<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549



                                   Form 10-Q



Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
                                    of 1934


                 For the Quarterly Period Ended March 31, 2000
                                                --------------


                          Commission File No. 1-10982
                                              -------



                          CROSS TIMBERS ROYALTY TRUST



        Texas                                           I.R.S. No. 75-6415930


                             Bank of America, N.A.
                                P.O. Box 830650
                           Dallas, Texas 75283-0650

                         Telephone Number 877/228-5084



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 and (2) has been subject to such filing requirements for
the past 90 days.  Yes    X     No
                       -------     -------

Number of units of beneficial interest outstanding at May 1, 2000: 6,000,000
                                                                   ---------
<PAGE>

CROSS TIMBERS ROYALTY TRUST

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
-------------------------------------------------------


          TABLE OF CONTENTS



                                                                            Page
                                                                            ----

          Glossary of Terms...............................................    3


PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements............................................    4

          Report of Independent Public Accountants........................    5

          Condensed Statements of Assets, Liabilities and Trust Corpus
           at March 31, 2000 and December 31, 1999........................    6

          Condensed Statements of Distributable Income
           for the Three Months Ended March 31, 2000 and 1999.............    7

          Condensed Statements of Changes in Trust Corpus
           for the Three Months Ended March 31, 2000 and 1999.............    8

          Notes to Condensed Financial Statements.........................    9

Item 2.   Trustee's Discussion and Analysis...............................   12

Item 3.   Quantitative and Qualitative Disclosures about Market Risk......   15

PART II.  OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K................................   16

          Signatures......................................................   17

                                                                               2
<PAGE>

CROSS TIMBERS ROYALTY TRUST

GLOSSARY OF TERMS
-----------------


The following are definitions of significant terms used in this Form 10-Q:

Bbl                     Barrel (of oil)

Mcf                     Thousand cubic feet (of natural gas)

MMBtu                   One million British Thermal Units, a common energy
                        measurement

net profits interest    An interest in an oil and gas property measured by net
                        profits from the sale of production, rather than a
                        specific portion of production

net proceeds            Gross proceeds received by Cross Timbers Oil Company
                        from sale of production from the underlying properties,
                        less applicable costs

royalty income          Net proceeds, multiplied by the net profits percentage
                        of 75% or 90%, that is paid to the trust

royalty interest        A nonoperating interest in an oil and gas property that
(and overriding         provides the owner a specified share of production
royalty interest)       without any production or development costs


royalty trust interests Defined net profits interests that were carved from the
                        underlying properties and entitle the trust to receive
                        for each of the following:

                        90% royalty trust interests - 90% of the net proceeds
                        from the underlying properties, which are royalty and
                        overriding royalty interests in Texas, Oklahoma and New
                        Mexico

                        75% royalty trust interests - 75% of the net proceeds
                        from the underlying properties, which are working
                        interests in Texas and Oklahoma

underlying properties   Cross Timbers Oil's interest in certain oil and gas
                        properties from which the royalty trust interests were
                        carved. The underlying properties include royalty and
                        overriding royalty interests in producing and non-
                        producing properties in Texas, Oklahoma and New Mexico,
                        and working interests in producing properties located in
                        Texas and Oklahoma.

working interest        An operating interest in an oil and gas property that
                        provides the owner a specified share of production that
                        is subject to all production and development costs

                                                                               3
<PAGE>

CROSS TIMBERS ROYALTY TRUST

PART I - FINANCIAL INFORMATION
------------------------------



Item 1.  Financial Statements.

The condensed financial statements included herein are presented, without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in annual
financial statements have been condensed or omitted pursuant to such rules and
regulations, although the trustee believes that the disclosures are adequate to
make the information presented not misleading.  These condensed financial
statements should be read in conjunction with the financial statements and the
notes thereto included in the trust's latest annual report on Form 10-K.  In the
opinion of the trustee, all adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the assets, liabilities and trust
corpus of the Cross Timbers Royalty Trust at March 31, 2000, and the
distributable income and changes in trust corpus for the three-month periods
ended March 31, 2000 and 1999, have been included.  Distributable income for
such interim periods is not necessarily indicative of distributable income for
the full year.

                                                                               4
<PAGE>

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



Bank of America, N.A., as Trustee
 for the Cross Timbers Royalty Trust:

We have reviewed the accompanying condensed statement of assets, liabilities and
trust corpus of the Cross Timbers Royalty Trust as of March 31, 2000 and the
related condensed statements of distributable income and changes in trust corpus
for the three-month periods ended March 31, 2000 and 1999.  These financial
statements are the responsibility of the trustee.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants.  A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit in accordance with
auditing standards generally accepted in the United States, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole.  Accordingly, we do not express such an opinion.

The accompanying condensed financial statements are prepared on a modified cash
basis as described in Note 1 which is a comprehensive basis of accounting other
than accounting principles generally accepted in the United States.

Based on our review, we are not aware of any material modifications that should
be made to the financial statements referred to above for them to be in
conformity with the basis of accounting described in Note 1.

We have previously audited, in accordance with auditing standards generally
accepted in the United States, the statement of assets, liabilities and trust
corpus of the Cross Timbers Royalty Trust as of December 31, 1999 included in
the trust's 1999 annual report on Form 10-K, and in our report dated March 8,
2000, we expressed an unqualified opinion on that statement.  In our opinion,
the information set forth in the accompanying condensed statement of assets,
liabilities and trust corpus as of December 31, 1999 is fairly stated in all
material respects in relation to the statement of assets, liabilities and trust
corpus included in the trust's 1999 annual report on Form 10-K from which it has
been derived.



ARTHUR ANDERSEN LLP

Fort Worth, Texas
May 5, 2000

                                                                               5
<PAGE>

CROSS TIMBERS ROYALTY TRUST
--------------------------------------------------------------------------------

Condensed Statements of Assets, Liabilities and Trust Corpus

<TABLE>
<CAPTION>


                                                          March 31,   December 31,
                                                            2000          1999
                                                         -----------  ------------
                                                         (Unaudited)
<S>                                                      <C>          <C>

ASSETS

Cash and short-term investments........................  $   713,563   $   912,164

Interest to be received................................        1,391         1,840

Net profits interests in oil and gas properties - net..   32,507,596    33,005,334
                                                         -----------  ------------

                                                         $33,222,550   $33,919,338
                                                         ===========  ============

LIABILITIES AND TRUST CORPUS

Distribution payable to unitholders....................  $   714,954   $   914,004

Trust corpus (6,000,000 units of beneficial
  interest authorized and outstanding).................   32,507,596    33,005,334
                                                         -----------  ------------

                                                         $33,222,550   $33,919,338
                                                         ===========  ============
</TABLE>



The accompanying notes to condensed financial statements are an integral part of
                               these statements.

                                                                               6
<PAGE>

CROSS TIMBERS ROYALTY TRUST
--------------------------------------------------------------------------------

Condensed Statements of Distributable Income (Unaudited)

<TABLE>
<CAPTION>


                                                     Three Months Ended
                                                          March 31
                                                   ----------------------
                                                      2000        1999
                                                   ----------  ----------
<S>                                                <C>         <C>

Royalty income...................................  $2,352,880  $1,479,855

Interest income..................................       3,949       2,028
                                                   ----------  ----------

Total income.....................................   2,356,829   1,481,883

Administration expense...........................      56,033      41,495
                                                   ----------  ----------

Distributable income.............................  $2,300,796  $1,440,388
                                                   ==========  ==========

Distributable income per unit (6,000,000 units)..   $0.383466  $ 0.240065
                                                   ==========  ==========

</TABLE>



The accompanying notes to condensed financial statements are an integral part of
                               these statements.

                                                                               7
<PAGE>

CROSS TIMBERS ROYALTY TRUST
--------------------------------------------------------------------------------

Condensed Statements of Changes in Trust Corpus (Unaudited)

<TABLE>
<CAPTION>


                                                        Three Months Ended
                                                             March 31
                                                    --------------------------
                                                        2000          1999
                                                    -----------   -----------
<S>                                                 <C>           <C>

Trust corpus, beginning of period.................  $33,005,334   $36,024,941

Amortization of net profits interests.............     (497,738)     (453,978)

Distributable income..............................    2,300,796     1,440,388

Distributions declared............................   (2,300,796)   (1,440,388)
                                                    -----------   -----------

Trust corpus, end of period.......................  $32,507,596   $35,570,963
                                                    ===========   ===========

</TABLE>


The accompanying notes to condensed financial statements are an integral part of
                               these statements.

                                                                               8
<PAGE>

CROSS TIMBERS ROYALTY TRUST
--------------------------------------------------------------------------------

Notes to Condensed Financial Statements (Unaudited)


1.   Basis of Accounting

     The financial statements of the Cross Timbers Royalty Trust are prepared on
     the following basis:

     -  Royalty income recorded for a month is the amount computed and paid by
        the interest owner, Cross Timbers Oil Company, to Bank of America, N.A.,
        as trustee for the trust. Royalty income consists of net proceeds
        received by Cross Timbers Oil from the underlying properties in the
        prior month, multiplied by net profit percentages of 90% for the 90%
        royalty trust interests, and 75% for the 75% royalty trust interests.

        Costs deducted in the calculation of net proceeds for the 90% royalty
        trust interests generally include applicable taxes, transportation,
        marketing and legal costs, and do not include other production and
        development costs. For the 75% royalty trust interests, costs deducted
        in the calculation of net proceeds include production expenses,
        development costs, applicable taxes, operating charges and other costs.

     -  Royalty income is computed separately for each of five conveyances under
        which the royalty trust interests were conveyed to the trust. If monthly
        costs exceed revenues for any conveyance, such excess costs cannot
        reduce royalty income from other conveyances, but are carried forward
        with accrued interest to be recovered from future net proceeds of that
        conveyance. See Note 3.

     -  Interest income, interest to be received and distribution payable to
        unitholders include interest to be earned from the monthly record date
        (last business day of the month) through the date of the next
        distribution to unitholders.

     -  Trust expenses are recorded based on liabilities paid and cash reserves
        established by the trustee for liabilities and contingencies.

     -  Distributions to unitholders are recorded when declared by the trustee.

     The financial statements of the trust differ from financial statements
     prepared in accordance with generally accepted accounting principles
     ("GAAP") because revenues are not accrued in the month of production,
     expenses are recognized when paid rather than when incurred, and certain
     cash reserves may be established for contingencies which would not be
     accrued under GAAP. The initial carrying value of the royalty trust
     interests ($61,100,449) represents Cross Timbers Oil's historical net book
     value on February 12, 1991, the creation date of the trust. Amortization of
     the royalty trust interests is calculated on a unit-of-production basis and
     is charged directly to trust corpus. Accumulated amortization was
     $28,592,853 as of March 31, 2000 and $28,095,115 as of December 31, 1999.

                                                                               9
<PAGE>

2.   Federal Income Taxes

     Tax counsel has advised the trust that, under current tax laws, the trust
     will be classified as a grantor trust for federal income tax purposes and
     therefore is not subject to taxation at the trust level. However, the
     opinion of tax counsel is not binding on the Internal Revenue Service.

     The unitholders are considered, for federal income tax purposes, to own the
     trust's income and principal as though no trust were in existence. The
     income of the trust is deemed to have been received or accrued by the
     unitholders at the time such income is received or accrued by the trust,
     rather than when distributed by the trust.

     Cross Timbers Oil has advised the trustee that the trust receives royalty
     income from coal seam gas wells. Production from coal seam gas wells
     drilled after December 31, 1979, and prior to January 1, 1993, qualifies
     for the federal income tax credit for producing nonconventional fuels under
     Section 29 of the Internal Revenue Code. This tax credit, which was
     approximately $1.02 per MMBtu for 1999, is recalculated annually based on
     each year's qualified production through the year 2002. Such credit, based
     on the unitholder's pro rata share of qualifying production, may not reduce
     the unitholder's regular tax liability (after the foreign tax credit and
     certain other nonrefundable credits) below his tentative minimum tax. Any
     part of the Section 29 credit not allowed for the tax year solely because
     of this limitation is subject to certain carryover provisions. Unitholders
     should consult their tax advisors regarding use of this credit and other
     trust tax compliance matters.

     Based on 2000 qualifying sales volumes and the factors used in the
     calculation of the 1999 coal seam tax credit, the credit is estimated to be
     $0.032 per unit for the quarter ended March 31, 2000. The actual coal seam
     tax credit was $0.042 per unit for first quarter 1999. Final 2000 coal seam
     tax credit data will be provided to unitholders with year-end tax
     information.


3.   Excess Costs

     The following is a summary of changes in excess costs by conveyance during
     the three months ended March 31, 2000 and 1999:
<TABLE>
<CAPTION>

                                                   Three Months Ended March 31,
                                                  ------------------------------
                                                    2000            1999
                                                  ---------   ------------------
                                                    Texas      Texas    Oklahoma
                                                  ---------   --------  --------
<S>                                               <C>         <C>       <C>

Cumulative excess costs and accrued interest -
 beginning of period............................  $ 375,802   $519,817  $     -
Excess costs....................................          -    276,134   24,349
Recovery of excess costs and accrued interest...   (236,633)         -   (5,193)
Accrued interest................................      6,702     12,410      145
                                                  ---------   --------  -------

Cumulative excess costs and accrued interest -
 end of period..................................  $ 145,871   $808,361  $19,301
                                                  =========   ========  =======

Net to trust (75%)..............................  $ 109,403   $606,271  $14,476
                                                  =========   ========  =======

</TABLE>

                                                                              10
<PAGE>

     Excess costs and accrued interest for each conveyance must be fully
     recovered from the respective future net proceeds of the 75% royalty trust
     interests before such interests can again contribute to trust royalty
     income. Excess costs and accrued interest from the Oklahoma 75% royalty
     trust interests as of March 31, 1999 were fully recovered in October 1999.
     As of April 2000, excess costs and accrued interest for the Texas 75%
     royalty trust interests totaled approximately $29,000 ($21,750 net to the
     trust). See Item 2, "Trustee's Discussion and Analysis - Costs."

                                                                              11
<PAGE>

Item 2.  Trustee's Discussion and Analysis.

The following discussion should be read in conjunction with the trustee's
discussion and analysis contained in the trust's 1999 annual report, as well as
the condensed financial statements and notes thereto included in this quarterly
report on Form 10-Q.

Distributable Income

Quarter

For the quarter ended March 31, 2000, royalty income was $2,352,880 compared to
$1,479,855 for the first quarter of 1999.  This 59% increase in royalty income
is primarily the result of higher oil and gas prices.  See "Royalty Income"
below.

After considering interest income of $3,949 and administration expense of
$56,033, distributable income for the quarter ended March 31, 2000 was
$2,300,796, or $0.383466 per unit of beneficial interest.  For the quarter ended
March 31, 1999, distributable income was $1,440,388, or $0.240065 per unit.
Distributions to unitholders for the quarter ended March 31, 2000 were:
<TABLE>
<CAPTION>

                                                Distribution
           Record Date         Payment Date       per Unit
        -------------------  -----------------  ------------
<S>                          <C>                <C>

        January 31, 2000     February 14, 2000  $   0.136770
        February 29, 2000    March 14, 2000         0.127537
        March 31, 2000       April 14, 2000         0.119159
                                                ------------

                                                $   0.383466
                                                ============
</TABLE>

Royalty Income

Royalty income is recorded when received by the trust, which is the month
following receipt by Cross Timbers Oil, and generally two months after oil
production and three months after gas production.  Royalty income is generally
affected by three major factors:

     -  oil and gas sales volumes,

     -  oil and gas sales prices, and

     -  costs deducted in the calculation of royalty income.

Because properties underlying the 90% royalty trust interests are royalty and
overriding royalty interests, they generally bear no costs other than production
and property taxes, related legal costs, and marketing and transportation
charges.  In addition to these costs, the 75% royalty trust interests are
subject to production and development costs, since the properties underlying the
75% royalty trust interests are working interests.

                                                                              12
<PAGE>

The following is a summary of the calculation of royalty income received by the
trust:
<TABLE>
<CAPTION>

                                                               Three Months
                                                             Ended March 31 (a)
                                                          -----------------------      Increase
                                                             2000         1999        (Decrease)
                                                          ----------   ----------     ----------
<S>                                                       <C>          <C>            <C>
Sales Volumes
Oil (Bbls) (b)
  Underlying properties................................       88,459       88,000           1%
   Average per day.....................................          962          957           1%
  Royalty trust interests..............................       35,448       19,431          82%

Gas (Mcf) (b)
  Underlying properties................................      796,014      918,825         (13%)
   Average per day.....................................        8,652        9,987         (13%)
  Royalty trust interests..............................      686,565      793,697         (13%)

Average Sales Prices
  Oil (per Bbl)........................................       $24.20       $10.44         132%
  Gas (per Mcf)........................................        $2.72        $1.73          57%

Revenues
  Oil sales............................................   $2,140,997   $  919,160         133%
  Gas sales............................................    2,167,742    1,592,021          36%
                                                          ----------   ----------
   Total Revenues......................................    4,308,739    2,511,181          72%
                                                          ----------   ----------

Costs
  Taxes, transportation
   and other...........................................      578,305      231,669         150%
  Production expense (c)...............................      593,490      570,606           4%
  Development costs....................................      213,896      359,239         (40%)
  Excess costs.........................................            -     (300,483)          -
  Recovery of excess costs and accrued interest........      236,633        5,193           -
                                                          ----------   ----------
   Total Costs.........................................    1,622,324      866,224          87%
                                                          ----------   ----------

Net Proceeds...........................................   $2,686,415   $1,644,957          63%
                                                          ==========   ==========

Royalty Income.........................................   $2,352,880   $1,479,855          59%
                                                          ==========   ==========

</TABLE>
--------------------

(a)  Because of the interval between time of production and receipt of royalty
     income by the trust, oil and gas sales for the quarter ended March 31
     generally represent oil production for the period November through January
     and gas production for the period October through December.

(b)  Oil and gas sales volumes are allocated to the royalty trust interests
     based upon a formula that considers oil and gas prices and the total amount
     of production expenses and development costs. Changes in any of these
     factors may result in disproportionate fluctuations in volumes allocated to
     the royalty trust interests. Therefore, comparative discussion of oil and
     gas sales volumes is based on the underlying properties.

(c)  Includes an overhead fee which is deducted and retained by Cross Timbers
     Oil. This fee is currently $22,684 per month and is subject to adjustment
     each May based on an oil and gas industry index.

                                                                              13
<PAGE>

The following are explanations of significant variances:

Sales Volumes

Oil sales volumes remained relatively constant as production increased slightly
on one of the Oklahoma working interest properties that experienced mechanical
complications in 1998 and 1999.  Production also increased on one of the Texas
working interest properties as a result of carbon dioxide injections.  These
increases were largely offset by natural production decline.

Decreased gas sales volumes were primarily related to the timing of cash
receipts.  The natural decline in production is estimated to be 5%.

Sales Prices

Oil

The average oil price for first quarter 2000 was $24.20 per Bbl, an increase of
132% from the first quarter 1999 price of $10.44 per Bbl.  The first quarter
1999 average oil price includes production months of November 1998 through
January 1999.  During December 1998, the average posted West Texas Intermediate
crude oil price fell to $8.00, the lowest level since 1978.  After OPEC members
and other oil producers agreed to production cuts in March 1999, oil prices
climbed through the remainder of 1999 and first quarter 2000.  The posted price
reached $31.25 in March 2000, the highest level since the 1990 Persian Gulf War.
OPEC members met on March 27, 2000 and agreed to increase production quotas by
6.3%, which resulted in a decline in prices in April to an average posted price
of $22.77 per Bbl.

Gas

Gas prices for first quarter 2000 averaged $2.72 per Mcf, or 57% higher than the
first quarter 1999 price of $1.73.  Part of this price increase is related to
purchaser deductions which were netted in the gas price prior to second quarter
1999.  Since then, these purchaser deductions are included in taxes,
transportation and other costs (see "Costs" below).  Considering the effect of
this change, gas prices increased 38% from 1999 to 2000.  Gas prices were lower
in 1999 primarily because of the abnormally warm winter of 1998-1999 across the
United States that resulted in higher levels of gas in storage.  After declining
briefly at year end, gas prices have continued to strengthen in 2000, as gas
storage remains lower than prior year levels.  At May 1, 2000, the average NYMEX
price for the following twelve months was $3.21 per MMBtu.

Costs

Taxes

Taxes, transportation and other for the quarter increased primarily because of
approximately $240,000 in purchaser deductions for gathering and compression
charges which were netted in the gas sales price prior to second quarter 1999.
The remaining increase is due to higher production taxes related to increased
oil and gas revenues.

Development

Significantly lower development costs reflect completion of the carbon dioxide
injection project on one of the underlying Texas working interest properties in
third quarter 1999.

                                                                              14
<PAGE>

Excess Costs

Costs exceeded revenues by $300,483 ($225,362 net to the trust) in first quarter
1999.  Because of lower development costs and higher oil and gas prices,
recovery of excess costs and accrued interest during first quarter 2000 was
$236,633 ($177,475 net to the trust).  See Note 3 to the condensed financial
statements.

As of April 2000, cumulative excess costs and accrued interest of approximately
$29,000 ($21,750 net to the trust) must be recovered before the Texas 75%
royalty trust interests again contribute to royalty income. Cross Timbers Oil
has advised the trustee that it anticipates full recovery of excess costs and
accrued interest on the Texas 75% royalty trust interests during second quarter
2000.


Forward Looking Statements

This report on Form 10-Q includes "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements other
than statements of historical fact included in this Form 10-Q, including,
without limitation, statements contained in this "Trustee's Discussion and
Analysis" regarding the royalty trust interests and industry conditions, are
forward looking statements.  Although Cross Timbers Oil believes that the
expectations reflected in these forward looking statements are reasonable,
neither Cross Timbers Oil nor the trustee can give any assurance that such
expectations will prove to be correct.


Item. 3  Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes in the trust's market risks, as disclosed in
the trust's Form 10-K for the year ended December 31, 1999.

                                                                              15
<PAGE>

PART II - OTHER INFORMATION
---------------------------

Items 1 through 5.  Not Applicable.

Item 6.  Exhibits and Reports on Form 8-K.

(a)  Exhibits.

         Exhibit Number
         and Description                                                    Page
         ---------------                                                    ----

         (4)(a)  Cross Timbers Royalty Trust Indenture Amended and Restated
                 on January 13, 1992 by NCNB Texas National Bank (now Bank
                 of America, N.A.) as trustee, heretofore filed as Exhibit
                 3.1 to the trust's Registration Statement No. 33-44385
                 filed with the Securities and Exchange Commission on
                 February 19, 1992, is incorporated herein by reference.

            (b)  Net Overriding Royalty Conveyance (Cross Timbers Royalty
                 Trust, 90% - Texas) from South Timbers Limited Partnership,
                 West Timbers Limited Partnership, North Timbers Limited
                 Partnership, East Timbers Limited Partnership, Hickory
                 Timbers Limited Partnership, and Cross Timbers Partners,
                 L.P. (predecessors of Cross Timbers Oil Company, L.P. which
                 subsequently merged into Cross Timbers Oil Company) to NCNB
                 Texas National Bank (now Bank of America, N.A.), as trustee,
                 dated February 12, 1991 (without Schedules A and B),
                 heretofore filed as Exhibit 10.1 to the trust's
                 Registration Statement No. 33-44385 filed with the
                 Securities and Exchange Commission on February 19, 1992, is
                 incorporated herein by reference.

            (c)  Net Overriding Royalty Conveyance (Cross Timbers Royalty
                 Trust, 75% - Texas) from South Timbers Limited Partnership,
                 West Timbers Limited Partnership, North Timbers Limited
                 Partnership, East Timbers Limited Partnership, Hickory
                 Timbers Limited Partnership, and Cross Timbers Partners,
                 L.P. (predecessors of Cross Timbers Oil Company, L.P. which
                 subsequently merged into Cross Timbers Oil Company) to NCNB
                 Texas National Bank (now Bank of America, N.A.), as trustee,
                 dated February 12, 1991 (without Schedules A and B),
                 heretofore filed as Exhibit 10.5 to the trust's
                 Registration Statement No. 33-44385 filed with the
                 Securities and Exchange Commission on February 19, 1992, is
                 incorporated herein by reference.

         (15)    Awareness letter of Arthur Andersen LLP                      18

(b)  Reports on Form 8-K.

     No reports on Form 8-K have been filed during the quarter for which this
     report is filed.

                                                                              16
<PAGE>

                                  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                  CROSS TIMBERS ROYALTY TRUST
                                  By BANK OF AMERICA, N.A., TRUSTEE


                                 By             RON E. HOOPER
                                   -----------------------------------------
                                                Ron E. Hooper
                                                Vice President



                                  CROSS TIMBERS OIL COMPANY



Date: May 11, 2000               By            LOUIS G. BALDWIN
                                   -----------------------------------------
                                               Louis G. Baldwin
                                           Executive Vice President
                                          and Chief Financial Officer

                                                                              17