<PAGE>   1

                                   FORM 10-Q/A

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


(Mark One)

[X]           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                       SECURITIES AND EXCHANGE ACT OF 1934


For the quarterly period ended March 31, 2001.

                                       OR

[ ]           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

For the transition period from  . . . . . . . . .  to . . . . . . . . .

Commission file number 1-8581

                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST
             (Exact name of registrant as specified in its charter)

<Table>
<S>                                                                       <C>
                      TEXAS                                               72-6108468
  (State or other jurisdiction of incorporation                        (I.R.S. Employer
                 or organization)                                     Identification No.)


        THE CHASE MANHATTAN BANK, TRUSTEE                                    78701
                    700 LAVACA                                            (Zip Code)
                   AUSTIN, TEXAS
     (Address of principal executive offices)
</Table>

       Registrant's telephone number, including area code: (512) 479-2562

   (Former name, former address and former fiscal year, if changed since last
                                    report)

         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 (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes  X    No
            -------



<PAGE>   2



                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST

                                TABLE OF CONTENTS


<Table>
<Caption>
                                                                          PAGE
<S>                                                                      <C>
Part I.  Financial Information
         Item 1.  Financial Statements:
              Statements of Royalty Proceeds and Distributable
                Cash       .................................................3
              Statements of Assets, Liabilities and Trust Corpus  ..........3
              Statements of Changes in Trust Corpus  .......................4
              Notes to Financial Statements  ...............................5
              Report of Independent Public Accountants  ....................9
         Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operation  .........................10

Part II. Other Information

         Item 6.  Exhibits and Reports on Form 8-K  .......................

Signature  ................................................................
</Table>



                                        2
<PAGE>   3






<Table>
<Caption>
                                                        THREE MONTHS ENDED
                                                            MARCH 31,
                                                       2001             2000
<S>                                             <C>               <C>
Royalty proceeds ............................   $         --      $         --
Trust Administrative expenses ...............         (106,800)          (74,614)
Interest Income .............................            7,262            10,611
Reserve for future Trust expenses ...........           99,538            64,003

Distributable Cash ..........................   $         --      $         --

Distributable cash per unit .................   $         --      $         --

Units Outstanding ...........................       14,975,390        14,975,390
</Table>

               STATEMENTS OF ASSETS, LIABILITIES, AND TRUST CORPUS

<Table>
<Caption>
                                                                        MARCH 31,         DECEMBER 31,
                                                                          2001                2000
                           ASSETS
                                                                          (UNAUDITED)
<S>                                                                <C>                 <C>
Cash and short-term investments ................................   $        515,921    $        615,459
Net overriding royalty interest in oil and gas properties ......        189,875,741         189,875,741
Less, accumulated amortization of net overriding royalty
     interest ..................................................       (189,875,741)       (189,875,741)

              Total assets .....................................   $        515,921    $        615,459

                LIABILITIES AND TRUST CORPUS
Reserve for future Trust expenses ..............................   $        515,921    $        615,459
Trust corpus (14,975,390) Units of Beneficial Interest
     authorized issued and outstanding) ........................               --                  --

Total liabilities and trust corpus .............................   $        515,921    $        615,459

</Table>



                                       3
<PAGE>   4






<Table>
<Caption>
                                                                             THREE MONTHS ENDED
                                                                                  MARCH 31,
                                                                          2001                 2000
<S>                                                                <C>                  <C>
Trust Corpus, beginning of year ................................   $             --     $             --
Royalty proceeds and interest income, net of trust
      administrative expenses and reserve for future Trust
      expenses .................................................                 --                   --
Distributions payable to Unit holders ..........................                 --                   --
Amortization of net overriding royalty interest ................                 --                   --

Trust Corpus, end of period ....................................   $             --     $             --

</Table>

The accompanying notes are an integral part of these financial statements.



                                       4
<PAGE>   5


                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST

                          NOTES TO FINANCIAL STATEMENTS

1. BACKGROUND AND STATUS

         Freeport-McMoRan Oil and Gas Royalty Trust (the Trust) was created
effective September 30, 1983. On that date, Freeport-McMoRan Inc. (FTX)
transferred to a Partnership (the Partnership) a net overriding royalty interest
in certain offshore oil and gas properties equal to 90 percent of the Net
Proceeds (as defined in the Conveyance referred to below) from FTX's working
interests in such properties and conveyed a 99.9 percent general partnership
interest in the Partnership to the Trust. Such net overriding royalty interest
is referred to herein as the "Royalty." The Overriding Royalty Conveyance which
created the Royalty is referred to herein as the "Conveyance." IMC Global Inc.
("IMC") succeeded to FTX effective December 22, 1997, following the merger of
FTX into IMC. Accordingly, IMC is now the working Interest Owner and owns the
oil and gas interests burdened by the Royalty. The Conveyance provides that the
owner of the interests burdened by the Royalty will calculate and pay monthly to
the Partnership an amount equal to 90 percent of the net proceeds for the
preceding month. Net proceeds generally consist of the excess of gross revenues
received from the Royalty Properties (Gross Proceeds), on a cash basis, over
operating costs, capital expenditures and other charges, on an accrual basis
(Net Proceeds). The Trust is passive, with Chase Manhattan Bank as Trustee. The
Trustee has only such powers as are necessary for the collection and
distribution of revenues attributable to the Royalty, the payment of Trust
liabilities and the protection of Trust assets.


         The Trust Indenture provides generally that the Trust shall terminate
upon the first to occur of: (i) the sale of all the Trust's interest in the
Partnership, or the sale by the Partnership of all the assets of the Partnership
including the Royalty, or (ii) a decision to terminate the Trust by the
affirmative vote of Unit holders representing a majority of the Units. The Trust
Indenture originally stated that the Trust must also terminate if the amount of
cash per year received by the Trust for each of three successive years
commencing after December 31, 1990 is less than $3 million. The Trust's cash
receipts were less than $3 million in 1996, 1997 and 1998. However, at a special
meeting of the Unit holders held on March 12, 1999, the Unit holders approved a
shareholder proposal to amend the Trust Indenture to extend the life of the
Trust for at least two years. This extension expired on December 31, 2000, as
there were no payments in respect of the Royalty during 1999 and 2000.
Therefore, the Trust Indenture provides the Trustee must sell the Trust's
interest in the Partnership or cause the Partnership to sell the Royalty.
Pursuant to a shareholder proposal, the Trustee is working on proxy materials
and anticipates filing definitive proxy materials with a plan for distribution
of the Trust's assets.



                                       5
<PAGE>   6

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         The Trust's financial statements, which reflect the Trust's 99.9
percent interest in the Partnership, are prepared on the cash basis of
accounting for reporting revenues and expenses. Therefore, revenues and expenses
are recognized only as cash is received or paid and the associated receivables,
payables and accrued expenses are not reflected in the accompanying financial
statements. Under accounting principles generally accepted in the United States,
revenues and expenses would be recognized on an accrual basis.

         The initial carrying amount of the Royalty represented the working
Interest Owner's net book value applicable to the interest in the properties
conveyed to the Trust on the date of creation of the Trust. Amortization of the
Royalty has been charged directly against trust corpus using the future net
revenue method. This method provides for calculating amortization by dividing
the unamortized portion of the Royalty by estimated future net revenues from
proved reserves and applying the resulting rate to the Trust's share of royalty
proceeds.


         The Trust considers all highly liquid investments purchased with a
maturity of three months or less to be cash equivalents. The Trust's expense
reserve is invested in certificates of deposit which mature every thirty days.


         The carrying value of the Royalty is limited to the discounted present
value (at 10 percent) of estimated future net cash flows. Any excess carrying
value is reduced and the adjustment is charged directly against trust corpus.
The carrying value of the Royalty is $0 at March 31, 2001 and 2000. The carrying
value is not necessarily indicative of the fair market value of the Royalty held
by the Trust.

3.       COST CARRY-FORWARD

         As a result of the capital costs incurred in recent years, a cumulative
excess Class A cost carry-forward of $17,345,399 existed as of March 31, 2001.
The cost carry-forward is subject to and includes an interest amount at the
prime rate, which totaled $425,771 net to the Trust during the three-month
period ended March 31, 2001. This excess Class A cost carry-forward, including
the interest factor, must be recouped by the Working Interest Owner out of
future Gross Proceeds before distributions to the Unit holders can be resumed.

4.       GAS BALANCING ARRANGEMENTS

         As a result of past curtailments in gas takes by the principal
purchaser of production from the Royalty Properties, certain quantities of gas
have been sold by other parties with interests in the Royalty Properties
pursuant to gas balancing arrangements. Proceeds from gas produced from the
Royalty Properties but sold by other parties pursuant to such balancing
arrangements (underproduction) are not included in Gross Proceeds for purposes
of calculating the Royalty. In the future, the Working Interest Owner will be
entitled to sell volumes equal to such underproduction or receive cash
settlements. On certain of the Royalty Properties, a cash settlement may be
required, depending on future results, due to the lack of sufficient remaining
reserves from which to makeup any underproduction. As of March 31, 2001, the
unrecovered quantity of gas sold by third parties pursuant to such gas balancing
arrangements since inception of the Trust was approximately .2 billion cubic
feet (bcf), net to the Trust. Gross Proceeds will be increased in future periods
when the


                                       6
<PAGE>   7

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

Working Interest Owner is compensated either through the sale of gas or through
cash settlements, the amount and timing of which are uncertain. In addition,
other factors, including the credit worthiness of the counter parties should be
considered in determining the probability and the amount of the future proceeds.

5.       GAS CONTRACT SETTLEMENT

         The Working Interest owner has brought suit against a prior gas
purchaser, seeking reimbursement as excess royalty of a portion of amounts paid
to the Minerals Management Service (MMS) by the Working Interest Owner to settle
claims made by the MMS for additional royalty resulting from the Working
Interest Owner's compromise of claims against the gas purchaser. The Trust's
interest in the proceeds of the gas contract settlement were included in the
Trust's Gross Proceeds and the funds paid to the MMS reduced the Trust's Gross
Proceeds. The suit is in the early stages, and no trial date has been set. The
amount of any recovery with respect to this claim is presently indeterminable.
However, if the Working Interest owner receives any amount in this litigation, a
major portion of it will be treated as Gross Proceeds.

6.       ESTABLISHMENT OF AN EXPENSE RESERVE

         Because of the decline in Royalty income, at certain times since late
1993 the Trust was unable to pay its ongoing administrative expenses. To permit
the Trust to pay its routine administrative expenses, the Trustee, in accordance
with the Trust Indenture, established an expense reserve of $2.4 million of
which $.5 million remained as of March 31, 2001. During the first three months
of 2001, $.1 million was withdrawn from the expense reserve to pay Trust
administrative expenses.

         The funding for this reserve is deposited with Chase Manhattan Bank and
invested in Chase Manhattan Bank collateralized certificates of deposit. The
average interest rate earned on these funds for the first quarter of 2001 and
2000 was 5.08 percent and 4.87 percent, respectively.


         The expense reserve is established at the Trust level and is unrelated
to the items, including the cost carry-forward, that are taken into account by
the Working Interest Owner in determining whether amounts are payable pursuant
to the Royalty.


7.       FEDERAL INCOME TAX MATTERS

         The Trustee reports on the basis that the Trust is a grantor trust. As
a grantor trust, the Trust will incur no federal income tax liability. In
addition, it will incur little or no federal income tax liability if its is held
to be a non-grantor trust. If the Trust was held to be taxable as a corporation,
it would have to pay tax on its net taxable income at the corporate rate.

8.       RESERVE FOR FUTURE ESTIMATED ABANDONMENT COSTS

         Estimated future abandonment costs are accrued over the life of the
Trust's properties based on current laws and regulations. During the 1997 fourth
quarter an updated assessment of estimated future abandonment costs was
undertaken, by the Working Interest Owner taking into consideration current
labor and equipment costs levels and permitted abandonment practices. This
assessment resulted in a revision of estimated remaining future abandonment
costs to an amount that is approximately equal to amounts previously withheld
from distributions to Unitholders. Such costs are by their nature imprecise and
can be expected to be revised over time because of changes in general and
specific cost levels, government regulations, operation or technology. As of
March 31, 2001, the estimated remaining aggregate abandonment costs to be
incurred for all


                                       7
<PAGE>   8


of the Trust's properties totaled $4.2 million net to the Trust, all of which
has been taken into account in computing the cost carry-forward.


9.       TRANSPORTATION AGREEMENT


         In December 1997 the Working Interest Owner entered into a crude oil
agreement with an oil pipeline company to deliver on a daily basis specified
quantities of crude oil from West Cameron 498. Under the terms of the agreement
the Working Interest Owner agreed to pay a transportation fee calculated at a
sliding monthly rate based upon the total average daily volumes delivered from
West Cameron 498 during the month. Should the annual minimum delivery volume not
be met a deficiency payment is assessed by the pipeline. During 2000 and 1999
the Working Interest Owner did not deliver the minimum volume under the
agreement therefore, in 2001 the pipeline company billed the Working Interest
Owner approximately $0.5 million for the 2000 deficiency. This amount was taken
into account in computing the Class A cost carry-forward of $17.3 million, as it
was paid and will be included in the Class A cost-carry forward in the second
quarter of 2001. During 2000 the Working Interest Owner paid the oil pipeline
company approximately $0.7 million for the 1999 deficiency. This amount was
taken into account in computing the Class A cost carry-forward. Based on 2001
projected production the minimum delivery volumes will not be met in 2001 and
the Working Interest Owner expects a deficiency assessment of approximately $.2
million in 2001. However should production exceed the 2001 minimum, the Working
Interest Owner is entitled to receive transportation without pay up to the
cumulative prior underdelivered volumes of 1.1 million barrels.


---------------------

         THE INFORMATION FURNISHED HEREIN SHOULD BE READ IN CONJUNCTION WITH THE
FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST FINANCIAL STATEMENTS FOR THE YEAR
ENDED DECEMBER 31, 2000, WHICH ARE CONTAINED IN ITS ANNUAL REPORT ON FORM 10-K
FOR 2000.


                                       8
<PAGE>   9


                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To Chase Bank of Texas National Association (Trustee) and the Unit Holders of
Freeport-McMoRan Oil and Gas Royalty Trust:

         We have reviewed the accompanying statement of assets, liabilities and
trust corpus of Freeport-McMoRan Oil and Gas Royalty Trust as of March 31, 2001,
and the related statements of royalty proceeds and distributable cash and
changes in trust corpus for the three-month periods ended March 31, 2001 and
2000. 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 auditing standards generally accepted in the United States, 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.

         As discussed in Note 2, these financial statements were prepared on the
cash basis of accounting, which is a comprehensive basis of accounting other
than accounting principles generally accepted in the United States.

         Based on our reviews, we are not aware of any material modifications
that should be made to the financial statements referred to above for them to be
in conformity with the cash basis of accounting.


                                        ARTHUR ANDERSEN LLP

Houston, Texas

May 10, 2001


                                       9
<PAGE>   10

ITEM 2.        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
               AND RESULTS OF OPERATION

         The information contained herein regarding operations and exploration
and development activities on the properties burdened by the Royalty has been
furnished by the working Interest Owner who obtained this information from the
relevant operators. For convenience, references are made to the Notes to
Financial Statements.

         The following discussion includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although it is believed that these
forward-looking statements are based on reasonable assumptions, important
factors could cause actual results to differ materially from those in the
forward-looking statements herein, including the timing and extent of changes in
commodity prices for oil and gas, environmental risks, drilling and operating
risks, risks related to exploration and development, uncertainties about oil and
gas reserves, government regulations and other matters beyond the control of the
Trustee and the Working Interest Owner.


         Early in December 2000, the Trustee was approached by representatives
of Roberson Oil Company and IMC Global, Inc. (IMC), the Working Interest Owner,
proposing a transaction whereby a to-be-formed corporation (NewCo) would
purchase the Trust assets and the working interest from IMC. Thereafter, Newco
would conduct an exchange offer whereby Unit holders would be offered the
opportunity to exchange, on terms and conditions established by Newco, their
units in the Trust for shares in NewCo. The Trustee has received a shareholder
proposal that would amend the Trust Indenture to allow the transaction to
proceed if the proposal receives the requisite vote of Unitholders. The Trustee
prepared proxy materials for a special meeting of the Unit holders at which the
Unitholders will vote on a proposal to authorize the Trustee to conduct a sale
of the Trust's Royalty for nominal consideration in accordance with the plan
described above. The preliminary proxy materials were filed with the Securities
and Exchange Commission (SEC) on April 4, 2001; revised preliminary proxy
materials were filed with the SEC on July 13, 2001; the Trustee received
additional SEC comments on August 2, 2001 and has filed responses to those
comments. The Trustee is currently waiting on comments from the SEC staff.


         Once the definitive proxy materials are filed and a Unitholders meeting
is set, if a majority of the Unit holders entitled to vote at that meeting in
which a quorum is present vote to authorize the Trustee to sell the Trust's
assets to NewCo the Trustee will do so. If the sale to NewCo is not approved,
the Trustee will proceed to conduct an auction of the Trust properties in
accordance with the existing terms of the Trust Indenture. Complete information
concerning the vote will be provided to the Unit holders in the forthcoming
proxy materials.

         During the first quarter, 2001, the Class A cost carry-forward
decreased by $2.5 million, from $19.8 million at December 31, 2000 to $17.3
million at March 31, 2001. There were no proved reserve quantities and related
discounted cash flows attributable to the Trust as of December 31, 2000. Such
proved reserve estimates are based on various assumptions, many of which are
subject to uncertainties, as more fully discussed in the Trust's Annual Report
on Form 10-K. These estimates do not consider changes in prices and costs
subsequent to December 31, 2000, or the possibility of additional potentially
recoverable reserves not currently classified as proved, and therefore should
not be considered to be a prediction of actual amounts to be paid to the Trustee
or an estimate of fair market value. The Working Interest Owner has advised the
Trustee that, based on an independent review of the oil and gas interests
burdened by the Royalty, the net present value of the reserves contained therein
is substantially less than the cumulative excess Class A cost


                                       10
<PAGE>   11

carry-forward. The information from the Working Interest Owner indicates that
the Royalty may have little or no value, based on the net present value of
reserves determined as a result of the independent review.


         As noted, there has been a reduction in the cost carry-forward during
2001. The Trustee cannot predict whether the oil and gas properties will produce
sufficient quantities of oil and gas in the future to eliminate the cost
carry-forward altogether (in which case Royalties would again be payable). The
Ryder Scott report prepared at year-end 2000 indicated that the production from
proved reserves would decline over time and that a substantial percentage of the
remaining production from proved reserves on the oil and gas properties burdened
by the Royalty would be attributable to production during 2001. It is possible
(if not likely) that, as production from the working interests declines, the
rate at which the cost-carry-forward is reduced will decline, and it is possible
(if not likely) that the cost-carry-forward will never be eliminated, in which
case there would never be payments in respect of the Royalty. In any event, the
Trustee believes that, based on the information in the Ryder Scott report, the
appraisal prepared early last year by Albrecht & Associates and the terms of the
proposed transaction between the Working Interest Owner and TXS, it is not
unreasonable to conclude that there is little or no chance that additional
payments will ever be made with respect to the Royalty. Nevertheless, an auction
of the Royalty would likely produce the best evidence of the Royalty's value or
lack thereof, and if the Unitholders approve the proposal to be submitted at the
special meeting of Unitholders discussed above, no such auction will take place.


RESULTS OF OPERATIONS

         There were no cash distributions to Unit holders during the first three
months of 2001 or 2000. No cash distributions have been made since 1995. During
the first quarter of 2001, Gross Proceeds exceeded total costs by approximately
$2.7 million, primarily because of higher oil and gas prices received. As a
result, the Class A cost carry-forward decreased to $17.3 million net to the
Trust as of March 31, 2001. Since mid-1995, trust administrative expenses have
been paid from the expense reserve. The calculation of distributable cash for
each year follows:

<Table>
<Caption>
                                                        THREE MONTHS ENDED
                                                             MARCH 31,
                                                        2001            2000
<S>                                                 <C>             <C>
Gross Proceeds(1) ...............................   $ 4,513,079     $ 2,772,369
Total costs(2) ..................................    (1,832,264)       (790,375)
Excess Class A cost carry-forward (3) ...........    (2,680,815)     (2,031,994)

Net Proceeds ....................................            --              --
Percentage attributable to Royalty ..............          90.0%           90.0%

Amounts payable attributable to Royalty .........            --              --
Percentage attributable to the Trust ............          99.9%           99.9%

Royalty Proceeds ................................            --              --
Trust administrative expenses ...................      (106,800)        (74,614)
                                                       (106,800)        (74,614)
Interest earned .................................         7,262          10,611
Reserve for future Trust expenses (4) ...........        99,538          64,003

Distributable Cash ..............................   $        --     $        --
</Table>

(1)      Represents amounts received by the Working Interest Owner during the
         three month period ended in February of such year.

(2)      Total costs represent amounts accrued by the working Interest owner
         during the three month period in February of such year. Includes
         interest to the Working Interest owner of $473,552 in 2001 and $518,920
         in 2000.

(3)      Represents Class A costs in excess of Gross Proceeds (Gross Proceeds in
         excess of Class A costs) in the applicable periods.

(4)      Represents the withdrawals from the Trust administrative expense
         reserve during the respective period.


                                       11
<PAGE>   12

         Gross proceeds, which include gas and oil revenues, are calculated
based on amounts received by the Working Interest Owner. Operating information
follows:

<Table>
<Caption>
                                                                       FIRST QUARTER
                                                                      2001         2000
<S>                                                                <C>          <C>
Natural Gas
       Revenues (in millions) ...................................     $  1.6       $  0.3
       Sales volumes (in million cubic feet) ....................      291          114
       Average realization (per thousand cubic feet) ............     $  5.49      $  2.61
Oil
       Revenues (in millions) ...................................     $  2.9       $  2.5
       Sales volumes (in thousands of barrels) ..................       94           92
       Average realization (per barrel) .........................     $ 30.69      $ 26.89
</Table>

         Oil and gas volumes for the first quarter of 2001 increased
significantly as compared to the first quarter of 2000. The increases in oil and
gas volumes coupled with the increases in average oil and gas prices resulted in
a significant increase in oil and gas revenues for the first quarter of 2001.
This is primarily due to the operator performing workovers on individual wells
that offset the field decline and increased production. Some of those workovers
were designed to increase recoveries from existing producing intervals and
others were designed to recover oil and gas from different intervals that were
expected to be productive.

         Costs consist of the following (in millions):

<Table>
<Caption>
                                                                               FIRST QUARTER
                                                                           2001           2000
<S>                                                                        <C>            <C>
Lease operating expenses  ........................................          $ .7          (.8)
Exploration and development costs  ...............................            .6          1.0
Interest .........................................................            .5           .5
 ..................................................................          $1.8           .7
</Table>

         Lease operating expenses for the first quarter of 2001 increased
significantly over the 2000 period because the Working Interest Owner believed
the costs charged for High Island 552 to be excessive and has conducted an audit
of High Island Block 552 in the fourth quarter of 1999. This audit resulted in a
credit issued by the operator of $1.5 million net to the working interest owner.
This credit was issued during the first quarter of 2000.


In December 1997 the Working Interest Owner entered into a crude oil agreement
with an oil pipeline company to deliver on a daily basis specified quantities of
crude oil from West Cameron 498. Under the terms of the agreement the Working
Interest Owner agreed to pay a transportation fee calculated at a sliding
monthly rate based upon the total average daily volumes delivered from West
Cameron 498 during the month. Should the annual minimum delivery volume not be
met a deficiency payment is assessed by the pipeline. During 1999 the Working
interest Owner did not deliver the minimum volume under the agreement therefore,
in February 2000, the pipeline company billed the Working Interest Owner
approximately $0.7 million for the 1999 deficiency. This amount was taken into
account in computing the Class A cost carry-forward in 2000. During 2000 the



                                       12
<PAGE>   13


Working Interest Owner did not deliver the minimum volume under the agreement
therefore, in February 2001 the pipeline company billed the Working Interest
Owner approximately $0.5 million for the 2000 deficiency. This amount was paid
and will be taken into account in computing the Class A cost carry-forward in
the second quarter of 2001. Based on 2001 projected production the minimum
delivery volumes will not be met in 2001. However, should production exceed the
2001 minimum the working Interest Owner is entitled to receive transportation
without pay up to the cumulative prior undelivered volumes.


         Exploration and development costs for the first quarter relate
primarily to the payment during 2001 of invoices relating to installing
additional water handling and compression equipment and workovers performed at
West Cameron Block 498.

CAPITAL RESOURCES AND LIQUIDITY

         All revenues received by the Trust, net of Trust administrative
expenses and liabilities, are distributed to the Unit holders in accordance with
provisions of the Trust Indenture. The Class A cost carry-forward, with interest
at the prime rate, must be recouped from future Gross Proceeds before any
distributions may be made to Unit holders.

         Additional exploration may be proposed by the operators of certain
other Royalty Properties. After analyzing each proposal, the Working Interest
Owner will determine whether or not to participate in additional exploratory
operations.

         There are no exploration and development costs formally budgeted for
2001, however, the operator of the West Cameron Block 498 installed additional
water handling and compression equipment resulting in the working interest owner
incurring $0.6 million in development cost.

         The Working Interest owner is reviewing all options relating to its
ownership interest in the remaining properties, including discussions with
several unitholders.


         As of March 31, 2001, the estimated remaining aggregate abandonment
costs to be incurred for all of the Trust's properties totaled $4.2 million net
to the Trust, all of which has been taken into account in computing the
cost-carry-forward. Such costs are by their nature imprecise and can be expected
to be revised over time because of changes in general and specific cost levels,
government regulations, operations or technology. Any further adjustments to
estimated abandonment costs or variances to actual costs will reduce or increase
future distributable cash accordingly.

         At certain times since late 1993, the Trust has been unable to pay its
ongoing administrative expenses. To permit the Trust to pay its administrative
expenses during the time the Trust incurs a Class A cost deficit, the Trustee,
in accordance with the Trust Indenture, established a $2.4 million Trust
administrative expense reserve to pay such expenses (see Note 6 -- Establishment
of an Expense Reserve), of which $0.5 million remained at March 31, 2001.

         The Trustee may sell or dispose of its interest in the Partnership, or
permit the Partnership to sell or dispose of all or any part of the Royalty,
only as authorized by a vote of Unit holders, upon termination of the Trust and
in certain other limited circumstances. However, The Trust Indenture also stated
that if the amount of cash per year received by the Trust for each of three
successive years commencing after December 31, 1990 is less than $3 million, the
Trustee will sell (without any such vote) the Trust's interest in the
Partnership or cause the Partnership to sell the Royalty.



                                       13
<PAGE>   14


         The Trust's cash receipts were less than $3 million in 1996, 1997 and
1998. However, at a special meeting of the Unit holders held on March 12, 1999,
the Unit holders approved a shareholder proposal to amend the Trust Indenture to
extend the life of the Trust for at least two years. This extension expired on
December 31, 2000. Therefore, the Trust Indenture provides the Trustee must sell
the Trust's interest in the Partnership or cause the Partnership to sell the
Royalty. Pursuant to a shareholder proposal, the Trustee is working on proxy
materials with a plan for distribution of the Trust's assets.



                                       14
<PAGE>   15

                                   SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned, thereunto duly authorized.

                                            FREEPORT-McMoRan OIL AND GAS
                                            ROYALTY TRUST

                                            By: The Chase Manhattan Bank,
                                                Trustee

                                            By: /s/ MIKE ULRICH
                                               ------------------------------


                                      --15--