##### Table of Contents



UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
   Form
    10-K
  (Mark One)x

ANNUAL REPORT PURSUANT TO
    SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2006o

TRANSITION REPORT PURSUANT TO
    SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission File Number: 1-8424
  Sabine Royalty Trust
   Texas

75-6297143(State or other jurisdiction
    of incorporation or organization)

(I.R.S. Employer
    Identification No.)Trust Division
    Bank of America, N.A.
    Bank of America Plaza
    17th Floor
    901 Main Street
    Dallas, Texas(Address of principal
    executive offices)

75202(Zip Code)   (214) 209-2400
    Name of Each ExchangeTitle of Each Class

on Which RegisteredUnits of Beneficial Interest

New York Stock Exchange   None
  o x
  o x
  x o
  Regulation S-K Form 10-K Form 10-K. x
    o x o
  o x
      DOCUMENTS INCORPORATED BY REFERENCE




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##### 



TABLE OF
    CONTENTS
  PagePART
    IItem 1.

Business


1Description of the
    Trust


1Assets
    of the Trust


2Liabilities
    of the Trust


2Duties
    and Limited Powers of Trustee


2Liabilities
    of Trustee


3Duration
    of Trust


3Voting
    Rights of Unit Holders


3Description of
    Units


4Distributions
    of Net Income


4Transfer


4Reports
    to Unit Holders


5Liability
    of Unit Holders


5Possible
    Divestiture of Units


5Federal
    Taxation


6State Tax
    Considerations


8Regulation and
    Prices


9Regulation


9Prices


10Item 1A.

Risk
    Factors


11Item 1B.

Unresolved Staff
    Comments


14Item 2.

Properties


14Title


15Reserves


15Item 3.

Legal
    Proceedings


20Item 4.

Submission of
    Matters to a Vote of Security Holders


20PART IIItem 5.

Market for
    Registrants Common Equity and Related Stockholder Matters
    and Issuer Purchases of Equity Securities


21Item 6.

Selected Financial
    Data


21Item 7.

Trustees
    Discussion and Analysis of Financial Condition and Results of
    Operations


21Item 7A.

Quantitative and
    Qualitative Disclosures About Market Risk


26Item 8.

Financial
    Statements and Supplementary Data


27Item 9.

Changes in and
    Disagreements with Accountants on Accounting and Financial
    Disclosure


40Item 9A.

Controls and
    Procedures


40Item 9B.

Other
    Information


43PART IIIItem 10.

Directors and
    Executive Officers of the Registrant


43Item 11.

Executive
    Compensation


43Item 12.

Security Ownership
    of Certain Beneficial Owners and Management


43Item 13.

Certain
    Relationships and Related Transactions


43Item 14.

Principal
    Accounting Fees and Services


44PART IVItem 15.

Exhibits, Financial
    Statement Schedules


44Consent of DeGolyer and
    MacNaughton
    Rule 13a-14(a)(15d-14(a)) Certification
    Certification Pursuant to Section 906
    Report  Interim Tax InformationConsent of DeGolyer and MacNaughtonRule 13a-14(a)(15d-14(a)) CertificationCertification Submitted Pursuant to Section 906Report of the Trustee Containing Interim Tax Information   i




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PART
    I  Item 1. Business.
  DESCRIPTION
    OF THE TRUST
  (214) 209-2400.
  Form 10-K, Form 10-Q, Form 8-K,
       1




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Form 10-K
 Assets of
    the Trust   Liabilities
    of the Trust   Duties
    and Limited Powers of Trustee       2




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Liabilities
    of Trustee    Duration
    of Trust    non-cash non-cash
 Voting
    Rights of Unit Holders     3




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DESCRIPTION
    OF UNITS     Distributions
    of Net Income   Transfer   4




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Reports
    to Unit Holders     Liability
    of Unit Holders   Possible
    Divestiture of Units      90-day
 5




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30-day 30-day
     FEDERAL
    TAXATION  THE TAX CONSEQUENCES TO A UNIT HOLDER OF THE OWNERSHIP AND
    SALE OF UNITS WILL DEPEND IN PART ON THE UNIT HOLDERS TAX
    CIRCUMSTANCES. EACH UNIT HOLDER SHOULD THEREFORE CONSULT THE
    UNIT HOLDERS TAX ADVISOR ABOUT THE FEDERAL, STATE AND
    LOCAL TAX CONSEQUENCES TO THE UNIT HOLDER OF THE OWNERSHIP OF
    UNITS.
      Sections 1.1254-1 through 1.1254-6
     6




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7




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STATE TAX
    CONSIDERATIONS  THE FOLLOWING IS INTENDED AS A BRIEF SUMMARY OF CERTAIN
    INFORMATION REGARDING STATE INCOME TAXES AND OTHER STATE TAX
    MATTERS AFFECTING THE TRUST AND THE UNIT HOLDERS. UNIT HOLDERS
    SHOULD CONSULT THE UNIT HOLDERS TAX ADVISOR REGARDING
    STATE INCOME TAX FILING AND COMPLIANCE MATTERS.
  Texas.
  Louisiana.
  Florida, Mississippi, New Mexico and
    Oklahoma.
 8




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REGULATION
    AND PRICES Regulation  General
      Natural
    Gas
   9




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Prices  Oil
    Natural
    Gas
  2005-2006
  Environmental
    Regulation
  General.
  Superfund.
 10




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Solid and Hazardous Waste.
 Item 1A. Risk
    Factors  Crude oil
    and natural gas prices are volatile and fluctuate in response to
    a number of factors; Lower prices could reduce the net proceeds
    payable to the Trust and Trust distributions.
  month-to-month
  
    political conditions in major oil producing regions, especially
    in the Middle East;
    worldwide economic conditions;
    weather conditions;
    the supply and price of domestic and foreign crude oil or
    natural gas;
    the level of consumer demand;
    the price and availability of alternative fuels;
    the proximity to, and capacity of, transportation facilities;
    the effect of worldwide energy conservation measures; and
    the nature and extent of governmental regulation and taxation.    Trust
    reserve estimates depend on many assumptions that may prove to
    be inaccurate, which could cause both estimated reserves and
    estimated future net revenues to be too high, leading to
    write-downs of estimated reserves.
      
    historical production from the area compared with production
    rates from similar producing areas; 11




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
    the effects of governmental regulation;
    assumptions about future commodity prices, production and taxes;
    the availability of enhanced recovery techniques; and
    relationships with landowners, working interest partners,
    pipeline companies and others.    The
    assets of the Trust are depleting assets and, if the operators
    developing the Royalty Properties do not perform additional
    development projects, the assets may deplete faster than
    expected. Eventually, the assets of the Trust will cease to
    produce in commercial quantities and the Trust will cease to
    receive proceeds from such assets. In addition, a reduction in
    depletion tax benefits may reduce the market value of the
    Units.
      The
    market price for the Units may not reflect the value of the
    royalty interests held by the Trust.
    Terrorism
    and continued hostilities in the Middle East could decrease
    Trust distributions or the market price of the Units.
   12




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Unit
    holders and the Trustee have no influence over the operations
    on, or future development of, the Royalty Properties.
    The
    operator developing any Royalty Property may abandon the
    property, thereby terminating the royalties payable to the
    Trust.
    The
    Royalty Properties can be sold and the Trust would be
    terminated.
    Unit
    holders have limited voting rights and have limited ability to
    enforce the Trusts rights against the current or future
    operators developing the Royalty Properties.
      Financial
    information of the Trust is not prepared in accordance with
    GAAP.
   13




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The
    limited liability of the Unit holders in uncertain.
    If it is determined that the Trust is subject to the Texas
    margin tax, the Trustee may have to withhold a disproportionate
    amount from future distributions to pay the tax liability.
  State Tax Considerations  Texas
 Item 1B. Unresolved
    Staff Comments   Item 2. Properties.      Mineral and RoyaltyState

Gross Acres


Net AcresFlorida


5,448



697Louisiana


244,391



23,682Mississippi


75,489



9,713New Mexico


112,294



9,141Oklahoma


381,538



67,558Texas


1,273,132



105,760Total


2,092,292



216,551    14




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Title   Reserves   15




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DeGolyer
    and MacNaughton 5001
    Spring Valley Road
    Suite 800 East
    Dallas, Texas 75244
  March 5,
    2007
    75283-0650
  Gentlemen:
      property-by-property
     16




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(1) - (13)
  Proved oil and gas reserves
        Proved developed oil and gas reserves
  Proved undeveloped reserves
   17




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Proved Developed Reserves


Proved Undeveloped ReservesOil, Condensate,





Oil, Condensate,and NGL


Sales Gas


and NGL


Sales GasState

(Mbbl)


(MMcf)


(Mbbl)


(MMcf)Florida


128



5



0



0Louisiana


65



408



0



0Mississippi


116



2,178



29



21New Mexico


484



3,410



0



0Oklahoma


502



9,667



0



0Texas


4,492



19,665



74



914Total


5,787



35,333



103



935       Oil,
    Condensate, NGL, and Natural Gas Prices
      Expenses
   18




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Future NetRevenueYear Ending December 31

(M$)2007


41,9032008


36,6572009


32,436Subtotal


110,996Remaining


315,727Total


426,723       property-by-property
     Submitted,
    
     19




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Item 3. Legal
    Proceedings.   Item 4. Submission
    of Matters to a Vote of Security Holders.   20




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


Distributions2006

High


Low


per UnitFirst Quarter

$
46.89


$
40.28


$
1.13092Second Quarter


46.39



39.10



1.06446Third Quarter


49.35



40.90



1.10994Fourth Quarter


57.00



41.57



0.93140   Sales Price


Distributions2005

High


Low


per UnitFirst Quarter

$
42.97


$
34.71


$
0.69653Second Quarter


42.86



36.70



0.83104Third Quarter


51.99



42.35



0.90890Fourth Quarter


52.49



40.21



0.99533        Item 6. Selected
    Financial Data.   Years Ended December 31

2006


2005


2004


2003


2002Royalty Income

$
61,608,030


$
54,594,978


$
42,338,724


$
38,761,739


$
28,134,458Distributable Income


59,830,843



52,680,811



40,587,685



37,060,003



26,539,751Distributable Income per Unit


4.10



3.61



2.78



2.54



1.82Total Assets at Year End


5,370,010



7,371,124



4,912,815



5,555,045



5,391,280Distributions per Unit


4.24



3.43



2.79



2.52



1.88  Item 7. Trustees
    Discussion and Analysis of Financial Condition and Results of
    Operations.  Liquidity
    and Capital Resources
   21




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Results
    of Operations
      warmer-than-normal
  warmer-than-normal
   22




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Contractual
    Obligations
  Less








Morethan








than1


1-3


3-5


5Contractual Obligations

Total


Year


Years


Years


YearsLong-Term Debt Obligations


0



0



0



0



0Capital Lease Obligations


0



0



0



0



0Operating Lease Obligations


0



0



0



0



0Purchase Obligations


0



0



0



0



0Other Long-Term Liabilities
    Reflected on the Trusts Balance Sheet


0



0



0



0



0Total


0



0



0



0



0   Critical
    Accounting Policies and Estimates
    1.  Basis
    of Accounting
    
    Royalty income, net of severance and ad valorem taxes, and
    interest income are recognized in the month in which amounts are
    received by either the escrow agent or the Trust.
    Trust expenses, consisting principally of routine general and
    administrative costs, include payments made during the
    accounting period. Expenses are accrued to the extent of amounts
    that become payable on the next monthly record date following
    the end of the accounting period. Reserves for liabilities that
    are contingent or uncertain in amount may also be established if
    considered necessary. 23




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
    Royalties that are producing properties are amortized using the
    unit-of-production method. This amortization is shown as a
    reduction of Trust corpus.
    Distributions to Unit holders are recognized when declared by
    the Trustee.    
    Royalty income is recognized in the month received rather than
    in the month of production.
    Expenses other than those expected to be paid on the following
    monthly record date are not accrued.
    Amortization of the royalties is shown as a reduction to Trust
    corpus and not as a charge to operating results.
    Reserves may be established for contingencies that would not be
    recorded under accounting principles generally accepted in the
    United States of America.    2.  Revenue
    Recognition
    3.  Reserve
    Disclosure
    4.  Contingencies
    New
    Accounting Pronouncements
  New
    Accounting Standards
  Accounting for Certain Hybrid Financial
    Instruments  an amendment of FASB Statements
    No. 133 Accounting for Derivative Instruments and
    No. 140 Accounting for Transfers and Servicing of Financial
    Assets and Extinguishments of Liabilities.
 24




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Accounting for Servicing of Financial Assets  an
    amendment of FASB Statements No. 140 Accounting for
    Transfers and Servicing of Financial Assets and Extinguishments
    of Liabilities.
    Fair Value Measurements.
  Employers Accounting for Defined Benefit Pension and
    Other Postretirement plans  an amendment of FASB
    Statements No. 87, 88, 106 and 132(R). not-for-profit
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities-Including an amendment of FASB Statement No.
    115
  Considering the Effects of Prior Year Misstatements when
    Quantifying Misstatements in the Current Year Financial
    Statements, .
  Off-Balance
    Sheet Arrangements
    Inflation
   25




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Oil


GasPer BBL


Per Mcf2006

$
54.71


$
7.192005


40.47



6.842004


33.78



4.80   Forward-Looking
    Statements
   Item
    7A. Quantitative and Qualitative Disclosures About
    Market Risk.   26




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Item 8. Financial
    Statements and Supplementary Data.  REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
             Internal Control 
    Integrated Framework
      27




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SABINE
    ROYALTY TRUST
  FINANCIAL
    STATEMENTS
  Statements
    of Assets, Liabilities and Trust Corpus
  December 31,2006


2005AssetsCash and short-term investments

$
4,444,789


$
6,335,822Royalty interests in oil and gas
    properties less accumulated amortization of $21,469,964
    (2006) and $21,359,883 (2005)


925,221



1,035,302Total

$
5,370,010


$
7,371,124Liabilities and Trust
    CorpusTrust expenses payable

$
138,815


$
148,696Other payables (Note 4)


232,786



176,176Total liabilities


371,601



324,872Trust Corpus
    (14,579,345 units of beneficial interest authorized and
    outstanding)


4,998,409



7,046,252Total

$
5,370,010


$
7,371,124   Statements
    of Distributable Income
  Year Ended December 31,2006


2005


2004Royalty Income

$
61,608,030


$
54,594,978


$
42,338,724Interest Income


349,941



175,380



50,785Total


61,957,971



54,770,358



42,389,509General and administrative
    expenses (Note 6)


2,127,128



2,089,547



1,801,824Distributable income

$
59,830,843


$
52,680,811


$
40,587,685Distributable income per unit
    (Basic and Assuming Dilution) (14,579,345 units)
    (Note 1)

$
4.10


$
3.61


$
2.78Distributions per unit
    (Note 3)

$
4.24


$
3.43


$
2.79   Statements
    of Changes in Trust Corpus
  2006


2005


2004Trust corpus, beginning of year

$
7,046,252


$
4,523,075


$
4,700,993Amortization of royalty interests


(110,081
)


(124,231
)


(148,418
)Distributable income


59,830,843



52,680,811



40,587,685Distributions to unit holders
    (Note 3)


(61,768,605
)


(50,033,403
)


(40,617,185
)Trust corpus, end of year

$
4,998,409


$
7,046,252


$
4,523,075    28




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SABINE
    ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS
  1. Trust
    Organization and Provisions
            
    The Trust shall not engage in any business or commercial
    activity of any kind or acquire assets other than those
    initially transferred to the Trust.
    The Trustee may not sell all or any part of its assets unless
    approved by the holders of a majority of the outstanding Units
    in which case the sale must be for cash and the proceeds, after
    satisfying all existing liabilities, promptly distributed to
    Unit holders.
    The Trustee may establish a cash reserve for the payment of any
    liability that is contingent or uncertain in amount or that
    otherwise is not currently due and payable.
    The Trustee will use reasonable efforts to cause the Trust and
    the Unit holders to recognize income and expenses on monthly
    record dates.
    The Trustee is authorized to borrow funds to pay liabilities of
    the Trust provided that such borrowings are repaid in full
    before any further distributions are made to Unit holders.
    The Trustee will make monthly cash distributions to Unit holders
    of record on the monthly record date (see Note 3).     29




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##### Table of Contents



SABINE
    ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS  (Continued)
        2. Accounting
    Policies
  Basis of
    Accounting
    
    Royalty income, net of severance and ad valorem taxes, and
    interest income are recognized in the month in which amounts are
    received by either the escrow agent or the Trust (see
    Note 1).
    Trust expenses, consisting principally of routine general and
    administrative costs, include payments made during the
    accounting period. Expenses are accrued to the extent of amounts
    that become payable on the next monthly record date following
    the end of the accounting period. Reserves for liabilities that
    are contingent or uncertain in amount may also be established if
    considered necessary.
    Royalties that are producing properties are amortized using the
    unit-of-production method. This amortization is shown as a
    reduction of Trust corpus.
    Distributions to Unit holders are recognized when declared by
    the Trustee (see Note 3).    
    Royalty income is recognized in the month received rather than
    in the month of production.
    Expenses other than those expected to be paid on the following
    monthly record date are not accrued. 30




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##### Table of Contents



SABINE
    ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS  (Continued)
   
    Amortization of the royalties is shown as a reduction to Trust
    corpus and not as a charge to operating results.
    Reserves may be established for contingencies that would not be
    recorded under accounting principles generally accepted in the
    United States of America.    Use of
    Estimates
    Impairment
    New
    Accounting Standards
  New
    Accounting Standards
  Accounting for Certain Hybrid Financial
    Instruments  an amendment of FASB Statements
    No. 133 Accounting for Derivative Instruments and
    No. 140 Accounting for Transfers and Servicing of Financial
    Assets and Extinguishments of Liabilities.
  Accounting for Servicing of Financial Assets  an
    amendment of FASB Statements No. 140 Accounting for
    Transfers and Servicing of Financial Assets and Extinguishments
    of Liabilities.
   31




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SABINE
    ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS  (Continued)
  Fair Value Measurements.
  Employers Accounting for Defined Benefit Pension and
    Other Postretirement plans  an amendment of FASB
    Statements No. 87, 88, 106 and 132(R). not-for-profit
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities-Including an amendment of FASB Statement No.
    115
  Considering the Effects of Prior Year Misstatements when
    Quantifying Misstatements in the Current Year Financial
    Statements, .
  Distributable
    Income Per Unit
    Federal
    Income Taxes
    3. Distributions
    to Unit Holders
   32




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##### Table of Contents



SABINE
    ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS  (Continued)
        4. Other
    Payables
    December 31,

2006


2005Royalty receipts in suspense
    pending verification of ownership interest or title

$
232,786


$
176,176Total

$
232,786


$
176,176     5. Subsequent
    Events
  Distributions
    Distribution perMonthly Record Date

Payment Date

UnitJanuary 16, 2007

January 30, 2007

$
.28375February 15, 2007

February 28, 2007

$
.29173March 15, 2007

March 29, 2007

$
.23765  33




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##### Table of Contents



SABINE
    ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS  (Continued)
  6. General
    and Administrative Expenses
    2006


2005


2004Trustees fee

$
317,251


$
297,187


$
291,480Escrow agents fee


951,740



891,548



874,438Professional fees


371,752



377,214



264,216Unit holders services fees


355,154



344,259



244,970Other


131,231



179,339



126,720Total General and Administrative
    Expenses


2,127,128



2,089,547



1,801,824   7. Quarterly
    Financial Data (Unaudited)
    Royalty


Distributable


Distributable2006

Income


Income


Income per UnitFirst Quarter

$
17,935


$
17,424


$
1.20Second Quarter


14,523



14,044



0.96Third Quarter


15,133



14,720



1.01Fourth Quarter


14,017



13,643



0.93$
61,608


$
59,831


$
4.10   Royalty


Distributable


Distributable2005

Income


Income


Income per UnitFirst Quarter

$
12,354


$
11,718


$
0.80Second Quarter


11,769



11,264



0.78Third Quarter


13,695



13,303



0.91Fourth Quarter


16,777



16,396



1.12$
54,595


$
52,681


$
3.61   8. Supplemental
    Oil and Gas Information (Unaudited)
  Reserve
    Quantities
     34




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##### Table of Contents



SABINE
    ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS  (Continued)
    Oil


Gas(Barrels)


(Mcf)January 1, 2004


5,484



36,949Revisions of previous statements


664



5,586Production


(463
)


(4,926
)December 31, 2004


5,685



37,609Revisions of previous statements


1,152



3,359Production


(569
)


(4,566
)December 31, 2005


6,268



36,402Revisions of previous statements


86



4,450Production


(464
)


(4,584
)December 31, 2006


5,890



36,268     Oil


Gas(Barrels)


(Mcf)Proved developed reserves:January 1, 2004


5,454



36,878December 31, 2004


5,642



37,550December 31, 2005


6,197



36,172December 31, 2006


5,787



35,333   Disclosure
    of a Standardized Measure of Discounted Future Net Cash
    Flows
    December 31,

2006


2005


2004Future net cash inflows

$
426,723


$
566,077


$
382,852Discount of future net cash flows
    @ 10%


(214,561
)


(278,300
)


(188,623
)Standardized measure of discounted
    future net cash inflows

$
212,162


$
287,777


$
194,229  35




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2006


2005


2004Standardized measure of discounted
    future net cash flows, January 1,

$
287,777


$
194,229


$
168,807Royalty income, net of severance
    and ad valorem taxes


(61,608
)


(54,595
)


(42,339
)Changes in prices, net of related
    costs


(52,702
)


85,699



27,440Revisions of previous estimates
    and other


9,917



43,021



23,440Accretion of discount


28,778



19,423



16,881Standardized measure of discounted
    future net cash flows, December 31,

$
212,162


$
287,777


$
194,229     9. Texas
    Margin Tax
   36




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REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  To the
    Trustee on Behalf of Unit holders of Sabine Royalty Trust:
               37




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STATEMENTS
    OF FEES AND EXPENSES
 PAID BY SABINE ROYALTY TRUST TO
 BANK OF AMERICA, N.A., AS
 TRUSTEE AND ESCROW AGENT, FOR EACH OF THE THREE
 YEARS IN THE PERIOD ENDED DECEMBER 31, 2006
   2006


2005


2004Trustees fee

$
317,251


$
297,187


$
291,480Escrow agents fee


951,740



891,548



874,438Total fees and expenses


1,268,991



1,188,735



1,165,918     Notes
  1.
      2.
 38




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##### Table of Contents



3.
   39




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##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure.    Item 9A.
    Controls
    and Procedures.  Conclusion
    Regarding the Effectiveness of Disclosure Controls and
    Procedures  Rule 13a-15(e)
  Changes
    in Internal Control Over Financial Reporting    Trustees
    Report on Internal Control Over Financial Reporting  Rule 13a-15(f) Internal Control 
    Integrated Framework Internal
    Control  Integrated Framework,
 40




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##### Table of Contents



Report of
    Independent Registered Public Accounting Firm
     Internal Control 
    Integrated Framework
        Internal
    Control  Integrated Framework Internal Control  Integrated
    Framework
 41




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##### Table of Contents



42




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##### Table of Contents



Item 9B.
    Other
    Information.   PART III  Item 10.
    Directors
    and Executive Officers of the Registrant.  Directors and Executive Officers.
  Compliance with Section 16(a) of the Exchange
    Act.
  Code of Ethics.
  Audit Committee.
  Nominating Committee.
  Item 11.
    Executive
    Compensation.    Item 12.
    Security
    Ownership of Certain Beneficial Owners and
    Management.  Security Ownership of Certain Beneficial
    Owners.
  Security Ownership of Management.
  Changes in Control.
  Securities Authorized for Issuance Under Equity
    Compensation Plans.
  Item 13.
    Certain
    Relationships and Related Transactions.   43




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##### Table of Contents



Item 14.
    Principal
    Accounting Fees and Services.    2006


2005Audit fees

$
156,975


$
163,825Audit-related fees

$
0


$
0Tax fees

$
32,580


$
44,550All other fees

$
0


$
0    PART
    IV  Item 15.
    Exhibits,
    Financial Statement Schedules.    Financial Statements (included in Item 8 of this
    report)
            Financial Statement Schedules
    Exhibits
  (4)(a)
*



Sabine Corporation Royalty Trust
    Agreement effective as of December 31, 1982, by and between
    Sabine Corporation and InterFirst Bank Dallas, N.A., as trustee.(b)
*



Sabine Corporation Louisiana
    Royalty Trust Agreement effective as of December 31, 1982,
    by and between Sabine Corporation and Hibernia National Bank in
    New Orleans, as trustee, and joined in by InterFirst Bank
    Dallas, N.A., as trustee.(23)




Consent of DeGolyer and
    MacNaughton.31




Rule 13a-14(a)(15d-14(a))
    Certification.32




Certification by Bank of America,
    Trustee of Sabine Royalty Trust, dated March 13, 2007 and
    submitted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002 (18 U.S.C. Section 1350).(99)




Report dated February 12,
    2007 of the Trustee containing interim tax information for each
    of the 12 months in the year ending December 31, 2006.     *
    Exhibits 4(a) and 4(b) are incorporated herein by reference to
    Exhibits 4(a) and 4(b), respectively, of the
    Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 1993. 44




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##### Table of Contents



SIGNATURES
      BY:
    BANK OF AMERICA, N.A., Trustee  By:
    /s/  RON E.
    HOOPER       (The Registrant has no directors or executive officers.)
 45




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##### Table of Contents



INDEX TO
    EXHIBITS
  ExhibitNumber




Description(4)(a)
*



Sabine Corporation Royalty Trust
    Agreement effective as of December 31, 1982, by and between
    Sabine Corporation and InterFirst Bank Dallas, N.A., as trustee.(b)
*



Sabine Corporation Louisiana
    Royalty Trust Agreement effective as of December 31, 1982,
    by and between Sabine Corporation and Hibernia National Bank in
    New Orleans, as trustee, and joined in by InterFirst Bank
    Dallas, N.A., as trustee.(23)




Consent of DeGolyer and
    MacNaughton.31




Rule 13a-14(a)(15d-14(a))
    Certification.32




Certification by Bank of America,
    Trustee of Sabine Royalty Trust, dated March 13, 2007 and
    submitted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002 (18 U.S.C. Section 1350).(99)




Report dated February 12,
    2007 of the Trustee containing interim tax information for each
    of the 12 months in the year ending December 31, 2006.     *
    Exhibits 4(a) and 4(b) are incorporated herein by reference to
    Exhibits 4(a) and 4(b), respectively, of the
    Registrants Annual Report on
    Form 10-K
    for the year ended December 31, 1993.