BP Prudhoe Bay Royalty Trust (the Trust) is a grantor trust. The Royalty Interest is a non-operational interest in minerals. The Royalty Interest is a non-operational interest in minerals. The Royalty Interest represents the right to receive a per barrel royalty (the Per Barrel Royalty) of 16.4246% on the lesser of the first 90,000 barrels of the average actual daily net production of oil and condensate per quarter or the average actual daily net production of oil and condensate per quarter from BP Exploration (Alaska) Inc. (BP Alaska) working interest as of February 28, 1989 in the Prudhoe Bay field, located on the North Slope of Alaska. The Prudhoe Bay field is one of four contiguous North Slope oil fields that are operated by BP Alaska and are known collectively as the Prudhoe Bay Unit. Standard Oil and BP Alaska are indirect wholly owned subsidiaries of BP p.l.c. (BP).