<PAGE>
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 September 30, 1996
Commission File No. 1-8032
SAN JUAN BASIN ROYALTY TRUST
Texas I.R.S. No. 75-6279898
Bank One, Texas, NA, 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 November 14, 1996:
46,608,796
- ----------
<PAGE>
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, NA 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 September
30, 1996, and the distributable income and changes in trust corpus for the
three-month and nine-month periods ended September 30, 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
limited review of the condensed financial statements as of September 30, 1996
and for the three-month and nine-month periods ended September 30, 1996 and 1995
included herein.
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<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
Bank One, Texas, NA as Trustee for the
San Juan Basin Royalty Trust:
We have made a review of the condensed statement of assets, liabilities and
trust corpus of the San Juan Basin Royalty Trust as of September 30, 1996 and
the related condensed statements of distributable income and changes in trust
corpus for the three-month and nine-month periods ended September 30, 1996 and
1995. These financial statements are the responsibility of the Trustee.
We conducted our reviews 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 reviews, 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
November 1, 1996
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<PAGE>
SAN JUAN BASIN ROYALTY TRUST
CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
Cash and short-term investments $21,157,781 $ 421,446
Net overriding royalty interests in producing oil and
gas properties (net of accumulated amortization of
$68,159,170 and $63,141,992 at September 30, 1996
and December 31, 1995, respectively) 65,116,358 70,133,536
----------- -----------
$86,274,139 $70,554,982
=========== ===========
LIABILITIES AND TRUST CORPUS
Distribution payable to Unit holders (Note 3) $21,157,781 $ 421,446
Commitments and contingencies (Note 3)
Trust corpus - 46,608,796 Units of beneficial
interest authorized, issued and outstanding 65,116,358 70,133,536
----------- -----------
$86,274,139 $70,554,982
=========== ===========
</TABLE>
CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Royalty income (Note 3) $24,135,208 $ 3,542,265 $32,890,337 $13,476,447
Interest income 4,093 9,400 17,925 28,432
----------- ----------- ----------- -----------
24,139,301 3,551,665 32,908,262 13,504,879
General and administrative
costs 1,348,584 219,876 3,248,171 896,817
----------- ----------- ----------- -----------
Distributable income $22,790,717 $ 3,331,789 $29,660,091 $12,608,062
=========== =========== =========== ===========
Distributable income per Unit
(46,608,796 Units) $ .488979 $ .071482 $ .636361 $ .270507
=========== =========== =========== ===========
</TABLE>
The accompanying notes to condensed financial statements are an integral part of
these statements.
-4-
<PAGE>
SAN JUAN BASIN ROYALTY TRUST
CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Trust corpus, beginning of period $66,778,834 $72,169,081 $70,133,536 $79,942,040
Amortization of net overriding
royalty interest (1,662,476) (1,341,751) (5,017,178) (4,114,710)
Distributable income 22,790,717 3,331,789 29,660,091 12,608,062
Distributions declared (22,790,717) (3,331,789) (29,660,091) (12,608,062)
----------- ----------- ----------- -----------
Trust corpus, end of period $65,116,358 $70,827,330 $65,116,358 $70,827,330
=========== =========== =========== ===========
</TABLE>
The accompanying notes to condensed financial statements are an integral part of
these statements.
-5-
<PAGE>
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 interest owner, Burlington Resources Oil & Gas Company
("Burlington"), 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 interests 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 and
certain cash reserves may be established for contingencies which would not
be accrued in financial statements prepared in accordance with GAAP.
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 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
-6-
<PAGE>
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. ROYALTY INCOME
Royalty income for the quarter ended September 30, 1996, is comprised of
$4,313,203, which represents the net overriding royalty interest in the net
profits of the properties from which the net overriding royalty was carved,
and $19,822,005 paid to the Trust as a result of the settlement of
litigation involving Bank One, Texas, NA, as Trustee, Meridian Oil Inc. and
Southland Royalty Company.
******
-7-
<PAGE>
ITEM 2. TRUSTEE'S DISCUSSION AND ANALYSIS
THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
The San Juan Basin Royalty Trust received royalty income of $24,135,208 and
interest income of $4,093 during the third quarter of 1996. Royalty income for
the quarter included $19,822,005 paid to the Trust as a result of the settlement
of litigation involving Bank One, Texas, NA, as Trustee, Meridian Oil Inc., now
known as Burlington Resources Oil & Gas Company ("Burlington"), and Southland
Royalty Company (the "Litigation"). After deducting administrative expenses of
$1,348,584, distributable income for the third quarter was $22,790,717, or
$.488979 per Unit. In the third quarter of 1995, royalty income was $3,542,265,
interest income was $9,400, administrative expenses were $219,876 and
distributable income was $3,331,789, or $.071482 per Unit. Based on 46,608,796
Units outstanding, the per Unit distributions for the third quarter of 1996 were
as follows:
<TABLE>
<CAPTION>
<S> <C>
July $ .026470
August .008565
September .453944
----------
Quarter Total $ .488979
==========
</TABLE>
The tax credit relating to production from coal seam wells totaled approximately
$.03 per Unit for each of the third quarters of 1996 and 1995.
Royalty income for the third quarter of 1996 was higher than that in the third
quarter of 1995 due to increased prices for gas and oil and the receipt of the
settlement amount. Interest income was lower in the third quarter of 1996 as
compared to the third quarter of 1995 primarily due to decreased interest rates.
Administrative expenses were higher in the third quarter of 1996 as compared to
the third quarter of 1995 primarily due to increased expenses relating to the
Litigation mentioned above.
The Trustee announced on September 4, 1996, the settlement of the Litigation.
The Litigation, which was filed in the state district court of Santa Fe County,
New Mexico, Cause No. SF 94-1982(c), was dismissed on September 12, 1996.
The claims asserted on behalf of the Trust in the Litigation included 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
included compensatory and punitive damages, an accounting and an injunction
relating to marketing the production from the properties from which the Royalty
was carved (the "Trust Properties"). Burlington denied and continues to deny the
allegations made against it in the Litigation, but the parties agreed to settle
the Litigation as outlined below.
Burlington agreed (i) to pay $19,750,000 in cash plus interest earnings thereon
from September 5, 1996, in settlement of underpayment of royalty claims of the
Trust; and (ii) commencing in 1997, to credit the Trust with $250,000 per year
for five years as an offset against lease operating expenses chargeable to the
Trust. Burlington also agreed to make certain adjustments that represent cost
reductions favorable to the Trust in the ongoing charges for coal seam gas
gathering and treating on Burlington's Val Verde system. Additionally, the
Trustee and Burlington established a formal protocol intended to provide the
Trustee and its representatives improved access to Burlington's books and
records applicable to the Trust Properties.
-8-
<PAGE>
Agreement was also reached regarding marketing arrangements for the sale of
Trust gas, oil and natural gas liquids products going forward as follows:
1) Burlington's pre-existing contract with a third-party purchaser as pertains
to baseload gas volumes in the firm amount of 45,000 MMBtu per day will
remain effective for a period of one year from July 1, 1996. Negotiations
for the sale of these volumes after June 30, 1997, will be entered into
prior to the expiration of the primary term of that contract;
2) The remaining volumes of Trust gas will be marketed by an independent
marketer, El Paso Energy Marketing Company ("El Paso"), a subsidiary of El
Paso Energy Corporation, beginning October 1, 1996, under an arrangement
which provides for a sharing of amounts, if any, earned in excess of
established gas price thresholds. El Paso's compensation for its marketing
services will consist solely of its proportionate part of any amount for
which the gas is sold in excess of the thresholds. Burlington's contract
with El Paso is for a two-year term beginning October 1, 1996, subject to
renewal by agreement of the parties;
3) Burlington will continue to market the Trust oil and natural gas liquids but
will remit to the Trust actual proceeds from such sales. Burlington will no
longer use posted prices as the basis for calculating proceeds to the Trust
nor make a deduction for marketing fees associated with sales of oil or
natural gas liquids products; and
4) The marketer of the Trust gas will have access to Burlington's current gas
transportation, gathering, processing and treating agreements with third
parties through the remainder of their primary terms. Additionally, El Paso
may utilize Burlington's Natural Gas Company pipeline to pipelines in West
Texas for up to 13,333 MMBtu per day of gas produced from Trust properties
for a period of one year commencing October 1, 1996.
Confidentiality agreements with purchasers of the gas produced from the Trust
Properties prohibit public disclosure of certain terms and conditions of gas
sales contracts with those entities, including specific pricing terms, gas
receipt points, etc. Such disclosure could compromise the ability of the
marketer to compete effectively in the marketplace for the sale of gas produced
from the Trust Properties.
The $19,750,000 plus interest (totaling $19,822,005 or .425285 per unit of
beneficial interest) was paid to the Trust on September 30 and distributed on
October 15, 1996, to unit holders of record as of September 30, 1996. (See Note
5 to Financial Statements in the Trust's Annual Report for 1995 for further
information on the Litigation.)
Capital costs incurred by Burlington for the third quarter of 1996 amounted to
$2,563,836, as compared to $1,116,789 for the third quarter of 1995. The
increased capital costs in 1996 were primarily attributable to increased
drilling and development activity. Lease operating expenses and property taxes
attributable to the Trust Properties were $3,178,857 for the third quarter of
1996 compared to $2,937,729 for the third quarter of 1995.
In the third quarter of 1996, Burlington advised the Trustee that 1 gross (.83
net) conventional well was recompleted and 7 gross (.29 net) coal seam wells
were recavitated through September 30, 1996. Three gross (.23 net) conventional
gas wells and 1 gross (.16 net) coal seam well were completed on the Trust
Properties during the third quarter of 1996. There were 7 gross (.30 net) coal
seam wells and 11 gross (2.06 net) conventional wells in progress on September
30, 1996.
In the third quarter of 1995, 3 gross (.67 net) conventional wells were
completed on the Trust properties. Thirty-three gross (8.21 net) conventional
wells and 8 gross (2.59 net) coal seam wells were recompleted through September
30, 1995. There were 4 gross (2.39 net) coal seam wells and 7 gross (2.24 net)
conventional wells in progress on September 30, 1995.
-9-
<PAGE>
Unit holders are referred to "Description of the Properties" in the Trust's
Annual Report for 1995 for further information concerning Burlington's coal seam
well drilling program in the San Juan Basin. This program includes properties
in which the Trust owns an interest.
Gas and oil sales for the quarters ended September 30, 1996 and 1995, were as
follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
PROPERTIES FROM WHICH THE ROYALTY WAS CARVED:
Gas:
Total Mcf 10,656,613 8,905,543
Mcf per day 115,833 96,799
Average price (per Mcf) $1.18 $1.08
Oil:
Total Bbls 24,538 22,314
Bbls per day 267 243
Average price (per Bbl) $19.15 $13.82
ATTRIBUTABLE TO THE ROYALTY:
Gas sales (Mcf) 3,945,599 3,605,926
Oil sales (Bbls) 9,288 8,819
</TABLE>
The third quarter production figures are associated with actual oil and gas
production during May through July. In the third quarter of 1996, gas prices
for sales from the Trust Properties were higher primarily due to increased spot
market prices. Production from coal seam wells on such properties totaled
4,534,093 Mcf during the third quarter of 1996, compared to 3,423,885 Mcf during
the third quarter of 1995. The average oil price for the third quarter of 1996
was higher than that for the third quarter of 1995, primarily as a result of
increases in the posted prices. Since the oil and gas sales attributable to the
Royalty are based on an allocation formula that is dependent upon such factors
as price and costs (including capital expenditures), the production amounts do
not provide a meaningful comparison.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
For the nine months ended September 30, 1996, distributable income was
$29,660,091 ($.636361 per Unit) which was more than the $12,608,062 ($.270507
per Unit) of income distributed during the same period in 1995. Royalty income
decreased from $13,476,447 in the first nine months of 1995 as compared to
$13,068,332 in the first nine months of 1996 primarily as a result of decreases
in the average price of gas. For the nine month period ended September 30,
1996, the tax credit relating to production from coal seam wells totaled
approximately $.10 per Unit in comparison to $.09 per Unit for the same period
in 1995. Interest income for the nine months ended September 30, 1996 was
$17,925 compared to $28,432 during the first nine months of 1995. The decrease
in interest income was due to the decrease in funds available for investment.
Capital costs incurred for the nine month period ending September 30, 1996 were
$5,226,791. For the first nine months of 1995, capital expenditures totaled
$4,146,532. The increase was due primarily to increased drilling activity.
Burlington advised that during the nine months ended September 30, 1996, 2 gross
(.66 net) coal seam and 11 gross (1.37 net) conventional productive wells were
completed on Trust Properties. Thirteen gross (4.96 net) coal seam wells and 9
gross (5.37 net) conventional wells were recompleted through September 30, 1996.
There were 7 gross (.30 net) coal seam wells and 11 gross (2.06 net)
conventional wells in progress at September 30, 1996. For the corresponding
1995 period, 4 gross (1.54 net) coal seam and 24 gross (6.36 net)
-10-
<PAGE>
conventional productive wells were drilled on the Trust Properties. Thirteen
gross (7.59 net) coal seam wells and 33 gross (8.21 net) conventional wells were
recompleted through September 30, 1995. There were 4 gross (2.39 net) coal seam
wells and 7 gross (2.24 net) conventional wells in progress at September 30,
1995.
Lease operating expenses and property taxes totaled approximately $8,947,008 for
the first nine months of 1996 compared to $7,682,175 for the first nine months
of 1995.
For the nine months ended September 30, 1996 and 1995, gas and oil sales
compared as follows:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
PROPERTIES FROM WHICH THE ROYALTY WAS CARVED:
Gas:
Total sales (Mcf) 30,203,245 25,457,338
Mcf per day 110,231 93,250
Average price (per Mcf) $1.15 $1.29
Oil:
Total sales (Bbls) 64,092 57,333
Bbls per day 234 210
Average price (per Bbl) $19.17 $14.37
ATTRIBUTABLE TO THE ROYALTY:
Gas sales (Mcf) 12,449,648 11,467,199
Oil sales (Bbls) 26,532 25,761
</TABLE>
The first nine months production figures are associated with actual oil and gas
production during November 1995 through July 1996. The average price of gas
sold from the properties from which the Royalty was carved decreased from $1.29
per Mcf to $1.15 per Mcf primarily as a result of lower spot market prices in
1996. The average price per barrel of oil increased due to higher posted prices.
Since the oil and gas sales attributable to the Royalty is based on an
allocation formula that is dependent upon such factors as price and costs
(including capital expenditures), the production amounts do not provide a
meaningful comparison.
-11-
<PAGE>
ROYALTY CALCULATION:
Royalty income received by the Trust for the three months and nine months ended
September 30, 1996 and 1995, respectively, was computed as shown in the
following table:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Gross proceeds of sales
from the properties from
which the net overriding
royalty was carved:
Gas proceeds $12,563,259 $9,621,865 $34,609,854 $32,726,022
Oil proceeds 469,868 308,458 1,228,908 823,952
Other proceeds 2,592 2,592
----------- ---------- ----------- -----------
Total 13,033,127 9,932,915 35,838,762 33,552,566
----------- ---------- ----------- -----------
Less production costs:
Severance tax - Gas 1,430,319 1,120,850 4,047,528 3,670,520
Severance tax - Oil 50,089 34,527 133,903 84,743
Lease operating expenses
and property tax 3,178,857 2,937,729 8,947,008 7,682,175
Capital expenditures 2,563,836 1,116,789 5,226,791 4,146,532
Other 59,089 59,089
----------- ---------- ----------- -----------
Total 7,282,190 5,209,895 18,414,319 15,583,970
----------- ---------- ----------- -----------
Net profits 5,750,937 4,723,020 17,424,443 17,968,596
----------- ---------- ----------- -----------
Net overriding royalty
interest 75 % 75 % 75 % 75 %
----------- ---------- ----------- -----------
Royalty income $ 4,313,203 $3,542,265 $13,068,332 $13,476,447
=========== ========== =========== ===========
</TABLE>
-12-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The information called for is disclosed in Item 2 of Part I and is
incorporated into this Part II by reference.
-13-
<PAGE>
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 (now Burlington
Resources Oil & Gas Company) and The Fort Worth National
Bank (now Bank One, Texas, NA), 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 (now Burlington Resources Oil & Gas Company) to
The Fort Worth National Bank (now Bank One, Texas, NA),
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) Reports on Form 8-K
The San Juan Basin Royalty Trust (the "Trust") filed one report
on Form 8-K during the three-month period ended September 30,
1996. The item reported was the settlement of the litigation
(the "Litigation") filed by Bank One, Texas, NA, as Trustee of
the Trust against Meridian Oil Inc. (now known as Burlington
Resources Oil & Gas Company) and Southland Royalty Company in
the state district court of Santa Fe County, New Mexico in Cause
No. SF 94-1982(c). For a more particular description of the
Litigation, see Item 2 of Part I hereof. The report on Form 8-K
was dated September 20, 1996. No financial statement was filed.
-14-
<PAGE>
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, NA, AS TRUSTEE FOR THE
SAN JUAN BASIN ROYALTY TRUST
By LEE ANN ANDERSON
----------------------------------------
Lee Ann Anderson
Vice President
Dated as of November 14, 1996
(The Trust has no directors or executive officers.)
-15-
<PAGE>
INDEX TO EXHIBITS
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER EXHIBIT PAGE
(4)(a) San Juan Basin Royalty Trust Indenture dated
November 3, 1980, between Southland Royalty Company
(now Burlington Resources Oil & Gas Company) and
The Fort Worth National Bank (now Bank One, Texas,
NA), 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 (now Burlington Resources Oil & Gas
Company) to The Fort Worth National Bank (now Bank One,
Texas, NA), 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, NA,
P.O. Box 2604, Fort Worth, Texas 76113.
** Filed herewith.
<TABLE> <S> <C>
<PAGE>
<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 SEPTEMBER 30, 1996, AND THE RELATED CONDENSED
STATEMENTS OF DISTRIBUTABLE INCOME AND CHANGES IN TRUST CORPUS FOR THE
THREE-MONTH PERIOD ENDED SEPTEMBER 30, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 21,157,781
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 21,157,781
<PP&E> 133,275,528
<DEPRECIATION> 68,159,170
<TOTAL-ASSETS> 86,274,139
<CURRENT-LIABILITIES> 21,157,781
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 65,116,358
<TOTAL-LIABILITY-AND-EQUITY> 86,274,139
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<INCOME-PRETAX> 22,790,717
<INCOME-TAX> 0
<INCOME-CONTINUING> 22,790,717
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,790,717
<EPS-PRIMARY> 0
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</TABLE>
