10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x          Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 - For the Quarterly Period Ended June 30, 2014

Or

o          Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 - For the Transition Period From ______________ to ______________

Commission file number 1-701

GREAT NORTHERN IRON ORE PROPERTIES

(Exact name of registrant as specified in its charter)

Minnesota	41-0788355
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)
W-1290 First National Bank Building
332 Minnesota Street
Saint Paul, Minnesota	55101-1361
(Address of principal executive office)	(Zip Code)

(651) 224-2385

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted to its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-2 of the Act).

Large accelerated filer o	Accelerated filer	x
Non-accelerated filer o	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes o No x

Number of shares of beneficial interest outstanding on June 30, 2014: 1,500,000

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GREAT NORTHERN IRON ORE PROPERTIES

CONDENSED BALANCE SHEETS

	June 30, 2014			December 31, 2013
ASSETS	(Unaudited)			(Note)
CURRENT ASSETS
Cash and cash equivalents	$	761,492		$	712,197
United States Treasury securities		8,741,442			5,468,675
Royalties receivable		5,042,621			4,448,907
Prepaid expenses		55,031			2,110
TOTAL CURRENT ASSETS		14,600,586			10,631,889
NONCURRENT ASSETS
United States Treasury securities		—			2,883,251
Prepaid pension costs		363,618			587,159
		363,618			3,470,410
PROPERTIES
Mineral and surface lands		39,479,708			39,479,708
Accumulated depletion and amortization		(38,940,577	)		(38,592,577	)
		539,131			887,131
Building and equipment		335,767			335,767
Accumulated depreciation		(291,488	)		(263,965	)
		44,279			71,802
TOTAL PROPERTIES		583,410			958,933
TOTAL ASSETS	$	15,547,614		$	15,061,232
LIABILITIES AND BENEFICIARIES’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	105,766		$	92,356
Deferred compensation		244,300			—
Distributions		3,750,000			3,975,000
TOTAL CURRENT LIABILITIES		4,100,066			4,067,356
NONCURRENT LIABILITIES
Deferred compensation		—			244,300
TOTAL LIABILITIES		4,100,066			4,311,656
BENEFICIARIES’ EQUITY
Certificate holders’ equity, represented by 1,500,000 certificates (shares or units) of beneficial interest authorized and outstanding, and the reversionary interest		12,300,725			11,611,487
Accumulated other comprehensive loss		(853,177	)		(861,911	)
TOTAL BENEFICIARIES’ EQUITY		11,447,548			10,749,576
TOTAL LIABILITIES AND BENEFICIARIES’ EQUITY	$	15,547,614		$	15,061,232

Note: The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

See notes to condensed financial statements.

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GREAT NORTHERN IRON ORE PROPERTIES

CONDENSED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended June 30						Six Months Ended June 30
	2014			2013			2014			2013
REVENUES
Royalties	$	5,317,841		$	5,009,358		$	9,623,164		$	9,717,225
Interest and other income		12,511			19,553			294,332			45,866
		5,330,352			5,028,911			9,917,496			9,763,091
Costs and expenses		(1,087,872	)		(1,011,200	)		(2,103,258	)		(2,054,534	)
NET INCOME	$	4,242,480		$	4,017,711		$	7,814,238		$	7,708,557
Weighted-average shares outstanding		1,500,000			1,500,000			1,500,000			1,500,000
BASIC & DILUTED EARNINGS PER SHARE	$	2.83		$	2.68		$	5.21		$	5.14
Distributions declared per share	$	2.50	(1)	$	2.50	(2)	$	4.75	(3)	$	4.75	(4)

(1)	$	2.50	declared	6/16/2014
			payable	7/31/2014
(2)	$	2.50	declared	6/17/2013
			paid	7/31/2013
(3)	$	2.25	declared	3/14/2014
			paid	4/30/2014
plus	$	2.50	declared	6/16/2014
			payable	7/31/2014
(4)	$	2.25	declared	3/8/2013
			paid	4/30/2013
plus	$	2.50	declared	6/17/2013
			paid	7/31/2013

See notes to condensed financial statements.

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GREAT NORTHERN IRON ORE PROPERTIES

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
NET INCOME	$	4,242,480	$	4,017,711	$	7,814,238	$	7,708,557
Other comprehensive income:
Defined benefit pension plan:
Amortization of prior service cost included in net periodic pension cost		4,367		4,368		8,734		8,735
Amortization of net loss included in net periodic pension cost		—		165,884		—		331,768
Total other comprehensive income		4,367		170,252		8,734		340,503
TOTAL COMPREHENSIVE INCOME	$	4,246,847	$	4,187,963	$	7,822,972	$	8,049,060

See notes to condensed financial statements.

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GREAT NORTHERN IRON ORE PROPERTIES

CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six Months Ended June 30
	2014			2013
Cash flows from operating activities:
Cash received from royalties and rents	$	9,316,691		$	9,084,387
Cash paid to suppliers and employees		(1,534,971	)		(1,341,554	)
Interest received		17,575			40,948
NET CASH PROVIDED BY OPERATING ACTIVITIES		7,799,295			7,783,781
Cash flows from investing activities:
United States Treasury securities purchased		(4,000,000	)		(2,675,000	)
United States Treasury securities matured		3,600,000			6,025,000
Expenditures for building and equipment		—			(7,641	)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(400,000	)		3,342,359
Cash flows from financing activities:
Distributions paid		(7,350,000	)		(11,250,000	)
NET CASH USED IN FINANCING ACTIVITIES		(7,350,000	)		(11,250,000	)
Net increase (decrease) in cash and cash equivalents		49,295			(123,860	)
Cash and cash equivalents at beginning of year		712,197			643,431
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	761,492		$	519,571

See notes to condensed financial statements.

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GREAT NORTHERN IRON ORE PROPERTIES

NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

Periods of Three and Six Months ended June 30, 2014 and June 30, 2013

Note 1 – BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the periods stated above are not necessarily indicative of the results that may be expected for each respective full year. For further information, refer to the financial statements and footnotes included in the Great Northern Iron Ore Properties (the “Trust”) Annual Report on Form 10-K for the year ended December 31, 2013.

Note 2 – SECURITIES

United States Treasury securities are classified as “held-to-maturity” securities and are carried at cost, adjusted for accrued interest and amortization of premium or discount. The aggregate fair values listed in the table below are based on quoted prices in active markets for identical assets (Level 1). Securities classified as current assets will mature within one year of the respective period ending date stated below. Securities classified as noncurrent assets will mature one to three years from the respective period ending date stated below. Following is an analysis of the securities as of the periods stated:

	Current						Noncurrent
	June 30, 2014			Dec. 31, 2013			June 30, 2014		Dec. 31, 2013
Aggregate fair value	$	8,736,292		$	5,457,842		$	—	$	2,880,219
Gross unrealized holding gains		(3,383	)		(1,279	)		—		(442	)
Gross unrealized holding losses		176			26			—		294
Amortized cost basis		8,733,085			5,456,589			—		2,880,071
Accrued interest		8,357			12,086			—		3,180
Amounts shown on balance sheets	$	8,741,442		$	5,468,675		$	—	$	2,883,251

Note 3 – PENSION PLAN

A summary of the components of net periodic pension cost is as follows:

	Three Months Ended June 30						Six Months Ended June 30
	2014			2013			2014			2013
Service cost	$	77,584		$	81,423		$	155,168		$	162,846
Interest cost		90,640			76,968			181,280			153,936
Expected return on assets		(56,453	)		(134,481	)		(112,907	)		(268,962	)
Amortization of net loss		—			165,884			—			331,768
Amortization of prior service cost		4,367			4,368			8,734			8,735
Net periodic pension cost	$	116,138		$	194,162		$	232,275		$	388,323

The plan’s annual actuarial valuation was performed as of the plan’s fiscal year end, March 31. The actuarial recommended contribution to the pension plan for the year 2014 is $1,679,091, which contribution is scheduled to be made in August 2014.

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Note 4 – BENEFICIARIES’ EQUITY

Pursuant to the Court Order of November 29, 1982, the Trustees were directed to create and maintain an account designated as “Principal Charges.” This account constitutes a first and prior lien of certificate holders on any property transferable to the reversioner and reflects an allocation of beneficiaries’ equity between the certificate holders and the reversioner. This account is neither an asset nor a liability of the Trust. Rather, this account maintains and represents a balance which will be payable to the certificate holders of record from the reversioner at the end of the Trust. The balance in this account consists of attorneys’ fees and expenses of counsel for adverse parties pursuant to the Court Order in connection with litigation commenced in 1972 relating to the Trustees’ powers and duties under the Trust Agreement and the costs of homes and surface lands acquired in accordance with provisions of a lease with U.S. Steel Corporation, net of an allowance to amortize the cost of the land based on actual shipments of taconite and net of a credit for disposition of tangible assets.

Following is an analysis of this account for the period ended as of:

	June 30, 2014
Attorneys’ fees and expenses	$	1,024,834
Costs of surface lands		6,606,815
Cumulative shipment credits		(2,517,131	)
Cumulative asset disposition credits		(372,124	)
Principal Charges account balance	$	4,742,394

Upon termination of the Trust, the Trustees shall either sell tangible assets or obtain a loan with tangible assets as security to provide monies for distribution to the certificate holders in the amount of the Principal Charges account balance.

Note 5 – ACCUMULATED OTHER COMPREHENSIVE LOSS

A summary of the component items (all affecting the “Costs and expenses” line item within the Condensed Statements of Income) showing the reclassifications out of “Accumulated other comprehensive loss” (“AOCL”) is as follows:

	Amounts reclassified from AOCL Three Months Ended June 30
Component item	2014		2013
Amortization of defined benefit pension items:
Prior service cost	$	4,367	$	4,368
Net loss		—		165,884
Total	$	4,367	$	170,252
	Amounts reclassified from AOCL Six Months Ended June 30
Component item	2014		2013
Amortization of defined benefit pension items:
Prior service cost	$	8,734	$	8,735
Net loss		—		331,768
Total	$	8,734	$	340,503

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Note 5 – ACCUMULATED OTHER COMPREHENSIVE LOSS (Continued)

A summary of the changes in AOCL by component item is as follows:

	Three Months Ended June 30, 2014
Defined benefit pension items:	Prior Service Cost			Net Loss			Total
Balance at beginning of period	$	(13,100	)	$	(844,444	)	$	(857,544	)
Amounts reclassified from AOCL		4,367			—			4,367
Balance at end of period	$	(8,733	)	$	(844,444	)	$	(853,177	)
	Three Months Ended June 30, 2013
Defined benefit pension items:	Prior Service Cost			Net Loss			Total
Balance at beginning of period	$	(30,569	)	$	(2,221,289	)	$	(2,251,858	)
Amounts reclassified from AOCL		4,368			165,884			170,252
Balance at end of period	$	(26,201	)	$	(2,055,405	)	$	(2,081,606	)
	Six Months Ended June 30, 2014
Defined benefit pension items:	Prior Service Cost			Net Loss			Total
Balance at beginning of period	$	(17,467	)	$	(844,444	)	$	(861,911	)
Amounts reclassified from AOCL		8,734			—			8,734
Balance at end of period	$	(8,733	)	$	(844,444	)	$	(853,177	)
	Six Months Ended June 30, 2013
Defined benefit pension items:	Prior Service Cost			Net Loss			Total
Balance at beginning of period	$	(34,936	)	$	(2,387,173	)	$	(2,422,109	)
Amounts reclassified from AOCL		8,735			331,768			340,503
Balance at end of period	$	(26,201	)	$	(2,055,405	)	$	(2,081,606	)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Periods of Three and Six Months ended June 30, 2014 and June 30, 2013

The Trust owns interest in 12,033 acres on the Mesabi Iron Range Formation in northeastern Minnesota, most of which are under lease to major iron ore producing companies. With the properties and offices all located in Minnesota, the Trust and matters affecting the Trust are under the jurisdiction of the Ramsey County District Court (the “Court”) in Saint Paul, Minnesota. Due to the Trustees’ election pursuant to Section 646 of the Tax Reform Act of 1986, as amended, commencing with year 1989 the Trust is not subject to federal and Minnesota corporate income taxes. The Trust is now a grantor trust. Shares of beneficial interest in the Trust are traded on the New York Stock Exchange under the ticker symbol “GNI” (CUSIP No. 391064102).

The terms of the Great Northern Iron Ore Properties Trust Agreement, created December 7, 1906, state that the Trust shall continue for twenty years after the death of the last survivor of eighteen persons named in the Trust Agreement. The last survivor of these eighteen persons died on April 6, 1995. Accordingly, the Trust terminates twenty years from April 6, 1995, that being April 6, 2015.

Upon the termination date of the Trust on April 6, 2015, the certificates of beneficial interest (shares) in the Trust will cease to trade on the New York Stock Exchange and thereafter will represent only the right to receive certain distributions payable to the certificate holders of record at the time of the termination of the Trust. Upon Trust termination and after the wind-down process is completed, the Trust is obligated to distribute ratably to these certificate holders the net monies remaining in the hands of the Trustees (after paying and providing for all expenses and obligations incurred through the Trust’s termination and wind-down process), plus the balance in the Principal Charges account (this account is explained in the Trust’s Annual Report sent to all certificate holders every year), all of which are subject to the final accounting and approval of the Ramsey County District Court. All other Trust property (most notably the Trust’s mineral properties and the active leases) must be conveyed and transferred to the reversioner (currently Glacier Park Company, a wholly owned subsidiary of ConocoPhillips Company), without further payment or remuneration to the certificate holders, under the terms of the Trust Agreement. The wind-down process of the Trust is anticipated to extend into the calendar year following its termination date in order to complete the various year-end audits, court and regulatory filings, tax returns, conveyances of non-cash properties to the reversioner, etc., relative thereto. Subject to the guidance and approval of the Ramsey County District Court and assuming the wind-down process with the reversioner proceeds efficiently and that no other complications arise during this time period, we anticipate the wind-down process, final distribution and dissolution of the Trust will be completed by the end of 2016.

The exact final distribution, though not determinable at this time, will generally consist of the sum of the Trust’s net monies (essentially, total assets less liabilities and less properties) and the balance in the Principal Charges account, less any and all expenses and obligations incurred through the Trust’s termination and wind-down process. To offer a hypothetical example, without factoring in any expenses and obligations incurred through the Trust’s termination and wind-down process, and using the financial statement values as of December 31, 2013, the net monies were approximately $9,790,000 and the Principal Charges account balance was approximately $4,789,000, resulting in a final distribution payable of approximately $14,579,000, or about $9.72 per share. Upon the termination of the Trust, the certificates of beneficial interest (shares) would be cancelled and have no further value with the exception of the final distribution. It is important to note, however, that the actual net monies on hand and the Principal Charges account balance will most likely fluctuate during the ensuing years and will not be “final” until after the termination and wind-down process of the Trust is completed. The Trust offers this example to further inform investors about the conceptual nature of the final distribution and does not imply or guarantee a specific known final distribution amount.

Results of Operations:

Royalties increased $308,483 during the three month period ended June 30, 2014, as compared to the same period in 2013, due mainly to increased taconite shipments from Trust lands and increased tailings revenues, offset in part by a lower overall average earned royalty rate caused by our lessees mining more taconite from our partial fee interest lands resulting in royalties representative of our ownership interest and less net minimum royalties. Royalties decreased $94,061 during the six month period ended June 30, 2014, as compared to the same period in 2013, due mainly to a lower overall average earned royalty rate caused by our lessees mining more taconite from our partial fee interest lands resulting in royalties representative of our ownership interest and less net minimum royalties, offset in part by overall increased taconite shipments from Trust lands and increased tailings revenues.

Interest and other income decreased $7,042 during the three month period ended June 30, 2014, as compared to the same period in 2013, due mainly to less miscellaneous license fees generated. Interest and other income increased $248,466 during the six month period ended June 30, 2014, as compared to the same period in 2013, due mainly to the higher aggregate (mineral rock) sales.

Costs and expenses increased $76,672 and $48,724 during the three and six month periods ended June 30, 2014, respectively, as compared to the same periods in 2013, due mainly to increased legal expenditures related to Trust termination matters, offset in part by less net periodic pension cost associated with the Trust’s defined benefit pension plan. The reduction in pension expense was primarily due to the Trust not being required to amortize unrecognized net loss, pursuant to pension accounting rules, since the remaining unrecognized net loss was less than ten percent of the greater of the projected benefit obligation or the fair market value of plan assets as of the beginning of the year (known as the corridor for delayed recognition).

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At their meeting held on June 16, 2014, the Trustees declared a distribution of $2.50 per share, amounting to $3,750,000 payable July 31, 2014, to certificate holders of record at the close of business on June 30, 2014. Following payment of this quarterly distribution, there will be three (3) more regular quarterly distributions declared (two in 2014 and one in 2015) before the termination date of the Trust on April 6, 2015. While there will be some income allocated to the second quarter of 2015 (representing six days of business), it is expected that this amount will be nominal and will likely be included with the final distribution to certificate holders that will be made subsequent to the termination date and upon completion of the wind-down process and final accounting. The final distribution will essentially represent the remaining net monies plus the balance in the Principal Charges account, as approved by the Ramsey County District Court. Upon Trust termination, the shares will be cancelled and have no further value other than the final distribution.

The Trustees have now declared two quarterly distributions in 2014. The first, in the amount of $2.25 per share, was paid on April 30, 2014, to certificate holders of record on March 31, 2014; and the second being the current distribution. The first and second quarter 2013 distributions were $2.25 and $2.50 per share, respectively. The Trustees intend to continue quarterly distributions and set the record date as of the last business day of each quarter. The next distribution will be paid October 31, 2014 to certificate holders of record on September 30, 2014.

A mining agreement dated January 1, 1959, with U.S. Steel Corporation provides that one-half of annual earned royalty income, after satisfaction of minimum royalty payments, shall be applied, in lieu of royalty payments, to reimburse the lessee for a portion of its cost of acquisition of surface lands overlying the leased mineral deposits, which surface lands are then conveyed to the Trustees. There are surface lands yet to be purchased, the costs of which are yet unknown and will not be known until the actual purchases are made.

Liquidity:

In the interest of preservation of principal of Court-approved reserves and guided by the restrictive provisions of Section 646 of the Tax Reform Act of 1986, as amended, monies are invested primarily in United States Treasury securities with maturity dates not to exceed three years and, along with cash flows from operations, are deemed adequate to meet currently foreseeable liquidity needs.

Item 3. Quantitative and Qualitative Disclosures About Market Risk
- None

Item 4. Controls and Procedures
As of the end of the period covered by this report, the Trust conducted an evaluation, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, of the Trust’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934 (the “Exchange Act”)). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Trust’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Trust in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms. There was no change in the Trust’s internal control over financial reporting during the Trust’s most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings
On April 30, 2014, a Ramsey County District Court Judge presided over a hearing for the Trust of Great Northern Iron Ore Properties, the purpose of which was to review and approve the accounts of the Trustees for the calendar year 2013. By Court Order dated April 30, 2014, the Court approved of the accounts of the Trustees for the calendar year 2013.

Item 1A. Risk Factors
There are no material changes from the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
- None

Item 3. Defaults Upon Senior Securities
- None

Item 4. Mine Safety Disclosures
- Not applicable

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Item 5. Other Information
- None

Item 6. Exhibits
Exhibit No.	Document
- 31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
- 31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
- 32	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished but not filed)
- 101.INS	XBRL Instance Document (Interactive Data File)
- 101.SCH	XBRL Taxonomy Extension Schema Document (Interactive Data File)
- 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (Interactive Data File)
- 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (Interactive Data File)
- 101.LAB	XBRL Taxonomy Extension Label Linkbase Document (Interactive Data File)
- 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (Interactive Data File)

- - - - - - - - - - - - - - - -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			GREAT NORTHERN IRON ORE PROPERTIES
			(Registrant)
Date:	July 18, 2014	By:	/s/ Joseph S. Micallef
		Joseph S. Micallef, Chief Executive Officer,
		Trustee and President of the Trustees
		(principal executive officer)
Date:	July 18, 2014	By:	/s/ Thomas A. Janochoski
		Thomas A. Janochoski, Chief Financial Officer,
		Vice President & Secretary
		(principal financial and accounting officer)

-10-

QUARTERLY REPORT ON FORM 10-Q

EXHIBIT INDEX

QUARTER ENDED: JUNE 30, 2014

GREAT NORTHERN IRON ORE PROPERTIES

W-1290 First National Bank Building
332 Minnesota Street
Saint Paul, Minnesota 55101-1361

Exhibit No.	Document
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished but not filed)
101.INS	XBRL Instance Document (Interactive Data File)
101.SCH	XBRL Taxonomy Extension Schema Document (Interactive Data File)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (Interactive Data File)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (Interactive Data File)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (Interactive Data File)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (Interactive Data File)

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002

I, Joseph S. Micallef, certify that:

          1. I have reviewed this quarterly report on Form 10-Q of Great Northern Iron Ore Properties;

          2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

          3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

          4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

               a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

               b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

               c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

               d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

          5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors [or persons performing the equivalent functions]:

               a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

               b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Joseph S. Micallef	Date:	July 18, 2014
Joseph S. Micallef
Chief Executive Officer, Trustee and President of the Trustees (principal executive officer)

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002

I, Thomas A. Janochoski, certify that:

          1. I have reviewed this quarterly report on Form 10-Q of Great Northern Iron Ore Properties;

          2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

          3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

          4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

               a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

               b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

               c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

               d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

          5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors [or persons performing the equivalent functions]:

               a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

               b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Thomas A. Janochoski	Date:	July 18, 2014
Thomas A. Janochoski
Chief Financial Officer, Vice President & Secretary (principal financial and accounting officer)

EX-32

Exhibit 32

Certifications of Chief Executive Officer and Chief Financial Officer pursuant to
18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(furnished but not filed)

          In connection with this quarterly report of Great Northern Iron Ore Properties on Form 10-Q filed with the Securities and Exchange Commission, I, Joseph S. Micallef, President of the Trustees and Chief Executive Officer of Great Northern Iron Ore Properties, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350, that:

          1. This Quarterly Report on Form 10-Q of Great Northern Iron Ore Properties for the quarter ended June 30, 2014 (the “Report”) fully complies with the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

          2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Great Northern Iron Ore Properties.

By:	/s/ Joseph S. Micallef	Date:	July 18, 2014
Joseph S. Micallef
Chief Executive Officer, Trustee and President of the Trustees (principal executive officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Great Northern Iron Ore Properties and will be retained by Great Northern Iron Ore Properties and furnished to the Securities and Exchange Commission or its staff upon request.

- - - - - -

          In connection with this quarterly report of Great Northern Iron Ore Properties on Form 10-Q filed with the Securities and Exchange Commission, I, Thomas A. Janochoski, Vice President & Secretary and Chief Financial Officer of Great Northern Iron Ore Properties, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350, that:

          1. This Quarterly Report on Form 10-Q of Great Northern Iron Ore Properties for the quarter ended June 30, 2014 (the “Report”) fully complies with the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

          2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Great Northern Iron Ore Properties.

By:	/s/ Thomas A. Janochoski	Date:	July 18, 2014
Thomas A. Janochoski
Chief Financial Officer, Vice President & Secretary (principal financial and accounting officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Great Northern Iron Ore Properties and will be retained by Great Northern Iron Ore Properties and furnished to the Securities and Exchange Commission or its staff upon request.

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Securities

6 Months Ended

Jun. 30, 2014

Securities [Abstract]

Securities

Note 2 – SECURITIES

United States Treasury securities are classified as “held-to-maturity” securities and are carried at cost, adjusted for accrued interest and amortization of premium or discount.  The aggregate fair values listed in the table below are based on quoted prices in active markets for identical assets (Level 1).  Securities classified as current assets will mature within one year of the respective period ending date stated below.  Securities classified as noncurrent assets will mature one to three years from the respective period ending date stated below.  Following is an analysis of the securities as of the periods stated:

	Current				Noncurrent
	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Aggregate fair value	$	8,736,292	$	5,457,842	$	-	$	2,880,219
Gross unrealized holding gains		(3,383)		(1,279)		-		(442)
Gross unrealized holding losses		176		26		-		294
Amortized cost basis		8,733,085		5,456,589		-		2,880,071
Accrued interest		8,357		12,086		-		3,180
Amounts shown on balance sheets	$	8,741,442	$	5,468,675	$	-	$	2,883,251

XML

Basis Of Presentation

6 Months Ended

Jun. 30, 2014

Basis Of Presentation [Abstract]

Basis Of Presentation

Note 1 – BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the periods stated above are not necessarily indicative of the results that may be expected for each respective full year.  For further information, refer to the financial statements and footnotes included in the Great Northern Iron Ore Properties (the “Trust”) Annual Report on Form 10-K for the year ended December 31, 2013. 

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Condensed Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 761,492	$ 712,197
United States Treasury securities	8,741,442	5,468,675
Royalties receivable	5,042,621	4,448,907
Prepaid expenses	55,031	2,110
TOTAL CURRENT ASSETS	14,600,586	10,631,889
NONCURRENT ASSETS
United States Treasury securities		2,883,251
Prepaid pension costs	363,618	587,159
NONCURRENT ASSETS	363,618	3,470,410
PROPERTIES
Mineral and surface lands	39,479,708	39,479,708
Accumulated depletion and amortization	(38,940,577)	(38,592,577)
Mineral and surface lands, net	539,131	887,131
Building and equipment	335,767	335,767
Accumulated depreciation	(291,488)	(263,965)
Building and equipment, net	44,279	71,802
TOTAL PROPERTIES	583,410	958,933
TOTAL ASSETS	15,547,614	15,061,232
CURRENT LIABILITIES
Accounts payable and accrued expenses	105,766	92,356
Deferred compensation	244,300
Distributions	3,750,000	3,975,000
TOTAL CURRENT LIABILITIES	4,100,066	4,067,356
NONCURRENT LIABILITIES
Deferred compensation		244,300
TOTAL LIABILITIES	4,100,066	4,311,656
BENEFICIARIES' EQUITY
Certificate holders' equity, represented by 1,500,000 certificates (shares or units) of beneficial interest authorized and outstanding, and the reversionary interest	12,300,725	11,611,487
Accumulated other comprehensive loss	(853,177)	(861,911)
TOTAL BENEFICIARIES' EQUITY	11,447,548	10,749,576
TOTAL LIABILITIES AND BENEFICIARIES' EQUITY	$ 15,547,614	$ 15,061,232

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Condensed Statements Of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Condensed Statements Of Comprehensive Income [Abstract]
NET INCOME	$ 4,242,480	$ 4,017,711	$ 7,814,238	$ 7,708,557
Defined benefit pension plan:
Amortization of prior service cost included in net periodic pension cost	4,367	4,368	8,734	8,735
Amortization of net loss included in net periodic pension cost		165,884		331,768
Total other comprehensive income	4,367	170,252	8,734	340,503
TOTAL COMPREHENSIVE INCOME	$ 4,246,847	$ 4,187,963	$ 7,822,972	$ 8,049,060

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Accumulated Other Comprehensive Loss (Reclassifications Out of Accumulated Other Comprehensive Loss) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Accumulated Other Comprehensive Loss [Abstract]
Prior service cost	$ 4,367	$ 4,368	$ 8,734	$ 8,735
Net Loss		165,884		331,768
Total	$ 4,367	$ 170,252	$ 8,734	$ 340,503

XML

Condensed Statements Of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Cash received from royalties and rents	$ 9,316,691	$ 9,084,387
Cash paid to suppliers and employees	(1,534,971)	(1,341,554)
Interest received	17,575	40,948
NET CASH PROVIDED BY OPERATING ACTIVITIES	7,799,295	7,783,781
Cash flows from investing activities:
United States Treasury securities purchased	(4,000,000)	(2,675,000)
United States Treasury securities matured	3,600,000	6,025,000
Expenditures for building and equipment		(7,641)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(400,000)	3,342,359
Cash flows from financing activities:
Distributions paid	(7,350,000)	(11,250,000)
NET CASH USED IN FINANCING ACTIVITIES	(7,350,000)	(11,250,000)
Net increase (decrease) in cash and cash equivalents	49,295	(123,860)
Cash and cash equivalents at beginning of year	712,197	643,431
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 761,492	$ 519,571

XML

Condensed Balance Sheets (Parenthetical)	Jun. 30, 2014	Dec. 31, 2013
Condensed Balance Sheets [Abstract]
Beneficiaries' equity - authorized	1,500,000	1,500,000
Beneficiaries' equity - outstanding	1,500,000	1,500,000

XML

Securities (Narrative) (Details)	6 Months Ended
	Jun. 30, 2014
Current [Member]
Schedule of Held-to-maturity Securities [Line Items]
Assets maturity range	1 year
Maximum [Member] | Noncurrent [Member]
Schedule of Held-to-maturity Securities [Line Items]
Assets maturity range	3 years
Minimum [Member] | Noncurrent [Member]
Schedule of Held-to-maturity Securities [Line Items]
Assets maturity range	1 year

XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Trading Symbol	GNI
Entity Registrant Name	GREAT NORTHERN IRON ORE PROPERTIES
Entity Central Index Key	0000043410
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	1,500,000

XML

Securities (Summary Of Securities) (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current [Member]
Schedule of Held-to-maturity Securities [Line Items]
Aggregate fair value	$ 8,736,292	$ 5,457,842
Gross unrealized holding gains	(3,383)	(1,279)
Gross unrealized holding losses	176	26
Amortized cost basis	8,733,085	5,456,589
Accrued interest	8,357	12,086
Amounts shown on balance sheets	8,741,442	5,468,675
Noncurrent [Member]
Schedule of Held-to-maturity Securities [Line Items]
Aggregate fair value		2,880,219
Gross unrealized holding gains		(442)
Gross unrealized holding losses		294
Amortized cost basis		2,880,071
Accrued interest		3,180
Amounts shown on balance sheets		$ 2,883,251

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Condensed Statements Of Income (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
REVENUES
Royalties	$ 5,317,841		$ 5,009,358		$ 9,623,164		$ 9,717,225
Interest and other income	12,511		19,553		294,332		45,866
TOTAL REVENUES	5,330,352		5,028,911		9,917,496		9,763,091
Costs and expenses	(1,087,872)		(1,011,200)		(2,103,258)		(2,054,534)
NET INCOME	$ 4,242,480		$ 4,017,711		$ 7,814,238		$ 7,708,557
Weighted-average shares outstanding	1,500,000		1,500,000		1,500,000		1,500,000
BASIC & DILUTED EARNINGS PER SHARE	$ 2.83		$ 2.68		$ 5.21		$ 5.14
Distributions declared per share	$ 2.50	[1]	$ 2.50	[2]	$ 4.75	[3]	$ 4.75	[4]

[1] $2.50 declared 6/16/2014 payable 7/31/2014

[2] $2.50 declared 6/17/2013 paid 7/31/2013

[3] $2.25 declared 3/14/2014 paid 4/30/2014 plus $2.50 declared 6/16/2014 payable 7/31/2014

[4] $2.25 declared 3/8/2013 paid 4/30/2013 plus $2.50 declared 6/17/2013 paid 7/31/2013

XML

Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2014

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

Note 5 – ACCUMULATED OTHER COMPREHENSIVE LOSS

A summary of the component items (all affecting the “Costs and expenses” line item within the Condensed Statements of Income) showing the reclassifications out of “Accumulated other comprehensive loss” (“AOCL”) is as follows:

	Amounts reclassified from AOCL
	Three Months Ended June 30
Component item	2014		2013
Amortization of defined benefit pension items:
Prior service cost	$	4,367	$	4,368
Net loss		-		165,884
Total	$	4,367	$	170,252
	Amounts reclassified from AOCL
	Six Months Ended June 30
Component item	2014		2013
Amortization of defined benefit pension items:
Prior service cost	$	8,734	$	8,735
Net loss		-		331,768
Total	$	8,734	$	340,503

Note 5 – ACCUMULATED OTHER COMPREHENSIVE LOSS (Continued)

A summary of the changes in AOCL by component item is as follows:

	Three Months Ended June 30, 2014
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(13,100)	$	(844,444)	$	(857,544)
Amounts reclassified from AOCL		4,367		-		4,367
Balance at end of period	$	(8,733)	$	(844,444)	$	(853,177)
	Three Months Ended June 30, 2013
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(30,569)	$	(2,221,289)	$	(2,251,858)
Amounts reclassified from AOCL		4,368		165,884		170,252
Balance at end of period	$	(26,201)	$	(2,055,405)	$	(2,081,606)
	Six Months Ended June 30, 2014
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(17,467)	$	(844,444)	$	(861,911)
Amounts reclassified from AOCL		8,734		-		8,734
Balance at end of period	$	(8,733)	$	(844,444)	$	(853,177)
	Six Months Ended June 30, 2013
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(34,936)	$	(2,387,173)	$	(2,422,109)
Amounts reclassified from AOCL		8,735		331,768		340,503
Balance at end of period	$	(26,201)	$	(2,055,405)	$	(2,081,606)

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Beneficiaries' Equity

6 Months Ended

Jun. 30, 2014

Beneficiaries' Equity [Abstract]

Beneficiaries' Equity

Note 4 – BENEFICIARIES’ EQUITY

Pursuant to the Court Order of November 29, 1982, the Trustees were directed to create and maintain an account designated as “Principal Charges.”  This account constitutes a first and prior lien of certificate holders on any property transferable to the reversioner and reflects an allocation of beneficiaries’ equity between the certificate holders and the reversioner.  This account is neither an asset nor a liability of the Trust.  Rather, this account maintains and represents a balance which will be payable to the certificate holders of record from the reversioner at the end of the Trust.  The balance in this account consists of attorneys’ fees and expenses of counsel for adverse parties pursuant to the Court Order in connection with litigation commenced in 1972 relating to the Trustees’ powers and duties under the Trust Agreement and the costs of homes and surface lands acquired in accordance with provisions of a lease with U.S. Steel Corporation, net of an allowance to amortize the cost of the land based on actual shipments of taconite and net of a credit for disposition of tangible assets. 

Following is an analysis of this account for the period ended as of:

	June 30, 2014
Attorneys' fees and expenses	$	1,024,834
Costs of surface lands		6,606,815
Cumulative shipment credits		(2,517,131)
Cumulative asset disposition credits		(372,124)
Principal Charges account balance	$	4,742,394

Upon termination of the Trust, the Trustees shall either sell tangible assets or obtain a loan with tangible assets as security to provide monies for distribution to the certificate holders in the amount of the Principal Charges account balance.

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Accumulated Other Comprehensive Loss (Summary Of Changes In Accumulated Other Comprehensive Loss) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (857,544)	$ (2,251,858)	$ (861,911)	$ (2,422,109)
Amounts reclassified from AOCL	4,367	170,252	8,734	340,503
Balance at end of period	(853,177)	(2,081,606)	(853,177)	(2,081,606)
Prior Service Cost [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(13,100)	(30,569)	(17,467)	(34,936)
Amounts reclassified from AOCL	4,367	4,368	8,734	8,735
Balance at end of period	(8,733)	(26,201)	(8,733)	(26,201)
Net Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(844,444)	(2,221,289)	(844,444)	(2,387,173)
Amounts reclassified from AOCL		165,884		331,768
Balance at end of period	$ (844,444)	$ (2,055,405)	$ (844,444)	$ (2,055,405)

XML

Pension Plan (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Pension Plan [Abstract]
Contribution to the plan for 2014	$ 1,679,091

XML

Beneficiaries' Equity (Tables)

6 Months Ended

Jun. 30, 2014

Beneficiaries' Equity [Abstract]

Schedule Of Principal Charges

	June 30, 2014
Attorneys' fees and expenses	$	1,024,834
Costs of surface lands		6,606,815
Cumulative shipment credits		(2,517,131)
Cumulative asset disposition credits		(372,124)
Principal Charges account balance	$	4,742,394

XML

Securities (Tables)

6 Months Ended

Jun. 30, 2014

Securities [Abstract]

Summary Of Securities

	Current				Noncurrent
	June 30, 2014		Dec. 31, 2013		June 30, 2014		Dec. 31, 2013
Aggregate fair value	$	8,736,292	$	5,457,842	$	-	$	2,880,219
Gross unrealized holding gains		(3,383)		(1,279)		-		(442)
Gross unrealized holding losses		176		26		-		294
Amortized cost basis		8,733,085		5,456,589		-		2,880,071
Accrued interest		8,357		12,086		-		3,180
Amounts shown on balance sheets	$	8,741,442	$	5,468,675	$	-	$	2,883,251

XML

Pension Plan (Tables)

6 Months Ended

Jun. 30, 2014

Pension Plan [Abstract]

Summary Of Net Periodic Pension Cost

	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
Service cost	$	77,584	$	81,423	$	155,168	$	162,846
Interest cost		90,640		76,968		181,280		153,936
Expected return on assets		(56,453)		(134,481)		(112,907)		(268,962)
Amortization of net loss		-		165,884		-		331,768
Amortization of prior service cost		4,367		4,368		8,734		8,735
Net periodic pension cost	$	116,138	$	194,162	$	232,275	$	388,323

XML

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2014

Accumulated Other Comprehensive Loss [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Loss

	Amounts reclassified from AOCL
	Three Months Ended June 30
Component item	2014		2013
Amortization of defined benefit pension items:
Prior service cost	$	4,367	$	4,368
Net loss		-		165,884
Total	$	4,367	$	170,252
	Amounts reclassified from AOCL
	Six Months Ended June 30
Component item	2014		2013
Amortization of defined benefit pension items:
Prior service cost	$	8,734	$	8,735
Net loss		-		331,768
Total	$	8,734	$	340,503

Summary Of Changes In Accumulated Other Comprehensive Loss

	Three Months Ended June 30, 2014
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(13,100)	$	(844,444)	$	(857,544)
Amounts reclassified from AOCL		4,367		-		4,367
Balance at end of period	$	(8,733)	$	(844,444)	$	(853,177)
	Three Months Ended June 30, 2013
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(30,569)	$	(2,221,289)	$	(2,251,858)
Amounts reclassified from AOCL		4,368		165,884		170,252
Balance at end of period	$	(26,201)	$	(2,055,405)	$	(2,081,606)
	Six Months Ended June 30, 2014
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(17,467)	$	(844,444)	$	(861,911)
Amounts reclassified from AOCL		8,734		-		8,734
Balance at end of period	$	(8,733)	$	(844,444)	$	(853,177)
	Six Months Ended June 30, 2013
Defined benefit pension items:	Prior Service Cost		Net Loss		Total
Balance at beginning of period	$	(34,936)	$	(2,387,173)	$	(2,422,109)
Amounts reclassified from AOCL		8,735		331,768		340,503
Balance at end of period	$	(26,201)	$	(2,055,405)	$	(2,081,606)

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Beneficiaries' Equity (Details) (USD $)	Jun. 30, 2014
Beneficiaries' Equity [Abstract]
Attorneys' fees and expenses	$ 1,024,834
Costs of surface lands	6,606,815
Cumulative shipment credits	(2,517,131)
Cumulative asset disposition credits	(372,124)
Principal Charges account balance	$ 4,742,394

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Condensed Statements Of Income (Parenthetical) (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Distributions declared	$ 2.50	[1]	$ 2.50	[2]	$ 4.75	[3]	$ 4.75	[4]
Dividends Declared, 6/16/2014 [Member]
Distributions declared	$ 2.50
Distributions date declared	Jun. 16, 2014
Distributions date payable	Jul. 31, 2014
Dividends Declared, 6/17/2013 [Member]
Distributions declared			$ 2.50
Distributions date declared			Jun. 17, 2013
Distributions date paid			Jul. 31, 2013
Dividends Declared, 3/14/2014 [Member]
Distributions declared					$ 2.25
Distributions date declared					Mar. 14, 2014
Distributions date paid					Apr. 30, 2014
Dividends Declared, 6/16/2014 [Member]
Distributions declared					$ 2.50
Distributions date declared					Jun. 16, 2014
Distributions date payable					Jul. 31, 2014
Dividends Declared, 3/8/2013 [Member]
Distributions declared							$ 2.25
Distributions date declared							Mar. 08, 2013
Distributions date paid							Apr. 30, 2013
Dividends Declared, 6/17/2013 [Member]
Distributions declared							$ 2.50
Distributions date declared							Jun. 17, 2013
Distributions date paid							Jul. 31, 2013

[1] $2.50 declared 6/16/2014 payable 7/31/2014

[2] $2.50 declared 6/17/2013 paid 7/31/2013

[3] $2.25 declared 3/14/2014 paid 4/30/2014 plus $2.50 declared 6/16/2014 payable 7/31/2014

[4] $2.25 declared 3/8/2013 paid 4/30/2013 plus $2.50 declared 6/17/2013 paid 7/31/2013

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Pension Plan

6 Months Ended

Jun. 30, 2014

Pension Plan [Abstract]

Pension Plan

Note 3 – PENSION PLAN

A summary of the components of net periodic pension cost is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
Service cost	$	77,584	$	81,423	$	155,168	$	162,846
Interest cost		90,640		76,968		181,280		153,936
Expected return on assets		(56,453)		(134,481)		(112,907)		(268,962)
Amortization of net loss		-		165,884		-		331,768
Amortization of prior service cost		4,367		4,368		8,734		8,735
Net periodic pension cost	$	116,138	$	194,162	$	232,275	$	388,323

The plan’s annual actuarial valuation was performed as of the plan’s fiscal year end, March 31.  The actuarial recommended contribution to the pension plan for the year 2014 is $1,679,091,  which contribution is scheduled to be made in August 2014. 

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Pension Plan (Summary Of Net Periodic Pension Cost) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Pension Plan [Abstract]
Service cost	$ 77,584	$ 81,423	$ 155,168	$ 162,846
Interest cost	90,640	76,968	181,280	153,936
Expected return on assets	(56,453)	(134,481)	(112,907)	(268,962)
Amortization of net loss		165,884		331,768
Amortization of prior service cost	4,367	4,368	8,734	8,735
Net periodic pension cost	$ 116,138	$ 194,162	$ 232,275	$ 388,323