Hugoton Royalty Trust was created on December 1, 1998 by XTO Energy Inc. and NationsBank, N.A., as trustee. Effective on that date, XTO Energy conveyed 80% net profits interests in certain predominantly gas-producing working interest properties in Kansas, Oklahoma and Wyoming to the trust under separate conveyances for each of the three states. The trust's initial public offering was in April 1999. XTO Energy operates approximately 95% of the underlying properties. Natural gas was discovered in the Hugoton area in 1922. With an estimated five million productive acres covering parts of Texas, Oklahoma and Kansas, the Hugoton area is a domestic natural gas producing area. During 2013, daily sales volumes from the underlying properties in the Hugoton area averaged approximately 15,100 Mcf of gas and 44 Bbls of oil. Most of the production from the underlying properties in the Hugoton area is from the Chase formation. Oil and gas accumulations were discovered in the Anadarko Basin of western Oklahoma in 1945. XTO Energy is a producer in the Ringwood, Northwest Okeene and Cheyenne Valley fields of Major County, the Northeast Cedardale field of Woodward County and the Elk City field of Beckham County, the main producing regions of the underlying properties in the Anadarko Basin. Daily sales volumes from the underlying properties in the Anadarko Basin averaged 25,500 Mcf of gas and 539 Bbls of oil in 2012. The Green River Basin is located in southwestern Wyoming. Natural gas was discovered in the Fontenelle Field of the Green River Basin in the early 1970s. The producing reservoirs are the Frontier, Baxter and Dakota sandstones. XTO Energy sells a considerable portion of natural gas production from the underlying properties to certain of its wholly owned subsidiaries under contracts in existence when the trust was created, generally at amounts approximating monthly published market prices. Most of the production from the Hugoton area is sold under a contract to Timberland Gathering & Processing Company, Inc. or TGPC based on the index price. TGPC and RGC sell gas to Cross Timbers Energy Services, Inc. CTES, which markets gas to third parties. Bank of America, N.A. is the trustee for the trust. In 2007 the Bank of America private wealth management group officially became known as 'U.S. Trust, Bank of America Private Wealth Management.' Companies that are engaged in the oil and gas industry are affected by federal, state and local laws regulating the discharge of materials into the environment.