##### 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


22Item 4.
    Controls and Procedures


22Part II. Other
    Information


24Item 1A. Risk
    Factors


24Item 6.
    Exhibits


24Signature


25Certification 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
  Three Months EndedMarch 31,2007


2006Royalty revenues

$
673,875


$
432,197Trust administrative expenses


(162,294
)


(277,715
)Cash earnings


511,581



154,482Changes in undistributed cash


4,151



(154,482
)Cash distributions

$
515,732


$
Cash distributions per Unit

$
0.0272


$
0.0000Units outstanding


18,991,304



18,991,304   Statements of Assets, Liabilities and Trust
    Corpus
 (Unaudited)
  March 31,


December 31,2007


2006ASSETSCash

$
843,935


$
848,086Net overriding royalty interests
    in productive oil and gas properties and 3% royalty interests in
    fee lands (notes 3, 4 and 6)


76,282,000



76,282,000Less accumulated amortization
    (note 4)


(74,522,900
)


(74,513,900
)Total assets

$
2,603,035


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

$
2,603,035


$
2,616,186Contingencies (note 7)






Total liabilities and Trust Corpus

$
2,603,035


$
2,616,186   Statements of Changes in Trust Corpus
  Three Months EndedMarch 31,2007


2006Trust Corpus, beginning of period
    (note 4)

$
2,616,186


$
2,393,340Cash earnings


511,581



154,482Cash distributions


(515,732
)


Amortization of royalty interest
    (note 4)


(9,000
)


(300
)Trust Corpus, end of period

$
2,603,035


$
2,547,522    -3-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS
  March 31, 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
 -5-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
   South
    Pass 89
    Offshore
    Properties:
  East
    Cameron 336
    East
    Cameron 195
    South
    Marsh Island 76
   -6-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
   Eugene
    Island 261
    Vermillion
    331
    Jay
    Field
      Other
   -7-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
   Other
    Matters Relating to the Termination of the Trust
        (2) Going
    Concern
       -8-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
    (3)
    Net
    Overriding Royalty Interests and Fee Lands Royalties  Property-by-Property
    (4)
    Basis of
    Presentation      out-of-pocket
  unit-of-production
 -9-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
       Form 10-K
  (5)
    Federal
    Income Tax Matters     -10-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
       (6)
    Dismantlement
    Costs  Form 10-K
     -11-




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LL&E
    ROYALTY TRUST
  NOTES TO
    FINANCIAL STATEMENTS  (Continued)
      (7)
    Contingencies     -12-




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




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Results
    of Operations
  Three Months Ended March 31,2007


2006Royalty revenues

$
673,875


$
432,197Trust administrative expenses


(162,294
)


(277,715
)Cash earnings

$
511,581


$
154,482Changes in undistributed cash


4,151



(154,482
)Cash distributions

$
515,732


$
Cash distributions per unit

$
0.0272


$
0.0000Units outstanding


18,991,304



18,991,304      -18-




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2007


2006January

$
0.0076


$
0.0000February


0.0047



0.0000March


0.0149



0.0000$
0.0272


$
0.0000     First
    Quarter 2007
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
5,144,546


$
426,837


$
243,148


$
5,814,531Natural gas






97,759



343,303



441,062$
5,144,546



524,596


$
586,451


$
6,255,593Amounts withheld in escrow






(524,596
)


(586,451
)


(1,111,047
)Production costs and expenses(1)


(3,753,698
)


(266,554
)


(1,599,218
)


(5,619,470
)Capital expenditures


(221,387
)






(373,858
)


(595,245
)Net Proceeds

$
1,169,461


$
(266,554
)

$
(1,973,076
)

$
(1,070,169
)Overriding Royalties paid to the
    Trust(2)

$
584,731


$



$



$
584,731Fee Lands Royalties


89,144Royalties paid to the Trust

$
673,875     (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 First Quarter
    was $85,204. 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
    are also shown as a reduction of production costs and expenses.
    For the three months ended March 31, 2007, South Pass 89
    property processing fees totaled $124,314 and interest earned on
    funds escrowed totaled $8,906, while actual production costs
    totaled $399,773 netting a production cost of $266,554.(2)
    
    The South Pass 89 and Offshore Louisiana properties have excess
    production costs of $816,435 and $4,578,318, respectively, as of
    March 31, 2007. -19-




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##### Table of Contents



First
    Quarter 2006
  South


OffshoreJay Field


Pass 89


Louisiana


TotalRevenues:Liquids

$
4,635,890


$



$
68,679


$
4,704,569Natural gas


(43,852
)






440,964



397,112$
4,592,038






$
509,643


$
5,101,681Production costs and expenses(1)


(1,990,161
)


28,805



(62,216
)


(2,023,572
)Capital expenditures


(2,144,965
)






(5,065
)


(2,150,030
)Net Proceeds

$
456,912


$
28,805


$
442,362


$
928,079Overriding Royalties paid to the
    Trust(2)

$



$



$
398,128


$
398,128Fee Lands Royalties


34,069Royalties paid to the Trust

$
432,197     (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 First Quarter
    was $98,046. 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
    are also shown as a reduction of production costs and expenses.
    For the three months ended March 31, 2006, South Pass 89
    property processing fees totaled $51,040 and interest earned on
    funds escrowed totaled $25,182, while actual production costs
    totaled $47,367, netting proceeds of $28,805.(2)
    
    As a result of excess production costs being incurred in one
    monthly operating period and then being 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. The March 31, 2006 royalty
    income for the Jay Field and the South Pass 89 properties have
    been reduced by $2,121,713 and $32,905, respectively, of excess
    production costs arising in 2005. The Jay Field and South Pass
    89 properties had excess production costs of $1,664,798 and
    $4,099, respectively as of March 31, 2006. In addition,
    March 31, 2006 royalty income does not include
    $152,103 of proceeds from November 2005 that were reported
    in February 2006. Revenues for November 2005 were not submitted
    to the Trust until April 2006. As Royalties are recorded on a
    cash basis, November Royalty revenues are not included in the
    Prior Years Operating Period. -20-




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First Quarter2007


2006Net Proceeds:Revenues

$
6,255,593


$
5,101,681Amounts withheld in escrow


(1,111,047
)


Production costs and expenses


(5,619,470
)


(2,023,572
)Capital expenditures


(595,245
)


(2,150,030
)Net Proceeds

$
(1,070,169
)

$
928,079Royalties paid to the Trust:Overriding Royalties

$
584,731


$
398,128Fee Lands Royalties


89,144



34,069Royalties paid to the Trust

$
673,875


$
432,197          -21-




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Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk  month-to-month
  
    political conditions worldwide, in particular political
    disruption, war or other armed conflict oil producing regions;
    worldwide economic conditions;
    weather conditions;
    the supply and price of foreign natural gas;
    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     -22-




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Changes in Control Over Financial
    Reporting.
 -23-




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PART II



OTHER INFORMATION  Item 1A.
    Risk
    Factors.  Form 10-K
  Item 6.
    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. 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 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). -24-




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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. -25-




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INDEX TO
    EXHIBITS
  ExhibitNumber4
*



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. 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 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). -26-