<PAGE>

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

                                   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 September 30, 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.)

              JPMORGAN CHASE BANK, TRUSTEE                                       78701
              INSTITUTIONAL TRUST SERVICES                                    (Zip Code)
                       700 LAVACA
                     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)

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--------------------------------------------------------------------------------
<PAGE>

                   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
     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.................    12

Signature...................................................    13
</Table>

                                      --2--
<PAGE>

ITEM 1. FINANCIAL STATEMENTS.

                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST

             STATEMENTS OF ROYALTY PROCEEDS AND DISTRIBUTABLE CASH
                                  (UNAUDITED)

<Table>
<Caption>
                                                              THREE MONTHS ENDED           NINE MONTHS ENDED
                                                                 SEPTEMBER 30,               SEPTEMBER 30,
                                                           -------------------------   -------------------------
                                                              2001          2000          2001          2000
                                                           -----------   -----------   -----------   -----------
<S>                                                        <C>           <C>           <C>           <C>
Royalty proceeds.........................................  $        --   $        --   $        --   $        --
Trust administrative expenses............................     (161,000)      (57,027)     (412,150)     (232,290)
Interest income..........................................        2,404        10,542        13,734        31,926
Reserve for future Trust expenses........................      158,596        46,485       398,416       200,364
                                                           -----------   -----------   -----------   -----------
Distributable cash.......................................  $        --   $        --   $        --   $        --
                                                           ===========   ===========   ===========   ===========
Distributable cash per unit..............................  $        --   $        --   $        --   $        --
                                                           ===========   ===========   ===========   ===========
Units outstanding........................................   14,975,390    14,975,390    14,975,390    14,975,390
                                                           ===========   ===========   ===========   ===========
</Table>

               STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

<Table>
<Caption>
                                                              SEPTEMBER 30, 2001   DECEMBER 31, 2000
                           ASSETS                             ------------------   -----------------
                                                                 (UNAUDITED)
<S>                                                           <C>                  <C>

Cash and short-term investments.............................    $     217,043        $     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........................................    $     217,043        $     615,459
                                                                =============        =============


                LIABILITIES AND TRUST CORPUS
Reserve for future Trust expenses...........................    $     217,043        $     615,459
Trust corpus (14,975,390 Units of Beneficial Interest
  authorized, issued and outstanding).......................               --                   --
                                                                -------------        -------------
        Total liabilities and trust corpus..................    $     217,043        $     615,459
                                                                =============        =============
</Table>

     The accompanying notes an integral part of these financial statements.

                                      --3--
<PAGE>

                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST

                         NOTES TO FINANCIAL STATEMENTS
                                  (UNAUDITED)

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 (the Royalty 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. Until October 12, 2001, IMC was the
Working Interest Owner. However, on October 12, 2001, IMC sold the oil and gas
interests burdened by the Royalty to Texas Standard Oil Company, a Texas
corporation (TXS). TXS is the owner of the oil and gas interests burdened by the
Royalty as of the date of this Form 10-Q.

     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 JPMorgan Chase 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.

     This Form 10-Q covers the quarterly period ended September 30, 2001, during
which time the Trust operated as described above with IMC as the working
interest owner. Currently, the Trust is in the process of liquidating. On
October 11, 2001, in accordance with a shareholder proposal approved at a
special meeting of Unitholders held on October 5, 2001, the Trustee caused the
Partnership to sell the Royalty to TXS for $1,000 in cash. The Trust's remaining
assets are the proceeds from the sale to TXS and the expense reserve established
by the Trust to pay its ongoing administrative expenses. In accordance with the
shareholder proposal approved at the special meeting of Unitholders held on
October 5, 2001, the Trustee must make a liquidating distribution of the
proceeds from the sale to TXS and the expense reserve, less amounts withheld by
the Trustee for contingent liabilities of the Trust, to the Unitholders prior to
December 31, 2001.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The Trust's financial statements, which reflect the Trust's 99.9 percent
interest in the Partnership were 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.

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

     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 was $0 at September 30, 2001 and 2000. The
carrying value is not necessarily indicative of the fair market value of the
Royalty held by the Trust.

3. COST CARRYFORWARD

     As a result of the capital costs incurred in recent years, a cumulative
excess Class A cost carryforward of $13,712,683 existed as of September 30,
2001. The cost carryforward is subject to and includes an interest amount at the
prime rate, which totaled $984,235 net to the Trust during the nine month period
ended September 30, 2001. This excess Class A cost carryforward, including the
interest factor, would have to be recouped by the Working Interest Owner out of
future Gross Proceeds before distributions to the Unitholders would be resumed.
This recoupment is not likely to occur before the Trust completes the
liquidation procedures.

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 September 30, 2001, the unrecovered quantity of gas
sold by third parties pursuant to such gas balancing arrangements since
inception of the Trust was approximately 0.2 billion cubic feet (bcf), net to
the Trust. Because the Trustee has caused the Partnership to sell the Royalty,
the Unitholders will have no rights to those future proceeds.

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

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). This is a result of the Working Interest
Owner's settlement of claims made by the MMS for additional royalty arising 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. Discovery in this suit is proceeding and the trial date which
was set for August 28, 2001 has been postponed with no firm date set. The amount
of any recovery with respect to this claim is presently indeterminable. Because
the Trust has caused the Partnership to sell the Royalty, the Trust will not
benefit from any recovery in the lawsuit.

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 approximately $.2 million remained as of September 30, 2001. During the
first nine months of 2001, $.4 million was withdrawn from the expense reserve to
pay Trust administrative expenses, including expenses related to the shareholder
proposal and the special meeting of Unitholders at which the proposal was
approved. The funding for this reserve is deposited with JPMorgan Chase Bank and
invested in JPMorgan Chase Bank collateralized certificates of deposit. The
average interest rate earned on these funds for the third quarter of 2001 and
2000 was 2.5 percent and 5.7 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 it 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. Such costs are by their nature
imprecise and can be expected to be revised over time

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

because of changes in general and specific cost levels, government regulations,
operation or technology. As of September 30, 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 Class A 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 carryforward.

     THE INFORMATION 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.

                                      --7--
<PAGE>

                   FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To JPMorgan Chase Bank (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 September 30,
2001, and the related statements of royalty proceeds and distributable cash for
the three-month and nine-month periods ended September 30, 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 review
procedures to financial data and making inquiries of persons responsible for
financial and accounting matters. It is substantially less in scope than an
audit 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.

     We have previously audited, in accordance with auditing standards generally
accepted in the United States, the statements of assets, liabilities and trust
corpus as of December 31, 2000, and the related statements of royalty proceeds
and distributable cash, and changes in trust corpus for the year then ended (not
presented separately herein), and in our report dated March 30, 2001, we
expressed an unqualified opinion on those financial statements. In our opinion,
the information set forth in the accompanying statements of assets, liabilities,
and trust corpus as of December 31, 2000 is fairly stated in all material
respects in relation to the statements of assets, liabilities, and trust corpus
from which it has been derived.

                                          ARTHUR ANDERSEN LLP

Houston, Texas
November 6, 2001

                                      --8--
<PAGE>

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, governmental regulations and other matters beyond the control of
the Trustee and the Working Interest Owner.

     Currently, the Trust is in the process of liquidating. On October 11, 2001,
in accordance with a shareholder proposal approved at a special meeting of
Unitholders held on October 5, 2001, the Trustee caused the Partnership to sell
the Royalty to Texas Standard Oil Company, a Texas corporation (TXS), for $1,000
in cash. The Trust's remaining assets are the proceeds from the sale to TXS and
the expense reserve established by the Trust to pay its ongoing administrative
expenses. In accordance with the shareholder proposal approved at the special
meeting of Unitholders held on October 5, 2001, the Trustee must make a
liquidating distribution of the proceeds from the sale to TXS and the expense
reserve, less amounts withheld by the Trustee for contingent liabilities of the
Trust, to the Unitholders prior to December 31, 2001.

     During the third quarter of 2001, the Class A cost carryforward decreased
by $1.3 million, from $15.0 million at June 30, 2001, to $13.7 million at
September 30, 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.

RESULTS OF OPERATIONS

     There were no cash distributions to Unitholders during the first nine
months of 2001 or 2000. No cash distributions have been made since 1995. During
the third quarter of 2001, Gross Proceeds exceeded total costs by approximately
$1.5 million, primarily because of higher oil and gas prices received. As a
result, the Class A cost carryforward decreased to $13.7 million net to the
Trust as of September 30, 2001. Since mid-

                                      --9--
<PAGE>

1995, the trust administrative expenses have been paid from the expense reserve.
The calculation of distributable cash for each year follows:

<Table>
<Caption>
                                               THREE MONTHS ENDED          NINE MONTHS ENDED
                                                  SEPTEMBER 30               SEPTEMBER 30
                                            ------------------------   -------------------------
                                               2001          2000         2001          2000
                                            -----------   ----------   -----------   -----------
<S>                                         <C>           <C>          <C>           <C>
Gross Proceeds(1).........................  $ 2,372,225   $1,432,778   $10,745,376   $ 6,927,099
Total Costs(2)............................     (834,916)    (984,703)   (4,024,167)   (3,893,808)
Excess Class A cost carryforward(3).......   (1,537,309)    (448,075)   (6,721,209)   (3,033,291)
                                            -----------   ----------   -----------   -----------
Net Proceeds..............................           --           --            --            --
Percentage attributable to Royalty........         90.0%        90.0%         90.0%         90.0%
                                            -----------   ----------   -----------   -----------
Amount payable attributable to Royalty....           --           --            --            --
Percentage attributable to Trust..........         99.9%        99.9%         99.9%         99.9%
                                            -----------   ----------   -----------   -----------
Royalty Proceeds..........................           --           --            --            --
Trust administrative expenses.............     (161,000)     (57,027)     (412,150)     (232,290)
                                            -----------   ----------   -----------   -----------
                                               (161,000)     (57,027)     (412,150)     (232,290)
Interest income...........................        2,404       10,542        13,734        31,926
Reserve for future Trust expenses(4)......      158,596       46,485       398,416       200,364
                                            -----------   ----------   -----------   -----------
Distributable cash........................  $        --   $       --   $        --   $        --
                                            ===========   ==========   ===========   ===========
</Table>

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

(1) Represents amounts received by the Working Interest Owner during the three
    and nine month periods ended in August of such year.

(2) Represents amounts accrued by the Working Interest Owner during the three
    and nine month periods ended in August of such year. Includes accrued
    interest of $281,030 and $1,094,691 for the three and nine months during
    2001 and $524,579 and $1,555,949 for the three and nine months during 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 withdrawals from the Trust administrative expense reserve during
    the respective periods.

                                      --10--
<PAGE>

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

<Table>
<Caption>
                                                              THREE MONTHS       NINE MONTHS
                                                                  ENDED             ENDED
                                                              SEPTEMBER 30,     SEPTEMBER 30,
                                                             ---------------   ---------------
                                                              2001     2000     2001     2000
                                                             ------   ------   ------   ------
<S>                                                          <C>      <C>      <C>      <C>
Natural Gas
  Revenues (in millions)...................................  $  0.9   $  0.5   $  4.4   $  1.5
  Sales volumes (in million cubic feet)....................     186      154      723      552
  Average realization (per thousand cubic feet)............  $ 4.68   $ 3.29   $ 6.06   $ 2.83
Oil
  Revenue (in millions)....................................  $  1.5   $  0.9   $  6.4   $  5.4
  Sales volumes (in thousands of barrels)..................    56.2     30.2    218.8    187.5
  Average realization (per barrel).........................  $26.76   $30.65   $29.08   $28.58
</Table>

     Gas revenue increased significantly for the third quarter and the nine
months of 2001 due to a sharp increase in gas prices. Volume increases achieved
in the first quarter of 2001 due to previous well workovers have leveled out and
are falling due to normal reserve decline. Oil revenue has increased
significantly for the third quarter and nine months of 2001 due to increased
production and overall increases in price, for the three and nine month period,
respectively. Costs consist of the following (in millions):

<Table>
<Caption>
                                                              THREE MONTHS     NINE MONTHS
                                                                  ENDED           ENDED
                                                              SEPTEMBER 30,   SEPTEMBER 30,
                                                              -------------   -------------
                                                              2001    2000    2001    2000
                                                              -----   -----   -----   -----
<S>                                                           <C>     <C>     <C>     <C>
Lease operating expenses....................................  $0.5    $0.3    $2.0    $0.7
Exploration and development costs...........................   0.1     0.1     1.0     1.4
Interest, abandonment costs withheld and other..............   0.3     0.6     1.1     1.7
                                                              ----    ----    ----    ----
                                                              $0.9    $1.0    $4.1    $3.8
                                                              ====    ====    ====    ====
</Table>

     Costs for the third quarter were down slightly for 2001. Total costs for
the first nine months were constant compared to the same time last year. Capital
expenditures fell due to fewer workover operations while lease operating
expenses for the nine months 2001 increased due to maintenance needs.

     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 the 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 taken into account in computing the Class A cost carryforward in the third
quarter of 2001. Based on current production projected the minimum delivery

                                      --11--
<PAGE>

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.

CAPITAL RESOURCES AND LIQUIDITY

     All revenues received by the Trust, net of Trust administrative expenses
and liabilities, are distributed to the Unitholders in accordance with
provisions of the Trust Indenture. The Class A cost carryforward, with interest
at the prime rate, would have to be recouped from future Gross Proceeds before
any distribution may be made to Unitholders. This recoupment is not likely to
occur before the Trust completes the liquidation procedures.

     At certain times since late 1993, the Trust had been unable to pay its
ongoing administrative expenses. To permit the Trust to pay its administrative
expenses during the time the Trust incurred 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 $0.2 million remained at September 30, 2001.

     The Trust's cash receipts were $0 in 1996, 1997, 1998, 1999 and 2000. On
October 11, 2001, in accordance with a shareholder proposal approved at a
special meeting of Unitholders held on October 5, 2001, the Trustee caused the
Partnership to sell the Royalty to TXS, for $1,000 in cash. The Trust's
remaining assets are the proceeds from the sale to TXS and the expense reserve.
In accordance with the shareholder proposal approved at the special meeting of
Unitholders held on October 5, 2001, the Trustee must make a liquidating
distribution of the proceeds from the sale to TXS and the expense reserve, less
amounts withheld by the Trustee for contingent liabilities of the Trust, to the
Unitholders prior to December 31, 2001.

     As such, additional discussion of the Trust's capital resources and
liquidity is not applicable.

                           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 third quarter of 2001

                                      --12--
<PAGE>

                                   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: JPMorgan Chase Bank, Trustee

                                            By:          /s/ MIKE ULRICH
                                              ----------------------------------
                                                         Mike Ulrich
Date: November 14, 2001                        Vice President and Trust Officer

                                      --13--