FAQs
1.When was Pope Resource formed?
 Pope Resources was formed as a master limited partnership (MLP) in 1985 by the transfer of the Washington State real property assets of Pope & Talbot, Inc. to the newly formed entity.

2.What are “units”?
 As an MLP, ownership in Pope Resources is evidenced by “units” as opposed to “shares” of stock. As shares of stock are to a corporation, so units are to a limited partnership.

3.How many units does Pope Resources have outstanding?
 Currently, we have over 4.4 million units outstanding, but this amount fluctuates due to occasional unit buyback programs undertaken by Pope Resources and the impact of equity compensation plans.

4.Who is your transfer agent and how can I contact them?
 Computershare Shareowner Services LLC
480 Washington Blvd
Jersey City, NJ 07310
(877) 255-0989
http://www.bnymellon.com/shareowner/isd *
* Please note that when clicking on this link you will leave ORM’s web site. ORM does not guarantee the availability of such site nor does ORM endorse or remain responsible or liable for the content, products, services, or security on the site.

5.Which exchange are your units traded on and what is your ticker symbol?
 As of October 2009, Pope Resources' units are being traded on NASDAQ Capital Market under the ticker symbol "POPE".

6.Why was POPE formed as an MLP?
 The partnership vehicle was chosen for the spinoff entity because timber enjoys certain tax-advantaged, capital gain treatment in a flow-through entity (such as a partnership) that is not available to corporate owners of timber.

7.Who serves as general partner of Pope Resources?
 Pope Resources has two general partners, Pope MGP, Inc. and Pope EGP, Inc., and each are in turn owned 50/50 by Peter Pope and his cousin, Emily Andrews. Collectively, the two corporate GP’s own approximately 1.3% of Pope Resources. In addition, Peter Pope and Emily Andrews own a significant number of limited partner units.

8.Do the GP’s receive any special compensation or income “splits”?
 At spin-off in 1985, it was established that Pope MGP would receive an annual fee of $150,000. This fee has remained constant since spin-off. In 1997 when the new third-party service business was launched, the unitholders approved paying annually to Pope MGP a share of the profits from this new line of business. This profit-sharing interest works on a sliding scale with between 20% and 50% of this business line’s profits going to Pope MGP. The profit-sharing splits for this particular line of business called the Investor Portfolio Management Business (IPMB) are as follows:

IPMB income in a given year

Pope MGP share

Less than $3 million

20%

$3 to $5 million

30%

$5 to $7 million

40%

More than $7 million

50%

Since 1997 IPMB income in any one year has not exceeded $3 million and it has been $0 for the last couple years.


9.Has Pope Resources ever had a stock (or unit) split?
 In November 1997 Pope Resources had a 5-for-1 unit split. Put another way, before the split there were approximately 905,000 units outstanding, and after the split there were over 4.5 million units outstanding.

10.What is your distribution practice or policy?
 Pope Resources has had a varied distribution practice over its history (to view Pope Resources’ distribution history, please see Distribution History.)

11.How are these distributions taxed?
 These distributions are treated as a non-taxable return of capital. In this important respect, the units are different from dividends. In addtion, Pope Resources' distributions do reduce an investor's basis in their units.

12.Does Pope Resources have a dividend reinvestment program?
 No, not at this time.

13.What special tax reporting issues are presented by owning an MLP such as Pope Resources?
 As a partner in a partnership, Pope Resources' investors receive an annual tax reporting form called Form K-1 that will specify several items of income and loss that need to be reported on an investor's income tax return. Pope Resources K-1’s are generally mailed to investors on or around March 1st each year for reports on the just-completed calendar year.

14.How do I determine my basis in my units?
 Here’s another difference between owning partnership units and owning shares of corporate stock. Generally, one’s basis in stock is simply what you paid to acquire it. The amount remains static over time. With a partnership investment, however, the basis starts the same way – with the acquisition cost of the partnership units – but is increased each year by the amount of flow-through income reported to you as a partner on the Form K-1, and is decreased each year by the amount of flow-through losses and distributions received. Accordingly, an investor’s basis in a partnership will float up or down from year-to-year, while an investor’s basis in corporate stock will stand still. The ending capital account balance that appears on each annual Form K-1 is a reasonable approximation of a partner’s basis at the year-end point in time.

15.If I have a question regarding my Form K-1, who should I call? Or what if I have not received my Form K-1 yet for last year?
 Please contact our K-1 Agent utilizing the information provided below:

PriceWaterhouseCoopers
PO Box 799060
Dallas, TX 75379-9060
(800) 230-1146 (Pope Resources Customer Service)

16.What is the relationship between Pope Resources and Olympic Resource Management (ORM)?
 ORM was formed in 1997 as a subsidiary of Pope Resources to be the brand name for launching a timberland management business.

17.What is the relationship between Pope Resources and Olympic Property Group (OPG)?
 OPG was formed in 1998 as a subsidiary of Pope Resources to be the brand name for our real estate development and management activities.