##### Table of Contents















Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|x          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2005                                                 
|          
|o          |  | 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: 1-8424


Sabine Royalty Trust




|                                                                                                                                                                |  |                                         
|--------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------
|Texas                                                                                                                                                           |  | 75-6297143                              
|(State or other jurisdiction
    of incorporation or organization)                                                                                              |  | (I.R.S. Employer
    Identification No.)
|Trust Division
    Bank of America, N.A.
    Bank of America Plaza
    17th Floor
    901 Main Street
    Dallas, Texas(Address of principal executive offices) |  | 75202(Zip Code)                         

(214) 209-2400




|                             |  |                        
|---------------------------- |  | -----------------------
|                             |  | Name of Each Exchange  
|Title of Each Class          |  | on Which Registered    
|                             |  |                        
|Units of Beneficial Interest |  | New York Stock Exchange

None


o x


o x


x o


S-K 10-K 10-K. x




o x o


o x






DOCUMENTS INCORPORATED BY REFERENCE












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TABLE OF CONTENTS


|                                        |  |                                                                                                                         |  |      |    | 
|--------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                        |  |                                                                                                                         |  | Page |   
|                                        |  |                                                                                                                         |  |      |   
|PART I                                 
|Item 1.                                 |  | Business                                                                                                                |  |      | 1  | 
|                                        |  | Description of the Trust                                                                                                |  |      | 1  | 
|                                        |  | Assets of the Trust                                                                                                     |  |      | 2  | 
|                                        |  | Liabilities of the Trust                                                                                                |  |      | 2  | 
|                                        |  | Duties and Limited Powers of
    Trustee                                                                                |  |      | 2  | 
|                                        |  | Liabilities of Trustee                                                                                                  |  |      | 3  | 
|                                        |  | Duration of Trust                                                                                                       |  |      | 3  | 
|                                        |  | Voting Rights of Unit
    Holders                                                                                       |  |      | 3  | 
|                                        |  | Description of Units                                                                                                    |  |      | 4  | 
|                                        |  | Distributions of Net Income                                                                                             |  |      | 4  | 
|                                        |  | Transfer                                                                                                                |  |      | 4  | 
|                                        |  | Reports to Unit Holders                                                                                                 |  |      | 5  | 
|                                        |  | Liability of Unit Holders                                                                                               |  |      | 5  | 
|                                        |  | Possible Divestiture of
    Units                                                                                       |  |      | 5  | 
|                                        |  | Federal Taxation                                                                                                        |  |      | 6  | 
|                                        |  | State Tax Considerations                                                                                                |  |      | 8  | 
|                                        |  | Regulation and Prices                                                                                                   |  |      | 9  | 
|                                        |  | Regulation                                                                                                              |  |      | 9  | 
|                                        |  | Prices                                                                                                                  |  |      | 10 | 
|Item 1A.                                |  | Risk Factors                                                                                                            |  |      | 11 | 
|Item 1B.                                |  | Unresolved Staff Comments                                                                                               |  |      | 14 | 
|Item 2.                                 |  | Properties                                                                                                              |  |      | 14 | 
|                                        |  | Title                                                                                                                   |  |      | 15 | 
|                                        |  | Reserves                                                                                                                |  |      | 15 | 
|Item 3.                                 |  | Legal Proceedings                                                                                                       |  |      | 20 | 
|Item 4.                                 |  | Submission of Matters to a Vote of Security
    Holders                                                                 |  |      | 20 | 
|PART II                                
|Item 5.                                 |  | Market for Registrants Common Equity
    and Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |      | 21 | 
|Item 6.                                 |  | Selected Financial Data                                                                                                 |  |      | 21 | 
|Item 7.                                 |  | Trustees Discussion and Analysis of
    Financial Condition and Results of Operations                                  |  |      | 21 | 
|Item 7A.                                |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                          |  |      | 25 | 
|Item 8.                                 |  | Financial Statements and Supplementary
    Data                                                                         |  |      | 26 | 
|Item 9.                                 |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                                |  |      | 39 | 
|Item 9A.                                |  | Controls and Procedures                                                                                                 |  |      | 39 | 
|Item 9B.                                |  | Other Information                                                                                                       |  |      | 42 | 
|PART III                               
|Item 10.                                |  | Directors and Executive Officers of the
    Registrant                                                                  |  |      | 42 | 
|Item 11.                                |  | Executive Compensation                                                                                                  |  |      | 42 | 
|Item 12.                                |  | Security Ownership of Certain Beneficial
    Owners and Management                                                      |  |      | 42 | 
|Item 13.                                |  | Certain Relationships and Related
    Transactions                                                                      |  |      | 42 | 
|Item 14.                                |  | Principal Accounting Fees and Services                                                                                  |  |      | 42 | 
|PART IV                                
|Item 15.                                |  | Exhibits, Financial Statement Schedules                                                                                 |  |      | 43 | 
|Consent of DeGolyer and MacNaughton    
|Rule 13a-14(a)(15d-14(a)) Certification
|Certification Pursuant to Section 906  
|Report - Interim Tax Information       



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PART I





Item 1. Business.





DESCRIPTION OF THE TRUST


209-2400.


10-K, 10-Q, 8-K,








1



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10-K





Assets of the Trust







Liabilities of the Trust







Duties and Limited Powers of Trustee








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Liabilities of Trustee







Duration of Trust




non-cash non-cash





Voting Rights of Unit Holders






3



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DESCRIPTION OF UNITS









Distributions of Net Income







Transfer




4



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Reports to Unit Holders









Liability of Unit Holders







Possible Divestiture of Units






| |                                                                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. The Trustee will give written notice to each holder
    whose nationality or other status is an issue in the proceeding
    of the existence of such controversy. The notice will contain a
    reasonable summary of such controversy and will constitute a
    demand to each such holder that he or she dispose of his or

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | her Units within 30 days to a party not of the nationality
    or other status at issue in the proceeding described in the
    notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | 2. If any holder fails to dispose of his or her Units in
    accordance with such notice, the Trustee shall have the
    preemptive right to redeem and shall redeem, at any time during
    the 90-day period
    following the termination of the
    30-day period specified
    in the notice, any Unit not so transferred for a cash price
    equal to the closing price of the Units on the stock exchange on
    which the Units are then listed or, in the absence of any such
    listing, the mean between the closing bid and asked prices for
    the Units in the over-the-counter market, as of the last
    business day prior to the expiration of the
    30-day period stated in
    the notice.
|
| | 3. The Trustee shall cancel any Unit acquired in accordance
    with the foregoing procedures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | 4. The Trustee may, in its sole discretion, cause the Trust
    to borrow any amount required to redeem Units.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     




FEDERAL TAXATION


THE TAX CONSEQUENCES TO A UNIT HOLDER OF THE OWNERSHIP AND
SALE OF UNITS WILL DEPEND IN PART ON THE UNIT HOLDERS TAX
CIRCUMSTANCES. EACH UNIT HOLDER SHOULD THEREFORE CONSULT THE
UNIT HOLDERS TAX ADVISOR ABOUT THE FEDERAL, STATE AND
LOCAL TAX CONSEQUENCES TO THE UNIT HOLDER OF THE OWNERSHIP OF
UNITS.






1.1254-1 1.1254-6




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STATE TAX CONSIDERATIONS


THE FOLLOWING IS INTENDED AS A BRIEF SUMMARY OF CERTAIN
INFORMATION REGARDING STATE INCOME TAXES AND OTHER STATE TAX
MATTERS AFFECTING THE TRUST AND THE UNIT HOLDERS. UNIT HOLDERS
SHOULD CONSULT THE UNIT HOLDERS TAX ADVISOR REGARDING
STATE INCOME TAX FILING AND COMPLIANCE MATTERS.


Texas.


Louisiana.


Florida, Mississippi, New Mexico and Oklahoma.


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REGULATION AND PRICES





Regulation


General






Natural Gas




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Prices


Oil




Natural Gas




Environmental Regulation


General.


Superfund.


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Solid and Hazardous Waste.


New Events


Proxy Solicitation













Item 1A. Risk Factors


Crude oil and natural gas prices are volatile and fluctuate
in response to a number of factors; Lower prices could reduce
the net proceeds payable to the Trust and Trust
distributions.


month-to




| |   |                                                                                        
| | - | ---------------------------------------------------------------------------------------
| |  | political conditions in major oil producing regions, especially
    in the Middle East;
|
| |  | worldwide economic conditions;                                                         
|
| |  | weather conditions;                                                                    
|
| |  | the supply and price of domestic and foreign crude oil or
    natural gas;             
|
| |  | the level of consumer demand;                                                          
|
| |  | the price and availability of alternative fuels;                                       
|
| |  | the proximity to, and capacity of, transportation facilities;                          

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| |   |                                                               
| | - | --------------------------------------------------------------
| |  | the effect of worldwide energy conservation measures; and     
|
| |  | the nature and extent of governmental regulation and taxation.



Trust reserve estimates depend on many assumptions that may
prove to be inaccurate, which could cause both estimated
reserves and estimated future net revenues to be too high,
leading to write-downs of estimated reserves.








| |   |                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------
| |  | historical production from the area compared with production
    rates from similar producing areas;
|
| |  | the effects of governmental regulation;                                                             
|
| |  | assumptions about future commodity prices, production and taxes;                                    
|
| |  | the availability of enhanced recovery techniques; and                                               
|
| |  | relationships with landowners, working interest partners,
    pipeline companies and others.        



The assets of the Trust are depleting assets and, if the
operators developing the Royalty Properties do not perform
additional development projects, the assets may deplete faster
than expected. Eventually, the assets of the Trust will cease to
produce in commercial quantities and the Trust will cease to
receive proceeds from such assets. In addition, a reduction in
depletion tax benefits may reduce the market value of the
Units.






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The market price for the Units may not reflect the value of
the royalty interests held by the Trust.




Terrorism and continued hostilities in the Middle East could
decrease Trust distributions or the market price of the
Units.




Unit holders and the Trustee have no influence over the
operations on, or future development of, the Royalty
Properties.




The operator developing any Royalty Property may abandon the
property, thereby terminating the royalties payable to the
Trust.




The Royalty Properties can be sold and the Trust would be
terminated.




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Unit holders have limited voting rights and have limited
ability to enforce the Trusts rights against the current
or future operators developing the Royalty Properties.






Financial information of the Trust is not prepared in
accordance with GAAP.




The limited liability of the Unit holders in uncertain.







Item 1B. Unresolved Staff Comments







Item 2. Properties.




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|            |       |                     |           |           |  |  |         |         | 
|----------- | ----- | ------------------- | --------- | --------- |  |  | ------- | ------- | 
|            |       | Mineral and Royalty
|            |       |                    
|State       |       | Gross Acres         |           | Net Acres
|            |       |                     |           |          
|Florida     |       |                     | 5,448     |           |  |  | 697     |        
|Louisiana   |       |                     | 244,391   |           |  |  | 23,682  |        
|Mississippi |       |                     | 75,489    |           |  |  | 9,713   |        
|New Mexico  |       |                     | 112,294   |           |  |  | 9,141   |        
|Oklahoma    |       |                     | 381,538   |           |  |  | 67,558  |        
|Texas       |       |                     | 1,273,132 |           |  |  | 105,760 |        
|            |       |                     |           |           |  |  |         |        
|            | Total |                     |           | 2,092,292 |  |  |         | 216,551 | 
|            |       |                     |           |           |  |  |         |        






Title







Reserves




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DeGolyer and
MacNaughton


5001 Spring Valley
Road


Suite 800
East


Dallas, Texas
75244






















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4-10(a) (1)-(13) S-X




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Proved oil and gas reserves  Proved oil and
    gas reserves are the estimated quantities of crude oil, natural
    gas, and natural gas liquids which geological and engineering
    data demonstrate with reasonable certainty to be recoverable in
    future years from known reservoirs under existing economic and
    operating conditions, i.e., prices and expenses as of the date
    the estimate is made. Prices include consideration of changes in
    existing prices provided only by contractual arrangements, but
    not on escalations based upon future conditions.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Reservoirs are considered proved if economic
    producibility is supported by either actual production or
    conclusive formation test. The area of a reservoir considered
    proved includes (A) that portion delineated by drilling and
    defined by gas-oil and/or oil-water contacts, if any; and
    (B) the immediately adjoining portions not yet drilled, but
    which can be reasonably judged as economically productive on the
    basis of available geological and engineering data. In the
    absence of information on fluid contacts, the lowest known
    structural occurrence of hydrocarbons controls the lower proved
    limit of the reservoir.
|
| | (ii) Reserves which can be produced economically through
    application of improved recovery techniques (such as fluid
    injection) are included in the proved classification
    when successful testing by a pilot project, or the operation of
    an installed program in the reservoir, provides support for the
    engineering analysis on which the project or program was based.                                                                                                                                                                                                                                                                                   
|
| | (iii) Estimates of proved reserves do not include the
    following: (A) oil that may become available from known
    reservoirs but is classified separately as indicated
    additional reserves; (B) crude oil, natural gas, and
    natural gas liquids, the recovery of which is subject to
    reasonable doubt because of uncertainty as to geology, reservoir
    characteristics, or economic factors; (C) crude oil,
    natural gas, and natural gas liquids, that may occur in
    undrilled prospects; and (D) crude oil, natural gas, and
    natural gas liquids, that may be recovered from oil shales,
    coal, gilsonite, and other such sources.           



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Proved developed oil and gas reserves  Proved
    developed oil and gas reserves are reserves that can be expected
    to be recovered through existing wells with existing equipment
    and operating methods. Additional oil and gas expected to be
    obtained through the application of fluid injection or other
    improved recovery techniques for supplementing the natural
    forces and mechanisms of primary recovery should be included as
    proved developed reserves only after testing by a
    pilot project or after the operation of an installed program has
    confirmed through production response that increased recovery
    will be achieved.                                                                                                                                                                                                                                                                                                 
|
| | Proved undeveloped reserves  Proved
    undeveloped oil and gas reserves are reserves that are expected
    to be recovered from new wells on undrilled acreage, or from
    existing wells where a relatively major expenditure is required
    for recompletion. Reserves on undrilled acreage shall be limited
    to those drilling units offsetting productive units that are
    reasonably certain of production when drilled. Proved reserves
    for other undrilled units can be claimed only where it can be
    demonstrated with certainty that there is continuity of
    production from the existing productive formation. Under no
    circumstances should estimates for proved undeveloped reserves
    be attributable to any acreage for which an application of fluid
    injection or other improved recovery technique is contemplated,
    unless such techniques have been proved effective by actual
    tests in the area and in the same reservoir.

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|            |  |                           |       |                             |  |                  |        |           |  |  |    |  |  |  |     | 
|----------- |  | ------------------------- | ----- | --------------------------- |  | ---------------- | ------ | --------- |  |  | -- |  |  |  | --- | 
|            |  | Proved Developed Reserves |       | Proved Undeveloped Reserves
|            |  |                           |       |                            
|            |  | Oil, Condensate,          |       |                             |  | Oil, Condensate, |        |          
|            |  | and NGL                   |       | Sales Gas                   |  | and NGL          |        | Sales Gas
|State       |  | (Mbbl)                    |       | (MMcf)                      |  | (Mbbl)           |        | (MMcf)   
|            |  |                           |       |                             |  |                  |        |          
|Florida     |  |                           | 153   |                             |  |                  | 20     |           |  |  | 0  |  |  |  | 0   | 
|Louisiana   |  |                           | 74    |                             |  |                  | 505    |           |  |  | 0  |  |  |  | 0   | 
|Mississippi |  |                           | 101   |                             |  |                  | 2,134  |           |  |  | 30 |  |  |  | 228 | 
|New Mexico  |  |                           | 470   |                             |  |                  | 3,469  |           |  |  | 0  |  |  |  | 0   | 
|Oklahoma    |  |                           | 559   |                             |  |                  | 9,969  |           |  |  | 0  |  |  |  | 0   | 
|Texas       |  |                           | 4,840 |                             |  |                  | 20,075 |           |  |  | 41 |  |  |  | 2   | 
|            |  |                           |       |                             |  |                  |        |           |  |  |    |  |  |  |     | 
|Total       |  |                           | 6,197 |                             |  |                  | 36,172 |           |  |  | 71 |  |  |  | 230 | 







| |                                             
| | --------------------------------------------
| | Oil, Condensate, NGL, and Natural Gas Prices



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Oil, condensate, NGL, and natural gas prices, based on receipts
    by the Trust in December 2005, were furnished by Bank of
    America. These prices were adjusted to the NYMEX posted prices
    for oil of $60.32 per barrel and for gas of $10.06 per
    million British thermal units, and were held constant for the
    lives of the properties. The weighted average prices over the
    lives of the properties were $53.65 per barrel of oil and
    $8.64 per thousand cubic feet.



| |         
| | --------
| | Expenses



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The properties appraised are royalties. Therefore, no operating
    expenses or capital costs are incurred. The expenses reported
    are primarily severance taxes and ad valorem taxes, which are
    based on historical tax rates furnished by Bank of America.
    Several properties incur additional expenses related to
    transportation, marketing, and/or other expenses that are
    charged to the royalty interests. These expenses are reported as
    transportation expenses. No escalation has been applied to the
    expenses.

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|                        |  |            |         | 
|----------------------- |  | ---------- | ------- | 
|                        |  | Future Net
|                        |  | Revenue   
|Year Ending December 31 |  | (M$)      
|                        |  |           
|2006                    |  |            | 57,555  | 
|2007                    |  |            | 50,429  | 
|2008                    |  |            | 44,812  | 
|                        |  |            |         | 
|Subtotal                |  |            | 152,796 | 
|Remaining               |  |            | 413,281 | 
|                        |  |            |         | 
|Total                   |  |            | 566,077 | 





10-13, 30(a)-(b) 4-10(a) (1)-(13) S-X S-K






| |                             
| | ----------------------------
| | Submitted,                  
|
| | DeGOLYER and MacNAUGHTON    
|
| | /s/ Paul J. Szatkowski, P.E.
| |                             
| | Paul J. Szatkowski, P.E.    
| | Senior Vice President       
| | DeGolyer and MacNaughton    

19



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in in









Item 3. Legal Proceedings.







Item 4. Submission of Matters to a Vote of
Security Holders.




20



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PART II





Item 5. Market for Registrants Common
Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities.




|               |  |             |       |  |               |   |       |          |  |   |         | 
|-------------- |  | ----------- | ----- |  | ------------- | - | ----- | -------- |  | - | ------- | 
|               |  | Sales Price |       |  |              
|               |  |             |       |  | Distributions |  
|2005           |  | High        |       |  | Low           |   |       | per Unit | 
|               |  |             |       |  |               |   |       |          | 
|First Quarter  |  | $           | 42.97 |  |               | $ | 34.71 |          |  | $ | 0.69653 | 
|Second Quarter |  |             | 42.86 |  |               |   | 36.70 |          |  |   | 0.83104 | 
|Third Quarter  |  |             | 51.99 |  |               |   | 42.35 |          |  |   | 0.90890 | 
|Fourth Quarter |  |             | 52.49 |  |               |   | 40.21 |          |  |   | 0.99533 | 

|               |  |             |       |  |               |   |       |          |  |   |         | 
|-------------- |  | ----------- | ----- |  | ------------- | - | ----- | -------- |  | - | ------- | 
|               |  | Sales Price |       |  |              
|               |  |             |       |  | Distributions |  
|2004           |  | High        |       |  | Low           |   |       | per Unit | 
|               |  |             |       |  |               |   |       |          | 
|First Quarter  |  | $           | 32.75 |  |               | $ | 26.40 |          |  | $ | 0.60479 | 
|Second Quarter |  |             | 36.42 |  |               |   | 30.20 |          |  |   | 0.71585 | 
|Third Quarter  |  |             | 40.63 |  |               |   | 33.55 |          |  |   | 0.75767 | 
|Fourth Quarter |  |             | 42.49 |  |               |   | 33.60 |          |  |   | 0.70763 | 










Item 6. Selected Financial Data.


|                              |  |      |            |  |      |   |            |      |  |   |            |  |  |      |            |  |  |   |            | 
|----------------------------- |  | ---- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- |  |  | ---- | ---------- |  |  | - | ---------- | 
|Years Ended December 31       |  | 2005 |            |  | 2004 |   |            | 2003 |  |   | 2002       |  |  | 2001 |           
|                              |  |      |            |  |      |   |            |      |  |   |            |  |  |      |           
|Royalty Income                |  | $    | 54,594,978 |  |      | $ | 42,338,724 |      |  | $ | 38,761,739 |  |  | $    | 28,134,458 |  |  | $ | 44,222,701 | 
|Distributable Income          |  |      | 52,680,811 |  |      |   | 40,587,685 |      |  |   | 37,060,003 |  |  |      | 26,539,751 |  |  |   | 42,805,378 | 
|Distributable Income per Unit |  |      | 3.61       |  |      |   | 2.78       |      |  |   | 2.54       |  |  |      | 1.82       |  |  |   | 2.94       | 
|Total Assets at Year End      |  |      | 7,371,124  |  |      |   | 4,912,815  |      |  |   | 5,555,045  |  |  |      | 5,391,280  |  |  |   | 5,855,378  | 
|Distributions per Unit        |  |      | 3.43       |  |      |   | 2.79       |      |  |   | 2.52       |  |  |      | 1.88       |  |  |   | 2.86       | 




Item 7. Trustees Discussion and Analysis
of Financial Condition and Results of Operations.


Liquidity and Capital Resources




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Results of Operations












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Contractual Obligations


|                                                                  |  |       |   |           |        |  |   |           |  |  |           |  |  |         |   |  |  |  |   | 
|----------------------------------------------------------------- |  | ----- | - | --------- | ------ |  | - | --------- |  |  | --------- |  |  | ------- | - |  |  |  | - | 
|                                                                  |  |       |   | Less than |        |  |   |           |  |  | More than | 
|Contractual Obligations                                           |  | Total |   |           | 1 Year |  |   | 1-3 Years |  |  | 3-5 Years |  |  | 5 Years |  
|                                                                  |  |       |   |           |        |  |   |           |  |  |           |  |  |         |  
|Long-Term Debt Obligations                                        |  |       | 0 |           |        |  | 0 |           |  |  | 0         |  |  |         | 0 |  |  |  | 0 | 
|Capital Lease Obligations                                         |  |       | 0 |           |        |  | 0 |           |  |  | 0         |  |  |         | 0 |  |  |  | 0 | 
|Operating Lease Obligations                                       |  |       | 0 |           |        |  | 0 |           |  |  | 0         |  |  |         | 0 |  |  |  | 0 | 
|Purchase Obligations                                              |  |       | 0 |           |        |  | 0 |           |  |  | 0         |  |  |         | 0 |  |  |  | 0 | 
|Other Long-Term Liabilities Reflected on the Trusts Balance Sheet |  |       | 0 |           |        |  | 0 |           |  |  | 0         |  |  |         | 0 |  |  |  | 0 | 
|                                                                  |  |       |   |           |        |  |   |           |  |  |           |  |  |         |  
|Total                                                             |  |       | 0 |           |        |  | 0 |           |  |  | 0         |  |  |         | 0 |  |  |  | 0 | 
|                                                                  |  |       |   |           |        |  |   |           |  |  |           |  |  |         |  

Critical Accounting Policies and Estimates




1.     Basis of Accounting






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Royalty income, net of severance and ad valorem taxes, and
    interest income are recognized in the month in which amounts are
    received by either the escrow agent or the Trust.                                                                                                                                                                                                                                             
|
| |  | Trust expenses, consisting principally of routine general and
    administrative costs, include payments made during the
    accounting period. Expenses are accrued to the extent of amounts
    that become payable on the next monthly record date following
    the end of the accounting period. Reserves for liabilities that
    are contingent or uncertain in amount may also be established if
    considered necessary.
|
| |  | Royalties that are producing properties are amortized using the
    unit-of-production method. This amortization is shown as a
    reduction of Trust corpus.                                                                                                                                                                                                                                                                     
|
| |  | Distributions to Unit holders are recognized when declared by
    the Trustee.                                                                                                                                                                                                                                                                                                                                                    





| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Royalty income is recognized in the month received rather than
    in the month of production.                                                                  
|
| |  | Expenses other than those expected to be paid on the following
    monthly record date are not accrued.                                                         
|
| |  | Amortization of the royalties is shown as a reduction to Trust
    corpus and not as a charge to operating results.                                             
|
| |  | Reserves may be established for contingencies that would not be
    recorded under accounting principles generally accepted in the
    United States of America.



23



---



##### Table of Contents



2.     Revenue Recognition




3.     Reserve Disclosure




4.     Contingencies




New Accounting Pronouncements


Accounting for Stock-Based
Compensation






24



---



##### Table of Contents



Off-Balance Sheet Arrangements




Inflation




|     |  |         |       |  |         |   |      | 
|---- |  | ------- | ----- |  | ------- | - | ---- | 
|     |  | Oil     |       |  | Gas     |  
|     |  | Per BBL |       |  | Per Mcf |  
|     |  |         |       |  |         |  
|2005 |  | $       | 40.47 |  |         | $ | 6.84 | 
|2004 |  |         | 33.78 |  |         |   | 4.80 | 
|2003 |  |         | 26.17 |  |         |   | 4.39 | 

Forward-Looking Statements







Item 7A. Quantitative and Qualitative Disclosures
About Market Risk.




25



---



##### Table of Contents






Item 8. Financial Statements and Supplementary
Data.


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














Internal Control 
Integrated Framework








26



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SABINE ROYALTY TRUST


FINANCIAL STATEMENTS


Statements of Assets, Liabilities and Trust Corpus


|                                                                                                                           |  |              |           |  |      |   |           | 
|-------------------------------------------------------------------------------------------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                                                                                                           |  | December 31, |          
|                                                                                                                           |  |              |          
|                                                                                                                           |  | 2005         |           |  | 2004 |  
|                                                                                                                           |  |              |           |  |      |  
|Assets                                                                                                                     |  |              |           |  |      |   |           | 
|Cash and short-term investments                                                                                            |  | $            | 6,335,822 |  |      | $ | 3,753,282 | 
|Royalty interests in oil and gas properties less accumulated
    amortization of $21,359,883 (2005) and $21,235,652 (2004) |  |              | 1,035,302 |  |      |   | 1,159,533 | 
|                                                                                                                           |  |              |           |  |      |  
|Total                                                                                                                      |  | $            | 7,371,124 |  |      | $ | 4,912,815 | 
|                                                                                                                           |  |              |           |  |      |  
|                                                                                                                          
|Liabilities And Trust Corpus                                                                                               |  |              |           |  |      |   |           | 
|Trust expenses payable                                                                                                     |  | $            | 148,696   |  |      | $ | 249,308   | 
|Other payables (Note 4)                                                                                                    |  |              | 176,176   |  |      |   | 140,432   | 
|                                                                                                                           |  |              |           |  |      |  
|Total liabilities                                                                                                          |  |              | 324,872   |  |      |   | 389,740   | 
|Trust Corpus (14,579,345 units of beneficial interest
    authorized and outstanding)                                      |  |              | 7,046,252 |  |      |   | 4,523,075 | 
|                                                                                                                           |  |              |           |  |      |  
|Total                                                                                                                      |  | $            | 7,371,124 |  |      | $ | 4,912,815 | 
|                                                                                                                           |  |              |           |  |      |  

Statements of Distributable Income


|                                                                                            |  |                         |            |  |      |   |            |      |  |   |            | 
|------------------------------------------------------------------------------------------- |  | ----------------------- | ---------- |  | ---- | - | ---------- | ---- |  | - | ---------- | 
|                                                                                            |  | Year Ended December 31, |           
|                                                                                            |  |                         |           
|                                                                                            |  | 2005                    |            |  | 2004 |   |            | 2003 | 
|                                                                                            |  |                         |            |  |      |   |            |      | 
|Royalty Income                                                                              |  | $                       | 54,594,978 |  |      | $ | 42,338,724 |      |  | $ | 38,761,739 | 
|Interest Income                                                                             |  |                         | 175,380    |  |      |   | 50,785     |      |  |   | 47,417     | 
|                                                                                            |  |                         |            |  |      |   |            |      | 
|Total                                                                                       |  |                         | 54,770,358 |  |      |   | 42,389,509 |      |  |   | 38,809,156 | 
|General and administrative expenses (Note 6)                                                |  |                         | 2,089,547  |  |      |   | 1,801,824  |      |  |   | 1,749,153  | 
|                                                                                            |  |                         |            |  |      |   |            |      | 
|Distributable income                                                                        |  | $                       | 52,680,811 |  |      | $ | 40,587,685 |      |  | $ | 37,060,003 | 
|                                                                                            |  |                         |            |  |      |   |            |      | 
|Distributable income per unit (Basic and Assuming Dilution)
    (14,579,345 units) (Note 1) |  | $                       | 3.61       |  |      | $ | 2.78       |      |  | $ | 2.54       | 
|                                                                                            |  |                         |            |  |      |   |            |      | 
|Distributions per unit (Note 3)                                                             |  | $                       | 3.43       |  |      | $ | 2.79       |      |  | $ | 2.52       | 
|                                                                                            |  |                         |            |  |      |   |            |      | 

Statements of Changes in Trust Corpus


|                                       |  |      |             |   |      |   |             |      |  |   |             |  
|-------------------------------------- |  | ---- | ----------- | - | ---- | - | ----------- | ---- |  | - | ----------- | -
|                                       |  | 2005 |             |   | 2004 |   |             | 2003 | 
|                                       |  |      |             |   |      |   |             |      | 
|Trust corpus, beginning of year        |  | $    | 4,523,075   |   |      | $ | 4,700,993   |      |  | $ | 4,603,219   |  
|Amortization of royalty interests      |  |      | (124,231    | ) |      |   | (148,418    | )    |  |   | (184,950    | )
|Distributable income                   |  |      | 52,680,811  |   |      |   | 40,587,685  |      |  |   | 37,060,003  |  
|Distributions to unit holders (Note 3) |  |      | (50,033,403 | ) |      |   | (40,617,185 | )    |  |   | (36,777,279 | )
|                                       |  |      |             |   |      |   |             |      | 
|Trust corpus, end of year              |  | $    | 7,046,252   |   |      | $ | 4,523,075   |      |  | $ | 4,700,993   |  
|                                       |  |      |             |   |      |   |             |      | 



27



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SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS


1. Trust Organization and Provisions














| |   |                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Trust shall not engage in any business or commercial
    activity of any kind or acquire assets other than those
    initially transferred to the Trust.                                                                                                                           
|
| |  | The Trustee may not sell all or any part of its assets unless
    approved by the holders of a majority of the outstanding Units
    in which case the sale must be for cash and the proceeds, after
    satisfying all existing liabilities, promptly distributed to
    Unit holders.
|
| |  | The Trustee may establish a cash reserve for the payment of any
    liability that is contingent or uncertain in amount or that
    otherwise is not currently due and payable.                                                                                                        
|
| |  | The Trustee will use reasonable efforts to cause the Trust and
    the Unit holders to recognize income and expenses on monthly
    record dates.                                                                                                                                      
|
| |  | The Trustee is authorized to borrow funds to pay liabilities of
    the Trust provided that such borrowings are repaid in full
    before any further distributions are made to Unit holders.                                                                                          
|
| |  | The Trustee will make monthly cash distributions to Unit holders
    of record on the monthly record date (see Note 3).                                                                                                                                                                



28



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SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS  (Continued)










2. Accounting Policies


Basis of Accounting






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Royalty income, net of severance and ad valorem taxes, and
    interest income are recognized in the month in which amounts are
    received by either the escrow agent or the Trust (see
    Note 1).                                                                                                                                                                                                                            
|
| |  | Trust expenses, consisting principally of routine general and
    administrative costs, include payments made during the
    accounting period. Expenses are accrued to the extent of amounts
    that become payable on the next monthly record date following
    the end of the accounting period. Reserves for liabilities that
    are contingent or uncertain in amount may also be established if
    considered necessary.
|
| |  | Royalties that are producing properties are amortized using the
    unit-of-production method. This amortization is shown as a
    reduction of Trust corpus.                                                                                                                                                                                                                                                                     

29



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SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS  (Continued)




| |   |                                                                                            
| | - | -------------------------------------------------------------------------------------------
| |  | Distributions to Unit holders are recognized when declared by
    the Trustee (see Note 3).





| |   |                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Royalty income is recognized in the month received rather than
    in the month of production.                                                                  
|
| |  | Expenses other than those expected to be paid on the following
    monthly record date are not accrued.                                                         
|
| |  | Amortization of the royalties is shown as a reduction to Trust
    corpus and not as a charge to operating results.                                             
|
| |  | Reserves may be established for contingencies that would not be
    recorded under accounting principles generally accepted in the
    United States of America.



Use of Estimates




Impairment




New Accounting Standards


Accounting for Stock-Based
Compensation






30



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SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS  (Continued)




Distributable Income Per Unit




Federal Income Taxes




3. Distributions to Unit Holders






31



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SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS  (Continued)


4. Other Payables




|                                                                                     |       |      |         |         |      |   |         |         | 
|------------------------------------------------------------------------------------ | ----- | ---- | ------- | ------- | ---- | - | ------- | ------- | 
|December 31,                                                                         |       | 2005 |         |         | 2004 |  
|                                                                                     |       |      |         |         |      |  
|Royalty receipts in suspense pending verification of ownership
    interest or title |       | $    | 176,176 |         |      | $ | 140,432 |        
|                                                                                     |       |      |         |         |      |  
|                                                                                     | Total |      | $       | 176,176 |      |   | $       | 140,432 | 
|                                                                                     |       |      |         |         |      |  



5. Subsequent Events


Distributions




|                    |  |                   |  |                       |        | 
|------------------- |  | ----------------- |  | --------------------- | ------ | 
|Monthly Record Date |  | Payment Date      |  | Distribution per Unit
|                    |  |                   |  |                      
|January 17, 2006    |  | January 31, 2006  |  | $                     | .41419 | 
|February 15, 2006   |  | February 28, 2006 |  | $                     | .43431 | 
|March 15, 2006      |  | March 29, 2006    |  | $                     | .28242 | 

Proxy Solicitation










32



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##### Table of Contents



SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS  (Continued)


6. General and Administrative Expenses




|                                           |  |      |           |  |      |   |           |      |  |   |           | 
|------------------------------------------ |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                           |  | 2005 |           |  | 2004 |   |           | 2003 | 
|                                           |  |      |           |  |      |   |           |      | 
|Trustees fee (Bank of America, N.A.)      |  | $    | 297,187   |  |      | $ | 291,480   |      |  | $ | 288,221   | 
|Escrow agents fee (Bank of America, N.A.) |  |      | 891,548   |  |      |   | 874,438   |      |  |   | 864,652   | 
|Professional fees                          |  |      | 377,214   |  |      |   | 264,216   |      |  |   | 182,745   | 
|Unit holders services fees                |  |      | 344,259   |  |      |   | 244,970   |      |  |   | 267,427   | 
|Other                                      |  |      | 179,339   |  |      |   | 126,720   |      |  |   | 146,108   | 
|                                           |  |      |           |  |      |   |           |      | 
|Total General and Administrative Expenses  |  |      | 2,089,547 |  |      |   | 1,801,824 |      |  |   | 1,749,153 | 
|                                           |  |      |           |  |      |   |           |      | 

7. Quarterly Financial Data (Unaudited)




|               |  |         |        |  |               |   |        |                 |  |   |      | 
|-------------- |  | ------- | ------ |  | ------------- | - | ------ | --------------- |  | - | ---- | 
|Calender       |  | Royalty |        |  | Distributable |   |        | Distributable   | 
|Quarter        |  | Income  |        |  | Income        |   |        | Income per Unit | 
|               |  |         |        |  |               |   |        |                 | 
|2005           |  |         |        |  |               |   |        |                 |  |   |      | 
|First Quarter  |  | $       | 12,354 |  |               | $ | 11,718 |                 |  | $ | 0.80 | 
|Second Quarter |  |         | 11,769 |  |               |   | 11,264 |                 |  |   | 0.78 | 
|Third Quarter  |  |         | 13,695 |  |               |   | 13,303 |                 |  |   | 0.91 | 
|Fourth Quarter |  |         | 16,778 |  |               |   | 16,396 |                 |  |   | 1.12 | 
|               |  |         |        |  |               |   |        |                 | 
|               |  | $       | 54,595 |  |               | $ | 52,681 |                 |  | $ | 3.61 | 
|               |  |         |        |  |               |   |        |                 | 
|2004           |  |         |        |  |               |   |        |                 |  |   |      | 
|First Quarter  |  | $       | 9,709  |  |               | $ | 9,233  |                 |  | $ | 0.63 | 
|Second Quarter |  |         | 10,376 |  |               |   | 9,889  |                 |  |   | 0.68 | 
|Third Quarter  |  |         | 11,984 |  |               |   | 11,612 |                 |  |   | 0.80 | 
|Fourth Quarter |  |         | 10,270 |  |               |   | 9,854  |                 |  |   | 0.67 | 
|               |  |         |        |  |               |   |        |                 | 
|               |  | $       | 42,339 |  |               | $ | 40,588 |                 |  | $ | 2.78 | 
|               |  |         |        |  |               |   |        |                 | 

8. Supplemental Oil and Gas Information (Unaudited)


Reserve Quantities






33



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SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                  |                                  |           |       |       |       |  |        |        |  
|----------------- | -------------------------------- | --------- | ----- | ----- | ----- |  | ------ | ------ | -
|                  |                                  | Oil       |       |       | Gas   | 
|                  |                                  | (Barrels) |       |       | (Mcf) | 
|                  |                                  |           |       |       |       | 
|January 1, 2003   |                                  |           | 5,085 |       |       |  | 36,332 |       
|                  | Revisions of previous statements |           |       | 880   |       |  |        | 6,546  |  
|                  | Production                       |           |       | (481  | )     |  |        | (5,929 | )
|                  |                                  |           |       |       |       | 
|December 31, 2003 |                                  |           | 5,484 |       |       |  | 36,949 |       
|                  | Revisions of previous statements |           |       | 664   |       |  |        | 5,586  |  
|                  | Production                       |           |       | (463  | )     |  |        | (4,926 | )
|                  |                                  |           |       |       |       | 
|December 31, 2004 |                                  |           | 5,685 |       |       |  | 37,609 |       
|                  | Revisions of previous statements |           |       | 1,152 |       |  |        | 3,359  |  
|                  | Production                       |           |       | (569  | )     |  |        | (4,566 | )
|                  |                                  |           |       |       |       | 
|December 31, 2005 |                                  |           | 6,268 |       |       |  | 36,402 |       



|                           |                   |           |  |       |       |  |  |        | 
|-------------------------- | ----------------- | --------- |  | ----- | ----- |  |  | ------ | 
|                           |                   | Oil       |  |       | Gas   | 
|                           |                   | (Barrels) |  |       | (Mcf) | 
|                           |                   |           |  |       |       | 
|Proved developed reserves: |                   |           |  |       |       |  |  |       
|                           | January 1, 2003   |           |  | 5,067 |       |  |  | 36,239 | 
|                           | December 31, 2003 |           |  | 5,454 |       |  |  | 36,878 | 
|                           | December 31, 2004 |           |  | 5,642 |       |  |  | 37,550 | 
|                           | December 31, 2005 |           |  | 6,197 |       |  |  | 36,172 | 

Disclosure of a Standardized Measure of Discounted Future Net
Cash Flows




|                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|---------------------------------------------------------- |  | ---- | -------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|December 31,                                               |  | 2005 |          |   | 2004 |   |          | 2003 | 
|                                                           |  |      |          |   |      |   |          |      | 
|Future net cash inflows                                    |  | $    | 566,077  |   |      | $ | 382,852  |      |  | $ | 324,013  |  
|Discount of future net cash flows @ 10%                    |  |      | (278,300 | ) |      |   | (188,623 | )    |  |   | (155,206 | )
|                                                           |  |      |          |   |      |   |          |      | 
|Standardized measure of discounted future net cash inflows |  | $    | 287,777  |   |      | $ | 194,229  |      |  | $ | 168,807  |  
|                                                           |  |      |          |   |      |   |          |      | 

34



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SABINE ROYALTY TRUST


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                                                           |  |      |         |   |      |   |         |      |  |   |         |  
|-------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                           |  | 2005 |         |   | 2004 |   |         | 2003 | 
|                                                                           |  |      |         |   |      |   |         |      | 
|Standardized measure of discounted future net cash flows,
    January 1,   |  | $    | 194,229 |   |      | $ | 168,807 |      |  | $ | 138,455 |  
|Royalty income, net of severance and ad valorem taxes                      |  |      | (54,595 | ) |      |   | (42,339 | )    |  |   | (38,762 | )
|Changes in prices, net of related costs                                    |  |      | 85,699  |   |      |   | 27,440  |      |  |   | 23,279  |  
|Revisions of previous estimates and other                                  |  |      | 43,021  |   |      |   | 23,440  |      |  |   | 31,989  |  
|Accretion of discount                                                      |  |      | 19,423  |   |      |   | 16,881  |      |  |   | 13,846  |  
|                                                                           |  |      |         |   |      |   |         |      | 
|Standardized measure of discounted future net cash flows,
    December 31, |  | $    | 287,777 |   |      | $ | 194,229 |      |  | $ | 168,807 |  
|                                                                           |  |      |         |   |      |   |         |      | 



35



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




















36



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##### Table of Contents



STATEMENTS OF FEES AND EXPENSES


PAID BY SABINE ROYALTY TRUST TO


BANK OF AMERICA, N.A., AS


TRUSTEE AND ESCROW AGENT, FOR EACH OF THE THREE


YEARS IN THE PERIOD ENDED DECEMBER 31, 2005


|                        |  |      |           |  |      |   |           |      |  |   |           | 
|----------------------- |  | ---- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                        |  | 2005 |           |  | 2004 |   |           | 2003 | 
|                        |  |      |           |  |      |   |           |      | 
|Trustees fee           |  | $    | 297,187   |  |      | $ | 291,480   |      |  | $ | 288,221   | 
|Escrow agents fee      |  |      | 891,548   |  |      |   | 874,438   |      |  |   | 864,652   | 
|                        |  |      |           |  |      |   |           |      | 
|Total fees and expenses |  |      | 1,188,735 |  |      |   | 1,165,918 |      |  |   | 1,152,873 | 
|                        |  |      |           |  |      |   |           |      | 



Notes


1.






2.


37



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3.




38



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure.








|         |                         
|-------- | ------------------------
|Item 9A. | Controls and Procedures.



| |                                                                                 
| | --------------------------------------------------------------------------------
| | Conclusion Regarding the Effectiveness of Disclosure Controls
    and Procedures

13a-15(e)




| |                                                     
| | ----------------------------------------------------
| | Changes in Internal Control Over Financial Reporting





| |                                                                  
| | -----------------------------------------------------------------
| | Trustees Report on Internal Control Over Financial
    Reporting

13a-15(f) Internal Control 
Integrated Framework Internal
Control  Integrated Framework,


39



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Report of Independent Registered Public Accounting Firm




Internal Control 
Integrated Framework








Internal
Control  Integrated Framework Internal Control  Integrated
Framework


40



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41



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|         |                   
|-------- | ------------------
|Item 9B. | Other Information.






PART III







|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.

Directors and Executive Officers.


Compliance with Section 16(a) of the Exchange Act.


Code of Ethics.


Audit Committee.


Nominating Committee.







|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.








|         |                                                                    
|-------- | -------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management.

Security Ownership of Certain Beneficial Owners.


Security Ownership of Management.


Changes in Control.







|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.








|         |                                        
|-------- | ---------------------------------------
|Item 14. | Principal Accounting Fees and Services.



|                   |  |      |         |  |      |   |        | 
|------------------ |  | ---- | ------- |  | ---- | - | ------ | 
|                   |  | 2005 |         |  | 2004 |  
|                   |  |      |         |  |      |  
|Audit fees         |  | $    | 163,825 |  |      | $ | 84,000 | 
|Audit-related fees |  | $    | 0       |  |      | $ | 0      | 
|Tax fees           |  | $    | 44,550  |  |      | $ | 22,795 | 
|All other fees     |  | $    | 0       |  |      | $ | 0      | 

42



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PART IV







|         |                                         
|-------- | ----------------------------------------
|Item 15. | Exhibits, Financial Statement Schedules.



Financial Statements (included in Item 8 of this
report)




| |                                                                                                            
| | -----------------------------------------------------------------------------------------------------------
| | Report of Independent Registered Public Accounting Firm                                                    
|
| | Statements of Assets, Liabilities and Trust Corpus at
    December 31, 2005 and 2004                       
|
| | Statements of Distributable Income for Each of the Three Years
    in the Period Ended December 31, 2005   
|
| | Statements of Changes in Trust Corpus for Each of the Three
    Years in the Period Ended December 31, 2005
|
| | Notes to Financial Statements                                                                              

Financial Statement Schedules




Exhibits


| |        |   |  |                                                                                                                                                                                                                                                              
| | ------ | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (4)(a) | * |  |  Sabine Corporation Royalty Trust Agreement effective
    as of December 31, 1982, by and between Sabine Corporation
    and InterFirst Bank Dallas, N.A., as trustee.                                                                                      
| | (b)    | * |  |  Sabine Corporation Louisiana Royalty Trust Agreement
    effective as of December 31, 1982, by and between Sabine
    Corporation and Hibernia National Bank in New Orleans, as
    trustee, and joined in by InterFirst Bank Dallas, N.A., as
    trustee.
| | (23)   |   |  |  Consent of DeGolyer and MacNaughton.                                                                                                                                                                                                                       
| | 31     |   |  |  Rule 13a-14(a)(15d-14(a)) Certification.                                                                                                                                                                                                                   
| | 32     |   |  |  Certification by Bank of America, Trustee of Sabine
    Royalty Trust, dated March 15, 2006 and submitted pursuant
    to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.
    Section 1350).                                                      
| | (99)   |   |  |  Report dated February 10, 2006 of the Trustee
    containing interim tax information for each of the
    12 months in the year ending December 31, 2005.                                                                                                   






| |   |                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Exhibits 4(a) and 4(b) are incorporated herein by reference to
    Exhibits 4(a) and 4(b), respectively, of the
    Registrants Annual Report on
    Form 10-K for the
    year ended December 31, 1993.

43



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##### Table of Contents



SIGNATURES






| |                     
| | --------------------
| | SABINE ROYALTY TRUST



| |     |                               
| | --- | ------------------------------
| | BY: | BANK OF AMERICA, N.A., Trustee



| |     |                  
| | --- | -----------------
| | By: | /s/ RON E. HOOPER

| |                      
| | ---------------------
| |                      
| | Ron E. Hooper        
| | Senior Vice-President



(The Registrant has no directors or executive officers.)


44



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##### Table of Contents



INDEX TO EXHIBITS


|        |        |   |             |                                                                                                                                                                                                                                                              
|------- | ------ | - | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |        |   |            
|Number  |        |   | Description
|        |        |   |            
|       
|        | (4)(a) | * |             |  Sabine Corporation Royalty Trust Agreement effective
    as of December 31, 1982, by and between Sabine Corporation
    and InterFirst Bank Dallas, N.A., as trustee.                                                                                      
|        | (b)    | * |             |  Sabine Corporation Louisiana Royalty Trust Agreement
    effective as of December 31, 1982, by and between Sabine
    Corporation and Hibernia National Bank in New Orleans, as
    trustee, and joined in by InterFirst Bank Dallas, N.A., as
    trustee.
|        | (23)   |   |             |  Consent of DeGolyer and MacNaughton.                                                                                                                                                                                                                       
|        | 31     |   |             |  Rule 13a-14(a)(15d-14(a)) Certification.                                                                                                                                                                                                                   
|        | 32     |   |             |  Certification by Bank of America, Trustee of Sabine
    Royalty Trust, dated March 15, 2006 and submitted pursuant
    to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.
    Section 1350).                                                      
|        | (99)   |   |             |  Report dated February 10, 2006 of the Trustee
    containing interim tax information for each of the
    12 months in the year ending December 31, 2005.                                                                                                   






| |   |                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Exhibits 4(a) and 4(b) are incorporated herein by reference to
    Exhibits 4(a) and 4(b), respectively, of the
    Registrants Annual Report on
    Form 10-K for the
    year ended December 31, 1993.