ECA Marcellus Trust I Announces Quarterly Distribution
AUSTIN, Texas -- November 08, 2012
ECA MARCELLUS TRUST I (NYSE: ECT) announced today that the Trust’s
distribution for the quarter ended September 30, 2012 will be $0.624 per
common unit, which is expected to be distributed on or before November 30,
2012 to holders of record as of the close of business on November 20, 2012.
During the quarter production of 2,993 Mmcf exceeded the targeted production
of 2,594 Mmcf by 15.4%.The quarterly Trust’s income available for distribution
to all Trust units was $0.516 per unit, which was $0.108 per unit below the
subordination threshold for the common units of $0.624 for the quarter. As a
result, the distribution on the subordinated units was reduced in order to
permit a distribution of $0.624 per unit to holders of common units.
The Trust was formed by Energy Corporation of America ("ECA") to own royalty
interests in natural gas properties owned by ECA in the Marcellus Shale
formation in Greene County, Pennsylvania, and is entitled to receive certain
amounts of the proceeds attributable to ECA’s interest in the sale of
production from the properties. As described in the Trust's filings, the
amount of the quarterly distributions is expected to fluctuate from quarter to
quarter, depending on the proceeds received by the Trust as a result of
production and natural gas prices and the amount of the Trust's administrative
expenses, among other factors.
Pursuant to IRC Section 1446, withholding tax on income effectively connected
to a United States trade or business allocated to foreign partners should be
made at the highest marginal rate. Under Section 1441, withholding tax on
fixed, determinable, annual, periodic income from United States sources
allocated to foreign partners should be made at 30% of gross income unless the
rate is reduced by treaty. This release is intended to be a qualified notice
to nominees and brokers as provided for under Treasury Regulation Section
1.1446-4(b) by ECA Marcellus Trust I, and while specific relief is not
specified for Section 1441 income, this disclosure is intended to suffice.
Nominees and brokers should withhold 35% of the distribution made to foreign
This press release contains statements that are "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 contained in this press release, other than statements of
historical facts, are "forward-looking statements" for purposes of these
provisions. These forward-looking statements include the amount and date of
any anticipated distribution to unit holders. The anticipated distribution is
based, in part, on the amount of cash received or expected to be received by
the Trust from ECA with respect to the relevant quarterly period. Any
differences in actual cash receipts by the Trust could affect this
distributable amount. Other important factors that could cause actual results
to differ materially include expenses of the Trust and reserves for
anticipated future expenses. Statements made in this press release are
qualified by the cautionary statements made in this press release. Neither ECA
nor the Trustee intends, and neither assumes any obligation, to update any of
the statements included in this press release. An investment in Common Units
issued by ECA Marcellus Trust I is subject to the risks described in the
Trust's Annual Report on Form 10-K for the year ended December 31, 2011, and
all of its other filings with the Securities and Exchange Commission. The
Trust's annual, quarterly and other filed reports are or will be available
over the Internet at the SEC's web site at http://www.sec.gov.
ECA Marcellus Trust I
The Bank of New York Mellon Trust Company, N.A., as Trustee
Mike Ulrich, 1-800-852-1422
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