ECA MARCELLUS TRUST I (NYSE: ECT) announced today that the Trust’s
distribution for the quarter ended September 30, 2016 will be $0.071 per
unit, which is expected to be distributed on or before November 30, 2016
to holders of record as of the close of business on November 18, 2016.
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. For
distributions made to foreign partners, nominees and brokers should
withhold at the highest effective tax rate.
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, 2015, 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161103006426/en/
Copyright Business Wire 2016
Source: Business Wire
(November 3, 2016 - 4:15 PM EDT)
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