Trustees Absolve Trustees

Lots here:

  1. New General Counsel/SVP coming on board 8/1/20.  He is a veteran of David Barry’s old firm, Kelley Drye & Warren LLP though I’m sure a nationwide search was conducted.
  2. “On June 30, 2020, the Trust entered into an Indemnification Agreement with each of its Trustees, John R. Norris III and David E. Barry (each, an “Indemnification Agreement”). The Indemnification Agreements are identical in form and each provides that, subject to certain limitations set forth therein, the Trust will indemnify the Trustee to the fullest extent permitted by applicable law, against losses or expenses incurred in relation to the Trustee’s service to the Trust. The indemnification agreements also provide that the Trust will advance expenses, subject to certain limitations, to each Trustee in connection with proceedings covered by the indemnification agreement.”  What are we indemnifying ourselves from?
  3. “Sameer Parasnis, Chief Commercial Officer of the Trust, is no longer employed by the Trust effective June 24, 2020.”  Recall that Mr. Parasnis was formerly an energy banker employed by Stifel and Credit Suisse.  What happened to cause this separation?

Seems like a big information dump.  The optimist in me hopes the conversion isn’t going south but I don’t have a great feeling about this.  Tell me I’m wrong!


7 thoughts on “Trustees Absolve Trustees

  1. I don’t know how they can indemnify themselves. Where do shareholders get to weigh in. These guys seem to think that they are some kind of gods. What activities have they been involved in that they need to be indemnified from? Something is very rotten in Denmark.

    Liked by 1 person

  2. Does anybody know the email for the judge in the case? This is has gone from silly to dump!!!

    We, as share holders, need to take action and email the judge!!!!


    Liked by 2 people

  3. Just a bunch of lawyers who know they have done illegal acts and have gotten together and agreed that they will sued for their illegal actions. So they now make it so that THE TRUST will pay for their legal fees.

    Liked by 3 people

  4. Per Sameer, there is an argument for position bloat. In other words, was his role really necessary? Nevertheless, it’s usually not a great sign to see abrupt resignations.

    Now, for the indemnity agreements, I agree with Eva above. This is most likely an indication of an attempt to shield against future liability for past acts. I know I’m stating the obvious, but it’s certainly suspicious — enough to raise a brow.

    Lastly, to what extent does Mike Dobbs & his “with an emphasis on environmental litigation” experience portend future legal risk on TPL’s part? I’ve always wondered about the environmental exposure underlying the water business, especially with its quick ramp up. And perhaps there’s greater exposure lying in a corporate structure as opposed to a trust for this kind of thing. Does anyone know more about this?

    Liked by 1 person

    • Regarding the potential environmental exposure underlying TPL’s water business….it is my understanding that a Trust offers little or no legal asset protection unlike that of an LLC or Corporation.

      A re-org for better liability protection, indemnity agreements.. Mike Dobbs’ environmental litigation resume…It has me wondering a bit more.

      Liked by 1 person

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