BP Prudhoe Bay Royalty Trust, a grantor trust, was created as a Delaware business trust by the BP Prudhoe Bay Royalty Trust Agreement dated February 28, 1989. The agreement was signed among the Standard Oil Company, BP Exploration (Alaska) Inc., The Bank of New York Mellon and BNY Mellon Trust of Delaware, as co-trustee. Standard Oil and BP Alaska are indirect wholly owned subsidiaries of BP Prudhoe Bay Royalty Trust. The Trust was formed for the sole purpose of owning and administering the Royalty Interest. The Royalty Interest represents the right to receive 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. The Trust is a passive entity. The Trustee's activities are limited to collecting and distributing the revenues from the Royalty Interest and paying liabilities and expenses of the Trust. The trustees of the Trust are The Bank of New York Mellon, a New York banking corporation, and BNY Mellon Trust of Delaware, a Delaware banking corporation. BP Alaska's oil and gas activities are subject to existing federal, state and local laws and regulations.