SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Pursuant To Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended March 31, 1996
Commission File No. 1-8032
SAN JUAN BASIN ROYALTY TRUST
Texas I.R.S. No. 75-6279898
Bank One, Texas, N.A., Trust Department
P. O. Box 2604
Fort Worth, Texas 76113
Telephone Number 817/884-4630
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 and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
---
Number of units of beneficial interest outstanding at May 15, 1996:
46,608,796
- ----------
Page 1 of 14
SAN JUAN BASIN ROYALTY TRUST
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The condensed financial statements included herein have been prepared
by Bank One, Texas, N.A. as Trustee for the San Juan Basin Royalty
Trust, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in annual financial statements have been
condensed or omitted pursuant to such rules and regulations, although
the Trustee believes that the disclosures are adequate to make the
information presented not misleading. It is suggested that these
condensed financial statements be read in conjunction with the
financial statements and the notes thereto included in the Trust's
latest annual report on Form 10-K. In the opinion of the Trustee, all
adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the assets, liabilities and trust corpus
of the San Juan Basin Royalty Trust at March 31, 1996, and the
distributable income and changes in trust corpus for the three-month
periods ended March 31, 1996 and 1995 have been included. The
distributable income for such interim periods is not necessarily
indicative of the distributable income for the full year.
Deloitte & Touche LLP, independent certified public accountants, has
made a review of the condensed financial statements as of March 31,
1996 and for the three-month periods ended March 31, 1996 and 1995
included herein.
-2-
INDEPENDENT ACCOUNTANTS' REPORT
Bank One, Texas, N.A. as Trustee for the
San Juan Basin Royalty Trust:
We have reviewed the accompanying condensed statement of assets,
liabilities and trust corpus of the San Juan Basin Royalty Trust as of
March 31, 1996 and the related condensed statements of distributable
income and changes in trust corpus for the three-month periods ended
March 31, 1996 and 1995. These financial statements are the
responsibility of the Trustee.
We conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying
analytical procedures to financial data and making inquiries of
persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with
generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
The accompanying condensed financial statements are prepared on a
modified cash basis as described in Note 1, which is a comprehensive
basis of accounting other than generally accepted accounting
principles.
Based on our review, we are not aware of any material modifications
that should be made to such condensed financial statements for them to
be in conformity with the basis of accounting described in Note 1.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of assets, liabilities and trust
corpus of the San Juan Basin Royalty Trust as of December 31, 1995,
and the related statements of distributable income and changes in
trust corpus for the year then ended (not presented herein); and in
our report dated April 11, 1996, we expressed an unqualified opinion
on those financial statements. In our opinion, the information set
forth in the accompanying condensed statement of assets, liabilities
and trust corpus as of December 31, 1995 is fairly stated in all
material respects in relation to the statement of assets, liabilities
and trust corpus from which it has been derived.
DELOITTE & TOUCHE LLP
May 10, 1996
-3-
<TABLE>
<CAPTION>
SAN JUAN BASIN ROYALTY TRUST
CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
March 31 December 31,
ASSETS 1996 1995
(Unaudited)
<S> <C> <C>
Cash and short-term investments $ 1,166,161 $ 421,446
Net overriding royalty interests in producing oil and
gas properties (net of accumulated amortization of
$64,784,149 and $63,141,992 at March 31, 1996
and December 31, 1995, respectively) 68,491,379 70,133,536
----------- -----------
$69,657,540 $70,554,982
=========== ===========
LIABILITIES AND TRUST CORPUS
Distribution payable to Unit holders (Note 3) $ 1,166,161 $ 421,446
Commitments and contingencies (Note 3)
Trust corpus - 46,608,796 Units of beneficial
interest authorized and outstanding 68,491,379 70,133,536
----------- -----------
$69,657,540 $70,554,982
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
Three Months Ended
March 31,
-------------------------------
1996 1995
<S> <C> <C>
Royalty income $ 4,707,617 $ 4,476,479
Interest income 6,507 7,785
----------- -----------
4,714,124 4,484,264
General and administrative expenditures 787,774 261,756
----------- -----------
Distributable income $ 3,926,350 $ 4,222,508
=========== ===========
Distributable income per Unit (46,608,796 Units) $ .084239 $ .090595
=========== ===========
</TABLE>
The accompanying notes to condensed financial statements are an integral part
of these statements.
-4-
<TABLE>
<CAPTION>
SAN JUAN BASIN ROYALTY TRUST
CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
Three Months Ended
March 31,
-----------------------------------
1996 1995
<S> <C> <C>
Trust corpus, beginning of period $70,133,536 $74,942,040
Amortization of net overriding royalty interest (1,642,157) (1,063,369)
Distributable income 3,926,350 4,222,508
Distributions declared (3,926,350) (4,222,508)
----------- -----------
Trust corpus, end of period $68,491,379 $73,878,671
============ ===========
</TABLE>
The accompanying notes to condensed financial statements are an
integral part of this statement.
-5-
SAN JUAN BASIN ROYALTY TRUST
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF ACCOUNTING
The San Juan Basin Royalty Trust ("Trust") was established as of
November 1, 1980. The financial statements of the Trust are
prepared on the following basis:
- Royalty income recorded for a month is the amount computed and
paid by the working interest owner, Meridian Oil Inc. ("MOI"),
to the Trustee for the Trust. Royalty income consists of the
amounts received by the owner of the interest burdened by the
net overriding royalty interest ("Royalty") from the sale of
production less accrued production costs, development and
drilling costs, applicable taxes, operating charges, and other
costs and deductions, multiplied by 75%.
- Trust expenses recorded are based on liabilities paid and cash
reserves established from royalty income for liabilities and
contingencies.
- Distributions to Unit holders are recorded when declared by
the Trustee.
- The conveyance which transferred the overriding royalty
interest to the Trust provides that any excess of production
costs over gross proceeds must be recovered from future net
profits.
The financial statements of the Trust differ from financial statements
prepared in accordance with generally accepted accounting principles
("GAAP") because revenues are not accrued in the month of production;
certain cash reserves may be established for contingencies which would
not be accrued in financial statements prepared in accordance with
GAAP; and amortization of the Royalty calculated on a unit-of-production
basis is charged directly to trust corpus.
2. FEDERAL INCOME TAXES
For Federal income tax purposes, the Trust constitutes a fixed
investment trust which is taxed as a grantor trust. A grantor
trust is not subject to tax at the trust level. The Unit holders
are considered to own the Trust's income and principal as though
no trust were in existence. The income of the Trust is deemed to
have been received or accrued by each Unit holder at the time such
income is received or accrued by the Trust rather than when
distributed by the Trust.
The Royalty constitutes an "economic interest" in oil and gas
properties for Federal income tax purposes. Unit holders must
report their share of the revenues of the Trust as ordinary income
from oil and gas royalties and are entitled to claim depletion
with respect to such income. The Royalty is treated as a single
property for depletion purposes.
The Trust has on file technical advice memoranda confirming the
tax treatment described above.
The Trust began receiving royalty income from coal seam wells
beginning in 1989. Under Section 29 of the Internal Revenue Code,
production from coal seam gas wells drilled prior to January 1,
1993, qualifies for the federal income tax credit for producing
non-conventional fuels. This tax credit was approximately $1.01
per MMBtu for the year 1995 and is adjusted for inflation
annually. The credit currently applies to production through the
year 2002. Each Unit holder must determine his pro rata share of
such production based upon the number of Units owned during each
month of the year and
-6-
apply the tax credit against his own income tax liability, but
such credit may not reduce his regular tax liability (after the
foreign tax credit and certain other nonrefundable credits) below
his tentative minimum tax. Section 29 also provides that any
amount of Section 29 credit disallowed for the tax year solely
because of this limitation will increase his credit for prior year
minimum tax liability, which may be carried forward indefinitely
as a credit against the taxpayer's regular tax liability, subject,
however, to the limitations described in the preceding sentence.
There is no provision for the carryback or carryforward of the
Section 29 credit in any other circumstances.
The classification of the Trust's income for purposes of the
passive loss rules may be important to a Unit holder. As a result
of the Tax Reform Act of 1986, royalty income will generally be
treated as portfolio income and will not reduce passive losses.
3. COMMITMENTS AND CONTINGENCIES
On June 4, 1992, the Trustee filed suit against MOI and Southland
Royalty Company ("Southland")in state district court in Rio Arriba
County, New Mexico. In a decision filed August 8, 1994, the
Supreme Court of New Mexico ruled 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 was proper in Santa Fe County,
New Mexico. Such decision did not relate to merits of the Trust's
claims. The Trustee refiled the lawsuit in Santa Fe County, New
Mexico on August 31, 1994.
Effective January 1, 1996, Southland, a wholly-owned subsidiary
of MOI, was merged with and into MOI, by which action the separate
corporate existence of Southland ceased and MOI survived and succeeded
to the ownership of all the assets, has the rights, powers and
privileges and assumed all of the liabilities and obligations of
Southland. MOI is the operator of the Trust Properties.
The principal asset of the Trust consists of a 75% net overriding
royalty carved out of certain of MOI'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").
The claims asserted on behalf of the Trust in the Santa Fe County,
New Mexico, lawsuit now include breach of contract, breach of the
covenant of good faith and fair dealing, breach of express good
faith duty, constructive fraud, unjust enrichment, prima facie
tort, intentional interference with contract and conspiracy. The
relief sought includes compensatory and punitive damages, an
accounting and a permanent injunction relating to the operation of
the Trust Properties.
In response to the Trustee's lawsuit, Southland, now MOI, filed
suit on August 7, 1992, against the Trustee in probate court in
Tarrant County, Texas. The lawsuit seeks declaratory relief that:
(I) the rights and duties of the Trustee be governed in accordance
with and by the terms and provisions of the trust instruments
which establish the Trust as well as the Texas Trust Code, (II)
the Trustee cannot object to MOI's reports or audits after 180
days, (III) the interests held by the Trust are not subject to
partition, and (IV) the Trust is without standing to remove MOI as
operator of the Trust properties. The lawsuit also seeks to
remove Bank One, Texas, N.A. as Trustee.
MOI has filed a counterclaim in the Santa Fe County lawsuit,
seeking declaratory relief that (I) Southland's remitting payment
to the Trustee constitutes good faith compliance with its
obligation and duties to the Trust; (II) the profits realized by
the subsidiaries of MOI on the resale or treatment of gas is
immaterial; (III) MOI, or its subsidiaries, are not required to
grant the Trust a discounted fee or rate for gathering and
processing services; (IV) the Trustee does not have the power or
authority to take exception to the quarterly or annual reports and
audits by Southland, and such reports and audits are correct as
rendered; and (V) Southland is entitled to its costs, attorneys'
fees and such other relief as the Court deems just and proper.
-7-
On June 5, 1995, the Trustee announced that non-binding mediation,
which had been ongoing with regard to the lawsuit filed in Santa
Fe County, New Mexico, was not successful in resolving the claims
asserted by the Trust. Trial is currently set in the Santa Fe
County, New Mexico, lawsuit for July 15, 1996.
A resolution of the Santa Fe County, New Mexico, lawsuit favorable
to the Trust could possibly have a material effect on
distributable income depending upon the nature and terms of the
resolution.
******
-8-
Item 2.Trustee's Discussion and Analysis
Three Months Ended March 31, 1996 and 1995
During the first quarter of 1996 the San Juan Basin Royalty Trust
received royalty income of $4,707,617. Distributable income consists
of royalty income plus interest income less administrative expenses.
Interest income for the quarter was $6,507 and administrative expenses
were $787,774. Thus, distributable income totaled $3,926,350. Based
on 46,608,796 Units outstanding, the per Unit distributions were as
follows:
January $ .028138
February .031081
March .025020
---------
Quarter Total $ .084239
The amount distributed to Unit holders in the first quarter of 1996
was less than the $.090595 distributed in the first quarter of 1995.
The decrease was primarily attributable to a decrease in the average
gas price from $1.50 per Mcf for the first quarter of 1995 to $1.17
per Mcf for the first quarter of 1996 and higher administrative
expenses. The tax credit relating to production from coal seam wells
totaled approximately $.04 per Unit for the first quarter of 1996
compared to $.03 per Unit for the first quarter of 1995.
Interest income for the first quarter of 1996 was less than the $7,785
in the first quarter of 1995 due to decreased funds available for
investment and lower interest rates. Administrative expenses of
$787,774 were higher in the first three months of 1996 as compared to
$261,756 in the first quarter of 1995, primarily as the result of
differences in the timing of payment of certain expenses and increases
for legal consulting, accounting and financial services relating to
litigation involving Bank One, Texas, N.A., as Trustee, Meridian Oil
Inc. ("MOI") and Southland Royalty Company ("Southland"). (See Note 5
to Financial Statements in the Trust's 1995 Annual Report for further
information on such litigation.)
Capital expenditures incurred by MOI, attributable to the properties
from which the Royalty was carved, for the first quarter of 1996
amounted to $1,374,090. Capital expenditures were $2,294,638 for the
first quarter of 1995. The decease in 1996 was primarily due to a
decrease in drilling activities.
Lease operating expenses and property taxes totaled approximately
$2,660,000 for the first quarter of 1996 compared to approximately
$2,340,000 for the first quarter of 1995. The increase in lease
operating expense was due primarily to normal inflation and an
increase in overall activity.
In the first quarter of 1996, 1 gross (.5 net) coal seam well was
completed on the properties from which the Royalty was carved. There
were 3 gross (.81 net) coal seam wells in progress on March 31, 1996.
Two gross (1.59 net) coal seam wells were recavitated, and 4 gross
(.17 net) coal seam well recavitations were in progress through
March 31, 1996. There were 7 gross (1.14 net) conventional wells
completed and 7 gross (1.15 net) conventional wells in progress. Six
gross (3.88 net) conventional wells were recompleted, and 2 gross (.75
net) conventional recompletions were in progress through March 31,
1996. In the first quarter of 1995, 3 gross (1.04 net) coal seam
wells and 14 gross (2.46 net) conventional gas wells were completed on
the properties from which the Royalty was carved. Three gross (3.00
net) coal seam wells were recavitated and 16 gross (4.74 net) conventional
wells were recompleted through March 31, 1995. There were 4 gross (2.39 net)
coal seam wells and 11 gross (5.85 net) conventional wells in progress
on March 31, 1995. Unit holders are referred to "Description of the
Properties" in the Trust's 1995 Annual Report for further information
concerning MOI's coal seam well drilling program in the San Juan
Basin. This program includes properties in which the Trust owns an
interest.
-9-
Royalty income for the Trust for the quarter ended March 31, 1996 is
associated with actual gas and oil production during November 1995
through January 1996 from the properties from which the Royalty was
carved. Gas and oil sales for the quarters ended March 31, 1996 and
1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
PROPERTIES FROM WHICH THE ROYALTIES WERE CARVED:
Gas:
Total sales (Mcf) 9,661,249 7,799,765
Mcf per day 105,014 84,780
Average price (per Mcf) $1.17 $1.50
Oil:
Total sales (Bbls) 20,079 16,054
Bbls per day 218 175
Average price (per Bbl) $18.10 $13.96
ROYALTIES:
Gas sales (Mcf) 4,439,622 3,266,783
Oil sales (Bbls) 9,116 7,017
</TABLE>
Coal seam gas production increased from 3,310,457 Mcf in the first
quarter of 1995 to 3,984,792 Mcf in the first quarter of 1996.
The price received for gas production decreased during the first
quarter of 1996 primarily due to lower prices being paid by Meridian
Oil Trading, Inc., a subsidiary of MOI that markets a substantial
portion of the Trust's gas.
The price received per barrel of oil in the first quarter of 1996 was
higher than that received in the first quarter of 1995 due to
increases in the posted prices. Since the gas and oil sales
attributable to the Royalty are based on an allocation formula that is
dependent on such factors as price and cost (including capital
expenditures), those production volumes do not provide a meaningful
comparison.
-10-
CALCULATION OF ROYALTY INCOME
Royalty income received by the Trust for the three months ended
March 31, 1996 and 1995 was computed as shown in the following table:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Gross proceeds of sales from the properties from
which the net overriding royalty was carved:
Gas proceeds $11,264,797 $11,671,158
Oil proceeds 363,515 224,177
----------- -----------
Total 11,628,312 11,895,335
----------- -----------
Less production costs:
Severance tax - Gas 1,274,815 1,271,066
Severance tax - Oil 43,035 21,115
Lease operating expense and property tax 2,659,548 2,339,878
Capital expenditures 1,374,091 2,294,638
---------- ----------
Total 5,351,489 5,926,697
---------- ----------
Net profits 6,276,823 5,968,638
Net overriding royalty interest 75% 75%
---------- ----------
Royalty income $4,707,617 $4,476,479
========== ==========
</TABLE>
-11-
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On June 4, 1992, the 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, Cause No.
RA 92-1211(C). In a decision filed August 8, 1994, the
Supreme Court of New Mexico ruled 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 was proper
in Santa Fe County, New Mexico. Such decision did not
relate to merits of the Trust's claims. The Trustee refiled
the lawsuit in Santa Fe County, New Mexico on August 31,
1994, in Cause No. SF 94-1982(C).
Effective January 1, 1996, Southland, a wholly-owned
subsidiary of MOI, was merged with and into MOI, by which
action the separate corporate existence of Southland ceased
and MOI survived and succeeded to the ownership of all the
assets, has the rights, powers and privileges and assumed
all of the liabilities and obligations of Southland.
The principal asset of the Trust consists of a seventy-five
percent (75%) net overriding royalty interest carved out of
certain of MOI'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 is the operator of the Trust Properties.
The claims asserted on behalf of the Trust in the Santa Fe
County, New Mexico, lawsuit now include breach of contract,
breach of the covenant of good faith and fair dealing,
breach of express good faith duty, constructive fraud,
unjust enrichment, prima facie tort, intentional
interference with contract and conspiracy. The relief
sought includes compensatory and punitive damages, an
accounting and a permanent injunction relating to the
operation of the Trust Properties.
In response, Southland, now MOI, filed suit on August 7,
1992 against the Trustee in probate court in Tarrant County,
Texas, Cause No. 92-1927-2. The lawsuit seeks declaratory
relief that: (i) the rights and duties of the Trustee be
governed in accordance with and by the terms and provisions
of the trust instruments which established the Trust as well
as the Texas Trust Code, (ii) the Trustee cannot object to
MOI's reports or audits after 180 days, (iii) the interests
held by the Trust are not subject to partition, and (iv) the
Trust is without standing to remove MOI as operator of the
Trust properties. The lawsuit also seeks to remove Bank
One, Texas, N.A. as Trustee.
MOI has filed a counterclaim in the Santa Fe County lawsuit,
seeking declaratory relief that (i) Southland's remitting
payment to the Trustee constitutes good faith compliance
with its obligation and duties to the Trust; (ii) the
profits realized by the subsidiaries of MOI on the resale or
treatment of gas is immaterial; (iii) MOI, or its
subsidiaries, are not required to grant the Trust a
discounted fee or rate for gathering and processing
services; (iv) the Trustee does not have the power or
authority to take exception to the quarterly or annual
reports and audits by Southland, and such reports and audits
are correct as rendered; and (v) Southland is entitled to
its costs, attorneys' fees and such other relief as the
Court deems just and proper.
On June 5, 1995, the Trustee announced that non-binding
mediation, which had been ongoing with regard to the lawsuit
filed in Santa Fe County, New Mexico, was not successful in
resolving the claims asserted by the Trust. Trial is
currently set in the Santa Fe County, New Mexico, lawsuit
for July 15, 1996.
-12-
A resolution of this matter favorable to the Trust could
possibly have a material effect on distributable income
depending upon the nature and terms of the resolution.
Items 2-5 Not Applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(4)(a) San Juan Basin Royalty Trust Indenture dated
November 3, 1980, between Southland Royalty
Company and The Fort Worth National Bank (now
Bank One, Texas, N.A.), as Trustee, heretofore
filed as Exhibit (4)(a) to the Trust's Annual
Report on Form 10-K to the Securities and
Exchange Commission for the fiscal year ended
December 31, 1980 is incorporated herein by
reference.
(4)(b) Net Overriding Royalty Conveyance from
Southland Royalty Company to The Fort Worth
National bank (now Bank One, Texas, N.A.), as
Trustee, dated November 3, 1980 (without
Schedules), heretofore filed as Exhibit (4)(b)
to the Trust's Annual Report on Form 10-K to
the Securities and Exchange Commission for the
fiscal year ended December 31, 1980 is
incorporated herein by reference.
(27) Financial Data Schedule
(b) No reports on Form 8-K have been filed during the
quarter for which this report is filed.
-13-
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.
BANK ONE, TEXAS, N.A. AS TRUSTEE FOR THE SAN
JUAN BASIN ROYALTY TRUST
By /s/ LEE ANN ANDERSON
------------------------------------------
Lee Ann Anderson
Vice President
Dated as of May 15, 1996
(The Trust has no directors or executive officers.)
-14-
<TABLE>
<CAPTION>
INDEX TO EXHIBITS
Sequentially
Exhibit Numbered
Number Exhibit Page
<S> <C> <C>
(4)(a) San Juan Basin Royalty Trust Indenture dated November 3, 1980,
between Southland Royalty Company and The Fort Worth National
Bank (now Bank One, Texas, N.A.), as Trustee, heretofore filed
as Exhibit (4)(a) to the Trust's Annual Report on Form 10 K to
the Securities and Exchange Commission for the fiscal year
ended December 31, 1980 is incorporated herein by reference.*
(4)(b) Net Overriding Royalty Conveyance from Southland Royalty
Company to The Fort Worth National bank (now Bank One, Texas,
N.A.), as Trustee, dated November 3, 1980 (without Schedules),
heretofore filed as Exhibit (4)(b) to the Trust's Annual Report
on Form 10-K to the Securities and Exchange Commission for the
fiscal year ended December 31, 1980 is incorporated herein by
reference.*
(27) Financial Data Schedule **
* A copy of this Exhibit is available to any Unit holder, at the
actual cost of reproduction, upon written request to the Trustee,
Bank One, Texas, N.A., P.O. Box 2604, Fort Worth, Texas 76113.
** Filed herewith.
-15-
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS OF
SAN JUAN BASIN ROYALTY TRUST AS OF MARCH 31, 1996, AND THE RELATED CONDENSED
STATEMENTS OF DISTRIBUTABLE INCOME AND CHANGES IN THE TRUST CORPUS FOR THE
THREE-MONTH PERIOD ENDED MARCH 31, 1996.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,166,161
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,166,161
<PP&E> 133,275,528
<DEPRECIATION> 64,784,149
<TOTAL-ASSETS> 69,657,540
<CURRENT-LIABILITIES> 1,166,161
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 68,491,379
<TOTAL-LIABILITY-AND-EQUITY> 69,657,540
<SALES> 0
<TOTAL-REVENUES> 4,714,124
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 787,774
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,926,350
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,926,350
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,926,350
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
