##### Table of Contents







SECURITIES AND EXCHANGE
    COMMISSION
 Washington, D.C.
    20549
      FORM 10-K
      (Mark One)
 þ
    ANNUAL REPORT PURSUANT TO
    SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF
    1934  For the Fiscal Year ended December 31, 2007
  OR
  o
    TRANSITION REPORT PURSUANT TO
    SECTION 13 OR 15(d) OF THE 
         SECURITIES EXCHANGE ACT OF
    1934  Commission File
    Number: 1-8518
 LL&E ROYALTY
    TRUST
 (Exact name of registrant as
    specified in its charter)
  Texas(State or other jurisdiction
    of incorporation or organization)

76-6007940(I.R.S. Employer Identification
    No.)The Bank of New York Trust Company, N.A., TrusteeGlobal Corporate Trust919 Congress Avenue
    Austin, Texas

78701(Address of principal executive
    offices)

(Zip Code)   Registrants telephone number, including area code:
    1-800-852-1422
 Securities registered pursuant to Section 12(b) of the
    Act:
  Name of Each ExchangeTitle of Each Class

On Which RegisteredUnits of Beneficial Interest


New York Stock Exchange   Securities registered pursuant to Section 12(g) of the
    Act: None
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. þ
  12b-2
  Large accelerated
    filer o

Accelerated
    filer o

Non-accelerated
    filer o

Smaller reporting
    company þ(Do not check if a smaller reporting company)   Rule 12b-2 o þ
  The Wall Street Journal
    Documents
    Incorporated by Reference:  None




---



##### Table of Contents





TABLE OF
    CONTENTS
  
  PagenumberPART IITEM  1   Business


1Introduction


1Terms and Operation of the Trust


1Creation and Operation of the Trust


1Termination of the Trust


2Timing of Liquidation


2Assets and Liabilities in the Process of
    Liquidation


3Terms of the Conveyances


3The Partnership


5Receipts and Payments


5Liabilities and Contingency Reserves


5The Royalties


7Overriding Royalties


7Fee Lands Royalties


8Analysis of the Working Interest Owners
    Calculation of the Royalties


8The Units


10Distributions and Income Computations


10Transfer of Units


10Periodic Reports


10Possible Requirement That Units Be Divested


11Liability of Unit Holders


11Voting by Unit Holders


12Certain State Law Considerations


12The Properties


12General


12Description of Productive Properties


13Description of the Fee Lands


14Oil and Gas Sales from the Productive
    Properties


15Oil Sales


15Gas and Liquids Sales


15Exploration and Development Activities


16Productive Properties


16Fee Lands


17Estimates of Petroleum Engineers


17September 30, 2007 Estimates


17Certain Factors Affecting Estimates


17Industry Conditions and Regulation


19Industry Conditions


19Regulation


19Tax Considerations to Owners of Units


19Federal Income Tax Considerations


19Reporting Requirements for Widely-Held Fixed
    Investment Trusts


27Available Trust Tax Information


27IDC Recapture Income to the Company on
    Distribution


27Backup Withholding


28Information Return Filing Requirements


28




---



##### Table of Contents



PagenumberState Tax Considerations


28Severance Taxes


30Ad Valorem Taxes


31Available Information


31ITEM  1A  Risk Factors


31ITEM  1B  Unresolved Staff
    Comments


34ITEM  2   Properties


34ITEM  3   Legal
    Proceedings


34ITEM  4   Submission of
    Matters to a Vote of Unit Holders


34PART IIITEM  5   Market for
    Registrants Common Equity, Related Unit Holder Matters and
    Issuer Purchases of Equity Securities


34ITEM  6   Selected
    Financial Data


35ITEM  7  
    Managements Discussion and Analysis of Financial Condition
    and Results of Operations


35ITEM  7A  Quantitative and
    Qualitative Disclosures about Market Risk


40ITEM  8   Financial
    Statements and Supplementary Data


41ITEM  9   Changes in
    and Disagreements with Accountants on Accounting and Financial
    Disclosure


52ITEM  9A  Controls and
    Procedures


52ITEM  9B  Other
    Information


53PART IIIITEM  10   Directors,
    Executive Officers of the Registrant and Corporate Governance


53ITEM  11   Executive
    Compensation


53ITEM  12   Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters


53ITEM  13   Certain
    Relationships and Related Transactions, and Director
    Independence


54ITEM  14   Principal
    Accounting Fees and Services


54PART IVITEM  15   Exhibits,
    Financial Statement Schedules


54SIGNATURE


56Certification Pursuant to Section 302Certification Pursuant to Section 906    Form 10-K, Form 10-K,




---



##### Table of Contents



PART I  Item 1.
    Business INTRODUCTION  1-800-852-1422.
        Form 10-K
 TERMS AND
    OPERATION OF THE TRUST Creation
    and Operation of the Trust   1




---



##### Table of Contents



Form 10-K,
       Termination
    of the Trust         Timing of
    Liquidation   2




---



##### Table of Contents



Assets
    and Liabilities in the Process of Liquidation    ASSETS

December 31, 2007Cash

$
331,983Net overriding royalty interests in oil and gas properties and
    3% royalty interests in fee lands


24,888,456Net assets in process of liquidation

$
25,220,439     
    The Trusts estimated share of oil and gas reserve volumes
    at December 31, 2007, were derived from the reserve report
    prepared by Miller and Lents dated March 19, 2008, for the
    production period ending September 30, 2007, attached to
    this Report on Form
    10-K.
    The estimated fair value does not include any amounts related to
    Offshore Louisiana properties. The estimated share for these
    properties is not economical per the oil and gas reserve report.
    Forward strip commodity prices on September 30, 2007.
    Includes approximately $5 million of future abandonment
    costs and approximately $6.3 million of excess production
    costs to be recouped by the Working Interest Owners, for the Jay
    Field and South Pass 89 properties.
    Discount rate of 10%.
    Future income taxes were not taken into account.      Form 10-K Form 10-K.
   Terms of
    the Conveyances  Form 10-K.
   3




---



##### Table of Contents



Form 10-K,
   4




---



##### Table of Contents



The
    Partnership    Receipts
    and Payments   Liabilities
    and Contingency Reserves   5




---



##### Table of Contents



6




---



##### Table of Contents



THE
    ROYALTIES  Form 10-K.
 Overriding
    Royalties  Property-by-Property
         7




---



##### Table of Contents



Fee Lands
    Royalties   Analysis
    of the Working Interest Owners Calculation of the
    Royalties   8




---



##### Table of Contents



Quarter
    ended December 31, 2007
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
7,099,225


$
812,484


$
1,549,084


$
9,460,793Natural gas


21,019







598,002



619,021$
7,120,244


$
812,484


$
2,147,086


$
10,079,814Amounts withheld in escrow






(812,484
)


(2,147,086
)


(2,959,570
)Production costs and expenses(1)


(9,933,552
)


(662,585
)


(314,226
)


(10,910,363
)Capital expenditures






(280
)


(1,244,366
)


(1,244,646
)Net Proceeds

$
(2,813,308
)

$
(662,865
)

$
(1,558,592
)

$
(5,034,765
)Overriding Royalties paid to the Trust(2)

$
757,419


$



$



$
757,419Fee Lands Royalties














75,532Royalties paid to the Trust













$
832,951   Year
    ended December 31, 2007
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
21,559,237


$
3,661,656


$
2,771,631


$
27,992,524Natural gas


41,798



97,759



1,442,407



1,581,964$
21,601,035


$
3,759,415


$
4,214,038


$
29,574,488Amounts withheld in escrow






(3,759,415
)


(4,214,038
)


(7,973,453
)Production costs and expenses(1)


(22,732,126
)


(1,363,398
)


(3,373,328
)


(27,468,852
)Capital expenditures


(288,900
)


(47,331
)


(2,081,650
)


(2,417,881
)Net Proceeds

$
(1,419,991
)

$
(1,410,729
)

$
(5,454,978
)

$
(8,285,698
)Overriding Royalties paid to the Trust(2)

$
1,566,221


$



$



$
1,566,221Fee Lands Royalties














399,252Royalties paid to the Trust













$
1,965,473     (1)
    
    Interest earned on funds escrowed for future dismantlement costs
    are reported as a reduction of production costs and expenses.
    Interest earned for the quarter and year ended December 31,
    2007 was approximately $55,352 and $475,679, respectively.
    Pursuant to the terms of the Trust Conveyances, interest
    earned on the escrowed funds for any month will be calculated at
    an interest rate equal to 80 percent of the median between
    the Prime Rate at the end of such month and the Prime Rate at
    the end of the preceding month. Processing fees earned are also
    shown as a reduction of production costs and expenses. For the
    year ended December 31, 2007, South Pass 89 property
    processing fees earned totaled $761,497 and interest on escrow
    totaled $138,038, while the operating expenses totaled
    $2,262,933, netting a production cost of $1,363,398.(2)
    
    As a result of excess production costs incurred on one monthly
    operating period and then recovered in a subsequent monthly
    operating period(s), the Overriding Royalties paid to the Trust
    may not agree to the Trusts royalty interest in the Net
    Proceeds. Excess production costs as of December 31, 2007
    to be recovered from future proceeds at the Jay Field, South
    Pass 89, and Offshore Louisiana are $4,328,898, $1,960,610
    and $8,147,591, respectively. 9




---



##### Table of Contents



THE
    UNITS Distributions
    and Income Computations     Transfer
    of Units   Periodic
    Reports   10




---



##### Table of Contents



Possible
    Requirement That Units Be Divested      30-day 30-day
     Liability
    of Unit Holders   11




---



##### Table of Contents



Voting by
    Unit Holders     Certain
    State Law Considerations   THE
    PROPERTIES General  Form 10-K
 12




---



##### Table of Contents



Description
    of Productive Properties    ProductiveProperty and Year









Productive Wells(1)in Which



Acres


Oil


GasProduction Commenced

Location

Gross


Net


Gross


Net


Gross


NetJay Field (1970)(2)

Onshore


184,472
(3)


62,150
(3)


32



10.78



1



.34Alabama
    and FloridaSouth Pass 89 (1982)

Offshore


5,000



1,250



2



0.50



0.00



0.00LouisianaOffshore Louisiana (1968)(4)

Offshore


10,000



1,625



6



0.75



10



1.55Louisiana


199,472



65,025



40



12.03



11



1.89     (1)
    
    Represent producing wells and wells capable of production. Net
    wells reflect the Working Interest Owners working
    interest. Gross and net wells exclude injection wells.(2)
    
    Includes interests in 23 leases which are a part of the Jay
    Field Unit created by a unit agreement originally among
    ExxonMobil (as operator) and others. The Jay Field is made up of
    177 different tracts of land. Portions of certain leases are
    located outside of the Jay Field Unit. The Overriding Royalties
    from the Jay Field burden only the portions of such leases
    included within the Jay Field Unit and owned by the Working
    Interest Owner as of June 28, 1983. In addition, certain
    minor interests of the Company in the Jay Field were not
    included in the Jay Field Productive Property. The information
    in the table above relates only to the portion of the Jay Field
    included in the Jay Field Productive Property. All right, title
    and interest of the Company in the Jay Field Productive Property
    was assigned to the following entities in the following
    undivided percentages on December 21, 2006, effective as of
    September 1, 2006:  13




---



##### Table of Contents



Percentage ofthe WorkingInterest OwnedDesignation

by the OperatorsBlack Diamond Resources


3.9080
%QAB Carried WI, LP


1.6248
%QAC Carried WI, LP


2.8844
%Quantum Resources A1, LP


91.5828
%   Quantum Resources Management, LLC (Quantum) manages
    the Jay Field working interest on behalf of the above listed
    assignees. The Company will continue to account for and report
    on the remainder of the Properties other than the Jay Field
    Productive Properties.(3)
    
    Gross acres reflect aggregate porosity
    acre-feet in
    producing formations in the Jay Field, and net acres reflect the
    Working Interest Owners ownership interest in the
    producing formations as determined volumetrically for purposes
    of the unit agreement relating to the Jay Field.(4)
    
    Includes four federal leases or federal units (as applicable)
    with designations, initial production dates and percentage
    ownership of the Working Interest Owner as follows:  Percentage ofthe WorkingDesignation and Initial

Interest OwnedProduction Date

by the OperatorsEast Cameron 195 Unit (1971)


33.33
%East Cameron 336, South Addition (1983)


20
%Eugene Island 261 (1979)


20
%South Marsh Island 76, South Addition (1968)


25
%Vermilion 331, South Addition (1977)


12.5
%   During the fourth quarter of 2001, the Working Interest Owner
    assigned its ownership in any future wells or existing well work
    activity at East Cameron 336 to other owners, but retained its
    share of the plugging and abandonment liability. Description
    of the Fee Lands     14




---



##### Table of Contents



OIL AND
    GAS SALES FROM THE PRODUCTIVE PROPERTIES   Oil
    Sales   Gas and
    Liquids Sales         15




---



##### Table of Contents



EXPLORATION
    AND DEVELOPMENT ACTIVITIES Productive
    Properties    Net WellsOil


Gas


Dry2005Exploratory










Development


1.000







2006Exploratory










Development










2007Exploratory










Development










     Jay
    Field
    South
    Pass 89
    Offshore
    Louisiana
   16




---



##### Table of Contents



Fee
    Lands   ESTIMATES
    OF PETROLEUM ENGINEERS September 30,
    2007 Estimates      Form 10-K.
  Net Proved Imputed Reserves and RevenuesCrude Oil,








Net RevenuesCondensate, and


Natural


Future Net


Discounted at 10%Natural Gas Liquids


Gas,


Revenues,


Per Year,Reserve Category

MBbls.


MMcf


M$


M$Proved Developed


294.1



318.5



25,123.0



17,942.3Proved Undeveloped


0.0



0.0



0.0



0.0Total Proved


294.1



318.5



25,123.0



17,942.3    Certain
    Factors Affecting Estimates   17




---



##### Table of Contents



Form 10-K.
 18




---



##### Table of Contents



INDUSTRY
    CONDITIONS AND REGULATION Industry
    Conditions   Regulation   TAX
    CONSIDERATIONS TO OWNERS OF UNITS Federal
    Income Tax Considerations  Introduction
      Rulings
    and Tax Opinion Regarding Distribution
   19




---



##### Table of Contents



Tax
    Consequences of Owning Units
   20




---



##### Table of Contents



General Features of Grantor
    Trust Taxation.
  General Features of Partnership Taxation.
  i.e.
    Depletion Deductions.
 21




---



##### Table of Contents



Trust Administrative Expenses.
  Classification of Trust Income.
    Alternative Minimum Tax for Corporations.
  Alternative Minimum Tax for Noncorporate
    Taxpayers.
 22




---



##### Table of Contents



Abandonment Losses.
  Taxation of Nonresident Foreign Unit
    Holders.
  Form W-8ECI, Regulation Section 1.1441-4). Form W-8ECI
     23




---



##### Table of Contents



Sale of Units.
   24




---



##### Table of Contents



Reports.
  Audit of Partnership and
    Trust Returns.
    Accounting for Income and Deductions.
 25




---



##### Table of Contents



Related Tax Effects on Unit Holders.
   26




---



##### Table of Contents



Reporting
    Requirements for Widely-Held Fixed Investment Trusts   Available
    Trust Tax Information    Other Possible Penalties.
 IDC
    Recapture Income to the Company on Distribution     27




---



##### Table of Contents



Backup
    Withholding      Nominee Reporting Requirements.
 Information
    Return Filing Requirements     State Tax
    Considerations   28




---



##### Table of Contents



Louisiana
          Florida
     29




---



##### Table of Contents



Alabama
        paid-in-capital,
 Severance
    Taxes   30




---



##### Table of Contents



Ad
    Valorem Taxes   AVAILABLE
    INFORMATION  http:www.sec.gov
  Item 1A.
    Risk
    Factors  Form 10-K
  The
    Trust terminated as of December 31, 2007 and is in the
    process of selling its assets and liquidating.
    The
    Trust will incur expenses in connection with the sale of its
    assets and liquidation.
    The sale of the Trusts assets may take a substantial
    amount of time.
    If the Trust has not sold its assets by December 31,
    2010, the Trustee is required to sell the assets in a public
    auction.
   31




---



##### Table of Contents



The market prices for oil and gas may decline prior to the
    time the Trust enters into a binding agreement for the sale of
    the Trusts assets.
  and/or
  Natural gas and oil prices fluctuate due to a number of
    factors, and lower prices will reduce the market value of the
    Trusts assets.
  month-to-month
  
    political conditions worldwide, in particular political
    disruption, war or other armed conflicts in oil producing
    regions;
    worldwide economic conditions;
    weather conditions;
    the supply and price of foreign natural gas and oil;
    the level of consumer demand;
    the price and availability of alternative fuels;
    the proximity to, and capacity of, transportation
    facilities; and
    the effect of worldwide energy conservation measures.      Damage from Hurricanes Katrina and Rita will have a
    material adverse effect on the value of the Trusts
    assets.
    Pending litigation against the Working Interest Owner
    could adversely impact the value of the Trusts
    assets.
     32




---



##### Table of Contents



Increased production and development costs for the
    Overriding Royalties will decrease the value of the Trusts
    assets.
    Trust reserve estimates depend on many assumptions that
    may prove to be inaccurate, which could cause both estimated
    reserves and estimated future revenues to be too high.
    
    historical production from the area compared with production
    rates from similar producing areas;
    the assumed effect of governmental regulation; and
    assumptions about future commodity prices, production and
    development costs, severance and excise taxes, and capital
    expenditures.      Operating risks can adversely affect the value of the
    Trusts assets.
    Trust Unit holders and the Trustee have no control or
    influence over the operation or development of the
    Properties.
  Form 10-K.
  The operator may abandon any property, terminating the
    related Overriding Royalties.
   33




---



##### Table of Contents



Unit holders have limited voting rights.
    Unit holders have limited ability to enforce the
    Trusts rights against the current or future owners of the
    Properties.
    Item 1B.
    Unresolved
    Staff Comments    Item 2.
    Properties    Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Unit Holders   PART II  Item 5.
    Market
    for the Registrants Common Equity, Related Unit Holder
    Matters and Issuer Purchases of Equity Securities    2007 Quarter Ended


2006 Quarter EndedMarch 31


June 30


Sept. 30


Dec. 31


March 31


June 30


Sept. 30


Dec. 31Units of Beneficial Interest:High sales price

$
2.85


$
2.14


$
1.87


$
2.58


$
3.40


$
3.79


$
3.40


$
3.41Low sales price


1.95



1.49



1.10



1.40



2.01



2.16



2.40



2.59Distributions per Unit

$
0.0272


$
0.0000


$
0.0000


$
.0334


$
0.0000


$
0.0000


$
0.0202


$
0.0762      34




---



##### Table of Contents



Item 6.
    Selected
    Financial Data  Form 10-K.
      Years Ended December 31,2007


2006


2005


2004


2003Revenues

$
1,965,473


$
3,068,638


$
7,354,827


$
10,857,596


$
8,496,041Cash earnings


634,378



2,094,226



6,586,512



10,178,621



7,869,942Cash distributions to Unit holders


1,150,481



1,831,080



6,002,945



10,177,500



7,882,218Cash distributions per Unit

$
0.0606


$
0.0964


$
0.3161


$
0.5359


$
0.4150Trust Corpus

$
2,037,083


$
2,616,186


$
2,393,340


$
1,827,273


$
1,909,252   Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  Critical
    Accounting Policies
      out-of-pocket
  unit-of-production
          Liquidity
    and Capital Resources
   35




---



##### Table of Contents



Recent
    Developments
    and/or
      Form 10-K
  South
    Pass 89
   36




---



##### Table of Contents



Offshore
    Properties:
  East
    Cameron 336
    East
    Cameron 195
    South
    Marsh Island 76
    Eugene
    Island 261
    Vermillion
    331
    Jay
    Field
     37




---



##### Table of Contents



Other
            Results
    of Operations
  Years Ended December 31,2007


2006


2005Royalty revenues

$
1,965,473


$
3,068,638


$
7,354,827Trust administrative expenses


(1,331,095
)


(974,412
)


(768,315
)Cash earnings

$
634,378


$
2,094,226


$
6,586,512Changes in undistributed cash


516,103



(263,146
)


(583,567
)Cash distributions

$
1,150,481


$
1,831,080


$
6,002,945Cash distributions per unit

$
0.0606


$
0.0964


$
0.3161Units outstanding


18,991,304



18,991,304



18,991,304  38




---



##### Table of Contents



Years Ended December 31,2007


2006


2005Net Proceeds:Revenues

$
29,574,488


$
30,199,489


$
35,882,309Amounts withheld in escrow


(7,973,453
)


(2,096,559
)


Production costs and expenses


(27,468,852
)


(19,076,533
)


(18,101,873
)Capital expenditures


(2,417,881
)


(5,042,463
)


(8,367,167
)Net Proceeds

$
(8,285,698
)

$
3,983,934


$
9,413,269Royalties paid to the Trust:Overriding Royalties

$
1,566,221


$
2,726,914


$
6,996,298Fee Lands Royalties


399,252



341,724



358,529Royalties paid to the Trust

$
1,965,473


$
3,068,638


$
7,354,827     OffshoreJay Field


South Pass 89


Louisiana


Fee Lands


TotalYear Ended December 31, 2006Oil & Condensate (MBbls)


1482.29



136.38



188.3



74.44



1881.41Gas (Mcf)


2510.7



294.65



1909.02



1469.39



6183.76Year Ended December 31, 2007Oil & Condensate (MBbls)


1302.24



208.29



290.14



81.24



1881.91Gas (Mcf)


1892.38



507.26



3906.46



1750.37



8056.47    39




---



##### Table of Contents



Item 7A.
    Quantitative
    and Qualitative Disclosures about Market Risk   40




---



##### Table of Contents



Item 8.
    Financial
    Statements and Supplementary Data  LL&E
    ROYALTY TRUST
 STATEMENTS
    OF CASH EARNINGS AND DISTRIBUTIONS
    Years Ended December 31, 2007, 2006 and 2005  2007


2006


2005Royalty revenues

$
1,965,473


$
3,068,638


$
7,354,827Trust administrative expenses


(1,331,095
)


(974,412
)


(768,315
)Cash earnings

$
634,378


$
2,094,226


$
6,586,512Changes in undistributed cash


516,103



(263,146
)


(583,567
)Cash distributions

$
1,150,481


$
1,831,080


$
6,002,945Cash distributions per unit

$
0.0606


$
0.0964


$
0.3161Units outstanding


18,991,304



18,991,304



18,991,304   STATEMENTS
    OF ASSETS, LIABILITIES AND TRUST CORPUS



December 31,
    2007 and 2006  2007


2006ASSETSCash

$
331,983


$
848,086Net overriding royalty interests in productive oil and gas
    properties and 3% royalty interests in fee lands


76,282,000



76,282,000Less accumulated amortization


(74,576,900
)


(74,513,900
)Total assets

$
2,037,083


$
2,616,186LIABILITIES AND TRUST CORPUSTrust corpus (18,991,304 Units of Beneficial Interest
    authorized, issued and outstanding)

$
2,037,083


$
2,616,186Contingencies (note 9)Total liabilities and Trust corpus

$
2,037,083


$
2,616,186  STATEMENTS
    OF CHANGES IN TRUST CORPUS



Years
    Ended December 31, 2007, 2006 and 2005  2007


2006


2005Trust corpus, beginning of period

$
2,616,186


$
2,393,340


$
1,827,273Cash earnings


634,378



2,094,226



6,586,512Cash distributions


(1,150,481
)


(1,831,080
)


(6,002,945
)Amortization of royalty interests


(63,000
)


(40,300
)


(17,500
)Trust corpus, end of period

$
2,037,083


$
2,616,186


$
2,393,340    41




---



##### Table of Contents



LL&E
    ROYALTY TRUST



NOTES TO
    FINANCIAL STATEMENTS



December 31,
    2007, 2006 and 2005  (1)
    Formation
    of the Trust        Trust
    Termination
         42




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
    Recent
    Developments
      South
    Pass 89
    Offshore
    Properties:
  East
    Cameron 336
   43




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
  East
    Cameron 195
    South
    Marsh Island 76
    Eugene
    Island 261
    Vermillion
    331
    Jay
    Field
     44




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
      Other
         45




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
  (2)
    Going
    Concern      (3)
    Net
    Overriding Royalty Interests and Fee Lands Royalties  Property-by-Property
     46




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
  (4)
    Basis of
    Presentation  Significant
    Accounting Policies
                  (5)
    Federal
    Income Tax Matters     47




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
      (6)
    Impairment      (7)
    Dismantlement
    Costs  Form 10-K
   48




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
      (8)
    Contingencies      (9)
    Supplemental
    Reserve Information (Unaudited)     49




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
  Present
    Value of Estimated Future Net Revenues from Proved
    Reserves
  September 30,2007


2006


2005(In thousands)The Trusts proportionate share of future gross proceeds

$
42,836


$
116,277


$
225,089Less the Trusts proportionate share of  Future
    operating costs


(1,691
)


(3,844
)


(3,859
)Future capital costs


(5,385
)


(10,103
)


(10,638
)Excess production costs


(10,637
)


(3,155
)


(2,155
)Future royalty income


25,123



99,175



208,437Discount at 10% per annum


(7,181
)


(49,207
)


(94,069
)Standardized measure of future royalty income from proved oil
    and gas reserves

$
17,942


$
49,968


$
114,368   Changes
    in Imputed Proved Reserves and Present Value of Estimated Future
    Net Revenues
  Present ValueImputed


of Future NetProved Reserves


RevenuesLiquids


Gas


(Thousands(Mbbl)


(MMcf)


of dollars)Estimated at September 30, 2004


4,283



5,335


$
95,362Production


(56
)


(602
)

$
(7,355
)Revisions of estimates(1)


(1,249
)


1,530



16,825Extensions, discoveries and other additions










Accretion of discount


na



na



9,536Estimated at September 30, 2005


2,978



6,263


$
114,368Production


(35
)


(37
)

$
(3,069
)Revisions of estimates(1)


(1,389
)


(4,316
)


(72,768
)Extensions, discoveries and other additions










Accretion of discount


na



na



11,437Estimated at September 30, 2006


1,554



1,910


$
49,968Production


(23
)


(3
)

$
(1,965
)Revisions of estimates(1)


(1,237
)


(1,588
)


(35,058
)Extensions, discoveries and other additions










Accretion of discount


na



na



4,997Estimated at September 30, 2007


294



319


$
17,942       (1)
    
    Revisions of estimates are due to the interaction of a number of
    factors, including: (i) changes in prices being received;
    (ii) changes in estimates of operating, capital and
    dismantlement costs; (iii) changes in the timing and
    amounts of estimated future production; and (iv) changes in
    the estimated remaining imputed proved reserves. The Trust noted
    that for the year ended September 30, 2007, base prices
    were $79.73 per barrel for oil, $6.66 per 50




---



##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
  MMBtu for gas, and $69.81 per barrel for natural gas liquids.
    For the year ended September 30, 2006, base prices were
    $62.92 per barrel for oil, $3.66 per MMBtu for gas, and $42.26
    per barrel for natural gas liquids.  Selected
    Quarterly Financial Data (Unaudited)
  Summarized Quarterly ResultsThree Months EndedMarch 31


June 30


September 30


December 312007:Royalty revenues

$
673,875


$
295,085


$
163,563


$
832,950Cash distributions

$
515,732


$



$



$
634,749Cash distribution unit

$
0.0272


$
0.0000


$
0.0000


$
0.03342006:Royalty revenues

$
432,197


$
297,042


$
689,169


$
1,650,230Cash distributions

$



$



$
383,018


$
1,448,062Cash distribution unit

$
0.0000


$
0.0000


$
0.0202


$
0.0762  51




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm  Bank of New
    York, Trustee
             Houston,
    Texas
  52




---



##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 9A.
    Controls
    and Procedures  Evaluation of Controls and Procedures.
      Changes in Internal Control over Financial
    Reporting.
  Trustees Report on Internal Control over Financial
    Reporting. Rule 13a-15(f) Internal Control-Integrated Framework Internal Control-Integrated
    Framework,
   53




---



##### Table of Contents



Item 9B.
    Other
    Information    PART III  Item 10.
    Directors,
    Executive Officers of the Registrant and Corporate
    Governance      Item 11.
    Executive
    Compensation    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters  (a) Unit Ownership of Certain Beneficial Owners
    (b) Unit Ownership of Management
   54




---



##### Table of Contents



(c) Change in Control
    (d) Securities Authorized for Issuance Under Equity
    Compensation Plans
    Item 13.Certain
    Relationships and Related Transactions, and Director
    Independence
    Item 14.
    Principal
    Accounting Fees and Services    2007


2006Audit fees(1)

$
334,000


$
275,000Audit related fees






Tax fees(2)


112,000



179,000All other fees






Total fees

$
446,000


$
454,000     (1)
    
    Audit fees consist of fees for the audit of the LL&E Trust
    financial statements and reimbursement for travel related
    expenses.(2)
    
    Tax fees consist of fees related to the LL&E Trusts
    tax information for its unit holders.  Pre-Approval
    Policies
    PART IV  Item 15.
    Exhibits,
    Financial Statement Schedules  (a) Financial Statements
    PageNumberStatements of Cash Earnings and
    Distributions  Years Ended December 31, 2007,
    2006 and 2005


41Statements of Assets, Liabilities and
    Trust Corpus  December 31, 2007 and 2006


41Statements of Changes in
    Trust Corpus  Years Ended December 31,
    2007, 2006 and 2005


41Notes to Financial Statements


42Report of Independent Registered Public
    Accounting Firm


51  55




---



##### Table of Contents



(b) Exhibits
  4*




Agreement for LL&E Royalty Trust, dated as of June 1,
    1983, between the Company and First City National Bank of
    Houston, as Trustee.28
.1*



Agreement of General Partnership of LL&E Royalty
    Partnership.28
.2*



Form of Conveyance of Overriding Royalty Interests for
    Fort Worth Basin Property.28
.3*



Form of Conveyance of Overriding Royalty Interests for Jay Field
    (Alabama) Property.28
.4*



Form of Conveyance of Overriding Royalty Interests for Jay Field
    (Florida) Property.28
.5*



Form of Conveyance of Overriding Royalty Interests for Offshore
    Louisiana Property.28
.6*



Form of Conveyance of Overriding Royalty Interests for South
    Pass 89 Property.28
.7*



Form of Royalty Deed.31




Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2003.32




Certification pursuant to Section 906 of the Sarbanes-Oxley
    Act of 2003.     *
    
    Incorporated by reference to Exhibits of like designation to
    Registrants Annual Report on
    Form 10-K
    for the period ended December 31, 1983 (Commission File
    No. 1-8518).  (c) Financial Statement Schedules
   56




---



##### Table of Contents



SIGNATURE     (Registrant)
  By:
    THE BANK OF NEW YORK TRUST COMPANY, N.A., Trustee   By:
    /s/  MIKE ULRICH   Vice President
  Note:
    Because the registrant is a trust without officers or employees,
    only the signature of an officer of the Trustee is available and
    has been provided. 57




---



##### Table of Contents



Appendix A
    Miller and Lents Report
  March 19,
    2008
  The Bank of
    New York
     Re:
    Estimates of Proved Reserves and Future Net
    Revenues for the LL&E Royalty Trust
    As of September 30, 2007  Gentlemen:
      Net Proved Imputed Reserves and
    Revenues(1)(2)Crude Oil,








Net RevenuesCondensate, and


Natural


Future Net


Discounted at 10%Natural Gas Liquids


Gas,


Revenues,


Per Year,Reserve Category

MBbls.


MMcf


M$


M$Proved Developed


294.1



318.5



25,123.0



17,942.3Proved Undeveloped


0.0



0.0



0.0



0.0Total Proved


294.1



318.5



25,123.0



17,942.3     (1)
    
    Subsequent to the effective date of this report, the Trust
    announced it will terminate effective December 31, 2007
    since net revenues to the Trust fell below $5,000,000 for two
    successive years the Termination Threshold during
    2006 and 2007, even though some of the Trust properties have
    remaining productive lives. See Termination of the
    Trust in this document on
    Form 10-K.(2)
    
    Total Proved Reserves and Revenues may not equal the sum of the
    separate categories due to the manner in which the trust model
    handles the recovery of excess production costs. Timing of the
    recoupment of these costs out of total proved production may
    vary slightly from the timing associated with the separate
    proved reserve categories. Future excess production costs will
    be recouped out of total proved production regardless of reserve
    category.  Regulation S-X, Rule 4-10(a)
   A-1




---



##### Table of Contents



The Bank of
    New York
    March 19, 2008 Trustee,
    LL&E Royalty Trust
    Page 2      Estimated Future Net Revenues to the
    Trust(1)(2)For Production

From Proved


From Proved


From TotalDuring the 12

Developed


Undeveloped


ProvedMonths Ended

Reserves,


Reserves,


Reserves,September 30

M$


M$


M$2008


3,533.9



0.0



3,533.92009


2,867.3



0.0



2,867.32010


3,408.5



0.0



3,408.52011


4,481.0



0.0



4,481.02012


3,560.5



0.0



3,560.52013


2,730.8



0.0



2,730.8Remainder


4,541.1



0.0



4,541.1Total


25,123.0



0.0



25,123.0     (1)
    
    Subsequent to the effective date of this report, the Trust
    announced it will terminate effective December 31, 2007
    since net revenues to the Trust fell below $5,000,000 for two
    successive years the Termination Threshold during
    2006 and 2007, even though some of the Trust properties have
    remaining productive lives. See Termination of the
    Trust in this document on
    Form 10-K.(2)
    
    Total Proved Reserves and Revenues may not equal the sum of the
    separate categories due to the manner in which the trust model
    handles the recovery of excess production costs. Timing of the
    recoupment of these costs out of total proved production may
    vary slightly from the timing associated with the separate
    proved reserve categories. Future excess production costs will
    be recouped out of total proved production regardless of reserve
    category.  12-month
 A-2




---



##### Table of Contents



The Bank of
    New York
    March 19, 2008 Trustee,
    LL&E Royalty Trust
    Page 3    Last Year ofEstimated Future


EstimatedNet Revenues to


EconomicThe Trust,


Life ofProperty

M$(1)(2)


Reserves(3)Jay Field


24,330.0



2018South Pass 89


138.7



2011Offshore Louisiana


0.0



2012Fee Lands


654.3



2017Total


25,123.0     (1)
    
    Subsequent to the effective date of this report, the Trust
    announced it will terminate effective December 31, 2007
    since net revenues to the Trust fell below $5,000,000 for two
    successive years the Termination Threshold during
    2006 and 2007, even though some of the Trust properties have
    remaining productive lives. See Termination of the
    Trust in this document on
    Form 10-K.(2)
    
    Total Proved Reserves and Revenues may not equal the sum of the
    separate categories due to the manner in which the trust model
    handles the recovery of excess production costs. Timing of the
    recoupment of these costs out of total proved production may
    vary slightly from the timing associated with the separate
    proved reserve categories. Future excess production costs will
    be recouped out of total proved production regardless of reserve
    category. Based on information provided by the Working Interest
    Owner, it is estimated that the future dismantlement costs in
    excess of the amounts currently held in escrow, will exceed the
    estimated future net revenues for the South Pass 89 and Offshore
    Louisiana properties and will result in zero future net revenues
    to the Trust.(3)
    
    Projected economic life without consideration of estimated
    future dismantlement costs.    Percentage of Net ProceedsWorking Interest Property

Attributable to Overriding RoyaltiesJay Field


50South Pass 89


50Offshore Louisiana


90   property-by-property
 A-3




---



##### Table of Contents



The Bank of
    New York
    March 19, 2008 Trustee,
    LL&E Royalty Trust
    Page 4                 A-4




---



##### Table of Contents



The Bank of
    New York
    March 19, 2008 Trustee,
    LL&E Royalty Trust
    Page 5    Imputed proved reserves to
    the Trust (expressed in Bbls
    or Mcf)

=

Estimated future net
    revenues to the
    TrustEstimated
    future gross
    revenues to the Working
    Interest
    Owner(1)

x

Estimated net proved
    reserves of the Working
    Interest Owner (Bbls
    or Mcf)     (1)
    
    Prior to subtraction of all costs (including Jay Field fuel and
    severance taxes) and the costs attributable to the Trust.           A-5




---



##### Table of Contents



The Bank of
    New York
    March 19, 2008 Trustee,
    LL&E Royalty Trust
    Page 6      Miller and Lents, Ltd.
  By
    /s/  Gary
    W. Priddy     By
    /s/  Robert
    J. Oberst       A-6




---



##### Table of Contents



INDEX TO
    EXHIBITS
  4*




Trust Agreement for LL&E Royalty Trust, dated as of
    June 1, 1983, between the Company and First City National
    Bank of Houston, as Trustee.28
.1*



Agreement of General Partnership of LL&E Royalty
    Partnership.28
.2*



Form of Conveyance of Overriding Royalty Interests for
    Fort Worth Basin Property.28
.3*



Form of Conveyance of Overriding Royalty Interests for Jay Field
    (Alabama) Property.28
.4*



Form of Conveyance of Overriding Royalty Interests for Jay Field
    (Florida) Property.28
.5*



Form of Conveyance of Overriding Royalty Interests for Offshore
    Louisiana Property.28
.6*



Form of Conveyance of Overriding Royalty Interests for South
    Pass 89 Property.28
.7*



Form of Royalty Deed.31




Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2003.32




Certification pursuant to Section 906 of the Sarbanes-Oxley
    Act of 2003.     *
    
    Incorporated by reference to Exhibits of like designation to
    Registrants Annual Report on
    Form 10-K
    for the period ended December 31, 1983 (Commission File
    No. 1-8518). 1