----

| Delaware                                       |   | 75-2220418               |
|------------------------------------------------|--------|--------------------------|
| (State      or other jurisdiction              |   | (I.R.S.      Employer    |
| of      incorporation or organization)         |   | Identification      No.) |
|                                           |   |                     |
| 6 Desta Drive, Suite 6500, Midland,      Texas |   | 79705                    |
| (Address      of principal executive office)   |   | (Zip      Code)          |

| Indicate      by check mark if the registrant is a well-known seasoned issuer, as      defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                                 | ¨    Yes | x  No      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                              |          |       |
| Indicate      by check mark if the registrant is not required to file reports pursuant      to Section 13 or Section 15(d) of the Act.                                                                                                                                                                                                                                            | ¨    Yes | x  No      |
|                                                                                                                                                                                                                                                                                                                                                                              |          |       |
| Indicate      by check mark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 12 months (or for such shorter period that the      registrant was required to file such reports), and (2) has been subject to      such filing requirements for the past 90 days. | x    Yes      | ¨  No |

| Indicate      by check mark if disclosure of delinquent filers pursuant to Item 405 of      Regulation S-K is not contained herein, and will not be contained, to the      best of registrant's knowledge, in definitive proxy or information      statements incorporated by reference in Part III of this Form 10-K or any      amendment to this Form 10-K.x |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, or a non-accelerated filer.  See definition      of “accelerated filer and large accelerated filer” in Rule 12b-2 of the      Exchange Act. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Large      accelerated filer ¨                                                                                                                                                                                                                                           |   | Accelerated      filer ¨ |   | Non-accelerated      filer  x |   | Smaller      reporting company¨ |   |

| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Act). | ¨    Yes | x  No |
|-------------------------------------------------------------------------------------------------------------------|---------------|-------|

|   |
|--------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part      I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Business                                                                                                                                                     | 3      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Risk      Factors                                                                                                                                            | 7      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      1B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Unresolved Staff      Comments                                                                                                                               | 8      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Properties                                                                                                                                                   | 9      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Legal      Proceedings                                                                                                                                       | 10     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Submission of Matters to a Vote of Security      Holders                                                                                                     | 10     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Part      II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Market for Registrant's Common Equity,      Related                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Stockholder      Matters and Issuer Purchases of Equity Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 11     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Selected Financial      Data                                                                                                                                 | 12     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Management's Discussion and Analysis of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Financial      Condition and Results of      Operations                                                                                                                          | 13     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      7A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Quantitative and Qualitative Disclosures About Market      Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 15     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Financial Statements and Supplementary      Data                                                                                                             | 16     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      9.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Changes in and Disagreements with      Accountants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | on Accounting      and Financial      Disclosure                                                                                                                                 | 29     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      9A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Controls and      Procedures                                                                                                                                 | 29     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      9B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Other      Information                                                                                                                                       | 30     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Part      III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      10.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Directors, Executive Officers and Corporate      Governance                                                                                                  | 31     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Executive      Compensation                                                                                                                                  | 31     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      12.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Security Ownership of Certain Beneficial Owners and      Management and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Related      Stockholder      Matters                                                                                                                                            | 32     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      13.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Certain Relationships and Related Transactions, and      Director Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 32     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Principal Accounting Fees and      Services                                                                                                                  | 32     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Part      IV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Item      15.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Exhibits and Financial Statement      Schedules                                                                                                              | 33     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Glossary of Oil and Gas      Terms                                                                                                                   | 34                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| Signatures                                                                                                                                           | 36                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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|                                    |   | Proved      Developed |    |   | Proved       |   |   | Total       |   |
|-----------------------------------------|--------|-----------------------|---------|--------|--------------|--------|--------|-------------|--------|
|                                    |   | Producing             |    |   | Nonproducing |   |   | Undeveloped |   |   | Proved |   |
| Oil      (Bbls)                         |   |                  | 419,000 |   |         |   | 2,000  |        |   |   | 1,000 |   |   |   | 422,000 |   |
| Gas      (Mcf)                          |   |                  | 288,000 |   |         |   | 4,000  |        |   |   | 1,000 |   |   |   | 293,000 |   |
| Total      (BOE)                        |   |                  | 467,000 |   |         |   | 3,000  |        |   |   | 1,000 |   |   |   | 471,000 |   |
|                                    |   |                  |    |   |         |   |   |        |   |   |   |   |   |   |   |   |
| Standardized      measure of discounted |   |                  |    |   |         |   |   |        |   |   |   |   |   |   |   |   |
| future net cash      flows              |   |                  |    |   |         |   |   |        |   |   |   |   |   | $ | 4,642,000 |   |

|     |   | Proved      Reserves |    |   |   |   |
|----------|--------|----------------------|---------|--------|--------|--------|
|     |   |                 |    |   |   |   |   | Total      Oil |   |   | Percent      of |   |
|     |   | Oil                  |    |   | Gas    |   |   | Equivalent |   |   | Total      Oil |   |
|     |   | (Bbls)               |    |   | (Mcf)  |   |   | (BOE) |   |   | Equivalent |   |
| Block D  |   |                 | 210,000 |   |   |   | - |   |   |   | 210,000 |   |   |   | 44.6 | % |
| Hendrick |   |                 | 87,000  |   |   |   | 22,000 |   |   |   | 91,000 |   |   |   | 19.3 | % |
| Collie   |   |                 | 44,000  |   |   |   | 102,000 |   |   |   | 61,000 |   |   |   | 13.0 | % |
| Scott    |   |                 | 44,000  |   |   |   | 90,000 |   |   |   | 59,000 |   |   |   | 12.5 | % |
| Other    |   |                 | 37,000  |   |   |   | 79,000 |   |   |   | 50,000 |   |   |   | 10.6 | % |
| Total    |   |                 | 422,000 |   |   |   | 293,000 |   |   |   | 471,000 |   |   |   | 100.0 | % |

|   |
|--------|

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Item

|   |
|--------|

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| Item 5. | Market for      Registrant's Common Equity, Related Stockholder Matters and Issuer      Purchases of EquitySecurities |
|---------|-----------------------------------------------------------------------------------------------------------------------|

|                |   | Total      Number |   |   |               |   |
|---------------------|--------|-------------------|--------|--------|--------------------|--------|
|                |   | of      Units     |   |   | Average      Price |   |
| Period              |   | Purchased         |   |   | Paid      Per Unit |   |
| January      2008   |   |              | -      |   |               | $      | - |   |
| February      2008  |   |              | -      |   |               |   | - |   |
| March      2008     |   |              | -      |   |               |   | - |   |
| April      2008     |   |              | -      |   |               |   | - |   |
| May      2008       |   |              | -      |   |               |   | - |   |
| June      2008      |   |              | 178    |   |               |   | 1,088.80 |   |
| July      2008      |   |              | -      |   |               |   | - |   |
| August      2008    |   |              | -      |   |               |   | - |   |
| September      2008 |   |              | -      |   |               |   | - |   |
| October      2008   |   |              | -      |   |               |   | - |   |
| November      2008  |   |              | -      |   |               |   | - |   |
| December      2008  |   |              | 20     |   |               |   | 999.39 |   |
| TOTALS              |   |              | 198    |   |               | $      | 1,079.77 |   |

|  |
|--|

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Item

|                                |   | Years      ended December 31, |      |
|-------------------------------------|--------|-------------------------------|-----------|
|                                |   | 2008                          |      |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Revenues                            |   | $                             | 2,579,702 |   |   | $ | 1,718,192 |   |   | $ | 1,647,951 |   |   | $ | 1,506,592 |   |   | $ | 1,096,546 |   |
|                                |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                     |   |                          | 2,443,992 |   |   |   | 1,573,448 |   |   |   | 1,521,435 |   |   |   | 1,397,100 |   |   |   | 981,156 |   |
|                                |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'      share of net income: |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General      partner                |   |                          | 245,864   |   |   |   | 159,161 |   |   |   | 153,638 |   |   |   | 141,119 |   |   |   | 99,678 |   |
|                                |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Limited      partners               |   |                          | 2,198,128 |   |   |   | 1,414,287 |   |   |   | 1,367,797 |   |   |   | 1,255,981 |   |   |   | 881,478 |   |
|                                |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Limited      partners'              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net income per    unit              |   |                          | 216.63    |   |   |   | 139.38 |   |   |   | 134.80 |   |   |   | 123.78 |   |   |   | 86.87 |   |
|                                |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Limited      partners'              |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| cash distributions per      unit    |   |                          | 246.20    |   |   |   | 130.87 |   |   |   | 146.40 |   |   |   | 126.39 |   |   |   | 75.43 |   |
|                                |   |                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                   |   | $                             | 452,956   |   |   | $ | 829,934 |   |   | $ | 702,098 |   |   | $ | 713,950 |   |   | $ | 707,421 |   |

|   |
|--------|

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|   |
|--------|

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|                                           |   | Year      Ended December 31, |      |
|------------------------------------------------|--------|------------------------------|-----------|
|                                           |   | 2008                         |      |   | 2007 |   |   | 2006 |   |
| Oil      production in barrels                 |   |                         | 35,512    |   |   |   | 33,744 |   |   |   | 35,708 |   |
| Gas      production in mcf                     |   |                         | 33,099    |   |   |   | 33,417 |   |   |   | 32,716 |   |
| Total      (BOE)                               |   |                         | 41,029    |   |   |   | 39,314 |   |   |   | 41,161 |   |
| Average      price per barrel of oil           |   | $                            | 98.59     |   |   | $ | 69.74 |   |   | $ | 61.76 |   |
| Average      price per mcf of gas              |   | $                            | 9.80      |   |   | $ | 8.05 |   |   | $ | 7.37 |   |
| Partnership      distributions                 |   | $                            | 2,775,820 |   |   | $ | 1,475,600 |   |   | $ | 1,650,633 |   |
| Limited      partner distributions             |   | $                            | 2,498,169 |   |   | $ | 1,327,985 |   |   | $ | 1,485,497 |   |
| Per      unit distribution to limited partners |   | $                            | 246.20    |   |   | $ | 130.87 |   |   | $ | 146.40 |   |
| Number      of limited partner units           |   |                         | 10,147    |   |   |   | 10,147 |   |   |   | 10,147 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Page   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Report of Independent Registered Public Accounting      Firm                                                                                                    |   | 17     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| Balance      Sheets                                                                                                                                             |   | 18     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| Statements of      Operations                                                                                                                                   |   | 19     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| Statements of Changes in Partners' Equity      (Deficit)                                                                                                        |   | 20     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| Statements of Cash      Flows                                                                                                                                   |   | 21     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| Notes to Financial      Statements                                                                                                                              |   | 22     |

|  |
|--|

----

REPORT 

|  |
|--|

----

Royalties 

|                                            |   | December      31, |      |
|-------------------------------------------------|--------|-------------------|-----------|
|                                            |   | 2008              |      |   | 2007 |   |
| Assets                                          |   |              |      |   |   |   |
|                                            |   |              |      |   |   |   |
| Current      assets:                            |   |              |      |   |   |   |
| Cash and cash      equivalents                  |   | $                 | 58,721    |   |   | $ | 104,800 |   |
| Receivable from Managing General      Partner   |   |              | 60,606    |   |   |   | 310,371 |   |
| New Mexico income tax      deposits             |   |              | 2,605     |   |   |   | 1,514 |   |
| Total current      assets                       |   |              | 121,932   |   |   |   | 416,685 |   |
|                                            |   |              |      |   |   |   |   |   |
| Oil      and gas properties - using the full-   |   |              |      |   |   |   |   |   |
| cost method of      accounting                  |   |              | 4,131,173 |   |   |   | 4,198,748 |   |
| Less accumulated      depreciation,             |   |              |      |   |   |   |   |   |
| depletion and      amortization                 |   |              | 3,800,149 |   |   |   | 3,785,499 |   |
|                                            |   |              |      |   |   |   |   |   |
| Net oil and gas      properties                 |   |              | 331,024   |   |   |   | 413,249 |   |
|                                            |   | $                 | 452,956   |   |   | $ | 829,934 |   |
|                                            |   |              |      |   |   |   |   |   |
| Liabilities and Partners' Equity      (Deficit) |   |              |      |   |   |   |   |   |
|                                            |   |              |      |   |   |   |   |   |
| Asset      retirement obligation                |   | $                 | 307,444   |   |   | $ | 352,594 |   |
|                                            |   |              |      |   |   |   |   |   |
| Partners'      equity (deficit):                |   |              |      |   |   |   |   |   |
| General partner                                 |   |              | (17,210   | ) |   |   | 14,577 |   |
| Limited partners                                |   |              | 162,722   |   |   |   | 462,763 |   |
|                                            |   |              |      |   |   |   |   |   |
| Total partners'      equity                     |   |              | 145,512   |   |   |   | 477,340 |   |
|                                            |   | $                 | 452,956   |   |   | $ | 829,934 |   |

|  |
|--|

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Institutional 

|                                          |   | Years      ended December 31, |      |
|-----------------------------------------------|--------|-------------------------------|-----------|
|                                          |   | 2008                          |      |   | 2007 |   |   | 2006 |   |
| Revenues                                      |   |                          |      |   |   |   |   |   |   |
|                                          |   |                          |      |   |   |   |   |   |   |
| Income from net profits      interests        |   | $                             | 2,577,464 |   |   | $ | 1,713,368 |   |   | $ | 1,641,567 |   |
| Interest income                               |   |                          | 2,238     |   |   |   | 4,679 |   |   |   | 6,384 |   |
| Other                                         |   |                          | -         |   |   |   | 145 |   |   |   | - |   |
|                                          |   |                          | 2,579,702 |   |   |   | 1,718,192 |   |   |   | 1,647,951 |   |
|                                          |   |                          |      |   |   |   |   |   |   |   |   |   |
| Expenses                                      |   |                          |      |   |   |   |   |   |   |   |   |   |
|                                          |   |                          |      |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and      amortization |   |                          | 14,650    |   |   |   | 18,165 |   |   |   | 14,943 |   |
| Accretionexpense                              |   |                          | 23,030    |   |   |   | 29,988 |   |   |   | 17,484 |   |
| General and      administrative               |   |                          | 98,030    |   |   |   | 96,591 |   |   |   | 94,089 |   |
|                                          |   |                          | 135,710   |   |   |   | 144,744 |   |   |   | 126,516 |   |
|                                          |   |                          |      |   |   |   |   |   |   |   |   |   |
| Net      income                               |   | $                             | 2,443,992 |   |   | $ | 1,573,448 |   |   | $ | 1,521,435 |   |
|                                          |   |                          |      |   |   |   |   |   |   |   |   |   |
| Net      income allocated to:                 |   |                          |      |   |   |   |   |   |   |   |   |   |
|                                          |   |                          |      |   |   |   |   |   |   |   |   |   |
| Managing General      Partner                 |   | $                             | 245,864   |   |   | $ | 159,161 |   |   | $ | 153,638 |   |
|                                          |   |                          |      |   |   |   |   |   |   |   |   |   |
| Limited partners                              |   | $                             | 2,198,128 |   |   | $ | 1,414,287 |   |   | $ | 1,367,797 |   |
|                                          |   |                          |      |   |   |   |   |   |   |   |   |   |
| Per limited partner      unit                 |   | $                             | 216.63    |   |   | $ | 139.38 |   |   | $ | 134.80 |   |

|   |
|--------|

----

Royalties 

|                              |   | General  |     |   | Limited  |   |       |   |   |
|-----------------------------------|--------|----------|----------|--------|----------|--------|------------|--------|--------|
|                              |   | Partners |     |   | Partners |   |       | Total  |   |
| Balance      at December 31, 2005 |   | $        | 14,529   |   |     | $      | 494,161    |   |   | $ | 508,690 |   |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Net income                        |   |     | 153,638  |   |     |   | 1,367,797  |   |   |   | 1,521,435 |   |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Distributions                     |   |     | (165,136 | )      |     |   | (1,485,497 | )      |   |   | (1,650,633 | ) |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Balance      at December 31, 2006 |   |     | 3,031    |   |     |   | 376,461    |   |   |   | 379,492 |   |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Net income                        |   |     | 159,161  |   |     |   | 1,414,287  |   |   |   | 1,573,448 |   |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Distributions                     |   |     | (147,615 | )      |     |   | (1,327,985 | )      |   |   | (1,475,600 | ) |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Balance      at December 31, 2007 |   |     | 14,577   |   |     |   | 462,763    |   |   |   | 477,340 |   |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Net income                        |   |     | 245,864  |   |     |   | 2,198,128  |   |   |   | 2,443,992 |   |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Distributions                     |   |     | (277,651 | )      |     |   | (2,498,169 | )      |   |   | (2,775,820 | ) |
|                              |   |     |     |   |     |   |       |   |   |   |   |   |
| Balance      at December 31, 2008 |   | $        | (17,210  | )      |     | $      | 162,722    |   |   | $ | 145,512 |   |

|  |
|--|

----

Royalties 

|                                                       |   | Years      ended December 31, |       |
|------------------------------------------------------------|--------|-------------------------------|------------|
|                                                       |   | 2008                          |       |   | 2007 |   |   | 2006 |   |
| Cash      flows from operating activities:                 |   |                          |       |   |   |   |   |   |   |
| Cash received from net profits      interests              |   | $                             | 2,825,533  |   |   | $ | 1,584,158 |   |   | $ | 1,653,936 |   |
| Cash paid for administrative      fees and general         |   |                          |       |   |   |   |   |   |   |   |   |   |
| and administrative      overhead                           |   |                          | (98,030    | ) |   |   | (96,591 | ) |   |   | (94,089 | ) |
| Interestreceived                                           |   |                          | 2,238      |   |   |   | 4,679 |   |   |   | 6,384 |   |
| Other                                                      |   |                          | -          |   |   |   | 145 |   |   |   | - |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Net cash provided by operating      activities             |   |                          | 2,729,741  |   |   |   | 1,492,391 |   |   |   | 1,566,231 |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                 |   |                          |       |   |   |   |   |   |   |   |   |   |
| Distributions to      partners                             |   |                          | (2,775,820 | ) |   |   | (1,475,600 | ) |   |   | (1,650,633 | ) |
| Decrease in distributions      payable                     |   |                          | -          |   |   |   | - |   |   |   | (683 | ) |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Net cash used in financing      activities                 |   |                          | (2,775,820 | ) |   |   | (1,475,600 | ) |   |   | (1,651,316 | ) |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents  |   |                          | (46,079    | ) |   |   | 16,791 |   |   |   | (85,085 | ) |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Beginning      of year                                     |   |                          | 104,800    |   |   |   | 88,009 |   |   |   | 173,094 |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| End      of year                                           |   | $                             | 58,721     |   |   | $ | 104,800 |   |   | $ | 88,009 |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Reconciliation      of net income to net                   |   |                          |       |   |   |   |   |   |   |   |   |   |
| cash provided by operating      activities:                |   |                          |       |   |   |   |   |   |   |   |   |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Net      income                                            |   | $                             | 2,443,992  |   |   | $ | 1,573,448 |   |   | $ | 1,521,435 |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Adjustments      to reconcile net income to                |   |                          |       |   |   |   |   |   |   |   |   |   |
| net cash provided by operating      activities:            |   |                          |       |   |   |   |   |   |   |   |   |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and      amortization              |   |                          | 14,650     |   |   |   | 18,165 |   |   |   | 14,943 |   |
| Accretion expense                                          |   |                          | 23,030     |   |   |   | 29,988 |   |   |   | 17,484 |   |
| Settlement of asset retirement      obligations            |   |                          |       |   |   |   |   |   |   |   |   |   |
| for plugged and abandoned      wells                       |   |                          | (605       | ) |   |   | - |   |   |   | (4,126 | ) |
| Decrease (increase) in      receivables and deposits       |   |                          | 248,674    |   |   |   | (129,210 | ) |   |   | 16,495 |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Net      cash provided by operating activities             |   | $                             | 2,729,741  |   |   | $ | 1,492,391 |   |   | $ | 1,566,231 |   |
|                                                       |   |                          |       |   |   |   |   |   |   |   |   |   |
| Noncash      investing and financing activities:           |   |                          |       |   |   |   |   |   |   |   |   |   |
| (Decrease) increase in oil and gas      properties – |   |                          |       |   |   |   |   |   |   |   |   |   |
| SFAS No. 143                                               |   | $                             | (67,575    | ) |   | $ | - |   |   | $ | 104,671 |   |

|  |
|--|

----

Institutional 

| 1. | Organization |
|----|--------------|

|                                                                    | Limited  |   | General  |
|-------------------------------------------------------------------------|----------|--------|----------|
|                                                                    | Partners |   | Partners |
| Interest      income on capital contributions                           | 100%     |   | -        |
| Oil      and gas sales from net profits interests                       | 90%      |   | 10%      |
| All      other revenues                                                 | 90%      |   | 10%      |
| Organization      and offering costs (1)                                | 100%     |   | -        |
| Amortization      of organization costs                                 | 100%     |   | -        |
| Property      acquisition costs                                         | 100%     |   | -        |
| Gain/loss      on property dispositions                                 | 90%      |   | 10%      |
| Operating      and administrative costs (2)                             | 90%      |   | 10%      |
| Depreciation,      depletion and amortization of oil and gas properties | 100%     |   | -        |
| All      other costs                                                    | 90%      |   | 10%      |

|   | (1) | All      organization costs in excess of 3% of initial capital contributions will      be paid by the Managing General Partner and will be treated as a capital      contribution.  The Partnership paid the Managing General Partner      an amount equal to 3% of initial capital contributions for such      organization costs. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Administrative      costs in any year, which exceed 2% of capital contributions shall be paid      by the Managing Partner and will be treated as a capital      contribution. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Summary of Significant      Accounting Policies |
|----|-------------------------------------------------|

|   |
|--------|

----

| 2. | Summary of Significant      Accounting Policies -continued |
|----|------------------------------------------------------------|

|  |
|--|

----

| 2. | Summary of Significant      Accounting Policies -continued |
|----|------------------------------------------------------------|

|                                                             |   | 2008   |    |   | 2007   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Beginning      of year                                           |   | $      | 352,594 |   |   | $      | 322,606 |   |
| Additional      abandonment obligations from new wells           |   |   | 3,779   |   |   |   | - |   |
| Reduction      of obligations due to wells plugged and abandoned |   |   | (605    | )      |   |   | - |   |
| Accretion      expense                                           |   |   | 23,030  |   |   |   | 29,988 |   |
| Revisions      of previous estimates                             |   |   | (71,354 | )      |   |   | - |   |
| End      of year                                                 |   | $      | 307,444 |   |   | $      | 352,594 |   |

|  |
|--|

----

| 4. | Commitments and      Contingent Liabilities |
|----|---------------------------------------------|

| 5. | Related Party      Transactions |
|----|---------------------------------|

|  |
|--|

----

| 6. | Oil and Gas Reserves      Information (unaudited) |
|----|---------------------------------------------------|

|                                       |   | Oil      (bbls) |     |   | Gas      (mcf) |   |
|--------------------------------------------|--------|-----------------|----------|--------|----------------|--------|
| Total      Proved -                        |   |            |     |   |           |   |
|                                       |   |            |     |   |           |   |
| January      1, 2006                       |   |            | 572,000  |   |           |   | 379,000 |   |
|                                       |   |            |     |   |           |   |   |   |
| Revisions of previous      estimates       |   |            | (48,000  | )      |           |   | (56,000 | ) |
| Production from continuing      operations |   |            | (36,000  | )      |           |   | (33,000 | ) |
|                                       |   |            |     |   |           |   |   |   |
| December      31, 2006                     |   |            | 488,000  |   |           |   | 290,000 |   |
|                                       |   |            |     |   |           |   |   |   |
| Revisions of previous      estimates       |   |            | 153,000  |   |           |   | 75,000 |   |
| Production from continuing      operations |   |            | (34,000  | )      |           |   | (33,000 | ) |
|                                       |   |            |     |   |           |   |   |   |
| December      31, 2007                     |   |            | 607,000  |   |           |   | 332,000 |   |
|                                       |   |            |     |   |           |   |   |   |
| New discoveries and      extensions        |   |            | 2,000    |   |           |   | 4,000 |   |
| Revisions of previous      estimates       |   |            | (151,000 | )      |           |   | (10,000 | ) |
| Production from continuing      operations |   |            | (36,000  | )      |           |   | (33,000 | ) |
| December      31, 2008                     |   |            | 422,000  |   |           |   | 293,000 |   |
|                                       |   |            |     |   |           |   |   |   |
| Proved developed reserves      -           |   |            |     |   |           |   |   |   |
|                                       |   |            |     |   |           |   |   |   |
| December      31, 2006                     |   |            | 488,000  |   |           |   | 289,000 |   |
| December      31, 2007                     |   |            | 606,000  |   |           |   | 331,000 |   |
| December      31, 2008                     |   |            | 421,000  |   |           |   | 292,000 |   |

|  |
|--|

----

|   | Southwest      Royalties Institutional Income Fund VIII-B,L.P. |
|--------|----------------------------------------------------------------|

| 6. | Oil and Gas Reserves      Information (unaudited) -continued |
|----|--------------------------------------------------------------|

|   | The      evaluation of oil and gas properties is not an exact science and      inevitably involves a significant degree of uncertainty, particularly with      respect to the quantity of oil or gas that any given property is capable      of producing.  Estimates of oil and gas reserves are based on      available geological and engineering data, the extent and quality of which      may vary in each case and, in certain instances, may prove to be      inaccurate.  Consequently, properties may be depleted more      rapidly than the geological and engineering data have      indicated. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | 2008   |       |   | 2007   |   |       | 2006   |   |
|----------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Future      cash inflows                           |   | $      | 20,055,000 |   |   | $      | 58,237,000 |   |   | $ | 29,013,000 |   |
| Production,      development and abandonment costs |   |   | 11,468,000 |   |   |   | 21,360,000 |   |   |   | 13,454,000 |   |
| Future      net cash flows                         |   |   | 8,587,000  |   |   |   | 36,877,000 |   |   |   | 15,559,000 |   |
| 10%      annual discount for                       |   |   |       |   |   |   |       |   |   |   |   |   |
| estimated timing of cash      flows                |   |   | 3,945,000  |   |   |   | 20,265,000 |   |   |   | 7,475,000 |   |
| Standardized      measure of                       |   |   |       |   |   |   |       |   |   |   |   |   |
| discounted future net cash      flows              |   | $      | 4,642,000  |   |   | $      | 16,612,000 |   |   | $ | 8,084,000 |   |

|   | Changes      in the standardized measure of discounted future net cash flows relating      to proved reserves for the years ended December 31, 2008, 2007 and 2006      are as follows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | 2008   |        |   | 2007   |   |       | 2006   |   |
|-------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Sales      of oil and gas produced, net of production costs |   | $      | (2,577,000  | )      |   | $      | (1,713,000 | )      |   | $ | (1,642,000 | ) |
| Extensions      and discoveries and improved                |   |   |        |   |   |   |       |   |   |   |   |   |
| recovery net of future      production and                  |   |   |        |   |   |   |       |   |   |   |   |   |
| developmentcosts                                            |   |   | 48,000      |   |   |   | -          |   |   |   | - |   |
| Changes      in prices and production costs                 |   |   | (12,144,000 | )      |   |   | 6,276,000  |   |   |   | (1,642,000 | ) |
| Changes      of production rates (timing) and others        |   |   | 2,543,000   |   |   |   | (994,000   | )      |   |   | 825,000 |   |
| Revisions      of previous quantities estimates             |   |   | (1,501,000  | )      |   |   | 4,151,000  |   |   |   | (864,000 | ) |
| Accretion      of discount                                  |   |   | 1,661,000   |   |   |   | 808,000    |   |   |   | 1,037,000 |   |
| Discounted      future net cash flows -                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Beginning      of year                                      |   |   | 16,612,000  |   |   |   | 8,084,000  |   |   |   | 10,370,000 |   |
| End      of year                                            |   | $      | 4,642,000   |   |   | $      | 16,612,000 |   |   | $ | 8,084,000 |   |

|  |
|--|

----

| 7. | Selected Quarterly      Financial Results –(unaudited) |
|----|--------------------------------------------------------------|

|                                      |   | Quarter |    |
|-------------------------------------------|--------|---------|---------|
|                                      |   | First   |    |   | Second |   |   | Third |   |   | Fourth |   |
| 2008:                                     |   |    |    |   |   |   |   |   |   |   |   |   |
| Total revenues                            |   | $       | 795,373 |   |   |  $ | 975,722 |   |   |  $ | 691,138 |   |   |  $ | 117,469 |   |
| Total expenses                            |   |    | 34,312  |   |   |   | 37,667 |   |   |   | 32,852 |   |   |   | 30,879 |   |
| Net income                                |   | $       | 761,061 |   |   |   | 938,055 |   |   |   | 658,286 |   |   |   | 86,590 |   |
|                                      |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per limited partners      unit |   | $       | 67.46   |   |   | $ | 83.17 |   |   | $ | 58.36 |   |   | $ | 7.64 |   |

|                                      |   | Quarter |    |
|-------------------------------------------|--------|---------|---------|
|                                      |   | First   |    |   | Second |   |   | Third |   |   | Fourth |   |
| 2007:                                     |   |    |    |   |   |   |   |   |   |   |   |   |
| Total revenues                            |   | $       | 318,332 |   |   | $ | 414,302 |   |   | $ | 461,629 |   |   | $ | 523,929 |   |
| Total expenses                            |   |    | 27,976  |   |   |   | 39,040 |   |   |   | 37,818 |   |   |   | 39,910 |   |
| Net income                                |   | $       | 290,356 |   |   | $ | 375,262 |   |   | $ | 423,811 |   |   | $ | 484,019 |   |
|                                      |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per limited partners      unit |   | $       | 25.71   |   |   | $ | 33.24 |   |   | $ | 37.54 |   |   | $ | 42.89 |   |

|  |
|--|

----

Item

Item

|  |
|--|

----

Item

|  |
|--|

----

Item

Item

|  |
|--|

----

Item

Item

Item

| For      the Year Ended December 31, |   | 2008   |   |   | 2007   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|
| Audit      Fees                      |   | $      | 18,030 |   |   | $      | 16,932 |   |
| Audit      Related Fees              |   |   | -      |   |   |   | - |   |
| Tax      Fees                        |   |   | -      |   |   |   | - |   |
| All      Other Fees                  |   |   | -      |   |   |   | - |   |
|                                 |   |   |   |   |   |   |   |   |
| TOTAL                                |   | $      | 18,030 |   |   | $      | 16,932 |   |

|  |
|--|

----

Item

| (a)    | (1)    | Financial      Statements:                                                                                                                                                                                          |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                |
|   |   | Included in Part II of this      report                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                |
|   |   | Report of Independent Registered      Public Accounting Firm                                                                                                                                                        |
|   |   | Balance Sheets                                                                                                                                                                                                      |
|   |   | Statements of      Operations                                                                                                                                                                                       |
|   |   | Statements of Changes in      Partners' Equity (Deficit)                                                                                                                                                            |
|   |   | Statements of Cash      Flows                                                                                                                                                                                       |
|   |   | Notes to Financial      Statements                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                |
|   | (2)    | Schedules      required by Article 12 of Regulation S-X are either omitted because they      are not applicable or because the required information is shown in the      financial statements or the notes thereto. |
|   |   |                                                                                                                                                                                                                |
|   | (3)    | Exhibits:                                                                                                                                                                                                           |

| 4      | (a)    | Certificate      of Limited Partnership of Southwest Royalties Institutional Income Fund      VIII-B, L.P., dated November 30, 1987.  (Incorporated by      reference from Partner­ship's S-1 Registration Statement, File Number      33-18852 effective March 31, 1988.) |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                      |
|   | (b)    | Agreement      of Limited Partnership of South­west Royalties Institutional Income      Fund VIII-B, L.P. dated July 11, 1988.  (Incor­porated by      reference from Partnership's Form 10-K for the fiscal year ended December      31, 1988.)                      |
|   |   |                                                                                                                                                                                                                                                                                      |
|   | 31.1   | Rule      13a-14(a)/15d-14(a) Certification                                                                                                                                                                                                                                               |
|   | 31.2   | Rule      13a-14(a)/15d-14(a) Certification                                                                                                                                                                                                                                               |
|   | 32.1   | Certification      of Chief Executive Officer and Chief Financial Officer Pursuant to 18      U.S.C. Section 1350, as adopted Pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002                                                                                              |

|  |
|--|

----

Glossary

|  |
|--|

----

|  |
|--|

----

Signatures

|   | Southwest      Royalties Institutional Income Fund |
|--------|----------------------------------------------------|
|   | VIII-B,      L.P., a Delaware limited partnership  |
|   |                                               |
| By:    | Southwest      Royalties, Inc., Managing           |
|   | General      Partner                               |
|   |                                               |
|   |                                               |
| By:    | /s/      L. Paul Latham                            |
|   | L.      Paul Latham                                |
|   | President      and Chief Executive Officer         |
|   |                                               |
| Date:  | March      27, 2009                                |

|                                                                                       |   |                                                                                       |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
| /s/      Clayton W Williams                                                                |   | /s/      L. Paul Latham                                                                    |
| Clayton      W. Williams, Chairman of the Board                                            |   | L.      Paul Latham, President and a Director                                              |
| and      a Director                                                                        |   |                                                                                       |
|                                                                                       |   |                                                                                       |
| Date:           March      27, 2009 |   | Date:           March      27, 2009 |
|                                                                                       |   |                                                                                       |
|                                                                                       |   |                                                                                       |
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| /s/      Mel G. Riggs                                                                      |   |                                                                                       |
| Mel      G. Riggs, Vice President – Finance,                                         |   |                                                                                       |
| Treasurer      and a Director                                                              |   |                                                                                       |
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| Date:           March      27, 2009 |   |                                                                                       |
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