pursuant to past conveyances and bankruptcy proceedings , linn energy , inc. ( `` linn `` ) , hilcorp san juan lp ( `` hilcorp `` ) , xto energy , inc. ( `` xto `` ) , bp amoco company ( `` bp `` ) , and red willow production company ( `` red willow `` ) are the operators of certain portions of the hugoton royalty properties and san juan basin royalty properties ( each of linn , hilcorp , xto , bp , and red willow being a `` working interest owner `` , and together , the `` working interest owners `` ) . as used in this report , linn refers to the current operator of the hugoton royalty properties , hilcorp refers to the current operator of the san juan basinnew mexico properties , and bp and red willow refer to the currents co-operators of certain tracts of land included in the san juan basincolorado properties , unless otherwise indicated . the trust is a passive entity whose purposes are limited to : ( 1 ) converting the royalties to cash , either by retaining them and collecting the proceeds of production ( until production has ceased or the royalties are otherwise terminated ) or by selling or otherwise disposing of the royalties ; and ( 2 ) distributing such cash , net of amounts for payments of liabilities to the trust , to the unitholders . the trust has no sources of liquidity or capital resources other than the revenues , if any , attributable to the royalties and interest on cash held by the trustee as a reserve for liabilities or for distribution . the trust does not undertake or control any capital projects or make capital expenditures . while the trust 's royalty income is net of capital expenditures , these capital expenditures are controlled and paid by the working interests owners , and the trust receives royalty income net of these expenses . in addition , the trust does not have any off-balance sheet arrangements or other contingent obligations . liquidity and capital resources story_separator_special_tag 2016 , because the san juan basincolorado properties operated by bp generated excess production costs of $ 3,860 during the december 2016 production month and no payment was due to the trust by bp . the effect of the trustee 's election to include the december 2016 production month for the year ended december 31 , 2016 is as follows : ( i ) the summary of royalty income , production , prices and costs include the trust 's proportionate share of gross proceeds of $ 68,327 , the trust 's proportionate share of operating costs of $ 72,187 , and net production volumes attributable to the royalty paid on 40,163 thousand cubic feet ( `` mcf `` ) of natural gas , and ( ii ) $ 3,860 of excess production costs related to the san juan basincolorado properties operated by bp as of december 31 , 2016 were included in the excess production costs footnote to the trust 's financial statements for the year ended december 31 , 2016 . 30 ( 6 ) effective september 2017 , following hilcorp 's acquisition of conoco , inc. 's ( `` conocophillips `` ) interests in the san juannew mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juannew mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . financial review replace_table_token_6_th royalty and interest income . the trust 's royalty income was $ 3,028,793 and $ 1,364,791 for the years ended december 31 , 2017 and 2016 , respectively . the increase for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of higher natural gas , natural gas liquids and oil and condensate prices , reduced capital expenditures and operating costs , and increased net natural gas and natural gas liquids production volumes for the year ended december 31 , 2017. the trust 's interest income for the years ended december 31 , 2017 and 2016 was $ 10,221 and $ 1,899 , respectively . in accordance with the trust indenture and as explained below , interest on cash on hand was paid at a rate equivalent to 1.5 % below the prime interest rate . general and administrative expense . general and administrative expense was $ 100,795 and $ 152,778 for the years ended december 31 , 2017 and 2016 , respectively . the trustee 's fees are included in general and administrative expense . the decrease for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of general and administrative expenses in the amount of $ 70,460 for december 2017 being paid by the trust in january 2018. if the trust had paid such expenses in december 2017 , general and administrative expenses for the year ended december 31 , 2017 would have been $ 171,255. for the year ended december 31 , 2017 , the trustee was due $ 475,000 for its services . the trust paid $ 433,152 of this amount to the trustee , and $ 41,848 was allocated to offset against interest due to the trust under the trust indenture . story_separator_special_tag the operators have informed the trust that the decrease of approximately 48 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to decreased joint venture billings in 2017. capital expenditures attributable to the san juan basincolorado properties for the years ended december 31 , 2017 and 2016 were $ 0 and $ 0 , respectively . replace_table_token_9_th ( mcf ) ( bbls ) ( bbls ) ( mcf ) ( bbls ) ( bbls ) actual production volumes attributable to the royalty paid for hugoton royalty properties 474,822   497,758   ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ net production volumes attributable to the royalty paid for hugoton royalty properties 383,409   210,532   ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ san juan basinnew mexico properties royalty income . royalty income attributable to the san juan basinnew mexico properties for the years ended december 31 , 2017 and 2016 was $ 1,085,082 and $ 652,108 , respectively . the increase of approximately 66 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to higher prices for natural gas , natural gas liquids and oil and condensate , increased net production volumes for natural gas and natural gas liquids and lower capital expenditures , partially offset by higher operating costs for the san juan basinnew mexico properties . 34 operating costs and capital expenditures . operating costs attributable to the san juan basinnew mexico properties for the years ended december 31 , 2017 and 2016 were $ 873,736 and $ 862,283 , respectively . capital expenditures attributable to the san juan basinnew mexico properties for the years ended december 31 , 2017 and 2016 were $ 10,777 and $ 39,061 , respectively . hilcorp has informed the trust that decrease of approximately 72 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to discontinuing new capital project spending after the purchase and sales agreement between conocophillips and hilcorp was executed in april 2017. replace_table_token_10_th replace_table_token_11_th effective september 2017 , following hilcorp 's acquisition of conocophillips ' interests in the san juannew mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds , and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juannew mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . off-balance sheet arrangements none . contractual obligations none . critical accounting policies the financial statements of the trust are prepared on the following basis : ( a ) royalty income recorded for a month is the amount computed and paid by the working interest owners to the trustee for such month rather than either the value of a portion of the oil and gas produced by the working interest owners for such month or the amount subsequently determined to be the trust 's proportionate share of the net proceeds for such month ; ( b ) interest income , interest receivable and distributions payable to unitholders include interest to be earned on short-term investments from the financial statement date through the next date of distribution ; ( c ) trust general and administrative expenses , net of reimbursements , are recorded in the month they are included in the calculation of the monthly distribution amount ; 35 ( d ) amortization of the royalty is computed on a unit-of-production basis and is charged directly to trust corpus since such amount does not affect distributable income ; and ( e ) distributions payable are determined on a monthly basis and are payable to unitholders of record as of the last business day of each month or such later date as the trustee determines is required to comply with applicable law or stock exchange requirements . this basis for reporting distributable income is considered to be the most meaningful because distributions to the unitholders for a month are based on net cash receipts for such month . however , these statements differ from financial statements prepared in accordance with generally accepted accounting principles in the united states because , under such principles , royalty income for a month would be based on net proceeds from production for such month without regard to when calculated or received , general and administrative expenses would be recorded in the month they accrue , and interest income for a month would be calculated only through the end of such month . 36 report of independent registered public accounting firm to the unitholders of mesa royalty trust and bank of new york mellon , as trustee : opinion on the financial statements we have audited the accompanying statements of assets , liabilities and trust corpus of mesa royalty trust ( the trust ) as of december 31 , 2017 and 2016 , the related statements of distributable income and changes in trust corpus for each of the years in the two-year period

liquidity . as discussed in `` businessdescription of the trust '' under item 1 of this form 10-k , the trust 's primary source of cash is the royalty income received from its share of the net proceeds from the royalty properties , and the only other source of cash is interest income earned pursuant to the trust indenture . for estimates of future royalty income attributable to the royalty , refer to the notes to financial statements under item 8 of this form 10-k. in addition , the working interest owners reimburse the trust each quarter for certain expenses incurred by the trust on their behalf . as of december 31 , 2017 and 2016 , there were $ 0 and $ 0 of unreimbursed expenses , respectively . in accordance with the provisions of the conveyance , generally all revenues received by the trust , net of unreimbursed trust administrative expenses and sums paid to or from any reserves established pursuant to the trust indenture , are distributed to the unitholders . the terms of the trust indenture provide , among other things , that the trustee may establish cash reserves and borrow funds to pay liabilities of the trust , and may pledge assets of the trust to secure payment 28 of the borrowings . during 2011 , the trustee withheld $ 1.0 million to establish a reserve for future unknown contingent liabilities and expenses ( the `` contingent reserve '' ) in accordance with the trust indenture . at any given time , the balance of the contingent reserve is included in cash and short-term investments .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity . as discussed in `` businessdescription of the trust '' under item 1 of this form 10-k , the trust 's primary source of cash is the royalty income received from its share of the net proceeds from the royalty properties , and the only other source of cash is interest income earned pursuant to the trust indenture . for estimates of future royalty income attributable to the royalty , refer to the notes to financial statements under item 8 of this form 10-k. in addition , the working interest owners reimburse the trust each quarter for certain expenses incurred by the trust on their behalf . as of december 31 , 2017 and 2016 , there were $ 0 and $ 0 of unreimbursed expenses , respectively . in accordance with the provisions of the conveyance , generally all revenues received by the trust , net of unreimbursed trust administrative expenses and sums paid to or from any reserves established pursuant to the trust indenture , are distributed to the unitholders . the terms of the trust indenture provide , among other things , that the trustee may establish cash reserves and borrow funds to pay liabilities of the trust , and may pledge assets of the trust to secure payment 28 of the borrowings . during 2011 , the trustee withheld $ 1.0 million to establish a reserve for future unknown contingent liabilities and expenses ( the `` contingent reserve '' ) in accordance with the trust indenture . at any given time , the balance of the contingent reserve is included in cash and short-term investments .
```    
 Suspicious Activity Report : pursuant to past conveyances and bankruptcy proceedings , linn energy , inc. ( `` linn `` ) , hilcorp san juan lp ( `` hilcorp `` ) , xto energy , inc. ( `` xto `` ) , bp amoco company ( `` bp `` ) , and red willow production company ( `` red willow `` ) are the operators of certain portions of the hugoton royalty properties and san juan basin royalty properties ( each of linn , hilcorp , xto , bp , and red willow being a `` working interest owner `` , and together , the `` working interest owners `` ) . as used in this report , linn refers to the current operator of the hugoton royalty properties , hilcorp refers to the current operator of the san juan basinnew mexico properties , and bp and red willow refer to the currents co-operators of certain tracts of land included in the san juan basincolorado properties , unless otherwise indicated . the trust is a passive entity whose purposes are limited to : ( 1 ) converting the royalties to cash , either by retaining them and collecting the proceeds of production ( until production has ceased or the royalties are otherwise terminated ) or by selling or otherwise disposing of the royalties ; and ( 2 ) distributing such cash , net of amounts for payments of liabilities to the trust , to the unitholders . the trust has no sources of liquidity or capital resources other than the revenues , if any , attributable to the royalties and interest on cash held by the trustee as a reserve for liabilities or for distribution . the trust does not undertake or control any capital projects or make capital expenditures . while the trust 's royalty income is net of capital expenditures , these capital expenditures are controlled and paid by the working interests owners , and the trust receives royalty income net of these expenses . in addition , the trust does not have any off-balance sheet arrangements or other contingent obligations . liquidity and capital resources story_separator_special_tag 2016 , because the san juan basincolorado properties operated by bp generated excess production costs of $ 3,860 during the december 2016 production month and no payment was due to the trust by bp . the effect of the trustee 's election to include the december 2016 production month for the year ended december 31 , 2016 is as follows : ( i ) the summary of royalty income , production , prices and costs include the trust 's proportionate share of gross proceeds of $ 68,327 , the trust 's proportionate share of operating costs of $ 72,187 , and net production volumes attributable to the royalty paid on 40,163 thousand cubic feet ( `` mcf `` ) of natural gas , and ( ii ) $ 3,860 of excess production costs related to the san juan basincolorado properties operated by bp as of december 31 , 2016 were included in the excess production costs footnote to the trust 's financial statements for the year ended december 31 , 2016 . 30 ( 6 ) effective september 2017 , following hilcorp 's acquisition of conoco , inc. 's ( `` conocophillips `` ) interests in the san juannew mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juannew mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . financial review replace_table_token_6_th royalty and interest income . the trust 's royalty income was $ 3,028,793 and $ 1,364,791 for the years ended december 31 , 2017 and 2016 , respectively . the increase for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of higher natural gas , natural gas liquids and oil and condensate prices , reduced capital expenditures and operating costs , and increased net natural gas and natural gas liquids production volumes for the year ended december 31 , 2017. the trust 's interest income for the years ended december 31 , 2017 and 2016 was $ 10,221 and $ 1,899 , respectively . in accordance with the trust indenture and as explained below , interest on cash on hand was paid at a rate equivalent to 1.5 % below the prime interest rate . general and administrative expense . general and administrative expense was $ 100,795 and $ 152,778 for the years ended december 31 , 2017 and 2016 , respectively . the trustee 's fees are included in general and administrative expense . the decrease for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of general and administrative expenses in the amount of $ 70,460 for december 2017 being paid by the trust in january 2018. if the trust had paid such expenses in december 2017 , general and administrative expenses for the year ended december 31 , 2017 would have been $ 171,255. for the year ended december 31 , 2017 , the trustee was due $ 475,000 for its services . the trust paid $ 433,152 of this amount to the trustee , and $ 41,848 was allocated to offset against interest due to the trust under the trust indenture . story_separator_special_tag the operators have informed the trust that the decrease of approximately 48 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to decreased joint venture billings in 2017. capital expenditures attributable to the san juan basincolorado properties for the years ended december 31 , 2017 and 2016 were $ 0 and $ 0 , respectively . replace_table_token_9_th ( mcf ) ( bbls ) ( bbls ) ( mcf ) ( bbls ) ( bbls ) actual production volumes attributable to the royalty paid for hugoton royalty properties 474,822   497,758   ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ net production volumes attributable to the royalty paid for hugoton royalty properties 383,409   210,532   ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ san juan basinnew mexico properties royalty income . royalty income attributable to the san juan basinnew mexico properties for the years ended december 31 , 2017 and 2016 was $ 1,085,082 and $ 652,108 , respectively . the increase of approximately 66 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to higher prices for natural gas , natural gas liquids and oil and condensate , increased net production volumes for natural gas and natural gas liquids and lower capital expenditures , partially offset by higher operating costs for the san juan basinnew mexico properties . 34 operating costs and capital expenditures . operating costs attributable to the san juan basinnew mexico properties for the years ended december 31 , 2017 and 2016 were $ 873,736 and $ 862,283 , respectively . capital expenditures attributable to the san juan basinnew mexico properties for the years ended december 31 , 2017 and 2016 were $ 10,777 and $ 39,061 , respectively . hilcorp has informed the trust that decrease of approximately 72 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to discontinuing new capital project spending after the purchase and sales agreement between conocophillips and hilcorp was executed in april 2017. replace_table_token_10_th replace_table_token_11_th effective september 2017 , following hilcorp 's acquisition of conocophillips ' interests in the san juannew mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds , and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juannew mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . off-balance sheet arrangements none . contractual obligations none . critical accounting policies the financial statements of the trust are prepared on the following basis : ( a ) royalty income recorded for a month is the amount computed and paid by the working interest owners to the trustee for such month rather than either the value of a portion of the oil and gas produced by the working interest owners for such month or the amount subsequently determined to be the trust 's proportionate share of the net proceeds for such month ; ( b ) interest income , interest receivable and distributions payable to unitholders include interest to be earned on short-term investments from the financial statement date through the next date of distribution ; ( c ) trust general and administrative expenses , net of reimbursements , are recorded in the month they are included in the calculation of the monthly distribution amount ; 35 ( d ) amortization of the royalty is computed on a unit-of-production basis and is charged directly to trust corpus since such amount does not affect distributable income ; and ( e ) distributions payable are determined on a monthly basis and are payable to unitholders of record as of the last business day of each month or such later date as the trustee determines is required to comply with applicable law or stock exchange requirements . this basis for reporting distributable income is considered to be the most meaningful because distributions to the unitholders for a month are based on net cash receipts for such month . however , these statements differ from financial statements prepared in accordance with generally accepted accounting principles in the united states because , under such principles , royalty income for a month would be based on net proceeds from production for such month without regard to when calculated or received , general and administrative expenses would be recorded in the month they accrue , and interest income for a month would be calculated only through the end of such month . 36 report of independent registered public accounting firm to the unitholders of mesa royalty trust and bank of new york mellon , as trustee : opinion on the financial statements we have audited the accompanying statements of assets , liabilities and trust corpus of mesa royalty trust ( the trust ) as of december 31 , 2017 and 2016 , the related statements of distributable income and changes in trust corpus for each of the years in the two-year period

