BP Prudhoe Bay Royalty Trust is a grantor trust. The property of the Trust consists of an overriding royalty interest (the Royalty Interest), and cash and cash equivalents held by the Trustee from time to time. The Royalty Interest entitles the Trust to a royalty on 16.4% of the lesser of the first 90,000 barrels of the average actual daily net production of crude oil and condensate per quarter from the working interest of BP Exploration (Alaska) Inc. (BP Alaska) as of February 28, 1989 in the Prudhoe Bay oil field located on the North Slope in Alaska or the average actual daily net production of crude oil and condensate per quarter from that working interest. 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. The Royalty Interest is a non-operational interest in minerals.