<PAGE>   1

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
                                   FORM 10-Q

                       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, 2000.

                                       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.)

   CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, TRUSTEE                            77002
                    712 MAIN STREET                                           (Zip Code)
                     HOUSTON, TEXAS
        (Address of principal executive offices)
</TABLE>

       Registrant's telephone number, including area code: (713) 216-5712

                      ....................................

   (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..................    3
     Notes to Financial Statements..........................    4
     Report of Independent Public Accountants...............    8

  Item 2.  Management's Discussion and Analysis of Financial
     Condition and Results of Operations....................    9

Part II.  Other Information

  Item 6.  Exhibits and Reports on Form 8-K.................    13

Signature...................................................    14
</TABLE>

                                      --2--
<PAGE>   3

                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST
             STATEMENTS OF ROYALTY PROCEEDS AND DISTRIBUTABLE CASH
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                  THREE MONTHS ENDED
                                                                      MARCH 31,
                                                              --------------------------
                                                                 2000           1999
                                                              -----------    -----------
<S>                                                           <C>            <C>
Royalty proceeds............................................  $        --    $        --
Trust Administrative expenses...............................      (74,614)      (128,894)
Interest Income.............................................       10,611         14,444
Reserve for future Trust expenses...........................       64,003        114,450
                                                              -----------    -----------
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,
                                                                  2000             1999
                           ASSETS                             -------------    -------------
                                                               (UNAUDITED)
<S>                                                           <C>              <C>
Cash and short-term investments.............................  $     832,617    $     896,620
Net overriding royalty interest in oil and gas properties...    189,875,741      189,875,741
Less, adjustment to recorded cost of net overriding royalty
  interest in oil and gas properties........................    (25,614,756)     (25,614,756)
Less, accumulated amortization of net overriding royalty
  interest..................................................   (164,260,985)    (164,260,985)
                                                              -------------    -------------
          Total assets......................................  $     832,617    $     896,620
                                                              =============    =============

                LIABILITIES AND TRUST CORPUS
Reserve for future Trust expenses...........................  $     832,617    $     896,620
Trust corpus (14,975,390) Units of Beneficial Interest
  authorized issued and outstanding)........................             --               --
                                                              -------------    -------------
          Total liabilities and trust corpus................  $     832,617    $     896,620
                                                              =============    =============
</TABLE>

                     STATEMENTS OF CHANGES IN TRUST CORPUS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED
                                                                   MARCH 31,
                                                              --------------------
                                                                2000        1999
                                                              --------    --------
<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.

                                      --3--
<PAGE>   4

                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST

                         NOTES TO FINANCIAL STATEMENTS
1. THE TRUST

     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." The Trust is
passive, with Chase Bank of Texas, National Association 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 also provides that the Trustee is required to sell the Trust's
interest in the Partnership, or cause the Partnership to sell the Royalty, if
the Trust's cash receipts for each of three successive years are less than $3
million, thereby terminating the Trust pursuant to (i) above. The Trust's cash
receipts were less than $3 million dollars in 1996, 1997, and 1998 and,
therefore, the terms of the Trust Indenture dictate that the Trustee effect such
a sale. However, the Unit holders of the Trust, at a special meeting of the Unit
holders held on March 12, 1999, approved a shareholder proposal to amend the
Trust Indenture to extend the life of the Trust for at least another two years.
Any such amendment of the Trust Indenture requires the written approval of the
Trustee as well as approval of the Unit holders. IMC has filed a declaratory
judgment action seeking to prevent the Trustee from approving the amendment. The
Trustee will take no action to approve the amendment until such time as the
lawsuit is resolved. After filing of the lawsuit, IMC pursued limited discovery.
The Trustee, pursuant to its powers under the Trust Indenture, and IMC have
entered into settlement negotiations. To allow adequate time to pursue all
settlement options, IMC and the Trustee moved for and received from the District
Court an Agreed Order on Joint Motion to Abate. In furtherance of settlement
negotiations and while the lawsuit is abated, the Trustee has retained Albrecht
& Associates to assist it in connection with a possible settlement.

     The Trust's cash receipts last reached $3 million during 1995 and there
were no cash receipts in 1996, 1997, 1998 or 1999. Additionally, the Class A
cost carry-forward is $20.6 million at March 2000 (see Note 4), primarily from
the significant development costs incurred at West Cameron Blocks 498 and 215.
This cost carry-forward must be recouped by the Working Interest Owner before
any distribution may be made to the Trust.

2. THE ROYALTY

     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

                                      --4--
<PAGE>   5
                  NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

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).

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The Trust's financial statements, which reflect the Trust's 99.9 percent
interest in the Partnership as though the Partnership did not exist, 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 generally accepted accounting
principles, 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 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, 2000. The carrying value is
not necessarily indicative of the fair market value of the Royalty held by the
Trust.

4. DISTRIBUTIONS TO UNIT HOLDERS

     As a result of the capital costs incurred in recent years, a cumulative
excess Class A cost carry-forward of $20,600,128 existed as of March 31, 2000.
The cost carry-forward is subject to and includes an interest amount at the
prime rate, which totaled $466,562 net to the Trust during the three month
period ended March 31, 2000. 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.

5. 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

                                      --5--
<PAGE>   6
                  NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

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, 2000, 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 Working Interest Owner is compensated
either through the sale of gas or through cash settlements, the amount and
timing of which are uncertain.

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 $832,617 remained as of March 31, 2000. Because of the cumulative excess
Class A cost carry-forward, $64,003 was withdrawn from the expense reserve
during the first three months of 2000 to pay Trust administrative expenses.

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

7. FEDERAL INCOME TAX MATTERS

     Because the Trust is a grantor trust which is not a taxable entity, no
income taxes are reported in the Trust's financial statements. The tax
consequences of owning Units are included in the federal, state and local income
tax returns of the individual Unit holders.

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, 2000, 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
withheld from distributions to Unit holders.

                                      --6--
<PAGE>   7
                  NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)

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 1999 and 1998
the Working Interest Owner did not deliver the minimum volume under the
agreement therefore, in 2000 the pipeline company billed the Working Interest
Owner approximately $724,000 for the 1999 deficiency. This amount is not
included in the Class A cost carry-forward of $20.6 million, as it was paid and
will be included in the Class A cost-carry forward in the second quarter of
2000. During 1999 the Working Interest Owner paid the oil pipeline company
approximately $687,000 for the 1998 deficiency. This amount is included in the
Class A cost carry-forward. Based on 2000 projected production the minimum
delivery volumes will not be met in 2000. However should production exceed the
2000 minimum, the Working Interest Owner is entitled to receive transportation
without pay up to the cumulative prior underdelivered volumes.

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

     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, 1999, WHICH ARE CONTAINED IN ITS ANNUAL REPORT ON FORM 10-K
FOR 1999.

                                      --7--
<PAGE>   8

                   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, 2000,
and the related statements of royalty proceeds and distributable cash and
changes in trust corpus for the three month periods ended March 31, 2000 and
1999. 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 3, 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 11, 2000

                                      --8--
<PAGE>   9

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.

     During the first quarter, 2000, the Class A cost carry-forward decreased by
$1.8 million, from $22.4 million at December 31, 1999 to $20.6 million at March
31, 2000. There were no proved reserve quantities and related discounted cash
flows attributable to the Trust as of December 31, 1999. 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, 1999, 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 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. Depending on the resolution of the IMC Lawsuit
(see Note 1 -- The Trust), the Trustee will take appropriate actions to continue
to administer the Trust throughout the extension period approved by the Unit
holders or liquidate the Trust by selling the Trust assets for cash to the
highest bidder in accordance with the terms of the Trust Indenture. The
resolution or settlement of the lawsuit could result in other actions.

RESULTS OF OPERATIONS

     There were no cash distributions to Unit holders during the first three
months of 2000 or 1999. No cash distributions were made during 1999, 1998 and
1997, because of capital expenditures and lower gas and oil revenues. During the
first quarter of 2000, Gross Proceeds exceeded total costs by approximately $2.0
million, primarily because of a credit of $1.5 million for lease operating
expenses received from the operator of High Island Block 552. As a result, the
Class A cost carry-forward decreased to $20.6 million net to the Trust as of

                                      --9--
<PAGE>   10

March 31, 2000. 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,
                                                              -----------------------------
                                                                  2000            1999
                                                              -------------   -------------
<S>                                                           <C>             <C>
Gross Proceeds(1)...........................................   $ 2,772,369     $ 1,251,135
Total costs(2)..............................................      (740,375)     (2,211,884)
Excess Class A cost carry-forward(3)........................    (2,031,994)        960,749
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...............................       (74,614)       (128,894)
                                                               -----------     -----------
                                                                   (74,614)       (128,894)
Interest earned.............................................        10,611          14,444
Reserve for future Trust expenses(4)........................        64,005         114,450
                                                               -----------     -----------
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 $518,920 in 2000 and $561,709 in 1999.

(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.

     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
                                                              ---------------
                                                               2000     1999
                                                              ------   ------
<S>                                                           <C>      <C>
Natural Gas
  Revenues (in millions)....................................  $  0.3   $   .7
  Sales volumes (in million cubic feet).....................     114      405
  Average realization (per thousand cubic feet).............  $ 2.61   $ 1.77
Oil
  Revenues (in millions)....................................  $  2.5   $   .5
  Sales volumes (in thousands of barrels)...................      92     49.2
  Average realization (per barrel)..........................  $26.89   $18.83
</TABLE>

                                     --10--
<PAGE>   11

     Gas volumes for the first quarter of 2000 decreased significantly compared
to the 1999 period. This is primarily due to the assignments in 1999 of West
Cameron Block 215, Breton Sound Block 55, Vermilion Block 58 and Vermilion
Blocks 21/22 to the operators in exchange for the operator assuming all duties
and obligations with respect to the assigned interval and existing wells and
platforms. These properties were primarily gas producing properties.

     Oil volume for 2000 increased significantly as compared to the first
quarter of 1999. This increase in oil volume coupled with the big increase in
average oil price resulted in a significant increase in oil revenue for the
first quarter of 2000. During the first quarter of 1999, the operator of West
Cameron Block 498 experienced mechanical and well performance problems. The
operator began a workover program during the second quarter of 1999 and
production increased during the fourth quarter of 1999. During the second,
third, and fourth quarters of 1999, the operator performed workovers on
individual wells that offset the field decline and in some months 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
                                                              -------------
                                                              2000    1999
                                                              -----   -----
<S>                                                           <C>     <C>
Lease operating expenses....................................  $(.8)   $ .8
Exploration and development costs...........................   1.0       8
Interest....................................................    .5      .6
                                                              ----    ----
                                                              $ .7    $2.2
                                                              ====    ====
</TABLE>

     Lease operating expenses for the first quarter of 2000 decreased slightly
over the 1999 period because the Working Interest Owner assigned its interest in
West Cameron Block 215, Vermilion Block 58 and Breton Sound Block 55 to the
operator, thereby reducing expenses. 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. The Working Interest
Owner is also entitled to operating and processing fees attributable to
production from offsetting blocks being processed on the High Island A552
platform.

     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 1998 the Working
interest Owner did not deliver the minimum volume under the agreement therefore,
in February 1999, the pipeline company billed the Working Interest Owner
approximately $687,000 for the 1998 deficiency. This amount was included in the
Class A cost carry-forward in 1999. During 1999 the Working Interest Owner did
not deliver the minimum volume under the agreement therefore, in February

                                     --11--
<PAGE>   12

2000 the pipeline company billed the Working Interest Owner approximately
$724,000 for the 1999 deficiency. This amount was paid and will be included in
the Class A cost carry-forward in the second quarter of 2000. Based on 2000
projected production the minimum delivery volumes will not be met in 1999.
However, should production exceed the 2000 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 2000 of invoices relating to workovers performed in 1999 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. On April 28, 2000, the operator of West Cameron Block 498 proposed
workovers on certain wells which is expected to increase current production. The
cost of these workovers is estimated to be approximately $2 million to the
Working Interest Owner. The Working Interest Owner is currently evaluating these
proposals.

     There are no exploration and development costs budgeted for 2000.

     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, 2000, 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 withheld from distributions to Unit holders. 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 $0.8 million remained at March 31, 2000.

     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 is directed to effect
such a sale (without any such vote) if the Trust's cash receipts for each of
three successive years are less than $3 million. The Trustee must distribute the
net proceeds of such sale (after satisfaction of any outstanding liabilities) to
the

                                     --12--
<PAGE>   13

Unit holders. The Trust's had no cash receipts in 1996, 1997, 1998 or 1999.
Additionally, the balance of the Class A cost carry-forward was $20.6 million at
March 31, 2000, primarily from the significant development costs incurred at
West Cameron Blocks 498 and 215 during 1997 and 1998. This cost carry-forward
must be recouped by the Working Interest Owner before any distribution may be
made to the Trust.

                          PART II.  OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

  (a) Not applicable

  (b) Reports on Form 8-K:

      No Reports on Form 8-K were filed with the Securities and Exchange
      Commission during the first quarter of 2000.

                                     --13--
<PAGE>   14

                                   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.

<TABLE>
<S>                                                      <C>
                                                         FREEPORT-McMoRan OIL AND GAS
                                                         ROYALTY TRUST

                                                         By: Chase Bank of Texas, National
                                                         Association,
                                                               Trustee

                                                                      By:/s/ PETE FOSTER
                                                         ---------------------------------------------
                                                                          PETE FOSTER
                                                            SENIOR VICE PRESIDENT AND TRUST OFFICER
</TABLE>

Date: May 12, 2000

                                     --14--
<PAGE>   15

                               INDEX TO EXHIBITS

<TABLE>
<CAPTION>
        EXHIBIT
         NUMBER                                       DESCRIPTION
         ------                                       -----------
<C>                           <S>
           27                 Financial Data Schedule
</TABLE>