##### 



This booklet contains tax information relevant to ownership of
Units of Sabine Royalty Trust and should be retained.




---



##### 



SABINE ROYALTY TRUST
 February 12, 2007
 To Unit Holders:
     This years tax booklet contains additional schedules designed to assist you or your tax
advisor in calculating the information to be included in your Federal income tax returns. Those
schedules are included on pages 20 through 21. We have also consolidated some of the historical
depletion information that is no longer applicable.




---



##### 



SABINE ROYALTY TRUST
 TABLE OF CONTENTS
 Page2006 TAX INFORMATION Reading the Income and Expense Schedules
    
    
    1 Identifying Which Income and Expense Schedules to Use
    
    
    1 Applying the Data From the Income and Expense Schedules
    
    
    1 Computing Depletion
    
    
    1 Sale or Exchange of Units
    
    
    2 Classification of Investment
    
    
    2 Nonresident Foreign Unit Holders
    
    
    2 Unrelated Business Taxable Income
    
    
    2 Backup Withholding
    
    
    3 State Income Tax
    
    
    3 Table of 2006 Monthly Record Dates and Cash Distributions Per Unit
    
    
    4 Tax Computation Worksheet
    
    
    5 Supplement to Tax Computation Worksheet
    
    
    6 Tax Information Schedules
    
    
    7  Form 1041, Grantor Trust for Calendar Year 2006
    
    
    7  Form 1041, Grantor Trust for January 2006
    
    
    8  Form 1041, Grantor Trust for February 2006
    
    
    9  Form 1041, Grantor Trust for March 2006
    
    
    10  Form 1041, Grantor Trust for April 2006
    
    
    11  Form 1041, Grantor Trust for May 2006
    
    
    12  Form 1041, Grantor Trust for June 2006
    
    
    13  Form 1041, Grantor Trust for July 2006
    
    
    14  Form 1041, Grantor Trust for August 2006
    
    
    15  Form 1041, Grantor Trust for September 2006
    
    
    16  Form 1041, Grantor Trust for October 2006
    
    
    17  Form 1041, Grantor Trust for November 2006
    
    
    18  Form 1041, Grantor Trust for December 2006
    
    
    19  Supplemental Tax Table IGross Royalty Income
    
    
    20  Supplemental Tax Table IISeverance Tax
    
    
    20  Supplemental Tax Table IIIInterest Income
    
    
    21  Supplemental Tax Table IVTrust Administrative Expense
    
    
    21  Depletion Schedule I
    
    
    22  Depletion Schedule II
    
    
    22  Depletion Schedule III
    
    
    23 Sample Tax Forms for Individual Unit Holders
    
    
    24 Comprehensive Examples
    
    
    28 Sabine Royalty Trust Historical Tax Worksheet
    
    
    31DISCUSSION OF TAX CONSIDERATIONS PERTAINING TO THE OWNERSHIP OF UNITS IN
SABINE ROYALTY TRUST Tax Background Information
    
    
    A-1  Effect of Escrow Arrangement
    
    
    A-1 Depletion
    
    
    A-2  Cost Depletion
    
    
    A-2  Percentage Depletion
    
    
    A-2 Nonresident Foreign Unit Holders
    
    
    A-3 Sale or Exchange of Units
    
    
    A-4 Backup Withholding
    
    
    A-4 Substantial Understatement Penalty
    
    
    A-4 State Income Tax
    
    
    A-4 Texas Margin Tax
    
    
    A-5(SRT 2006 TAX)




---



##### 



SABINE ROYALTY TRUST
 2006 TAX INFORMATION
 Reading the Income and Expense Schedules
  Identifying Which Income and Expense Schedules to Use
   Applying the Data From the Income and Expense Schedules
  Computing Depletion
   1




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##### 



Sale or Exchange of Units
  Classification of Investment
  Nonresident Foreign Unit Holders
  Unrelated Business Taxable Income
   2




---



##### 



Backup Withholding
  State Income Tax
   3




---



##### 



Table of 2006 Monthly Record Dates and Cash Distributions Per Unit
  DistributionMonthly Record Date
    
    Date Payable
    
    Per UnitJanuary 17, 2006
    
    January 31, 2006
    
    
    0.41419February 15, 2006
    
    February 28, 2006
    
    
    0.43431March 15, 2006
    
    March 29, 2006
    
    
    0.28242April 17, 2006
    
    April 28, 2006
    
    
    0.48123May 15, 2006
    
    May 30, 2006
    
    
    0.24292June 15, 2006
    
    June 29, 2006
    
    
    0.34031July 17, 2006
    
    July 31, 2006
    
    
    0.37996August 15, 2006
    
    August 29, 2006
    
    
    0.34502September 15, 2006
    
    September 29, 2006
    
    
    0.38496October 16, 2006
    
    October 30, 2006
    
    
    0.27953November 15, 2005
    
    November 29, 2006
    
    
    0.46741December 15, 2006
    
    December 29, 2006
    
    
    0.18446
  4




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##### 



SABINE ROYALTY TRUST
 TAX COMPUTATION WORKSHEET
 2006
 (RETAIN THIS WORKPAPER AS PART OF YOUR PERMANENT TAX RECORDS)
 Part I
 INCOME AND EXPENSE
 A
    
    
    
    B
    
    
    
    CIncome/ExpensePer UnitNumber of
    
    
    
    from AppropriateUnits Owned
    
    
    
    Schedule(s)
    
    
    
    
    
    Where to Reflect onItem
    
    (Note 1)
    
    
    
    (Note 2)
    
    
    
    Totals
    
    2006 Form 1040 (Note 3)Gross Royalty Income
    
    
    
     ́
    
    
    
    =
    
    
    
    Line 4, Part I, Schedule ESeverance Tax
    
    
    
     ́
    
    
    
    =
    
    
    
    Line 16, Part I, Schedule EInterest Income
    
    
    
     ́
    
    
    
    =
    
    
    
    Line 1, Part I, Schedule BAdministrative Expense
    
    
    
     ́
    
    
    
    =
    
    
    
    Line 18, Part I, Schedule E
 Part II
 COST DEPLETION (Note 4)
 Cost DepletionAllowable in Prior
    
    
    
    Adjusted Basis for
    
    
    
    Appropriate 2006Calendar Years
    
    
    
    Cost Depletion
    
    
    
    Cost Depletion FactorOriginal Basis
    
    
    
    (Note 5)
    
    
    
    Purposes
    
    
    
    (Note 4)
    
    
    
    2006 Cost Depletion*
    
    
    
    =
    
    
    
     ́
    
    
    
    =
 
  Part III
 COMPUTATION OF GAIN OR (LOSS) FOR UNITS SOLD
 Where to Reflect onNet Sales
    
    
    
    Adjusted Basis
    
    
    
    Gain
    
    2006 Form 1040Price
    
    
    
    (Note 6)
    
    
    
    (Loss)
    
    (Note 3)Form 4797
    
    
    
    =
    
    
    
    Part III, Lines 19-24an Schedule D
 
 Notes
 (1)
    
    In order to correctly calculate total income and expense to be reported on your 2006 Federal
and, if applicable, state income tax returns as different factors apply depending on when Units
were acquired, it is recommended that you reproduce and complete a separate Tax Computation
Worksheet for each block of Units acquired at different times. If more than one Tax Computation
Worksheet is required, then the separate amounts from each Tax Computation Worksheet should be
added together and those aggregate numbers reported on your 2006 income tax returns.(2)
    
    If you did not become a Unit holder of record of any Unit(s) or did not cease to be a Unit
holder of record of any Unit(s) during the period from January 17, 2006 through December 15, 2006,
then the amounts reflected on the cumulative schedule for 2006 (located on page 7) should be used
to complete Part I. If any Units were held of record for only part of the period defined above, the
Supplement to Tax Computation Worksheet on page 6 should be used to derive the income and expense
factors to be inserted in column B.(3)
    
    The Trustee believes that individual Unit holders owning the Units as an investment should
report the amounts determined in this
manner. See Sample Tax Forms on pages 24-27. The U.S. Corporation Income Tax Return (Form 1120)
does not require that royalty income and related expenses be separately identified on any specific
schedules. See Sale or Exchange of Units on page A-4 for a discussion of the tax consequences
resulting from the sale of a Unit.(4)
    
    The appropriate depletion schedule(s) to be utilized depends on when the Units were acquired.
See Computing Depletion on pages 1 and 2 to determine the proper schedule(s) to be used.(5)
    
    Cost
depletion allowable in prior calendar years cannot be computed from the schedules contained in this
booklet Depletion schedules contained in Sabine Royalty Trust Tax Information Booklet(s) from prior
years should be used to determine the appropriate cost depletion amount(s) allowable in prior
calendar years.(6)
    
    The adjusted basis is equal to the cost or other basis of the Unit(s) less the
cost depletion allowable from the date of acquisition through the date of sale (whether or not
deducted).  5




---



##### 



SABINE ROYALTY TRUST
 SUPPLEMENT TO TAX COMPUTATION WORKSHEET
 2006
 FOR UNITS HELD FOR ONLY PART OF THE YEAR
 only
 CalculatedMONTH(S) DURING WHICH UNITS WERE OWNED ON A MONTHLY RECORD DATE

    
    FactorJanuary
    
    
    February
    
    
    March
    
    
    April
    
    
    May
    
    
    June
    
    
    July
    
    
    August
    
    
    September
    
    
    October
    
    
    November
    
  December
    
    Per Unit*Gross Royalty
IncomeSeverance
TaxInterest
IncomeAdministrative
Expense
 
 *
    
    This column of calculated factors per Unit should be inserted in column B of the Income and
Expense section (Part I) of the Tax Computation Worksheet on page 5.  6




---



##### 



Cumulative 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
 FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .038899
    
    
    $
    .002796
    
    
    $
    .036103
    
    
    $
    *
    
    
    $
    .001225Louisiana
    
    
    .142089
    
    
    
    .008196
    
    
    
    .133893
    
    
    
    *
    
    
    
    .004310Mississippi
    
    
    .192284
    
    
    
    .015585
    
    
    
    .176699
    
    
    
    *
    
    
    
    .006056New Mexico
    
    
    .362057
    
    
    
    .049261
    
    
    
    .312796
    
    
    
    *
    
    
    
    .010985Oklahoma
    
    
    .901404
    
    
    
    .119366
    
    
    
    .782038
    
    
    
    *
    
    
    
    .027736Texas
    
    
    3.096692
    
    
    
    .181619
    
    
    
    2.915073
    
    
    
    .024294
    
    
    
    .093858TOTAL
    
    $
    4.733425
    
    
    $
    .376823
    
    
    $
    4.356602
    
    
    $
    .024294
    
    
    $
    .144170
 SECTION II
 RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1.  Total Net Royalty Payments
    
    $
    4.3566022.  Interest Income
    
    
    .0242943.  Administrative Expense
    
    
    (.144170
    )4.  Cash Distribution Per Unit**
    
    $
    4.236726
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  7




---



##### 



For January 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
 FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
 INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .000367
    
    
    $
    .000035
    
    
    $
    .000332
    
    
    $
    *
    
    
    $
    .000008Louisiana
    
    
    .017947
    
    
    
    .000822
    
    
    
    .017125
    
    
    
    *
    
    
    
    .000393Mississippi
    
    
    .019326
    
    
    
    .001472
    
    
    
    .017854
    
    
    
    *
    
    
    
    .000423New Mexico
    
    
    .033700
    
    
    
    .003973
    
    
    
    .029727
    
    
    
    *
    
    
    
    .000738Oklahoma
    
    
    .090246
    
    
    
    .011194
    
    
    
    .079052
    
    
    
    *
    
    
    
    .001977Texas
    
    
    .304347
    
    
    
    .025852
    
    
    
    .278495
    
    
    
    .001814
    
    
    
    .006667TOTAL
    
    $
    .465933
    
    
    $
    .043348
    
    
    $
    .422585
    
    
    $
    .001814
    
    
    $
    .010206
 SECTION II
 RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1.  Total Net Royalty Payments
    
    $
    .4225852.  Interest Income*
    
    
    .0018143.  Administrative Expense
    
    
    (.010206
    )4.  Cash Distribution Per Unit**
    
    $
    .414193
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  8




---



##### 



For
February 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .005198
    
    
    $
    .000366
    
    
    $
    .004832
    
    
    $
    *
    
    
    $
    .000132Louisiana
    
    
    .015877
    
    
    
    .000698
    
    
    
    .015179
    
    
    
    *
    
    
    
    .000404Mississippi
    
    
    .024475
    
    
    
    .001910
    
    
    
    .022565
    
    
    
    *
    
    
    
    .000623New Mexico
    
    
    .041264
    
    
    
    .005840
    
    
    
    .035424
    
    
    
    *
    
    
    
    .001050Oklahoma
    
    
    .110122
    
    
    
    .014634
    
    
    
    .095488
    
    
    
    *
    
    
    
    .002803Texas
    
    
    .291047
    
    
    
    .019923
    
    
    
    .271124
    
    
    
    .002118
    
    
    
    .007407TOTAL
    
    $
    .487983
    
    
    $
    .043371
    
    
    $
    .444612
    
    
    $
    .002118
    
    
    $
    .012419
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .4446122. Interest Income*
    
    
    .0021183.
Administrative Expense
    
    
    (.012419
    )4. Cash Distribution Per Unit**
    
    $
    .434311
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  9




---



##### 



For March 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .000857
    
    
    $
    .000041
    
    
    $
    .000816
    
    
    $
    *
    
    
    $
    .000038Louisiana
    
    
    .010871
    
    
    
    .000376
    
    
    
    .010495
    
    
    
    *
    
    
    
    .000483Mississippi
    
    
    .019490
    
    
    
    .000910
    
    
    
    .018580
    
    
    
    *
    
    
    
    .000866New Mexico
    
    
    .025246
    
    
    
    .003396
    
    
    
    .021850
    
    
    
    *
    
    
    
    .001121Oklahoma
    
    
    .071343
    
    
    
    .009787
    
    
    
    .061556
    
    
    
    *
    
    
    
    .003169Texas
    
    
    .193577
    
    
    
    .012001
    
    
    
    .181576
    
    
    
    .001822
    
    
    
    .008598TOTAL
    
    $
    .321384
    
    
    $
    .026511
    
    
    $
    .294873
    
    
    $
    .001822
    
    
    $
    .014275
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .2948732. Interest Income*
    
    
    .0018223.
Administrative Expense
    
    
    (.014275
    )4. Cash Distribution Per Unit**
    
    $
    .282420
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  10




---



##### 



For
April 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .006129
    
    
    $
    .000465
    
    
    $
    .005664
    
    
    $
    *
    
    
    $
    .000152Louisiana
    
    
    .021679
    
    
    
    .001134
    
    
    
    .020545
    
    
    
    *
    
    
    
    .000539Mississippi
    
    
    .021709
    
    
    
    .001590
    
    
    
    .020119
    
    
    
    *
    
    
    
    .000540New Mexico
    
    
    .037977
    
    
    
    .005306
    
    
    
    .032671
    
    
    
    *
    
    
    
    .000945Oklahoma
    
    
    .101830
    
    
    
    .013396
    
    
    
    .088434
    
    
    
    *
    
    
    
    .002533Texas
    
    
    .340183
    
    
    
    .015142
    
    
    
    .325041
    
    
    
    .001924
    
    
    
    .008460TOTAL
    
    $
    .529507
    
    
    $
    .037033
    
    
    $
    .492474
    
    
    $
    .001924
    
    
    $
    .013169
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .4924742. Interest Income
    
    
    .0019245.
Administrative Expense
    
    
    (.013169
    )6. Cash Distribution Per Unit**
    
    $
    .481229
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  11




---



##### 



For May 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .002399
    
    
    $
    .000179
    
    
    $
    .002220
    
    
    $
    *
    
    
    $
    .000098Louisiana
    
    
    .007893
    
    
    
    .000509
    
    
    
    .007384
    
    
    
    *
    
    
    
    .000324Mississippi
    
    
    .014294
    
    
    
    .001247
    
    
    
    .013047
    
    
    
    *
    
    
    
    .000586New Mexico
    
    
    .019341
    
    
    
    .002617
    
    
    
    .016724
    
    
    
    *
    
    
    
    .000793Oklahoma
    
    
    .060645
    
    
    
    .008358
    
    
    
    .052287
    
    
    
    *
    
    
    
    .002486Texas
    
    
    .167503
    
    
    
    .007213
    
    
    
    .160290
    
    
    
    .002121
    
    
    
    .006865TOTAL
    
    $
    .272075
    
    
    $
    .020123
    
    
    $
    .251952
    
    
    $
    .002121
    
    
    $
    .011152
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .2519522. Interest Income
    
    
    .0021213.
Administrative Expense
    
    
    (.011152
    )4. Cash Distribution Per Unit**
    
    $
    .242921
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  12




---



##### 



For June 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .003648
    
    
    $
    .000273
    
    
    $
    .003375
    
    
    $
    *
    
    
    $
    .000168Louisiana
    
    
    .008977
    
    
    
    .000538
    
    
    
    .008439
    
    
    
    *
    
    
    
    .000412Mississippi
    
    
    .014249
    
    
    
    .001326
    
    
    
    .012923
    
    
    
    *
    
    
    
    .000655New Mexico
    
    
    .034067
    
    
    
    .004542
    
    
    
    .029525
    
    
    
    *
    
    
    
    .001565Oklahoma
    
    
    .077022
    
    
    
    .009513
    
    
    
    .067509
    
    
    
    *
    
    
    
    .003538Texas
    
    
    .248939
    
    
    
    .014325
    
    
    
    .234614
    
    
    
    .001701
    
    
    
    .011437TOTAL
    
    $
    .386902
    
    
    $
    .030517
    
    
    $
    .356385
    
    
    $
    .001701
    
    
    $
    .017775
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .3563852. Interest Income
    
    
    .0017013.
Administrative Expense
    
    
    (.017775
    )4. Cash Distribution Per Unit**
    
    $
    .340311
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  13




---



##### 



For July 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .002413
    
    
    $
    .000161
    
    
    $
    .002252
    
    
    $
    *
    
    
    $
    .000057Louisiana
    
    
    .011898
    
    
    
    .000647
    
    
    
    .011251
    
    
    
    *
    
    
    
    .000282Mississippi
    
    
    .014714
    
    
    
    .001249
    
    
    
    .013465
    
    
    
    *
    
    
    
    .000348New Mexico
    
    
    .027868
    
    
    
    .004188
    
    
    
    .023680
    
    
    
    *
    
    
    
    .000660Oklahoma
    
    
    .071974
    
    
    
    .010611
    
    
    
    .061363
    
    
    
    *
    
    
    
    .001705Texas
    
    
    .288202
    
    
    
    .012389
    
    
    
    .275813
    
    
    
    .002014
    
    
    
    .006826TOTAL
    
    $
    .417069
    
    
    $
    .029245
    
    
    $
    .387824
    
    
    $
    .002014
    
    
    $
    .009878
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .3878242. Interest Income
    
    
    .0020143.
Administrative Expense
    
    
    (.009878
    )4. Cash Distribution Per Unit**
    
    $
    0.379960
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  14




---



##### 



For
August 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .003534
    
    
    $
    .000266
    
    
    $
    .003268
    
    
    $
    *
    
    
    $
    .000133Louisiana
    
    
    .011721
    
    
    
    .000719
    
    
    
    .011002
    
    
    
    *
    
    
    
    .000440Mississippi
    
    
    .013263
    
    
    
    .001300
    
    
    
    .011963
    
    
    
    *
    
    
    
    .000497New Mexico
    
    
    .026830
    
    
    
    .003631
    
    
    
    .023199
    
    
    
    *
    
    
    
    .001006Oklahoma
    
    
    .062886
    
    
    
    .010306
    
    
    
    .052580
    
    
    
    *
    
    
    
    .002359Texas
    
    
    .271870
    
    
    
    .016528
    
    
    
    .255342
    
    
    
    .002297
    
    
    
    .010197TOTAL
    
    $
    .390104
    
    
    $
    .032750
    
    
    $
    .357354
    
    
    $
    .002297
    
    
    $
    .014632
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .3573542. Interest Income
    
    
    .0022973.
Administrative Expense
    
    
    (.014632
    )4. Cash Distribution Per Unit**
    
    $
    0.345019
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  15




---



##### 



For September 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .000606
    
    
    $
    .000043
    
    
    $
    .000563
    
    
    $
    *
    
    
    $
    .000014Louisiana
    
    
    .007376
    
    
    
    .000528
    
    
    
    .006848
    
    
    
    *
    
    
    
    .000165Mississippi
    
    
    .015950
    
    
    
    .001532
    
    
    
    .014418
    
    
    
    *
    
    
    
    .000357New Mexico
    
    
    .034135
    
    
    
    .004732
    
    
    
    .029403
    
    
    
    *
    
    
    
    .000764Oklahoma
    
    
    .077528
    
    
    
    .009793
    
    
    
    .067735
    
    
    
    *
    
    
    
    .001735Texas
    
    
    .292169
    
    
    
    .018706
    
    
    
    .273463
    
    
    
    .002103
    
    
    
    .006539TOTAL
    
    $
    .427764
    
    
    $
    .035334
    
    
    $
    .392430
    
    
    $
    .002103
    
    
    $
    .009574
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .3924302. Interest Income
    
    
    .0021033.
Administrative Expense
    
    
    (.009574
    )4. Cash
Distribution Per Unit**
    
    $
    0.384959
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  16




---



##### 



For October 2006
 SABINE ROYALTY TRUST
 EIN 75-6297143
FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .006657
    
    
    $
    .000483
    
    
    $
    .006174
    
    
    $
    *
    
    
    $
    .000227Louisiana
    
    
    .005954
    
    
    
    .000505
    
    
    
    .005449
    
    
    
    *
    
    
    
    .000203Mississippi
    
    
    .010938
    
    
    
    .000875
    
    
    
    .010063
    
    
    
    *
    
    
    
    .000373New Mexico
    
    
    .025025
    
    
    
    .003280
    
    
    
    .021745
    
    
    
    *
    
    
    
    .000854Oklahoma
    
    
    .053384
    
    
    
    .007213
    
    
    
    .046171
    
    
    
    *
    
    
    
    .001821Texas
    
    
    .210900
    
    
    
    .012295
    
    
    
    .198605
    
    
    
    .001995
    
    
    
    .007194TOTAL
    
    $
    .312858
    
    
    $
    .024651
    
    
    $
    .288207
    
    
    $
    .001995
    
    
    $
    .010672
 SECTION II
RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1. Total Net Royalty Payments
    
    $
    .2882072. Interest Income
    
    
    .0019953.
Administrative Expense
    
    
    (.010672
    )4. Cash
Distribution Per Unit**
    
    $
    .279530
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions.  17




---



##### 



For November 2006
 SABINE ROYALTY TRUST
 EIN
75-6297143
 FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
    
    
    Tax
    
    
    Payments
    
    
    Income
    
    
    ExpenseFlorida
    
    $
    .005082
    
    
    $
    .000300
    
    
    $
    .004782
    
    
    $
    *
    
    
    $
    .000094Louisiana
    
    
    .014080
    
    
    
    .001102
    
    
    
    .012978
    
    
    
    *
    
    
    
    .000261Mississippi
    
    
    .013472
    
    
    
    .000951
    
    
    
    .012521
    
    
    
    *
    
    
    
    .000250New Mexico
    
    
    .043357
    
    
    
    .005473
    
    
    
    .037884
    
    
    
    *
    
    
    
    .000804Oklahoma
    
    
    .085169
    
    
    
    .009134
    
    
    
    .076035
    
    
    
    *
    
    
    
    .001579Texas
    
    
    .348843
    
    
    
    .018349
    
    
    
    .330494
    
    
    
    .002173
    
    
    
    .006469TOTAL
    
    $
    .510003
    
    
    $
    .035309
    
    
    $
    .474694
    
    
    $
    .002173
    
    
    $
    .009457
 SECTION II
 RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1.
    Total Net Royalty Payments
    
    $
    .4746942.
    Interest Income
    
    
    .0021733.
    Administrative Expense
    
    
    (.009457
    )4.
    Cash Distribution Per Unit**
    $
    .467410
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions. (SRT 2006 TAX) 18




---



##### 



For December 2006
 SABINE ROYALTY TRUST
 EIN
75-6297143
 FORM 1041, GRANTOR TRUST
 Federal and State Income Tax Information
See Instructions for Use
 SECTION I
INCOME AND EXPENSE PER UNIT
 OTHER INCOMEROYALTY INCOME AND EXPENSE
    
    
    AND EXPENSENetGross
    
    
    Severance
    
    
    Royalty
    
    
    Interest
    
    
    AdministrativeSource
    
    Income
        
    Tax
        
    Payments
        
    Income
    
    
    ExpenseFlorida
    
    $
    .002009
    
    
    $
    .000184
    
    
    $
    .001825
    
    
    $
    *
    
    
    $
    .000104Louisiana
    
    
    .007816
    
    
    
    .000618
    
    
    
    .007198
    
    
    
    *
    
    
    
    .000404Mississippi
    
    
    .010404
    
    
    
    .001223
    
    
    
    .009181
    
    
    
    *
    
    
    
    .000538New Mexico
    
    
    .013247
    
    
    
    .002283
    
    
    
    .010964
    
    
    
    *
    
    
    
    .000685Oklahoma
    
    
    .039255
    
    
    
    .005427
    
    
    
    .033828
    
    
    
    *
    
    
    
    .002031Texas
    
    
    .139112
    
    
    
    .008896
    
    
    
    .130216
    
    
    
    .002212
    
    
    
    .007199TOTAL
    
    $
    .211843
    
    
    $
    .018631
    
    
    $
    .193212
    
    
    $
    .002212
    
    
    $
    .010961
 SECTION II
 RECONCILIATION OF CASH DISTRIBUTIONS PER UNIT
 Item
    
    AMOUNT1.
    Total Net Royalty Payments
    
    $
    .1932122.
    Interest Income
    
    
    .0022123.
    Administrative Expense
    
    
    (.010961
    )4.
    Cash Distribution Per Unit**
    
    $
    .184463
 
 *
    
    Revenue attributable to these states was invested and earned interest income. Since the
investments were made in Dallas, Texas, and the interest was paid there, such interest is
included in the Texas interest income.**
    
    Includes amounts withheld by the Trust from distributions to nonresident alien individuals
and foreign corporations and remitted directly to the United States Treasury. This also
includes amounts withheld pursuant to the backup withholding provisions. (SRT 2006 TAX) 19




---



##### 



SABINE ROYALTY TRUST FEDERAL
 Table I: 2006 Gross Royalty Income (Cumulative $  per Unit)
 ACQUISITION
    
    AND THE LAST CASH DISTRIBUTION ON SUCH UNIT WAS ATTRIBUTABLE TO THE MONTHLY RECORD DATEMONTH:
    
    FOR THE MONTH OF:2006January
    
    February
    
    March
    
    April
    
    May
    
    June
    
    July
    
    August
    
    September
    
    October
    
    November
    
    DecemberJanuary
    
    
    0.465933
    
    
    
    0.953916
    
    
    
    1.275300
    
    
    
    1.804807
    
    
    
    2.076882
    
    
    
    2.463784
    
    
    
    2.880853
    
    
    
    3.270957
    
    
    
    3.698721
    
    
    
    4.011579
    
    
    
    4.521582
    
    
    
    4.733425February
    
    
    
    
    
    
    0.487983
    
    
    
    0.809367
    
    
    
    1.338874
    
    
    
    1.610949
    
    
    
    1.997851
    
    
    
    2.414920
    
    
    
    2.805024
    
    
    
    3.232788
    
    
    
    3.545646
    
    
    
    4.055649
    
    
    
    4.267492March
    
    
    
    
    
    
    
    
    
    
    0.321384
    
    
    
    0.850891
    
    
    
    1.122966
    
    
    
    1.509868
    
    
    
    1.926937
    
    
    
    2.317041
    
    
    
    2.744805
    
    
    
    3.057663
    
    
    
    3.567666
    
    
    
    3.779509April
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.529507
    
    
    
    0.801582
    
    
    
    1.188484
    
    
    
    1.605553
    
    
    
    1.995657
    
    
    
    2.423421
    
    
    
    2.736279
    
    
    
    3.246282
    
    
    
    3.458125May
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.272075
    
    
    
    0.658977
    
    
    
    1.076046
    
    
    
    1.466150
    
    
    
    1.893914
    
    
    
    2.206772
    
    
    
    2.716775
    
    
    
    2.928618June
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.386902
    
    
    
    0.803971
    
    
    
    1.194075
    
    
    
    1.621839
    
    
    
    1.934697
    
    
    
    2.444700
    
    
    
    2.656543July
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.417069
    
    
    
    0.807173
    
    
    
    1.234937
    
    
    
    1.547795
    
    
    
    2.057798
    
    
    
    2.269641August
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.390104
    
    
    
    0.817868
    
    
    
    1.130726
    
    
    
    1.640729
    
    
    
    1.852572September
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.427764
    
    
    
    0.740622
    
    
    
    1.250625
    
    
    
    1.462468October
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.312858
    
    
    
    0.822861
    
    
    
    1.034704November
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.510003
    
    
    
    0.721846December
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.211843
 Table II: 2006 Severance Tax (Cumulative $  per Unit)
 ACQUISITION
    
    AND THE LAST CASH DISTRIBUTION ON SUCH UNIT WAS ATTRIBUTABLE TO THE MONTHLY RECORD DATEMONTH:
    
    FOR THE MONTH OF:2006January
    
    February
    
    March
    
    April
    
    May
    
    June
    
    July
    
    August
    
    September
    
    October
    
    November
    
    DecemberJanuary
    
    
    0.043348
    
    
    
    0.086719
    
    
    
    0.113230
    
    
    
    0.150263
    
    
    
    0.170386
    
    
    
    0.200903
    
    
    
    0.230148
    
    
    
    0.262898
    
    
    
    0.298232
    
    
    
    0.322883
    
    
    
    0.358192
    
    
    
    0.376823February
    
    
    
    
    
    
    0.043371
    
    
    
    0.069882
    
    
    
    0.106915
    
    
    
    0.127038
    
    
    
    0.157555
    
    
    
    0.186800
    
    
    
    0.219550
    
    
    
    0.254884
    
    
    
    0.279535
    
    
    
    0.314844
    
    
    
    0.333475March
    
    
    
    
    
    
    
    
    
    
    0.026511
    
    
    
    0.063544
    
    
    
    0.083667
    
    
    
    0.114184
    
    
    
    0.143429
    
    
    
    0.176179
    
    
    
    0.211513
    
    
    
    0.236164
    
    
    
    0.271473
    
    
    
    0.290104April
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.037033
    
    
    
    0.057156
    
    
    
    0.087673
    
    
    
    0.116918
    
    
    
    0.149668
    
    
    
    0.185002
    
    
    
    0.209653
    
    
    
    0.244962
    
    
    
    0.263593May
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.020123
    
    
    
    0.050640
    
    
    
    0.079885
    
    
    
    0.112635
    
    
    
    0.147969
    
    
    
    0.172620
    
    
    
    0.207929
    
    
    
    0.226560June
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.030517
    
    
    
    0.059762
    
    
    
    0.092512
    
    
    
    0.127846
    
    
    
    0.152497
    
    
    
    0.187806
    
    
    
    0.206437July
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.029245
    
    
    
    0.061995
    
    
    
    0.097329
    
    
    
    0.121980
    
    
    
    0.157289
    
    
    
    0.175920August
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.032750
    
    
    
    0.068084
    
    
    
    0.092735
    
    
    
    0.128044
    
    
    
    0.146675September
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.035334
    
    
    
    0.059985
    
    
    
    0.095294
    
    
    
    0.113925October
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.024651
    
    
    
    0.059960
    
    
    
    0.078591November
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.035309
    
    
    
    0.053940December
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.018631
 (SRT 2006 TAX) 20




---



##### 



SABINE ROYALTY TRUST FEDERAL
 Table III: 2006 Interest Income (Cumulative $  per Unit)
 ACQUISITION
    
    AND THE LAST CASH DISTRIBUTION ON SUCH UNIT WAS ATTRIBUTABLE TO THE MONTHLY RECORD DATEMONTH:
    
    FOR THE MONTH OF:2006January
    
    February
    
    March
    
    April
    
    May
    
    June
    
    July
    
    August
    
    September
    
    October
    
    November
    
    DecemberJanuary
    
    
    0.001814
    
    
    
    0.003932
    
    
    
    0.005754
    
    
    
    0.007678
    
    
    
    0.009799
    
    
    
    0.011500
    
    
    
    0.013514
    
    
    
    0.015811
    
    
    
    0.017914
    
    
    
    0.019909
    
    
    
    0.022082
    
    
    
    0.024294February
    
    
    
    
    
    
    0.002118
    
    
    
    0.003940
    
    
    
    0.005864
    
    
    
    0.007985
    
    
    
    0.009686
    
    
    
    0.011700
    
    
    
    0.013997
    
    
    
    0.016100
    
    
    
    0.018095
    
    
    
    0.020268
    
    
    
    0.022480March
    
    
    
    
    
    
    
    
    
    
    0.001822
    
    
    
    0.003746
    
    
    
    0.005867
    
    
    
    0.007568
    
    
    
    0.009582
    
    
    
    0.011879
    
    
    
    0.013982
    
    
    
    0.015977
    
    
    
    0.018150
    
    
    
    0.020362April
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.001924
    
    
    
    0.004045
    
    
    
    0.005746
    
    
    
    0.007760
    
    
    
    0.010057
    
    
    
    0.012160
    
    
    
    0.014155
    
    
    
    0.016328
    
    
    
    0.018540May
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.002121
    
    
    
    0.003822
    
    
    
    0.005836
    
    
    
    0.008133
    
    
    
    0.010236
    
    
    
    0.012231
    
    
    
    0.014404
    
    
    
    0.016616June
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.001701
    
    
    
    0.003715
    
    
    
    0.006012
    
    
    
    0.008115
    
    
    
    0.010110
    
    
    
    0.012283
    
    
    
    0.014495July
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.002014
    
    
    
    0.004311
    
    
    
    0.006414
    
    
    
    0.008409
    
    
    
    0.010582
    
    
    
    0.012794August
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.002297
    
    
    
    0.004400
    
    
    
    0.006395
    
    
    
    0.008568
    
    
    
    0.010780September
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.002103
    
    
    
    0.004098
    
    
    
    0.006271
    
    
    
    0.008483October
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.001995
    
    
    
    0.004168
    
    
    
    0.006380November
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.002173
    
    
    
    0.004385December
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.002212
 Table IV: 2006 Trust Administrative Expense (Cumulative $  per Unit)
 ACQUISITION
    
    AND THE LAST CASH DISTRIBUTION ON SUCH UNIT WAS ATTRIBUTABLE TO THE MONTHLY RECORD DATEMONTH:
    
    FOR THE MONTH OF:2006January
    
    February
    
    March
    
    April
    
    May
    
    June
    
    July
    
    August
    
    September
    
    October
    
    November
    
    DecemberJanuary
    
    
    0.010206
    
    
    
    0.022625
    
    
    
    0.036900
    
    
    
    0.050069
    
    
    
    0.061221
    
    
    
    0.078996
    
    
    
    0.088874
    
    
    
    0.103506
    
    
    
    0.113080
    
    
    
    0.123752
    
    
    
    0.133209
    
    
    
    0.144170February
    
    
    
    
    
    
    0.012419
    
    
    
    0.026694
    
    
    
    0.039863
    
    
    
    0.051015
    
    
    
    0.068790
    
    
    
    0.078668
    
    
    
    0.093300
    
    
    
    0.102874
    
    
    
    0.113546
    
    
    
    0.123003
    
    
    
    0.133964March
    
    
    
    
    
    
    
    
    
    
    0.014275
    
    
    
    0.027444
    
    
    
    0.038596
    
    
    
    0.056371
    
    
    
    0.066249
    
    
    
    0.080881
    
    
    
    0.090455
    
    
    
    0.101127
    
    
    
    0.110584
    
    
    
    0.121545April
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.013169
    
    
    
    0.024321
    
    
    
    0.042096
    
    
    
    0.051974
    
    
    
    0.066606
    
    
    
    0.076180
    
    
    
    0.086852
    
    
    
    0.096309
    
    
    
    0.107270May
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.011152
    
    
    
    0.028927
    
    
    
    0.038805
    
    
    
    0.053437
    
    
    
    0.063011
    
    
    
    0.073683
    
    
    
    0.083140
    
    
    
    0.094101June
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.017775
    
    
    
    0.027653
    
    
    
    0.042285
    
    
    
    0.051859
    
    
    
    0.062531
    
    
    
    0.071988
    
    
    
    0.082949July
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.009878
    
    
    
    0.024510
    
    
    
    0.034084
    
    
    
    0.044756
    
    
    
    0.054213
    
    
    
    0.065174August
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.014632
    
    
    
    0.024206
    
    
    
    0.034878
    
    
    
    0.044335
    
    
    
    0.055296September
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.009574
    
    
    
    0.020246
    
    
    
    0.029703
    
    
    
    0.040664October
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.010672
    
    
    
    0.020129
    
    
    
    0.031090November
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.009457
    
    
    
    0.020418December
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.010961
 (SRT 2006 TAX) 21




---



##### 



SABINE ROYALTY TRUST
 Depletion Schedule I
  FIRST MONTH IN WHICHUNITS WERE OWNEDON THE MONTHLYRECORD DATE IN 2006
    
    January
    
    February
    
    March
    
    April
    
    May
    
    June
    
    July
    
    August
    
    September
    
    October
    
    November
    DecemberJanuary
    
    
    .011719
    
    
    
    .023827
    
    
    
    .032049
    
    
    
    .046031
    
    
    
    .053591
    
    
    
    .064690
    
    
    
    .077048
    
    
    
    .089319
    
    
    
    .103156
    
    
    
    .112624
    
    
    
    .126095
    
    
    
    .134334February
    
    
    
    
    
    
    .012108
    
    
    
    .020330
    
    
    
    .034312
    
    
    
    .041872
    
    
    
    .052971
    
    
    
    .065329
    
    
    
    .077600
    
    
    
    .091437
    
    
    
    .100905
    
    
    
    .114376
    
    
    
    .122615March
    
    
    
    
    
    
    
    
    
    
    .008222
    
    
    
    .022204
    
    
    
    .029764
    
    
    
    .040863
    
    
    
    .053221
    
    
    
    .065492
    
    
    
    .079329
    
    
    
    .088797
    
    
    
    .102268
    
    
    
    .110507April
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .013982
    
    
    
    .021542
    
    
    
    .032641
    
    
    
    .044999
    
    
    
    .057270
    
    
    
    .071107
    
    
    
    .080575
    
    
    
    .094046
    
    
    
    .102285May
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .007560
    
    
    
    .018659
    
    
    
    .031017
    
    
    
    .043288
    
    
    
    .057125
    
    
    
    .066593
    
    
    
    .080064
    
    
    
    .088303June
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .011099
    
    
    
    .023457
    
    
    
    .035728
    
    
    
    .049565
    
    
    
    .059033
    
    
    
    .072504
    
    
    
    .080743July
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .012358
    
    
    
    .024629
    
    
    
    .038466
    
    
    
    .047934
    
    
    
    .061405
    
    
    
    .069644August
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .012271
    
    
    
    .026108
    
    
    
    .035576
    
    
    
    .049047
    
    
    
    .057286September
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .013837
    
    
    
    .023305
    
    
    
    .036776
    
    
    
    .045015October
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .009468
    
    
    
    .022939
    
    
    
    .031178November
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .013471
    
    
    
    .021710December
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .008239
 Depletion Schedule II
  STATE DEPLETIONFACTORS
    
    January
    
    February
    
    March
    
    April
    
    May
    
    June
    
    July
    
    August
    
    September
    
    October
    
    November
    
    DecemberFlorida
    
    
    .000008
    
    
    
    .000118
    
    
    
    .000029
    
    
    
    .000156
    
    
    
    .000045
    
    
    
    .000105
    
    
    
    .000055
    
    
    
    .000073
    
    
    
    .000027
    
    
    
    .000136
    
    
    
    .000128
    
    
    
    .000041Louisiana
    
    
    .000488
    
    
    
    .000424
    
    
    
    .000321
    
    
    
    .000718
    
    
    
    .000283
    
    
    
    .000386
    
    
    
    .000594
    
    
    
    .000543
    
    
    
    .000434
    
    
    
    .000296
    
    
    
    .000803
    
    
    
    .000379Mississippi
    
    
    .000431
    
    
    
    .000496
    
    
    
    .000547
    
    
    
    .000511
    
    
    
    .000347
    
    
    
    .000286
    
    
    
    .000274
    
    
    
    .000260
    
    
    
    .000448
    
    
    
    .000237
    
    
    
    .000323
    
    
    
    .000392New Mexico
    
    
    .000941
    
    
    
    .000921
    
    
    
    .000583
    
    
    
    .000926
    
    
    
    .000475
    
    
    
    .000949
    
    
    
    .000749
    
    
    
    .000916
    
    
    
    .000915
    
    
    
    .000639
    
    
    
    .000983
    
    
    
    .000450Oklahoma
    
    
    .001866
    
    
    
    .002185
    
    
    
    .001577
    
    
    
    .002442
    
    
    
    .001563
    
    
    
    .002091
    
    
    
    .002006
    
    
    
    .002317
    
    
    
    .002495
    
    
    
    .001597
    
    
    
    .002151
    
    
    
    .001394Texas
    
    
    .007985
    
    
    
    .007964
    
    
    
    .005165
    
    
    
    .009229
    
    
    
    .004847
    
    
    
    .007282
    
    
    
    .008680
    
    
    
    .008162
    
    
    
    .009518
    
    
    
    .006563
    
    
    
    .009083
    
    
    
    .005583TOTAL
    
    
    .011719
    
    
    
    .012108
    
    
    
    .008222
    
    
    
    .013982
    
    
    
    .007560
    
    
    
    .011099
    
    
    
    .012358
    
    
    
    .012271
    
    
    
    .013837
    
    
    
    .009468
    
    
    
    .013471
    
    
    
    .008239
 (SRT 2006 TAX) 22




---



##### 



SABINE ROYALTY TRUST
 DEPLETION SCHEDULE III
  FOR A UNITACQUIRED OFRECORD DURINGTHE YEAR OF:
    
    LAST MONTH IN WHICH UNITS WERE OWNED ON THE MONTHLY RECORD DATE IN 20062006January
    
    February
    
    March
    
    April
    
    May
    
    June
    
    July
    
    August
    
    September
    
    October
    
    November
    
    DecemberORIGINAL
DISTRIBUTION
    
    
    .011798
    
    
    
    .023919
    
    
    
    .032295
    
    
    
    .046191
    
    
    
    .053820
    
    
    
    .064737
    
    
    
    .077163
    
    
    
    .089267
    
    
    
    .103341
    
    
    
    .112825
    
    
    
    .126046
    
    
    
    .1344701983
    
    
    .011280
    
    
    
    .022702
    
    
    
    .030257
    
    
    
    .043425
    
    
    
    .050491
    
    
    
    .060956
    
    
    
    .073101
    
    
    
    .084777
    
    
    
    .098279
    
    
    
    .107512
    
    
    
    .120320
    
    
    
    .1282401984
    
    
    .008566
    
    
    
    .017231
    
    
    
    .022958
    
    
    
    .032965
    
    
    
    .038325
    
    
    
    .046257
    
    
    
    .055498
    
    
    
    .064362
    
    
    
    .074617
    
    
    
    .081634
    
    
    
    .091374
    
    
    
    .0973961985
    
    
    .010283
    
    
    
    .020682
    
    
    
    .027560
    
    
    
    .039548
    
    
    
    .045971
    
    
    
    .055485
    
    
    
    .066550
    
    
    
    .077165
    
    
    
    .089463
    
    
    
    .097875
    
    
    
    .109537
    
    
    
    .116757BEFORE MARCH 17,1986
    
    
    .008911
    
    
    
    .017917
    
    
    
    .023859
    
    
    
    .034239
    
    
    
    .039794
    
    
    
    .048039
    
    
    
    .057634
    
    
    
    .066833
    
    
    
    .077488
    
    
    
    .084783
    
    
    
    .094892
    
    
    
    .101141AFTER MARCH 17,1986
    
    
    .007483
    
    
    
    .015044
    
    
    
    .020034
    
    
    
    .028747
    
    
    
    .033408
    
    
    
    .040330
    
    
    
    .048379
    
    
    
    .056099
    
    
    
    .065039
    
    
    
    .071159
    
    
    
    .079645
    
    
    
    .0848881987
    
    
    .009238
    
    
    
    .018579
    
    
    
    .024738
    
    
    
    .035503
    
    
    
    .041263
    
    
    
    .049821
    
    
    
    .059770
    
    
    
    .069315
    
    
    
    .080362
    
    
    
    .087930
    
    
    
    .098416
    
    
    
    .1048901988
    
    
    .009680
    
    
    
    .019490
    
    
    
    .025963
    
    
    
    .037267
    
    
    
    .043332
    
    
    
    .052331
    
    
    
    .062759
    
    
    
    .072793
    
    
    
    .084387
    
    
    
    .092326
    
    
    
    .103324
    
    
    
    .1101141989
    
    
    .009413
    
    
    
    .018995
    
    
    
    .025346
    
    
    
    .036377
    
    
    
    .042325
    
    
    
    .051111
    
    
    
    .061242
    
    
    
    .071031
    
    
    
    .082332
    
    
    
    .090060
    
    
    
    .100753
    
    
    
    .1073751990
    
    
    .009102
    
    
    
    .018370
    
    
    
    .024500
    
    
    
    .035166
    
    
    
    .040911
    
    
    
    .049420
    
    
    
    .059209
    
    
    
    .068684
    
    
    
    .079599
    
    
    
    .087073
    
    
    
    .097423
    
    
    
    .1038131991
    
    
    .008736
    
    
    
    .017643
    
    
    
    .023536
    
    
    
    .033757
    
    
    
    .039267
    
    
    
    .047479
    
    
    
    .056808
    
    
    
    .065914
    
    
    
    .076347
    
    
    
    .083493
    
    
    
    .093420
    
    
    
    .0995061992
    
    
    .009649
    
    
    
    .019532
    
    
    
    .026098
    
    
    
    .037406
    
    
    
    .043559
    
    
    
    .052693
    
    
    
    .062979
    
    
    
    .073100
    
    
    
    .084671
    
    
    
    .092562
    
    
    
    .103504
    
    
    
    .1102271993
    
    
    .009768
    
    
    
    .019792
    
    
    
    .026440
    
    
    
    .037920
    
    
    
    .044144
    
    
    
    .053412
    
    
    
    .063821
    
    
    
    .074076
    
    
    
    .085765
    
    
    
    .093769
    
    
    
    .104887
    
    
    
    .1116891994
    
    
    .008979
    
    
    
    .018240
    
    
    
    .024388
    
    
    
    .035024
    
    
    
    .040793
    
    
    
    .049341
    
    
    
    .058950
    
    
    
    .068417
    
    
    
    .079193
    
    
    
    .086592
    
    
    
    .096865
    
    
    
    .1031611995
    
    
    .009299
    
    
    
    .018973
    
    
    
    .025393
    
    
    
    .036491
    
    
    
    .042516
    
    
    
    .051435
    
    
    
    .061389
    
    
    
    .071231
    
    
    
    .082416
    
    
    
    .090147
    
    
    
    .100823
    
    
    
    .1073711996
    
    
    .009064
    
    
    
    .018545
    
    
    
    .024858
    
    
    
    .035716
    
    
    
    .041665
    
    
    
    .050443
    
    
    
    .060141
    
    
    
    .069828
    
    
    
    .080782
    
    
    
    .088321
    
    
    
    .098732
    
    
    
    .1051151997
    
    
    .011030
    
    
    
    .022505
    
    
    
    .030127
    
    
    
    .043309
    
    
    
    .050472
    
    
    
    .061065
    
    
    
    .072884
    
    
    
    .084591
    
    
    
    .097867
    
    
    
    .107028
    
    
    
    .119712
    
    
    
    .1274821998
    
    
    .011489
    
    
    
    .023439
    
    
    
    .031447
    
    
    
    .045160
    
    
    
    .052641
    
    
    
    .063625
    
    
    
    .075887
    
    
    
    .088027
    
    
    
    .101842
    
    
    
    .111330
    
    
    
    .124480
    
    
    
    .1325981999
    
    
    .011807
    
    
    
    .023993
    
    
    
    .032240
    
    
    
    .046310
    
    
    
    .053940
    
    
    
    .065095
    
    
    
    .077640
    
    
    
    .090012
    
    
    
    .104063
    
    
    
    .113662
    
    
    
    .127201
    
    
    
    .1355462000
    
    
    .011713
    
    
    
    .023834
    
    
    
    .032132
    
    
    
    .046062
    
    
    
    .053653
    
    
    
    .064682
    
    
    
    .076997
    
    
    
    .089170
    
    
    
    .103061
    
    
    
    .112525
    
    
    
    .125847
    
    
    
    .1341372001
    
    
    .011808
    
    
    
    .024102
    
    
    
    .032672
    
    
    
    .046895
    
    
    
    .054681
    
    
    
    .065903
    
    
    
    .078198
    
    
    
    .090598
    
    
    
    .104466
    
    
    
    .113847
    
    
    
    .127430
    
    
    
    .1357912002
    
    
    .011736
    
    
    
    .023945
    
    
    
    .032248
    
    
    
    .046339
    
    
    
    .053965
    
    
    
    .065171
    
    
    
    .077506
    
    
    
    .089848
    
    
    
    .103686
    
    
    
    .113195
    
    
    
    .126739
    
    
    
    .1349922003
    
    
    .011677
    
    
    
    .023802
    
    
    
    .032099
    
    
    
    .046049
    
    
    
    .053667
    
    
    
    .064783
    
    
    
    .077044
    
    
    
    .089290
    
    
    
    .103141
    
    
    
    .112597
    
    
    
    .125942
    
    
    
    .1341762004
    
    
    .011694
    
    
    
    .023788
    
    
    
    .032009
    
    
    
    .045956
    
    
    
    .053500
    
    
    
    .064555
    
    
    
    .076875
    
    
    
    .089081
    
    
    
    .102897
    
    
    
    .112361
    
    
    
    .125769
    
    
    
    .1340072005
    
    
    .011658
    
    
    
    .023787
    
    
    
    .032042
    
    
    
    .046000
    
    
    
    .053595
    
    
    
    .064691
    
    
    
    .076980
    
    
    
    .089213
    
    
    
    .103052
    
    
    
    .112535
    
    
    
    .125902
    
    
    
    .134138
 (SRT 2006 TAX) 23




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##### 



SCHEDULE E            Supplemental Income and LossOMB No. 1545-0074
(Form 1040) (From rental real estate, royalties,
partnerships, S corporations, estates, trusts, REMICs,
etc.)
Department of the Treasury            Attachment
Internal Revenue Service (99) Attach to Form 1040, 1040NR, or Form
1041. See Instructions for Schedule E (Form 1040).Sequence No. 13
Name(s) shown on return Your social security number Part I Income or Loss From Rental Real Estate and Royalties            Note.
If you are in the business of renting personal property, use Schedule Cor C-EZ(see page E-3). Report farm rental income or loss
from Form 4835on page 2, line 40. 1List the type and location of each rental real
estate property: 2For each rental real estate property Yes Nolisted
on line 1, did you or your family Ause it during the tax year for personal purposes for more than the greater of: A B 14 days or
 10% of the total days rented at B
Cfair rental value? (See page E-3.) C
Properties Totals Income:(Add columns A, B, and C.) A            B            C 3Rents received
4Royalties received 4 4
Gross Royalty Income
Expenses:
5Advertising 5
6Auto and travel (see page E-4) 6
7Cleaning and maintenance 7
8Commissions 8
9Insurance 9
10Legal and other professional fees 10
11Management fees 11 12Mortgage interest paid to banks, etc.
(see page E-4) 12 12 13Other interest 13
14Repairs 14
15Supplies 15
Severance Tax 16Taxes 16
17Utilities 17 Administrative Expenses 18Other (list) 18 19Add lines 5 through 18 19 19 Depletion 20Depreciation expense or depletion (see
page E-4) 20 20 21Total expenses. Add lines 19 and 20 21 22
Income or (loss) from
rental real estate or
royalty properties.
Subtract line 21 from
line 3 (rents) or line
4 (royalties). If the
result is a (loss),
see page E-5 to find
out if you must file
Form 6198 22 23
Deductible rental
real estate loss.
Caution.Your
rental real estate
loss on line 22 may
be limited. See
page E-5 to find
out if you must
file Form 8582.
Real estate
professionals must
complete line 43 on page 223()) (
24 Income.Add positive amounts shown on line 22. Do notinclude any losses 24
25 Losses.Add royalty losses from line 22 and rental real estate losses from line 23. Enter total losses here 25( ) 26 Total rental real estate and royalty
income or (loss).Combine lines 24 and 25. Enter the result
here. If Parts II, III, IV, and line 40 on page 2 do not apply
to you, also enter this amount on Form 1040, line 17, or Form
1040NR, line 18. Otherwise, include this amount in the total on
line 41 on page 2 26 For Paperwork Reduction Act Notice, see page E-7 of the instructions.
Cat. No. 11344L Schedule E (Form 1040) 2006 24




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##### 



Schedules A&B (Form 1040) 2006 OMB No. 1545-0074 Page 2Name(s) shown
on Form 1040. Do not enter name and social security number if shown on other side.
Your social security number Attachment Schedule BInterest and Ordinary DividendsSequence
No. 08 Amount Part I 1List name of payer. If any interest is from a seller-financed
mortgage and the buyer used the property as a personal residence, see page B-1 and
list this Interestinterest first. Also, show that buyers social
security number and address (See page B-1
and the
instructions for Interest Income
Form 1040, line
8a.) 1 Note.If you received a Form 1099-INT, Form 1099-OID, or substitute
statement from a brokerage firm, list the firms name as the payer and
enter the total interest shown on that 2Add the amounts on line
1 2form. 3Excludable interest on series EE and I U.S.
savings bonds issued after 1989. Attach Form 8815 3 4Subtract line 3 from line 2. Enter the result here and on Form 1040, line 8a 4 Note.If line 4 is over $1,500, you must complete Part III. Amount 5List name of payer Part II
Ordinary Dividends
(See page B-1
and the
instructions for
Form 1040, line
9a.)
Note.If you 5received a Form 1099-DIV or substitute
statement from a brokerage firm, list the firms name as the payer and
enter the ordinary dividends shown on that form. 6Add the amounts on line 5. Enter the total
here and on Form 1040, line 9a 6 Note.If line 6 is over
$1,500, you must complete Part III. You must complete this part if you (a)had over $1,500 of taxable interest or
ordinary dividends; or (b)had Yes No            Part IIIa foreign account; or
(c)received a distribution from, or were a grantor of, or a transferor to, a
foreign trust. Foreign 7aAt any time during 2006, did you have an interest in or a
signature or other authority over a financial Accountsaccount in a
foreign country, such as a bank account, securities account, or other financial
account? and TrustsSee page B-2 for exceptions and filing
requirements for Form TD F 90-22.1 bIf Yes, enter the name of the foreign
country
(See page B-2.) 8During 2006, did you receive a distribution from, or
were you the grantor of, or transferor to, a foreign trust? If Yes, you may have
to file Form 3520. See page B-2 For Paperwork Reduction Act Notice, see Form 1040 instructions. Schedule B
(Form 1040) 2006 25




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##### 



Sales of Business PropertyOMB No. 1545-0184 Form 4797 (Also Involuntary Conversions and Recapture Amounts
Under Sections 179 and 280F(b)(2)) Department of the Treasury            Attachment
Internal Revenue Service (99) Attach to your tax return. See separate instructions.
Sequence No. 27
Name(s) shown on return Identifying number 1Enter the gross proceeds from sales or exchanges reported to you for 2006 on
Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2,
10, or 20 (see instructions) 1 Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions
From Other Than Casualty or TheftMost Property Held More Than 1 Year(see instructions) (e)Depreciation (f)Cost or other (g) Gain or (loss) (a)Description (b)Date
acquired (c)Date sold (d)Gross allowed or basis, plus Subtract (f) from the of property
(mo., day, yr.) (mo., day, yr.) sales price allowable since improvements and acquisition
expense of sale sum of (d) and (e) 2 3Gain, if any, from Form 4684, line 42 3
4Section 1231 gain from installment sales from Form 6252, line 26 or 37 4
5Section 1231 gain or (loss) from like-kind exchanges from Form 8824 5
6Gain, if any, from line 32, from other than casualty or theft 6 7Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate
line as follows: 7 Partnerships (except electing large partnerships) and S
corporations.Report the gain or (loss) following the instructions for Form 1065,
Schedule K, line 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and
12 below. Individuals, partners, S corporation shareholders, and all others.If line 7 is
zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8
and 9. If line 7 is a gain and you did not have any prior year section 1231
losses, or they were recaptured in an earlier year, enter the gain from line 7
as a long-term capital gain on the Schedule D filed with your return and skip
lines 8, 9, 11, and 12 below. 8Nonrecaptured net section 1231 losses from prior years (see instructions) 8 9Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter
the gain from line 7 on line 12 below. If line 9 is more than zero, enter the
amount from line 8 on line 12 below and enter the gain from line 9 as a long-term
capital gain on the Schedule D filed with your return (see instructions) 9 Part II Ordinary Gains and Losses(see instructions)
10Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less):
11Loss, if any, from line 7 11
12Gain, if any, from line 7 or amount from line 8, if applicable 12
13Gain, if any, from line 31 13
14Net gain or (loss) from Form 4684, lines 34 and 41a 14
15Ordinary gain from installment sales from Form 6252, line 25 or 36 15
16Ordinary gain or (loss) from like-kind exchanges from Form 8824 16
17Combine lines 10 through 16 17 18For all except individual returns, enter the amount from line 17 on the appropriate line of
your return and skip lines a and b below. For individual returns, complete lines a and b
below: aIf the loss on line 11 includes a loss from Form 4684, line 38, column (b)(ii), enter
that part of the loss here. Enter the part of the loss from income-producing property on
Schedule A (Form 1040), line 27, and the part of the loss from property used as an employee on
Schedule A (Form 1040), line 22. Identify as from Form 4797, line 18a. See instructions 18a
bRedetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter
here and on Form 1040, line 14 18b For Paperwork Reduction Act Notice, see separate instructions.Cat. No. 13086I Form 4797
(2006) 26




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##### 



Form 4797 (2006) Page 2 Part III Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254,
and 1255 (see instructions) (b)Date acquired (c)Date sold 19 (a)Description of section 1245, 1250, 1252, 1254, or 1255 property:
(mo., day, yr.) (mo., day, yr.) A B C D Gain or Loss on Units Sold
These columns relate to the properties on lines 19A through 19D. Property A Property B Property C Property D 20Gross sales price (Note:See line 1 before completing.) 20
21Cost or other basis plus expense of sale 21
22Depreciation (or depletion) allowed or allowable 22
23Adjusted basis. Subtract line 22 from line 21 23
24Total gain. Subtract line 23 from line 20 24 25 If section 1245
property: aDepreciation allowed or
allowable from line 22 25a bEnter the
smallerof line 24 or 25a 25b 26 If section 1250 property:If straight line depreciation was
used, enter -0- on line 26g, except for a corporation subject to section 291.
aAdditional depreciation after 1975 (see instructions) 26a bApplicable
percentage multiplied by the smallerof line 24 or line 26a (see
instructions) 26b cSubtract line 26a from line 24. If residential rental
property orline 24 is not more than line 26a, skip lines 26d and 26e 26c d
Additional depreciation after 1969 and before 1976 26d eEnter the smallerof
line 26c or 26d 26e fSection 291 amount (corporations only) 26f gAdd lines
26b, 26e, and 26f 26g 27 If section 1252 property:Skip this section if you did not
dispose of farmland or if this form is being completed for a partnership
(other than an electing large partnership). aSoil, water, and land clearing
expenses 27a bLine 27a multiplied by applicable percentage (see
instructions) 27b cEnter the smallerof line 24 or 27b 27c 28 If section 1254 property: aIntangible drilling and
development costs, expenditures for development of mines and other natural
deposits, and mining exploration costs (see instructions) 28a bEnter the
smallerof line 24 or 28a 28b 29 If section 1255 property: aApplicable percentage of
payments excluded from income under section 126 (see instructions) 29a b
Enter the smallerof line 24 or 29a (see instructions) 29b Summary of Part III Gains.Complete property columns A through D through line 29b before going to line 30.
30Total gains for all properties. Add property columns A through D, line 24 30
31Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13 31 32Subtract line 31 from line 30. Enter the portion
from casualty or theft on Form 4684, line 36. Enter the portion from
other than casualty or theft on Form 4797, line 6 32 Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use
Drops to 50% or Less (see instructions) (a) Section (b) Section 179 280F(b)(2) 33Section 179 expense deduction or depreciation allowable in prior years 33
34Recomputed depreciation (see instructions) 34
35Recapture amount. Subtract line 34 from line 33. See the instructions for where to report 35 Form 4797(2006) 27




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##### 



COMPREHENSIVE EXAMPLE 1
  COMPUTATION OF INCOME AND EXPENSE FOR UNITS OWNED ON ALL MONTHLY RECORD
 DATES IN 2006
 SABINE ROYALTY TRUST
 TAX COMPUTATION WORKSHEET
 2006
 (RETAIN THIS WORKPAPER AS PART OF YOUR PERMANENT TAX RECORDS)
Part I
 INCOME AND EXPENSE
 A
    
    
    
    B
    
    
    
    
    CIncome/ExpensePer UnitNumber of
    
    
    
    from AppropriateUnits Owned
    
    
    
    Schedule(s)
    
    
    
    
    
    
    
    
    Where to Reflect onItem
    
    (Note 1)
    
    
    
    (Note 2)
    
    
    
    
    Totals
    
    
    2006 Form 1040 (Note 3)Gross Royalty Income
    
    100
    
     ́
    
    $
    4.733425
    
    
    =
    
    $
    473.34
    
    
    Line 4, Part I, Schedule ESeverance Tax
    
    100
    
     ́
    
    $
    .376823
    
    
    =
    
    $
    37.68
    
    
    Line 16, Part I, Schedule EInterest Income
    
    100
    
     ́
    
    $
    .024294
    
    
    =
    
    $
    2.43
    
    
    Line 1, Part I, Schedule BAdministrative Expense
    
    100
    
     ́
    
    $
    .144170
    
    
    =
    
    $
    14.42
    
    
    Line 18, Part I, Schedule E
 Part II
 COST DEPLETION (Note 4)
 Cost Depletion
    
    
    
    
    
    
    
    Appropriate 2006Allowable in Prior
    
    
    
    Adjusted Basis for
    
    
    
    Cost Depletion FactorAssumed
    
    
    
    Calendar Years
    
    
    
    Cost Depletion
    
    
    
    per DepletionOriginal Basis*
    
    
    
    (Note 5)
    
    
    
    Purposes
    
    
    
    Schedule III
    
    
    
    2006 Cost Depletion**$2,100.00
    
    
    
    $2,003.39
    
    =
    
    $96.61
    
     ́
    
    .097396
    
    =
    
    $9.41
 
 *
    
    This number is used for example purposes only. Each Unit holders basis is unique to that
specific Unit holder.**
    
    Reflect cost depletion on 2006 Form 1040, line 20, Part 1, Schedule E (Note 3).   28




---



##### 



COMPREHENSIVE EXAMPLE 2
  Acquisition
    
    Units
    
    Original
    
    Sales
    
    Units
    
    SalesDate
    
    Acquired
    
    Basis
    
    Date
    
    Sold
    
    Price03-21-84
    
    100
    
    $2,100.00
    
    04-2-06
    
    100
    
    $1,275.00
 COMPUTATION OF INCOME AND EXPENSE FOR UNITS SOLD IN 2006
 SABINE ROYALTY TRUST
 TAX COMPUTATION WORKSHEET
 2006
 (RETAIN THIS WORKPAPER AS PART OF YOUR PERMANENT TAX RECORDS)
 Part I
 INCOME AND EXPENSE
 See Supplement to Tax Computation Worksheet on Page 30 For Further Explanation
 A
    
    
    
    
    
    
    B
    
    
    
    
    
    
    CIncome/Expense Per UnitNumber of
    
    
    
    
    
    
    from AppropriateUnits Owned
    
    
    
    
    
    
    Schedule(s)
    
    
    
    
    
    
    
    
    
    
    Where to Reflect onItem
    
    (Note 1)
    
    
    
    
    
    
    (Note 2)
    
    
    
    
    
    
    Totals
    
    
    2006 Form 1040 (Note 3)Gross Royalty Income
    
    
    100
    
    
    
     ́
    
    
    $
    1.275300
    
    
    
    =
    
    
    $
    127.53
    
    
    Line 4, Part I, Schedule ESeverance Tax
    
    
    100
    
    
    
     ́
    
    
    $
    .113230
    
    
    
    =
    
    
    $
    11.32
    
    
    Line 16, Part I, Schedule EInterest Income
    
    
    100
    
    
    
     ́
    
    
    $
    .005754
    
    
    
    =
    
    
    $
    .58
    
    
    Line 1, Part I, Schedule BAdministrative Expense
    
    
    100
    
    
    
     ́
    
    
    $
    .036900
    
    
    
    =
    
    
    $
    3.69
    
    
    Line 18, Part I, Schedule E
 Part II
 COST DEPLETION (Note 4)
 Cost Depletion
    
    
    
    
    
    
    
    Appropriate 2006Allowable in Prior
    
    
    
    Adjusted Basis for
    
    
    
    Cost Depletion FactorAssumed
    
    
    
    Calendar Years
    
    
    
    Cost Depletion
    
    
    
    per DepletionOriginal Basis*
    
    
    
    (Note 5)
    
    
    
    Purposes
    
    
    
    Schedule III
    
    
    
    2006 Cost Depletion**$2,100.00
    
    
    
    $2,003.39
    
    =
    
    $96.61
    
     ́
    
    .022958
    
    =
    
    $2.22
 
 *
    
    This number is used for example purposes only. Each Unit holders basis is unique to that
specific Unit holder.**
    
    Reflect cost depletion on 2006 Form 1040, line 20, Part 1,
Schedule E (Note 3). Part III
 COMPUTATION OF GAIN OR (LOSS) FOR UNITS SOLD
 Where to Reflect onNet Sales
    
    
    
    Adjusted Basis
    
    
    
    Gain
    
    2006 Form 1040Price
    
    
    
    (Note 6)
    
    
    
    (Loss)
    
    (Note 3)$1,275.00
    
    
    
    $94.39
    
    =
    
    $1,180.61
    
    Form 4797,
Part III, Lines 19-24
and Schedule D
   29




---



##### 



COMPREHENSIVE EXAMPLE 2
(Continued)
 SABINE ROYALTY TRUST
 SUPPLEMENT TO TAX COMPUTATION WORKSHEET
 2006
 FOR UNITS HELD FOR ONLY PART OF THE YEAR
 only
 CalculatedMONTH(S) DURING WHICH UNITS WERE OWNED ON A MONTHLY RECORD DATE
    
    
    FactorJanuary
    
    
    February
    
    
    March
    
    
    April
    
    
    May
    
    
    June
    
    
    July
    
    
    August
    
    
    September
    
    
    October
    
    
    November
    
    
    December
    
    
    Per Unit*Gross Royalty
Income
    
    
    .465933
    
    
    
    .487983
    
    
    
    .321384
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.275300Severance
Tax
    
    
    .043348
    
    
    
    .043371
    
    
    
    .026511
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .113230Interest
Income
    
    
    .001814
    
    
    
    .002118
    
    
    
    .001822
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .005754Administrative
Expense
    
    
    .010206
    
    
    
    .012419
    
    
    
    .014275
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    .036900
 
 *
    
    This column of calculated factors per Unit should be inserted in column B of the Income and
Expense section (Part I) of the Tax Computation Worksheet on page 5.  30




---



##### 



SABINE ROYALTY TRUST HISTORICAL TAX WORKSHEET
 WINDFALL
    
    
    
    
    
    NET
    
    
    
    
    
    
    
    
    
    MISC.
    
    NETGROSS
    
    PROFIT
    
    SEVERANCE
    
    ROYALTY
    
    INTEREST
    
    ADMIN.
    
    INCOME/
    
    CASHINCOME
    
    TAX
    
    TAX
    
    PMTS
    
    INCOME
    
    EXPENSE
    
    EXPENSE
    
    DISTRIB1983
    
    
    2.721361
    
    
    
    0.316613
    
    
    
    0.155445
    
    
    
    2.249303
    
    
    
    0.019377
    
    
    
    0.086800
    
    
    
    0.000000
    
    
    
    2.1818801984
    
    
    3.496106
    
    
    
    0.323679
    
    
    
    0.196022
    
    
    
    2.976405
    
    
    
    0.031846
    
    
    
    0.155652
    
    
    
    0.000000
    
    
    
    2.8525991985
    
    
    2.853378
    
    
    
    0.190767
    
    
    
    0.171256
    
    
    
    2.491355
    
    
    
    0.021277
    
    
    
    0.169099
    
    
    
    -0.005487
    
    
    
    2.3380461986
    
    
    1.807003
    
    
    
    0.041149
    
    
    
    0.114513
    
    
    
    1.651341
    
    
    
    0.012242
    
    
    
    0.184580
    
    
    
    0.005487
    
    
    
    1.4844901987
    
    
    1.648950
    
    
    
    0.000209
    
    
    
    0.095558
    
    
    
    1.553183
    
    
    
    0.010601
    
    
    
    0.127094
    
    
    
    0.000000
    
    
    
    1.4366901988
    
    
    1.556021
    
    
    
    0.000077
    
    
    
    0.101561
    
    
    
    1.454383
    
    
    
    0.010753
    
    
    
    0.098526
    
    
    
    0.000000
    
    
    
    1.3666101989
    
    
    1.594196
    
    
    
    0.000028
    
    
    
    0.131330
    
    
    
    1.462838
    
    
    
    0.013627
    
    
    
    0.096295
    
    
    
    0.000000
    
    
    
    1.3801701990
    
    
    1.748059
    
    
    
    0.000000
    
    
    
    0.155821
    
    
    
    1.592238
    
    
    
    0.014058
    
    
    
    0.075026
    
    
    
    0.000000
    
    
    
    1.5312701991
    
    
    1.810596
    
    
    
    0.000000
    
    
    
    0.188955
    
    
    
    1.621641
    
    
    
    0.010622
    
    
    
    0.084643
    
    
    
    0.000000
    
    
    
    1.5476201992
    
    
    1.556025
    
    
    
    0.000000
    
    
    
    0.132087
    
    
    
    1.423938
    
    
    
    0.005520
    
    
    
    0.135228
    
    
    
    0.000000
    
    
    
    1.2942301993
    
    
    1.751674
    
    
    
    0.000000
    
    
    
    0.126197
    
    
    
    1.625477
    
    
    
    0.005316
    
    
    
    0.169163
    
    
    
    0.000000
    
    
    
    1.4616301994
    
    
    1.422338
    
    
    
    0.000000
    
    
    
    0.094300
    
    
    
    1.328038
    
    
    
    0.005172
    
    
    
    0.135390
    
    
    
    0.000000
    
    
    
    1.1978201995
    
    
    1.257833
    
    
    
    0.000000
    
    
    
    0.086219
    
    
    
    1.171614
    
    
    
    0.007424
    
    
    
    0.151878
    
    
    
    0.000000
    
    
    
    1.0271601996
    
    
    1.650891
    
    
    
    0.000000
    
    
    
    0.102044
    
    
    
    1.548847
    
    
    
    0.009748
    
    
    
    0.187465
    
    
    
    0.000000
    
    
    
    1.3711301997
    
    
    1.955335
    
    
    
    0.000000
    
    
    
    0.144324
    
    
    
    1.811011
    
    
    
    0.010812
    
    
    
    0.177263
    
    
    
    0.000000
    
    
    
    1.6445601998
    
    
    1.937789
    
    
    
    0.000000
    
    
    
    0.123769
    
    
    
    1.814020
    
    
    
    0.011159
    
    
    
    0.171521
    
    
    
    0.000000
    
    
    
    1.6536581999
    
    
    1.663391
    
    
    
    0.000000
    
    
    
    0.115700
    
    
    
    1.547691
    
    
    
    0.008112
    
    
    
    0.148838
    
    
    
    0.000000
    
    
    
    1.4069652000
    
    
    2.586743
    
    
    
    0.000000
    
    
    
    0.157354
    
    
    
    2.429389
    
    
    
    0.016044
    
    
    
    0.170794
    
    
    
    0.000000
    
    
    
    2.2746392001
    
    
    3.240755
    
    
    
    0.000000
    
    
    
    0.210965
    
    
    
    3.029790
    
    
    
    0.014627
    
    
    
    0.183788
    
    
    
    0.000000
    
    
    
    2.8606292002
    
    
    2.175093
    
    
    
    0.000000
    
    
    
    0.125845
    
    
    
    2.049248
    
    
    
    0.003150
    
    
    
    0.173568
    
    
    
    0.000000
    
    
    
    1.8788302003
    
    
    2.930078
    
    
    
    0.000000
    
    
    
    0.214244
    
    
    
    2.715834
    
    
    
    0.003272
    
    
    
    0.196541
    
    
    
    0.000000
    
    
    
    2.5225652004
    
    
    3.277066
    
    
    
    0.000000
    
    
    
    0.271605
    
    
    
    3.005461
    
    
    
    0.003421
    
    
    
    0.222941
    
    
    
    0.000000
    
    
    
    2.7859412005
    
    
    3.874801
    
    
    
    0.000000
    
    
    
    0.304563
    
    
    
    3.570238
    
    
    
    0.011804
    
    
    
    0.150250
    
    
    
    0.000000
    
    
    
    3.4317922006
    
    
    4.733425
    
    
    
    0.000000
    
    
    
    0.376823
    
    
    
    4.356602
    
    
    
    0.024294
    
    
    
    0.144170
    
    
    
    0.000000
    
    
    
    4.236726
  31




---



##### 



SABINE ROYALTY TRUST
 DISCUSSION OF TAX CONSIDERATIONS PERTAINING TO THE
 OWNERSHIP OF UNITS IN SABINE ROYALTY TRUST
  Tax Background Information
   Effect of Escrow Arrangement
    A-1




---



##### 



Depletion
 Cost Depletion
   Percentage Depletion
    A-2




---



##### 



Nonresident Foreign Unit Holders
        A-3




---



##### 



Sale or Exchange of Units
   Backup Withholding
   Substantial Understatement Penalty
  State Income Tax
   A-4




---



##### 



Texas Margin Tax
     A-5




---



##### 



Florida
    
    
    
    Florida Department of Revenue5050 W. Tennessee StreetTallahassee, Florida 32399-0100(850) 488-6800www.myflorida.com/dor/taxesNew Mexico
    
    Individuals:
    
    State of New MexicoTaxation and Revenue Department1100 Saint Francis DriveP.O. Box 630Santa Fe, New Mexico 87504-0630(505) 827-0700, (505) 827-0822www.state.nm.us/taxCorporations:
    
    New Mexico Taxation and Revenue DepartmentAttention: Corporate Income and Franchise TaxP.O Box 25127Santa Fe, New Mexico 87504-5127(505) 827-0825www.state.nm.us/taxMississippi
    
    
    
    Mississippi State Tax CommissionBureau of RevenueP.O. Box 1033Jackson, Mississippi 39215-1033(601) 923-7000www.mstc.state.ms.usLouisiana
    
    Individuals:
    
    Department of Revenue and TaxationState of LouisianaP.O Box 201Baton Rouge, Louisiana 70821(225) 219-0102www.rev.state.la.usCorporations:
    
    Secretary of Revenue and TaxationState of LouisianaP.O. Box 201Baton Rouge, Louisiana 70821(225) 219-0067www.rev.state.la.usOklahoma
    
    Individuals:
    
    Oklahoma Tax CommissionP.O. Box 26800Oklahoma City, OK 73126-0800(405) 521-3160www.oktax.state.ok.usCorporations:
    
    Oklahoma Tax CommissionP.O. Box 26800Oklahoma City, Oklahoma 73126-0800(405) 521-3126www.oktax.state.ok.usTexas
    
    
    
    Texas Comptroller of Public AccountsP.O. Box 13528, Capitol StationAustin, Texas 78711-3528(800) 252-5555www.window.state.tx.us
  A-6




---



#####