ECA Marcellus Trust I is a statutory trust formed in July 2013 to hold and manage non-participating perpetual royalty interests in certain upstream oil and natural gas properties situated in the Marcellus Shale region. These interests entitle the trust to receive a portion of the production proceeds from natural gas and associated hydrocarbons without incurring ongoing operational costs or capital expenditures. The trust’s overriding royalty interests are carved out of acreage originally owned by Encana Corporation (now Ovintiv Inc.) and cover select tracts in Pennsylvania and West Virginia.
The trust’s primary activity is the collection and distribution of royalty income generated by production from the underlying properties. Production is operated by third-party working interest owners who handle drilling, completion, and marketing activities in accordance with industry standards. Net proceeds received by the trust are then distributed to holders of the trust’s beneficial interests, subject to customary deductions for taxes, administrative fees, and other specified expenses.
Geographically, ECA Marcellus Trust I is focused exclusively on the prolific Marcellus Shale acreage, one of the largest natural gas fields in North America. The trust’s royalty parcels are strategically positioned to benefit from existing pipeline infrastructure and proximity to regional and interstate gas markets. This location advantage helps ensure the efficient transport and sale of natural gas and associated liquids produced by the trust’s royalty properties.
Administration of the trust is overseen by a trust manager and trustee, who are responsible for ensuring accurate accounting, timely royalty collections, and compliant distributions. While the trust itself does not engage in exploration or development activities, its structure allows investors to gain exposure to Marcellus Shale production cash flows without the operational risks associated with directly holding working interests. ECA Marcellus Trust I remains an established vehicle for investors seeking exposure to Appalachian basin gas production through a passive royalty interest structure.
AI Generated. May Contain Errors.
