ECA Marcellus Trust I Announces Quarterly Distribution

Tue Feb 5, 2013 4:15pm EST

* Reuters is not responsible for the content in this press release.

AUSTIN, Texas--(Business Wire)--
ECA MARCELLUS TRUST I (NYSE: ECT) announced today that the Trust`s distribution
for the quarter ended December 31, 2012 will be $0.682 per common unit, which is
expected to be distributed on or before February 28, 2013 to holders of record
as of the close of business on February 19, 2013. The quarterly Trust`s income
available for distribution to all Trust units was $0.512 per unit, which was
$0.189 per unit below the subordination threshold for the common units of $0.701
for the quarter. As a result, the distribution on the subordinated units was
eliminated in order to permit a distribution of $0.682 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 partners. 

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

ECA Marcellus Trust I
The Bank of New York Mellon Trust Company, N.A., as Trustee
Sarah Newell, 1-800-852-1422

Copyright Business Wire 2013

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.