<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, 1997
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, 1997:
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, 1997, and the distributable income and changes in trust corpus for the
three-month and nine-month periods ended September 30, 1997 and 1996 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, 1997
and for the three-month and nine-month periods ended September 30, 1997 and 1996
included herein.
-2-
<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, 1997 and
the related condensed statements of distributable income and changes in trust
corpus for the three-month and nine-month periods ended September 30, 1997 and
1996. 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, 1996, 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 March 25, 1997, 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, 1996 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
October 29, 1997
-3-
<PAGE>
SAN JUAN BASIN ROYALTY TRUST
CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
ASSETS 1997 1996
(UNAUDITED)
<S> <C> <C>
Cash and short-term investments $ 3,129,326 $ 3,127,828
Net overriding royalty interests in producing oil and
gas properties (net of accumulated amortization of
$75,595,080 and $70,467,380 at September 30, 1997
and December 31, 1996, respectively) 57,680,448 62,808,148
----------- -----------
$60,809,774 $65,935,976
=========== ===========
LIABILITIES AND TRUST CORPUS
Distribution payable to Unit holders $ 3,129,326 $ 3,127,828
Trust corpus - 46,608,796 Units of beneficial
interest authorized, issued and outstanding 57,680,448 62,808,148
----------- -----------
$60,809,774 $65,935,976
=========== ===========
</TABLE>
CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------- ------------------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Royalty income (Note 3) $ 9,763,541 $ 24,135,208 $ 37,134,776 $ 32,890,337
Interest income 21,669 4,093 76,214 17,925
------------- ------------- ------------- -------------
9,785,210 24,139,301 37,210,990 32,908,262
General and administrative
expenditures 180,243 1,348,584 773,496 3,248,171
------------- ------------- ------------- -------------
Distributable income $ 9,604,967 $ 22,790,717 $ 36,437,494 $ 29,660,091
============= ============= ============= =============
Distributable income per Unit
(46,608,796 Units) $ .206076 $ .488979 $ .781772 $ .636361
============= ============= ============= =============
</TABLE>
The accompanying notes to condensed financial statements are an integral part of
this statement.
-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,
---------------------------- ---------------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Trust corpus, beginning of period $ 59,227,104 $ 66,778,834 $ 62,808,148 $ 70,133,536
Amortization of net overriding
royalty interest (1,546,656) (1,662,476) (5,127,700) (5,017,178)
Distributable income 9,604,967 22,790,717 36,437,494 29,660,091
Distributions declared (9,604,967) (22,790,717) (36,437,494) (29,660,091)
------------ ------------ ------------ ------------
Trust corpus, end of period $ 57,680,448 $ 65,116,358 $ 57,680,448 $ 65,116,358
============ ============ ============ ============
</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 ("BROG"), 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 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
-6-
<PAGE>
approximately $1.03 per MMBtu for the year 1996 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 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., now known as
BROG, and Southland Royalty Company.
******
-7-
<PAGE>
ITEM 2. TRUSTEE'S DISCUSSION AND ANALYSIS
FORWARD LOOKING INFORMATION
Certain information included in this report contains, and other materials filed
or to be filed by the Trust with the Securities and Exchange Commission (as well
as information included in oral statements or other written statements made or
to be made by the Trust) may contain or include, forward looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and Section 27A of the Securities Act of 1933, as amended. Such
forward looking statements may be or may concern, among other things, capital
expenditures, drilling activity, development activities, production efforts and
volumes, hydrocarbon prices and the results thereof, and regulatory matters.
Such forward looking statements generally are accompanied by words such as
"estimate," "expect," "predict," "anticipate," "goal," "should," "assume,"
"believe," or other words that convey the uncertainty of future events or
outcomes.
THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
The San Juan Basin Royalty Trust received royalty income of $9,763,541 and
interest income of $21,669 during the third quarter of 1997. After deducting
administrative expenses of $180,243, distributable income for the third quarter
was $9,604,967, or $.206076 per Unit. In the third quarter of 1996, royalty
income was $24,135,208, interest income was $4,093, administrative expenses were
$1,348,584 and distributable income was $22,790,717, or $.488979 per Unit.
Royalty income for the third quarter of 1996 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 BROG, and Southland Royalty Company
(the "Litigation"). (See Note 5 to Financial Statements in the Trust's Annual
Report for 1996 for further information on the Litigation.) Based on 46,608,796
Units outstanding, the per Unit distributions for the third quarter of 1997 were
as follows:
<TABLE>
<S> <C>
July $ .067500
August .071436
September .067140
---------
Quarter Total $ .206076
=========
</TABLE>
The tax credit relating to production from coal seam wells totaled approximately
$.05 per Unit for the third quarter of 1997 and $.04 per Unit for the third
quarter of 1996. For further information concerning this tax credit, Unit
holders should refer to the Trust's Annual Report for 1996.
The decrease in royalty income for the three months ended September 30, 1997 as
compared to the three month period ended September 30, 1996 was primarily a
result of the settlement of the Litigation. Excluding the settlement of the
Litigation, royalty income for the three months ended September 30, 1997
increased to $9,763,541, as compared to $4,313,203 for the comparable 1996
period. This increase was primarily a result of increase in the average price
of gas from $1.18 in the third quarter of 1996 to $1.76 in the third quarter of
1997. Interest income was higher in the third quarter of 1997 as compared to
the third quarter of 1996 primarily due to higher distributable income in the
1997 period, exclusive of the payment for the settlement of the Litigation in
the 1996 period. Administrative expenses were lower in the third quarter of
1997 as compared to the third quarter of 1996 primarily due to decreased
expenses relating to the Litigation.
-8-
<PAGE>
Capital costs incurred by BROG for the third quarter of 1997 amounted to
$1,537,795, as compared to $2,563,836 for the third quarter of 1996. BROG has
informed the Trust that it has revised the estimate for the 1997 capital plan
from $1,700,000 reported in the Trust's 1996 Annual Report, to $5,000,000,
including $1,000,000 for facilities expenditures, an additional $1,800,000 for
1997 projects and $500,000 for non-operated properties, none of which amounts
were included in the original estimate. Additionally, approximately $2,000,000
has been or will be spent in 1997 for projects planned or begun in 1996 but not
included in the capital plan for 1997.
Lease operating expenses and property taxes attributable to the Trust Properties
were $2,649,405 for the third quarter of 1997 compared to $3,178,857 for the
third quarter of 1996.
BROG has informed the Trust that during the third quarter of 1997, three gross
(1.76 net) conventional wells were recompleted through September 30, 1997. Five
gross (1.15 net) conventional well recompletions and twelve gross (.46 net) coal
seam recompletions were in progress as of September 30, 1997. Twelve gross (.60
net) conventional gas wells were completed on the properties from which the
Royalty was carved during the third quarter of 1997. There was one gross (.04
net) coal seam well and 29 gross (2.4 net) conventional wells in progress on
September 30, 1997. Six gross (1.01 net) coal seam well recavitations were
completed and nine gross (.71 net) coal seam well recavitations were in progress
as of September 30, 1997.
In the third quarter of 1996, one gross (.83 net) conventional well was
recompleted and seven gross (.29 net) coal seam wells were recavitated through
September 30, 1996. Three gross (.23 net) conventional gas wells and one gross
(.16 net) coal seam well were completed during the third quarter of 1996. There
were seven gross (.30 net) coal seam wells and eleven gross (2.06 net)
conventional wells in progress on September 30, 1996.
Unit holders are referred to "Description of the Properties" in the Trust's
Annual Report for 1996 for further information concerning BROG'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 from the properties from which the Royalty was carved and
sales attributable to the Royalty for the quarters ended September 30, 1997 and
1996, were as follows:
<TABLE>
<CAPTION>
1997 1996
AGGREGATE SALES FROM PROPERTIES FROM
WHICH THE ROYALTY WAS CARVED:
<S> <C> <C>
Gas:
Total Mcf 10,679,663 10,656,613
Mcf per day 116,083 115,833
Average price (per Mcf) $ 1.76 $ 1.18
Oil:
Total Bbls 21,568 24,538
Bbls per day 234 267
Average price (per Bbl) $ 17.67 $ 19.15
SALES ATTRIBUTABLE TO THE ROYALTY:
Gas sales (Mcf) 6,057,651 3,945,599
Oil sales (Bbls) 12,247 9,288
</TABLE>
-9-
<PAGE>
During the third quarter of 1997, gas prices were higher than during the third
quarter of 1996. Gas production increased slightly in 1997 as compared to 1996.
The price per barrel of oil during the third quarter of 1997 was lower than that
received for the third quarter of 1996.
The third quarter sales figures are associated with actual oil and gas
production during May through July from the properties from which the Royalty
was carved. Sales volumes attributable to the Royalty are determined by dividing
the net profits attributable to oil and gas, respectively, by the prices
received for sales volumes from the properties from which the Royalty was
carved, taking into consideration production taxes attributable to the
properties from which the Royalty was carved. Since the oil and gas sales
attributable to the Royalty are based on an allocation formula that is dependent
on such factors as price and cost, including capital expenditures, the aggregate
sales amounts from the properties from which the Royalty was carved may not
provide a meaningful comparison to sales attributable to the Royalty.
BROG's contract with a third-party purchaser as pertains to baseload gas volumes
in the firm amount of 45,000 MMBtu per day has been extended through December
31, 1997. The remaining volumes of Trust gas continue to be marketed by El Paso
Energy Marketing Company ("El Paso"). BROG has notified El Paso of its
intention to terminate the existing contract effective as of December 31, 1997.
Requests for proposals have been distributed by BROG and negotiations are under
way for the sale of all Trust gas commencing January 1, 1998. Unit holders are
referred to "Trustee's Discussion and Analysis" in the Trust's 1996 Annual
Report for further information concerning the marketing of Trust gas.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
For the nine months ended September 30, 1997, distributable income was
$36,437,494 ($.781772 per Unit), compared to $29,660,091 ($.636361 per Unit) of
income distributed during the same period in 1996. Excluding the settlement of
the Litigation, royalty income for the nine months ended September 30, 1997
increased to $37,134,776 from $13,068,332 for the comparable 1996 period. This
increase was primarily a result of the increase in the average price of gas from
$1.15 in the first nine months of 1996 to $2.19 in the first nine months of
1997. Royalty income for the first nine months of 1996 includes $19,822,005
paid to the Trust as a result of the settlement of the Litigation. Interest
income for the nine months ended September 30, 1997 was $76,214 compared to
$17,925 during the first nine months of 1996. The increase in interest income
was due to higher distributable income throughout the first nine months of 1997
as compared to the same period in 1996.
Capital costs incurred for the nine month period ending September 30, 1997 were
$5,651,763. For the first nine months of 1996, capital expenditures totaled
$5,226,791. As previously discussed, capital expenditures for 1997 are expected
to total $7,000,000.
BROG has informed the Trust that during the nine months ended September 30,
1997, 41 gross (2.66 net) conventional gas wells were completed on Trust
Properties. Four gross (2.59 net) conventional wells and one gross (.84 net)
coal seam well were recompleted, and ten gross (1.56 net) coal seam wells were
recavitated during the first nine months of 1997.
-10-
<PAGE>
Lease operating expenses and property taxes totaled $8,303,522 for the first
nine months of 1997 compared to $8,947,008 for the first nine months of 1996.
For the nine months ended September 30, 1997 and 1996, gas and oil sales from
the properties from which the Royalty was carved and sales attributable to the
Royalty compared as follows:
<TABLE>
<CAPTION>
AGGREGATE SALES FROM PROPERTIES FROM
WHICH THE ROYALTY WAS CARVED:
1997 1996
<S> <C> <C>
Gas:
Total Mcf 31,506,749 30,203,245
Mcf per day 115,409 110,231
Average price (per Mcf) $ 2.19 $ 1.15
Oil:
Total Bbls 70,054 64,092
Bbls per day 257 234
Average price (per Bbl) $ 19.70 $ 19.17
SALES ATTRIBUTABLE TO THE ROYALTY:
Gas sales (Mcf) 18,122,585 12,449,648
Oil sales (Bbls) 39,460 26,532
</TABLE>
The first nine months production figures are associated with actual oil and gas
production during November 1996 through July 1997. The average price of gas sold
from the properties from which the Royalty was carved increased from $1.15 per
Mcf to $2.19 per Mcf. The average price per barrel of oil for the first nine
months of 1997 increased to $19.70 from $19.17 for the same period in 1996.
Sales volumes attributable to the Royalty are determined by dividing the net
profits attributable to oil and gas, respectively, by the prices received for
sales volumes from the properties from which the Royalty was carved, taking into
consideration production taxes attributable to the properties from which the
Royalty was carved. 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 aggregate sales amounts from the
properties from which the Royalty was carved may not provide a meaningful
comparison to the sales attributable to the Royalty.
-11-
<PAGE>
ROYALTY CALCULATION:
Royalty income received by the Trust for the three months and nine months ended
September 30, 1997 and 1996, respectively, was computed as shown in the
following table:
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------------------------------------------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Gross proceeds of sales
from the properties from
which the net overriding
royalty was carved:
Gas proceeds $18,758,331 $12,563,259 $69,003,247 $ 34,609,854
Oil proceeds 381,186 469,868 1,380,372 1,228,908
----------- ----------- ----------- ------------
Total 19,139,517 13,033,127 70,383,619 35,838,762
----------- ----------- ----------- ------------
Less production costs:
Severance tax - Gas 1,896,788 1,430,319 6,782,548 4,047,528
Severance tax - Oil 37,474 50,089 132,751 133,903
Lease operating expenses
and property tax 2,649,405 3,178,857 8,303,522 8,947,008
Capital expenditures 1,537,795 2,563,836 5,651,763 5,226,791
Other 59,089 59,089
----------- ----------- ----------- ------------
Total 6,121,462 7,282,190 20,870,584 18,414,319
----------- ----------- ----------- ------------
Net profits 13,018,055 5,750,937 49,513,035 17,424,443
----------- ----------- ----------- ------------
Net overriding royalty
interest 75 % 75 % 75 % 75 %
----------- ----------- ----------- ------------
Royalty income $ 9,763,541 $ 4,313,203* $37,134,776 $ 13,068,332*
=========== =========== =========== ============
</TABLE>
* Amount does not include $19,822,005 received by the Trust as a result of the
settlement of the Litigation. (See Note 5 to Financial Statements in the
Trust's Annual Report for 1996 for further information on the Litigation.)
ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
BROG has informed the Trust that no gas or oil sales attributable to the Royalty
will be impacted by financial arrangements such as hedges, swaps, options or
derivatives.
-12-
<PAGE>
PART II - OTHER INFORMATION
Items 1-5 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 did not file any reports on
Form 8-K during the three-month period ended September 30,
1997.
-13-
<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 /s/ LEE ANN ANDERSON
---------------------
Lee Ann Anderson
Vice President
Dated as of November 14, 1997
(The Trust has no directors or executive officers.)
-14-
<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.
-15-
<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, 1997, AND THE RELATED CONDENSED
STATEMENTS OF DISTRIBUTABLE INCOME AND CHANGES IN TRUST CORPUS FOR THE
THREE-MONTH PERIOD ENDED SEPTEMBER 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,129,326
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,129,326
<PP&E> 133,275,528
<DEPRECIATION> 75,595,080
<TOTAL-ASSETS> 60,809,774
<CURRENT-LIABILITIES> 3,129,326
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 57,680,448
<TOTAL-LIABILITY-AND-EQUITY> 60,809,774
<SALES> 0
<TOTAL-REVENUES> 9,785,210
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 180,243
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9,604,967
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,604,967
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,604,967
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</TABLE>
