
SCOTT W. SMITH FUNDING, L.L.C.
By: /s/ Scott W. Smith
----------------------------------------
Name: Scott W. Smith
Title: Manager
/s/ John V. Whiting
-------------------------------------------
John V. Whiting
<PAGE> 21
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
99.(a)(17) Letter of Intent between San Juan Partners, L.L.C. and
Burlington Resources Oil & Gas Company
</TABLE>
<PAGE> 1
EXHIBIT 99.(a)(17)
September 16, 1998
Burlington Resources Oil & Gas Company
5051 Westheimer, Suite 1400
Houston, Texas 77056
Attention: Mr. Mark E. Ellis
Vice President, San Juan Division
Re: Letter of Intent
NE Blanco Fruitland Coal
Gentlemen:
San Juan Partners, L.L.C. ("SJP") would like to purchase the following certain
interests of Burlington Resources Oil & Gas Company ("BR") in and to the
Fruitland coal formation in the Northeast Blanco Unit ("NEBU"), San Juan and Rio
Arriba Counties, New Mexico, (i) the interests described in Part I of Exhibit A
attached hereto and made a part hereof for all purposes in leases covering the
lands in NEBU, which interests are burdened by a Net Profits Interest Conveyance
to Burlington Resources Coal Seam Gas Royalty Trust ("BRU"), said interest being
called herein the "Trust Interest", (ii) the interests described in Part II of
Exhibit A attached hereto in leases covering lands in NEBU, said interest being
called herein the "Non-Trust Interest", and (iii) associated rights and
obligations of BR and its affiliates in BRU (as more particularly described in
Section 8 below), all of said interests, rights and obligations hereinafter
collectively referred to as the "Properties". This letter will set
<PAGE> 2
Letter of Intent
September 16, 1998
Page 2
forth the general terms and conditions under which SJP would agree to purchase
and BR would agree to sell the Properties.
1. The purchase price for the Properties is Twenty Million Seven
Hundred- Fifty Thousand Dollars ($20,750,000) (the "Purchase
Price"), payable in cash at Closing.
2. The effective date of the sale is July 1, 1998, at 7:00 a.m.
M.S.T. (the "Effective Date").
3. It is the intent of the parties to negotiate and enter into a
mutually acceptable purchase and sale agreement (the
"Agreement") within thirty (30) days after receipt
of notification that the terms set forth herein are
acceptable. In the event the Agreement is not finalized within
this time period, this letter of intent shall be void and of
no further force and effect. The Agreement shall govern all
components of the transactions described herein including, but
not limited to, the due diligence procedures to be afforded
SJP, the representations and warranties of each party, the
obligations to be assumed by SJP as of the Effective
<PAGE> 3
Letter of Intent
September 16, 1998
Page 3
Date, and indemnities, which indemnities shall include,
without limitation, the indemnification of BR and its
affiliates by SJP from and against all costs, losses, claims,
liabilities, damages and judgments accruing on or after the
Effective Date and arising out of or relating to actions or
claims by or through any holder of any interest in BRU in
connection with the transactions contemplated hereby or the
termination or liquidation of BRU as contemplated in paragraph
4 hereof, any regulatory compliance associated therewith and
any federal, state or local securities laws applicable
thereto, excepting, however, any such liabilities arising from
the gross negligence or willful misconduct of BR and/or its
affiliates.
4. The closing of the transactions contemplated in the Agreement
(the "Closing") shall take place in Houston, Texas on or
before that date which is ten (10) business days following the
Termination Date (as hereinafter defined). As used herein, the
"Termination Date" shall mean the effective date on which all
the following conditions are fully satisfied: (i) the
Unitholders have approved, by an affirmative vote or consent,
of the termination and liquidation of BRU in accordance with
<PAGE> 4
Letter of Intent
September 16, 1998
Page 4
Article VIII and Sections 9.02 and 9.03 of that certain Trust
Agreement of Burlington Resources Coal Seam Gas Royalty Trust
dated May 1, 1993 among Meridian Oil Production Inc.,
Burlington Resources Inc., Mellon Bank (DE) National
Association and NationsBank of Texas, N.A. (the "Trust
Agreement"), and (ii) the clearance or approval of the
transactions contemplated in subparagraph 4(i) above and any
filings in connection therewith which may be required or
advisable under applicable laws, rules and/or regulations by
all applicable governmental authorities having jurisdiction
and the compliance of such transactions and filings with any
applicable stock exchange requirements.
5. Conditions of Closing shall include (i) the occurrence of the
Termination Date, (ii) the approval by the Board of Directors
of BR's parent, Burlington Resources Inc. ("BRI") of the
contemplated transactions, (iii) the delivery to, and
acceptance by, SJP of a legal opinion by BR's legal counsel
opining that all of the rights under Section 9.03 of the Trust
Agreement are assignable (the exact wording of which will be
included as an Exhibit to the Agreement), (iv) the termination
of all obligations under the Trust Agreement of BRI other than
those relating to the
<PAGE> 5
Letter of Intent
September 16, 1998
Page 5
wind-up of BRU as set forth in the Trust Agreement and/or the
Administrative Services Agreement dated May 1, 1993 by and
between BRI and BRU (the "Administrative Services Agreement"),
and (v) the absence of any pending legal or equitable action
seeking to enjoin, prohibit or declare illegal the
transactions contemplated hereby.
6. At Closing, BR will tender to SJP or its designee appropriate
documents of conveyance, including, without limitation, an
assignment of title in and to the Trust Interest and the
Non-Trust Interest with a special warranty of title and an
assignment of rights under the Trust Agreement and the
Administrative Services Agreement.
7. In the event (i) Closing has not occurred on or prior to the
time BR shall have the right under Section 9.03(c) of the
Trust Agreement to make a cash offer to purchase all of the
Remaining Royalty Interests (as defined in the Trust
Agreement), and (ii) this letter of intent or the Agreement
remains in force and effect, BR agrees not to exercise such
right at any time prior to the Option Period Termination Date
(as defined in the Trust Agreement).
<PAGE> 6
Letter of Intent
September 16, 1998
Page 6
8. In addition to the acquisition of the Trust Interest and the
Non-Trust Interest, SJP will also (i) acquire, to the extent
assignable, and assume from BRI, all of its duties,
obligations and rights under and pursuant to the Trust
Agreement and the Administrative Services Agreement, and (ii)
acquire from BR's affiliate, Burlington Resources Trading Inc.
("BRTI"), all rights in and to the Price Credit Account as
defined in that certain Gas Purchase Contract dated May
1, 1993, by and between Meridian Oil Trading Inc., n/k/a BRTI,
and Meridian Oil Production Inc., n/k/a BR (the "Gas
Contract").
9. Upon the last day of the month in which the Termination Date
occurs, the Gas Contract shall terminate and no longer burden
the Trust Interest. Thereafter, SJP shall be free to market
its gas from the Trust Interest; provided, however, that prior
to committing to sell its gas, SJP shall give BRTI the
opportunity to make a proposal to buy its gas. After
termination of the Gas Contract, if SJP shall receive an offer
from any third party to purchase the gas for a term of greater
than six (6) months, SJP shall provide BRTI with written
notice thereof setting forth all of the relevant terms and
provisions, and BRTI shall have the right
<PAGE> 7
Letter of Intent
September 16, 1998
Page 7
of first refusal to purchase such gas upon the same terms and
conditions.
10. At Closing, SJP shall receive and accept an assignment of the
Gathering, Dehydrating and Treating Agreement between Meridian
Oil Gathering Inc. and Meridian Oil Trading Inc., dated May 3,
1990, as amended (the "GGTA"). At SJP's request, Paragraph 4.1
of the GGTA shall be deleted and restated and amended to
provide for a fee of $0.365/MCF for the Middle Mesa Receipt
Point and $0.341/MCF for the Sims/Pump Mesa Receipt Points
with an annual $0.01 per MCF increase, effective January 1,
1999 and with an ultimate cap on the fee for the Middle Mesa
Receipt Point of $0.415/MCF and on the fee for the Sims/Pump
Mesa Receipt Points of $0.381/MCF. Additionally, Paragraph 6.1
of the GGTA shall be deleted and restated and amended to
provide that the term of the GGTA shall continue until
December 31, 2007, and thereafter, month to month unless
canceled by thirty (30) days prior written notice from one
party to the other.
<PAGE> 8
Letter of Intent
September 16, 1998
Page 8
11. BR agrees to cease discussions or negotiations with any third
parties concerning the sale of the Properties and to hold the
Properties exclusively for the sale to SJP under the terms of
the Agreement. In the event SJP fails to timely initiate
proceedings to terminate or liquidate BRU as contemplated in
the definition of Termination Date in Section 4 hereof, SJP
shall pay BR TWO MILLION DOLLARS (U.S.)
($2,000,000).
12. SJP and BR recognize that certain aspects of this letter may
need to be made public for regulatory purposes. Prior to any
disclosure of such information, SJP and BR shall both approve
the content and language of any such disclosure. The parties
recognize and agree that time is of the essence in connection
with any such disclosures and agree to use all good faith
efforts in approving such disclosures to assure any filing or
other deadlines are met.
13. Except for Sections 3 (second sentence), 11, and 12 above and
15 below, the parties hereto confirm that the terms and
conditions contained herein are exploratory and preliminary to
the consummation of the
<PAGE> 9
Letter of Intent
September 16, 1998
Page 9
execution of the Agreement; accordingly, (i) this letter does
not constitute a binding offer to purchase the Properties and
the execution hereof by BR does not constitute an agreement to
sell the Properties, (ii) no contract or agreement providing
for the sale or purchase of the Properties shall be deemed to
exist until the Agreement has been executed by both parties
and (iii) neither BR nor SJP shall be legally bound by the
terms hereof.
14. SJP shall have the right to assign all of its rights, duties
and obligations under this letter and the Agreement to any
affiliate of SJP without the prior consent of BR. Except as
set forth in the prior sentence, neither BR nor SJP shall
assign their respective rights, duties or obligations
hereunder or under the Agreement without the prior written
consent of the other party, which consent shall not be
unreasonably withheld.
15. BR and SJP agree to cooperate fully with each other and to
provide access to all relevant data and information required
in connection with the preparation of all regulatory filings
to be made by the parties in connection with the transactions
contemplated herein; provided,
<PAGE> 10
Letter of Intent
September 16, 1998
Page 10
however, that each party shall maintain confidential all such
data and information obtained from the other party in
connection with the proposed transaction and shall not
disclose same to any third party except (i) upon the written
consent of the party on whose behalf the information was
provided, (ii) as may be required in connection with the
transaction contemplated herein and in the Agreement, and
(iii) as may be required by law.
If the foregoing correctly reflects your understanding of our discussions, then
please indicate so by executing this letter in the space provided below and
returning an executed original to the undersigned.
<PAGE> 11
Letter of Intent
September 16, 1998
Page 11
SJP is interested in acquiring the Properties in accordance with the general
terms and conditions contained in this letter of intent, agrees to the
provisions of Sections 3 (second sentence), 11, 12, 13 and 15 above, and will
proceed to negotiate a definitive Agreement.
Very truly yours,
SAN JUAN PARTNERS, L.L.C.
By: O'SULLIVAN OIL & GAS COMPANY, INC., MANAGER
By: /s/ C.N. O'Sullivan
--------------------------------
C.N. O'Sullivan, President
BR is interested in selling the Properties in accordance with the general terms
and conditions contained in this letter of intent, agrees to the provisions of
Sections 3 (second sentence), 11, 12, 13 and 15 above, and will proceed to
negotiate a definitive Agreement.
BURLINGTON RESOURCES OIL & GAS COMPANY
By: /s/ Mark E. Ellis
----------------------------------
Mark E. Ellis, Vice President
