Dorchester Minerals is active in the area of oil and natural gas properties through the acquisition, ownership and administration of net profits interests and royalty properties. The company was formed by the combination of Dorchester Hugoton, Republic Royalty Company and Spinnaker Royalty Company. Dorchester Hugoton was a publicly traded Texas limited partnership and Republic and Spinnaker were private Texas limited partnerships. On Sept. 30, 2004, the company acquired producing and nonproducing mineral, royalty and overriding royalty interests located in more than 100 counties and parishes in six states in exchange for total consideration of approximately 1.2 billion of its common units. The transaction was structured as a merger between the seller and its wholly owned subsidiary, Dorchester Minerals Acquisition. The company acquired minor mineral and leasehold interests located in Steuben County, N.Y., and Hidalgo County, Texas, during the year ended Dec. 31, 2004. Dorchester Minerals is headquartered in Dallas.