Form 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 5, 1995 (June 5, 1995)
SAN JUAN BASIN ROYALTY TRUST
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(Exact name of registrant as specified in its charter)
Texas 1-8032 75-6279898
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
Bank One, Texas, NA, Trust Department
P.O. Box 2604, Fort Worth, Texas 76113
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (817) 884-4630
Not applicable
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(Former name or former address, if changed since last report)
Item 1. Not Applicable.
Item 2. Not Applicable.
Item 3. Not Applicable.
Item 4. Not Applicable.
Item 5. Other Events.
As previously reported, Team Bank, as the then Trustee of
the San Juan Basin Royalty Trust (the "Trust"), filed suit
against Meridian Oil Inc. ("MOI") and Southland Royalty
Company ("Southland") in state district court in Rio Arriba
County, New Mexico in June, 1992.
Also as previously reported, in a decision filed August 8,
1994, the Supreme Court of New Mexico ruled in such lawsuit
that venue was not proper in Rio Arriba County and remanded
the case for dismissal without prejudice to its refiling.
In its ruling, the Supreme Court of New Mexico also ruled
that venue is proper in Santa Fe County, New Mexico. Rio
Arriba and Santa Fe Counties are both located in New
Mexico's First Judicial District. The August 8 decision did
not relate to the merits of the Trust's claims.
Bank One, Texas, NA, as the current Trustee of the Trust,
refiled the lawsuit in Santa Fe County, New Mexico on August
31, 1994 in state district court in Santa Fe County, New
Mexico in Cause No. SF 94-1982(c).
On June 5, 1995, Bank One, Texas, N.A. announced the
conclusion of the non-binding mediation that had been on-
going with regard to the lawsuit filed Santa Fe County, New
Mexico. It was further announced that such non-binding
mediation was not successful in resolving the claims
asserted by the Trust in such lawsuit.
The principal asset of the Trust consists of a seventy-five
percent (75%) net overriding royalty interest carved out of
certain of Southland's oil and gas leasehold and royalty
interests in the San Juan Basin located in San Juan, Rio
Arriba and Sandoval counties of northwestern New Mexico (the
"Trust Properties"). MOI and Southland are the operators of
certain of the Trust Properties.
The claims asserted and the relief sought on behalf of the
Trust in the suit filed in Santa Fe County, New Mexico
include breach of contract, breach of fiduciary duty and
breach of the covenant of good faith and fair dealing. The
relief sought includes compensatory and punitive damages, an
accounting and a permanent injunction relating to the
marketing of production from the Trust Properties by MOI and
Southland.
On May 25, 1995, the court denied the motion filed by MOI
and Southland to dismiss the lawsuit on the basis of forum
non conveniens. The court also denied the motion to dismiss
the Trustee's claims relating to breach of the covenant of
good faith and fair dealing filed by MOI and Southland. The
motion to dismiss the Trustee's claims of breaches of
fiduciary duties by MOI and Southland filed by MOI and
Southland was taken under advisement by the court, which
will rule on this motion at a later date. On the same date,
the court cancelled the prior trial setting of October 23,
1995, and announced that the case would be tried during the
first half of 1996.
On June 5, 1995, the court granted the motion by MOI and
Southland to dismiss the Trustee's claims of breach of
fiduciary duties by MOI and Southland.
Item 6. Not Applicable.
Item 7. Financial Statements and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Exhibits
(99) Press Release dated June 5, 1995
Item 8. Not Applicable.
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 hereunto duly authorized.
BANK ONE, TEXAS, NA
Trustee of the
San Juan Basin Royalty Trust
By: /s/ Cristina Z. Vance
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Cristina Z. Vance
Assistant Vice President
DATE: June 7, 1995
(The Trust has no directors or executive officers.)
EXHIBIT INDEX
Exhibit No. Exhibit Page
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99 Press Release dated June 5, 1995
<PAGE>
San Juan Basin Royalty Trust NEWS RELEASE
Post Office Box 2604
Fort Worth, Texas 76113
Telephone 817/884-4417
MEDIATION UNSUCCESSFUL IN RESOLVING SAN JUAN BASIN ROYALTY TRUST SUIT
AGAINST MERIDIAN OIL INC. AND SOUTHLAND ROYALTY COMPANY
FORT WORTH, Texas, June 5, 1995 -- Bank One, Texas, N.A., Trustee of the
San Juan Basin Royalty Trust (the "Trust") announced today that non-binding
mediation which had been ongoing with regard to the lawsuit filed against
Defendants Meridian Oil Inc. and Southland Royalty Company in the state
district court in Santa Fe County, New Mexico, in Cause No. SF94-1982(c) was
not successful in resolving the claims asserted by the Trust.
The principal asset of the Trust consists of a 75% net overriding royalty
interest carved out of certain of Southland Royalty's oil and gas leasehold
and royalty interests in the San Juan Basin located in San Juan, Rio Arriba
and Sandoval counties of northwestern New Mexico (the "Trust Properties").
Meridian Oil and Southland Royalty are the operators of certain of the Trust
Properties.
The claims asserted and the relief sought on behalf of the Trust in the suit
filed in Santa Fe County, New Mexico include breach of contract, breach of
fiduciary duty and breach of the covenant of good faith and fair dealing. The
relief sought includes compensatory and punitive damages, an accounting, and a
permanent injunction relating to Defendants' marketing of production from the
Trust Properties.
On May 25, 1995, the court denied the motion filed by the Defendants to
dismiss the lawsuit on the basis of forum non conveniens. The court also
denied the Defendants' motion to dismiss the Trustee's claims relating to
breach of the covenant of good faith and fair dealing. The Defendants' motion
to dismiss the Trustee's claims of breaches of fiduciary duties by Meridian
Oil and Southland Royalty were taken under advisement by the court, which will
rule on this motion at a later date.
On the same date, the court cancelled the prior trial setting of October 23,
1995, and announced that the case would be tried during the first half of
1996.
