**STATEMENTS    OF FEES AND EXPENSES****PAID BY SABINE ROYALTY TRUST TO****BANK OF AMERICA, N.A., AS****TRUSTEE AND ESCROW AGENT, FOR EACH OF THE THREE****YEARS IN THE PERIOD ENDED DECEMBER 31, 2008**                 **2008**  **2007**  **2006**      Trustee’s fee     $    331,898      $    332,928      $    317,251     Escrow agent’s fee      995,680       998,758       951,740                  Total fees and expenses      1,327,578       1,331,686       1,268,991                   The accompanying notes are an integral part of these statements. **Notes** **1. **Sabine Royalty Trust (the “Trust”) is    an express trust formed under the laws of Texas by the Sabine    Corporation Royalty Trust Agreement (the “Trust    Agreement”) made and entered into effective as of    December 31, 1982, between Sabine Corporation    (“Sabine”), as trustor, and Bank of America, N.A. (the    “Bank”), as successor trustee (the    “Trustee”). Contemporaneously with the execution of    the Trust Agreement, Sabine, the Trustee and the predecessor of    the Bank, as escrow agent (the “Escrow Agent”),    entered into an escrow agreement which establishes an escrow    (the “Escrow”). Prior to distribution of units of    beneficial interest (the “Units”) in the Trust to    Sabine’s shareholders, Sabine transferred to the Trust    royalty and mineral interests, including landowner’s    royalties, overriding royalty interests, minerals (other than    executive rights, bonuses and delay rentals), production    payments and other similar, non-participatory interests, in    certain producing and proved undeveloped oil and gas properties    in six states (the “Royalty Properties”).     In May 1988, Sabine was acquired by Pacific Enterprise    (“Pacific”), a California corporation. Through a    series of mergers, Sabine was merged into Pacific Enterprises    Oil Company (USA) (“Pacific (USA)”), a California    corporation and a wholly owned subsidiary of Pacific, effective    January 1, 1990. This acquisition and the subsequent    mergers had no effect on the Units. Pacific (USA), as successor    to Sabine, has assumed by operation of law all of Sabine’s    rights and obligations with respect to the Trust.     The compensation agreement under the Trust Agreement provides    for a “cost plus” fee payable to the Bank for all    services rendered in its capacities as Trustee and as Escrow    Agent. Generally, the fees payable to the Bank are calculated by    dividing the expenses incurred by the Bank, as Trustee and as    Escrow Agent, solely for services provided by the Bank in the    administration of the Trust and the Escrow by seven-tenths    (0.7). Professional and other noncontributing (out-of-pocket)    expenses incurred by the Bank, as Trustee or as Escrow Agent, as    the case may be, in the performance of its duties in the    foregoing capacities are charged to the Trust or the Escrow, as    the case may be, at cost. These expenses do not contribute to    the fees payable to the Bank described above. Annually, the    Trustee must estimate Trust and Escrow expenses contributing to    the fee for the forthcoming year and publish this amount in the    Trust’s first quarterly report to Unit holders. The Trustee    can be penalized by forfeiture of reimbursement for part of its    expenses if such expenses exceed the estimate. The Trustee also    can earn a bonus by administering the Trust for total costs that    are lower than the estimate. The Bank elected to forego bonuses    earned of $47,422, $18,314 and $11,009 in 2008, 2007, and 2006,    respectively. **2. **Escrow Agent’s fees and Trustee’s fees    consist of a profit margin plus all fully allocated costs    incurred by the Bank, as Trustee and as Escrow Agent, in    performing administrative services to the Trust as specified in    the Trust Agreement. Allocated costs do not include any    professional and related expenses paid to third parties.     All costs incurred by the Bank in its capacities as Trustee and    as Escrow Agent are accumulated in one account. Fees based    thereon are allocated between the Trustee function and the    Escrow Agent function according to the actual administrative    services rendered by the Bank in each capacity. Any    determinations by

 
    the Bank as to the allocation of the fee between the Trustee and    the Escrow Agent are conclusive and binding on the Unit holders    and Pacific (USA), but in no event does the Bank’s    allocation affect the aggregate fee payable to the Bank. **3.** The Statements of Fees and Expenses are prepared    on a modified cash basis, which is a comprehensive basis of    accounting other than accounting principles generally accepted    in the United States of America. Trust expenses include payments    made during the accounting period. Expenses are accrued to the    extent of amounts that become payable on the next monthly record    date following the end of the accounting period. These    statements differ from statements prepared in conformity with    accounting principles generally accepted in the United States of    America because expenses other than those expected to be paid on    the following monthly record date are not accrued.     This comprehensive basis of accounting other than accounting    principles generally accepted in the United States of America    corresponds to the accounting permitted for royalty trusts by    the U.S. Securities and Exchange Commission, as specified by    Staff Accounting Bulletin Topic 12:E, Financial Statements of    Royalty Trusts.