Item 7.01 Regulation FD Disclosure.

Chevron U.S.A. Inc. ("Chevron"), in its capacity as the Managing General Partner of TEL Offshore Trust Partnership and as the operator of the oil and gas lease at Eugene Island 339, has informed The Bank of New York Mellon Trust Company, N.A., as the Corporate Trustee of TEL Offshore Trust, that Chevron presently intends to pursue the redevelopment of platforms and wells at Eugene Island 339 in accordance with the terms and conditions established by the Mineral Management Service (the "MMS") in response to Chevron's submission to the MMS of a program to restore production at Eugene Island 339. As previously described, the platforms and wells on Eugene Island 339 were completely destroyed by Hurricane Ike in September 2008. The activity schedule approved by the MMS contemplates, among other things, commencement of front-end engineering and design work by the end of January 2010, an awarding of fabrication contracts for platform, substructure and equipment by the end of November 2010, and commencement of production ultimately occurring by the end of October 2012.
Chevron is required to provide the MMS with periodic updates on Chevron's progress on such redevelopment. The approval by the MMS expires by its terms on November 30, 2010, and Chevron would need to request an extension of such approval from the MMS in order to complete the proposed redevelopment, given that the activity schedule contemplates activity through October 2012. The costs for such a redevelopment would be significant. While Chevron has stated that it intends to pursue such a redevelopment, there is no obligation for Chevron to continue to pursue such redevelopment. Failure or inability to pursue such a redevelopment, and on the timeframes approved by the MMS, could result in a loss of the lease. At this time, there can be no assurance that production will be restored at Eugene Island 339.

Pursuant to General Instruction B.2 of Form 8-K, the information included herein is not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing by TEL Offshore Trust under the Exchange Act or the Securities Act of 1933, as amended, but is instead "furnished" for purposes of that instruction.

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