**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION - WASHINGTON, D.C. 20549**


**Form
      40-F**


o  Registration
      statement pursuant to Section 12 of the Securities Exchange Act of 1934;
      or


þ  Annual
      report
      pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
      1934





**For
      fiscal
      year ended: December 31, 2006**


**Commission
      file number: No. 0-50832**


**Vermilion
      Energy Trust**





(Exact
      name of
      registrant as specified in its charter)


**Alberta**





(Province
      or other
      jurisdiction of incorporation or organization)


**1311**





(Primary
      standard
      industrial classification code number)


**N/A**





(I.R.S.
      employer
      identification number)


**2800,
      400 -
      4th Avenue S.W.**


**Calgary,
      Alberta T2P 0J4 Canada**


**(403)
      269-4884**





(Address
      and
      telephone number of registrant's principal executive office)


**National
      Corporate Research, Ltd.**


**225
      West
      34th Street, Suite 910**


**New
      York,
      New York 10122 U.S.A.**


**(212)
      947-7200**





(Name,
      address and
      telephone number of agent for service in the United States)





Securities
      registered pursuant to Section 12(b) of the Act:


Title
                of each
                class:**N/A**
            
            Name
                of each
                exchange on which registered:**N/A**





Securities
      registered or to be registered pursuant to Section 12(g) of the Act: **Trust
      Units**





Securities
      for
      which there is a reporting obligation pursuant to Section 15(d) of the Act: **Not
      Applicable**





For
      annual reports,
      indicate by check mark the information filed with this form:





þ
            **Annual
                Information Form**
            þ
            **Audited
                Annual Financial
                Statements**





Indicate
      the number
      of outstanding shares of each of the issuer's classes of capital or common
      stock
      as of the close of the period covered by the annual report:
****71,251,256 Trust Units (including exchangeable
      shares)****


Indicate
      by check
      mark whether the registrant by filing the information contained in this form
      is
      also thereby furnishing the information to the Commission pursuant to Rule
      12g3-2(b) under the Securities Exchange Act of 1934 (the "Exchange Act"). If
      "Yes" is marked, indicate the file number assigned to the registrant in
      connection with such rule.





 ̈
            Yes
            þ
            **No**





Indicate
      by check
      mark whether the registrant: (1) has filed all reports required to be filed
      by
      Section 13(d) or 15(d) of the Exchange Act during the proceeding 12 months
      (or
      for such shorter period that the registrant has been required to file such
      reports); and (2) has been subject to such filing requirements in the past
      90
      days.





þ
            **Yes**
             ̈
            No










**DISCLOSURE
        CONTROLS AND PROCEDURES**
 
 **A.
        Evaluation of Disclosure Controls and Procedures**
 
 Vermilion
        Energy Trust (the "Registrant") maintains disclosure controls and procedures
        and
        internal control over financial reporting designed to ensure that information
        required to be disclosed in the Registrant's filings under the Securities
        Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed,
        summarized and reported within the time period specified in the rules and
        forms
        of the Securities and Exchange Commission (the "SEC"). The Registrant's Chief
        Executive Officer and Chief Financial Officer, after having evaluated the
        effectiveness of the Registrant's disclosure controls and procedures (as
        defined
        in Exchange Act Rules 13a-14(e) and 15d-14(e)) as of the end of the period
        covered by this report have concluded that, as of such date, the Registrant's
        disclosure controls and procedures are effective to ensure that information
        relating to the Registrant and its consolidated subsidiaries would be made
        known
        to them by others within those entities. However, as recommended by the SEC
        in
        its adopting release, the Registrant will continue to periodically evaluate
        its
        disclosure controls and procedures and will make modifications from time
        to time
        as deemed necessary to ensure that information is recorded, processed,
        summarized and reported within the time period's specified in the SEC's rules
        and forms.
 
 **B.
        Changes in Internal Control Over Financial Reporting**
  A
        company's internal control over financial reporting is a process designed
        by, or
        under the supervision of, the company's principal executive and principal
        financial officers, or persons performing similar functions, and effected
        by the
        company's board of directors, management, and other personnel to provide
        reasonable assurance regarding the reliability of financial reporting and
        the
        preparation of financial statements for external purposes in accordance with
        generally accepted accounting principles. A company's internal control over
        financial reporting includes those policies and procedures that (1) pertain
        to
        the maintenance of records that, in reasonable detail, accurately and fairly
        reflect the transactions and dispositions of the assets of the company; (2)
        provide reasonable assurance that transactions are recorded as necessary
        to
        permit preparation of financial statements in accordance with generally accepted
        accounting principles, and that receipts and expenditures of the company
        are
        being made only in accordance with authorizations of management and directors
        of
        the company; and (3) provide reasonable assurance regarding prevention or
        timely
        detection of unauthorized acquisition, use, or disposition of the company's
        assets that could have a material effect on the financial
        statements.
 
 There
        was no change in the Registrant's internal control over financial reporting
        that
        occurred during the period covered by this report that has materially affected,
        or is reasonably likely to materially affect, its internal control over
        financial reporting.
 
 **C.
        Management’s Annual Report on Internal Controls** .
 
 See
        page 2 of the 2006 Audited Financial Statements included as Exhibit 99.3
        to this
        report.
 **D.
          Auditor Attestation**
 
 See
        page 4 of the 2006 Audited Financial Statements included as Exhibit 99.3
        to this
        report.
  **AUDIT
        COMMITTEE FINANCIAL EXPERT**
 
 The
        Registrant's Board of Directors has determined that it has at least one audit
        committee financial expert (as such term is defined in the rules and **** regulations
        of the SEC) serving on its Audit Committee. Joseph F. Killi **** has
        been determined to be such audit committee financial expert and is independent
        (as such term is defined by the New York Stock Exchange's corporate governance
        standards).
  
  The
        SEC
        has indicated that the designation of Joseph F. Killi **** as
        an
        audit committee financial expert does not make him an "expert" for any purpose,
        impose on him any duties, obligations or liability that are greater than
        the
        duties, obligations or liability imposed on him as a member of the Audit
        Committee and the Board of Directors in absence of such designation, or affect
        the duties, obligations or liability of any other member of the Audit Committee
        or Board of
 Directors.
 
 **CODE
        OF ETHICS**
  The
        Registrant has adopted a written “code of ethics” (as that term is defined in
        Form 40-F) that applies to its principal executive officer, principal financial
        officer, principal accounting officer or controller, and persons performing
        similar functions (together, the “Financial Supervisors”). A copy of such code
        of ethics is available upon request or on the Trust’s website at
        www.vermilionenergy.com.
 
 **PRINCIPAL
        ACCOUNTANT FEES AND SERVICES**
 
 See
        page 35 of the Annual Information Form included as Exhibit 99.1 to this
        report.
  **AUDIT
        COMMITTEE'S PRE-APPROVAL POLICIES AND PROCEDURES**
  The
        audit committee pre-approves all audit related fees. The auditors present
        the
        estimate for the annual audit related services to the Committee for approval
        prior to undertaking the annual audit of the financial statements.
 
 **AUDIT
        COMMITTEE APPROVAL OF NON-AUDIT SERVICES**
 
 All
        non-audit fees were pre-approved by the Registrant’s audit committee and none
        were approved on the basis of the de minimis exemption set forth in Rule
        2-01(c)(7)(i)(C) of Regulation S-X .
 
 **NOTICES
        RELATING TO PENSION FUND BLACKOUT PERIODS**
 
 None
 
 **OFF-BALANCE
        SHEET ARRANGEMENTS**
  None
  **TABULAR
        DISCLOSURE OF CONTRACTUAL OBLIGATIONS**
 
 Payments
        due by period (Cdn $000’s)
 
 **Total**
              **Less
                  than 1 year**
              **1-3
                  years**
              **4-5
                  years**
              **More
                  than 5 years**Long-term
                  debt obligations
              358,236
              -
              358,236Total
              358,236
              -
              358,236
  **IDENTIFICATION
        OF THE AUDIT COMMITTEE**
  See
        page 35 of the Renewal Annual Information Form included as Exhibit 99.1 to
        this
        report.
  2
  **UNDERTAKING
        AND CONSENT TO SERVICE OF PROCESS**
  **A.
        Undertaking**
 
 The
        Registrant undertakes to make available, in person or by telephone,
        representatives to respond to inquiries made by the staff of the SEC, and
        to
        furnish promptly, when requested to do so by the SEC staff, information relating
        to the securities in relation to which the obligation to file an annual report
        on Form 40-F arises or transactions in said securities.
 
 **B.
        Consent to Service of Process**
 
 The
        Registrant has previously filed with the SEC a Form F-X in connection with
        the
        class of securities in relation to which the obligation to file this report
        arises.
 
 **SIGNATURES**
 
 Pursuant
        to the requirements of the Exchange Act, the Registrant certifies that it
        meets
        all of the requirements for filing on Form 40-F and has duly caused this
        annual
        report to be signed on its behalf by the undersigned, thereto duly
        authorized.
  **VERMILION
                  ENERGY TRUST (the Registrant)**Date:
                  March 20,
                  2007
                By:(“Curtis
                  Hicks”)Curtis
                    W. HicksExecutive
                    Vice President and Chief Financial
                    Officer
 ****
 
 
 
 3




**EXHIBIT
        INDEX**
 
 **Exhibits**
              
              **Description**99.1
              
              Annual
                  Information Form for the Year Ended December 31, 200699.2
              
              Management's
                  Discussion and Analysis from the 2006 Annual Report to
                  Shareholders99.3
              
              Audited
                  Annual Financial Statements for the Year Ended December 31,
                  200699.4
              
              Consent
                  Letter fromIndependent
                  Registered Chartered Accountants99.5
              
              Consent
                  of Independent Engineers GLJ Petroleum Consultants Ltd.99.6
              
              Officers'
                  Certifications Required by Rule 13a-14(a) or Rule
                  15d-14(a)99.7
              
              Officers'
                  Certifications Required by Rule 13a-14(b) or Rule 15d-14(b) and
                  Section
                  1350 of Chapter 63
                  of Title 18 of the United States
                  Code