##### Table of Contents



FORM 10-Q
  [ü]
    QUARTERLY REPORT
    PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934
    OR
  [  ]
    TRANSITION REPORT
    PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934
    LL&E
    ROYALTY TRUST
 (Exact name of registrant as
    specified in its charter)
  Texas

76-6007940(State or other jurisdiction of
    incorporation
    or organization)

(I.R.S. Employer
    Identification No.)The
    Bank of New York Trust Company, N.A., Trustee
    Global Corporate Trust
    919 Congress Avenue
    Austin, Texas(Address of principal
    executive offices)

78701(Zip Code)    (800) 852-1422
  ü
  Rule 12b-2
  Large
    Accelerated
    Filer
    Accelerated
    Filer ü
    Non-Accelerated
    Filer  Rule 12b-2  ü




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##### 



TABLE OF
    CONTENTS
   
 PagePart I.
    Financial Information


2Item 1.
    Financial Statements:


2Presentation of
    Financial Information


2Statements of Cash
    Earnings and Distributions


3Statements of
    Assets, Liabilities and Trust Corpus


3Statements of
    Changes in Trust Corpus


3Notes to Financial
    Statements


4Item 2.
    Managements Discussion and Analysis of Financial Condition
    and Results of Operations


13Item 3.
    Quantitative and Qualitative Disclosures about Market
    Risk


23Item 4.
    Controls and Procedures


24Part II. Other
    Information


25Item 1A. Risk
    Factors


25Item 6.
    Exhibits


25Signature


26Certification Pursuant to Section 302Certification Pursuant to Section 906   -1-




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PART I  Item 1.
    Financial
    Statements.  LL&E
    ROYALTY TRUST
  Presentation of Financial Information
  Form 10-Q. Form 10-K
 -2-




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LL&E
    ROYALTY TRUST
  Statements of Cash Earnings and Distributions
 (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006Royalty revenues

$
295,085


$
297,042


$
968,960


$
729,239Trust administrative expenses


(510,010
)


(242,454
)


(672,304
)


(520,169
)Cash earnings (loss)


(214,925
)


54,588



296,656



209,070Changes in undistributed cash


214,925



(54,588
)


219,076



(209,070
)Cash distributions

$



$



$
515,732


$
Cash distributions per Unit

$



$



$
0.02716


$
Units outstanding


18,991,304



18,991,304



18,991,304



18,991,304   Statements of Assets, Liabilities and Trust Corpus
  June 30,


December 31,2007


2006(Unaudited)ASSETSCash

$
629,010


$
848,086Net overriding royalty interests
    in productive oil and gas properties and 3% royalty interests in
    fee lands (notes 4, 5 and 7)


76,282,000



76,282,000Less: accumulated amortization
    (note 5)


(74,526,900
)


(74,513,900
)Total assets

$
2,384,110


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

$
2,384,110


$
2,616,186Contingencies (note 8)Total liabilities and trust corpus

$
2,384,110


$
2,616,186   Statements of Changes in Trust Corpus
 (Unaudited)
  Six Months EndedJune 30,2007


2006Trust Corpus, beginning of
    period (note 5)

$
2,616,186


$
2,393,340Cash earnings


296,656



209,070Cash distributions


(515,732
)


Amortization of royalty interest
    (note 5)


(13,000
)


(300
)Trust Corpus, end of period

$
2,384,110


$
2,602,110    -3-




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LL&E
    ROYALTY TRUST
  NOTES TO FINANCIAL
    STATEMENTS
  June 30, 2007
  (1)
    Formation
    of the Trust        Status of
    the Trust
     -4-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
        Form 10-Q
  South
    Pass 89
   -5-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
    Offshore
    Properties:
  East
    Cameron 336
    East
    Cameron 195
    South
    Marsh Island 76
    Eugene
    Island 261
   -6-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
  Vermillion
    331
    Jay
    Field
      Other
    Other
    Matters Relating to the Termination of the Trust
     -7-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
      (2)
    Going
    Concern        (3)
    Liquidity
    for Trust Expenses   -8-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
    (4)
    Net
    Overriding Royalty Interests and Fee lands Royalties  Property-by-Property
    (5)
    Basis of
    Presentation       -9-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
        Form 10-K
  (6)
    Federal
    Income Tax Matters   -10-




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##### Table of Contents



LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
          (7)
    Dismantlement
    Costs  Form 10-K
   -11-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
        (8)
    Contingencies     -12-




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##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.    Note
    Regarding Forward-looking Statements
  Form 10-Q Form 10-Q, Form 10-Q Form 10-K Form 10-Q.
    Status of
    the Trust
       -13-




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Form 10-Q
  South
    Pass 89
   -14-




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##### Table of Contents



Offshore
    Properties:
  East
    Cameron 336
    East
    Cameron 195
    South
    Marsh Island 76
    Eugene
    Island 261
    Vermillion
    331
    Jay
    Field
   -15-




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Other
       -16-




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##### Table of Contents



Other
    Matters Relating to the Termination of the Trust
        Liquidity
    and Capital Resources
    Form 10-K
   -17-




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##### Table of Contents



Results
    of Operations
  Second Quarter


First Half2007


2006


2007


2006Royalty revenues

$
295,085


$
297,042


$
968,960


$
729,239Trust administrative expenses


(510,010
)


(242,454
)


(672,304
)


(520,169
)Cash earnings

$
(214,925
)

$
54,588


$
296,656


$
209,070Change in undistributed cash


214,925



(54,588
)


219,076



(209,070
)Cash distributions

$



$



$
515,732


$
Cash distributions per unit

$



$



$
0.02716


$
Units of beneficial interest


18,991,304



18,991,304



18,991,304



18,991,304      -18-




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##### Table of Contents



2007


2006April

$
0.0000


$
0.0000May


0.0000



0.0000June


0.0000



0.0000$
0.0000


$
0.0000       Second
    Quarter 2007
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
4,458,296


$
1,888,317


$
461,181


$
6,807,794Natural gas










181,317



181,3174,458,296



1,888,317



642,498



6,989,111Amounts withheld in escrow






(1,888,317
)


(642,498
)


(2,530,815
)Production costs and expenses(1)


(3,942,641
)


(20,549
)


(1,137,177
)


(5,100,367
)Capital expenditures


(67,513
)






(103,975
)


(171,488
)Net Proceeds

$
448,142


$
(20,549
)

$
(1,241,152
)

$
(813,559
)Overriding Royalties paid to the
    Trust(2)

$
224,071


$



$



$
224,071Fee Lands Royalties


71,014Royalties paid to the Trust

$
295,085  -19-




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##### Table of Contents



First
    Half 2007
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
9,602,844


$
2,315,155


$
704,329


$
12,622,328Natural gas






97,759



524,620



622,3799,602,844



2,412,914



1,228,949



13,244,707Amounts withheld in escrow






(2,412,914
)


(1,228,949
)


(3,641,863
)Production costs and expenses(1)


(7,696,339
)


(287,102
)


(2,736,395
)


(10,719,836
)Capital expenditures


(288,900
)






(477,833
)


(766,733
)Net Proceeds

$
1,617,605


$
(287,102
)

$
(3,214,228
)

$
(1,883,725
)Overriding Royalties paid to the
    Trust(2)

$
808,803


$



$



$
808,803Fee Lands Royalties


160,157Royalties paid to the Trust

$
968,960     (1)
    
    Interest earned on funds escrowed for estimated future
    dismantlement costs are reported as a reduction of production
    costs and expenses. Interest earned for the 2007 Second Quarter
    and 2007 First Half was $103,416 and $188,620, 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% 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 on the South Pass 89 properties are shown
    as a reduction of production costs and expenses. For the 2007
    Second Quarter production costs and expenses include processing
    fee income of $297,359. For the 2007 First Half, South Pass 89
    processing fees earned were $421,673(2)
    
    As a result of excess production costs incurred in one monthly
    operating period and then recovered in subsequent monthly
    operating periods, the Overriding Royalties paid to the Trust
    may not agree to the Trusts royalty interest in the Net
    Proceeds. -20-




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##### Table of Contents



Second
    Quarter 2006
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
7,912,655


$



$
218,179


$
8,130,834Natural gas


(6,983
)






1,014,315



1,007,3327,905,672







1,232,494



9,138,166Amounts withheld in escrow










(918,250
)


(918,250
)Production costs and expenses(1)


(5,260,348
)


(91,519
)


(125,959
)


(5,477,826
)Capital expenditures


(2,361,734
)






(11,493
)


(2,373,227
)Net Proceeds

$
283,590


$
(91,519
)

$
176,792


$
368,863Overriding Royalties paid to the
    Trust(2)

$



$



$
129,937


$
129,937Fee Lands Royalties


167,105Royalties paid to the Trust

$
297,042   First
    Half 2006
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
12,548,545


$



$
286,858


$
12,835,403Natural gas


(50,835
)






1,455,279



1,404,44412,497,710







1,742,137



14,239,847Amounts withheld in escrow










(918,250
)


(918,250
)Production costs and expenses(1)


(7,250,509
)


(62,714
)


(188,175
)


(7,501,398
)Capital expenditures


(4,506,699
)






(16,558
)


(4,523,257
)Net Proceeds

$
740,502


$
(62,714
)

$
619,154


$
1,296,942Overriding Royalties paid to the
    Trust(2)

$



$



$
528,065


$
528,065Fee Lands Royalties


201,174Royalties paid to the Trust

$
729,239  -21-




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##### Table of Contents



(1)
    
    Interest earned on funds escrowed for estimated future
    dismantlement costs are reported as a reduction of production
    costs and expenses. Interest earned for the 2006 Second Quarter
    and 2006 First Half was $203,783 and $301,829, 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% 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 on the South Pass 89 properties are shown
    as a reduction of production costs and expenses. For the 2006
    Second Quarter, production costs and expenses include a
    processing fee charge of $26,972. For the 2006 First Half, South
    Pass 89 processing fees earned were $24,069.(2)
    
    As a result of excess production costs incurred in one monthly
    operating period and then recovered in subsequent monthly
    operating periods, the Overriding Royalties paid to the Trust
    may not agree to the Trusts royalty interest in the Net
    Proceeds.    Second Quarter


First Half2007


2006


2007


2006Net Proceeds:Revenues

$
6,989,111


$
9,138,166


$
13,244,707


$
14,239,847Amounts withheld in escrow


(2,530,815
)


(918,250
)


(3,641,863
)


(918,250
)Production costs and expenses


(5,100,367
)


(5,477,826
)


(10,719,836
)


(7,501,398
)Capital expenditures


(171,488
)


(2,373,227
)


(766,733
)


(4,523,257
)Net Proceeds

$
(813,559
)

$
368,863


$
(1,883,725
)

$
1,296,942Royalties paid to the Trust:Overriding Royalties

$
224,071


$
129,937


$
808,803


$
528,065Fee Lands Royalties


71,014



167,105



160,157



201,174Royalties paid to the Trust

$
295,085


$
297,042


$
968,960


$
729,239    -22-




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##### Table of Contents



Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk    
    political conditions worldwide, (in particular, political
    disruption, war or other armed conflict in or affecting oil
    producing regions);
    worldwide economic conditions;
    weather conditions;
    the supply and price of foreign natural gas; -23-




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
    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.    Item 4.
    Controls
    and Procedures        Changes in Control Over Financial
    Reporting.
 -24-




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##### Table of Contents



PART II



OTHER INFORMATION  Item 1A.
    Risk
    Factors  Form 10-K
  Item 6.
    Exhibits  Exhibits
  ExhibitNumber



Description4
*



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
.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 200232




Certification pursuant to Section
    906 of the Sarbanes-Oxley Act of 2002     *
    
    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). -25-




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SIGNATURE     (Registrant)
  By:
    THE BANK OF NEW YORK TRUST COMPANY, N.A. Trustee
  By:
    /s/  MIKE
    ULRICH   Vice President and Trust Officer
    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. -26-




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##### Table of Contents



INDEX TO
    EXHIBITS
  ExhibitNumber



Description4
*



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
.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 200232




Certification pursuant to Section
    906 of the Sarbanes-Oxley Act of 2002     *
    
    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). -27-