<PAGE>   1

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                                   FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

[X]   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2000

                                       OR

[ ]   FOR THE TRANSITION PERIOD FROM ________________ TO ________________ .

COMMISSION FILE NO. 0-8677

                          TIDELANDS ROYALTY TRUST "B"
             (Exact name of registrant as specified in its charter)

                                     TEXAS
                        (State or other jurisdiction of
                         incorporation or organization)
                                   75-6007863
                                (I.R.S. Employer
                              Identification No.)

                           C/O THE CORPORATE TRUSTEE:
                                BANK OF AMERICA
                   P.O. BOX 830241, DALLAS, TEXAS 75283-0241
              (Address of principal executive offices) (Zip Code)

               Registrant's telephone number, including area code
            (at the office of the Corporate Trustee): (800) 985-0794

          Securities registered pursuant to Section 12(b) of the Act:

                                      NONE

          Securities registered pursuant to Section 12(g) of the Act:

                          UNITS OF BENEFICIAL INTEREST

     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 __

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

     Aggregate market value of the Units of Beneficial Interest held by
non-affiliates of the Registrant at February 9, 2001: $4,884,867.

     Number of Units of Beneficial Interest outstanding as of the close of the
period covered by this report: December 31, 2000 -- 1,386,375 Units.

                      Documents incorporated by reference:

                                      NONE

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<PAGE>   2

                             CROSS REFERENCE SHEET

     This Form 10-K for the year ended December 31, 2000, of Tidelands Royalty
Trust "B" is not organized by conventional item numbers and headings
contemplated by Securities and Exchange Commission rules. This cross-reference
page is intended to indicate to the reader where (or under which headings)
information required under Form 10-K may be found herein.

<TABLE>
<CAPTION>
 FORM 10-K
ITEM NUMBERS
------------                                                               HEADINGS HEREIN
<S>          <C>                                               <C>
PART I ......................................................  General

Item  1.     Business........................................  The Trust, Properties

Item  2.     Properties......................................  Properties

Item  3.     Legal Proceedings...............................  Legal Matters

Item  4.     Submission of Matters to a Vote
             of Security Holders.............................  Unitholder Voting Matters

PART II .....................................................  Financial

Item  5.     Market for Registrant's Common Equity and
             Related Stockholder Matters.....................  Market and Investor Information

Item  6.     Selected Financial Data.........................  Selected Financial Data

Item  7.     Management's Discussion and Analysis of
               Financial Condition and Results of
               Operations....................................  Management's Discussion and Analysis of
                                                                 Financial Condition and Results of
                                                                 Operations

Item  7A.    Quantitative and Qualitative Disclosures About
               Market Risk...................................  Management's Discussion and Analysis of
                                                                 Financial Condition and Results of
                                                                 Operations

Item  8.     Financial Statements and Supplementary Data.....  Financial Statements and Supplementary
                                                                 Data

Item  9.     Disagreements on Accounting and Financial
             Disclosure......................................  Accounting Matters

PART III ....................................................  Management and Principal Unitholders

Item 10.     Directors and Executive Officers of the
             Registrant......................................  Administrators

Item 11.     Executive Compensation..........................  Management Compensation

Item 12.     Security Ownership of Certain Beneficial Owners
               and Management................................  Principal Unitholders

Item 13.     Certain Relationships and Related
               Transactions..................................  Management Compensation

PART IV .....................................................  Miscellaneous

Item 14.     Exhibits, Financial Statement Schedules, and
             Reports on Form 8-K.............................  Exhibits, Financial Statement
                                                                 Schedules, and Reports on
                                                                 Form 8-K
</TABLE>
<PAGE>   3

                                    GENERAL

                                   THE TRUST

     Organization. Tidelands Royalty Trust "B" ("Tidelands") is a royalty trust
created on June 1, 1954, under the laws of the State of Texas. Tidelands is not
permitted to engage in any business activity inasmuch as it was organized for
the sole purpose of providing an efficient, orderly, and practical means for the
administration and liquidation of rights to interests in any oil, gas or other
mineral leases obtained by Gulf Oil Corporation ("Gulf") in a designated area of
the Gulf of Mexico. These rights are evidenced by a contract between Tidelands'
predecessors and Gulf dated April 30, 1951 (the "1951 Contract"), which is
binding upon the assignees of Gulf. As a result of various transactions that
have occurred since 1951, the Gulf interests that were subject to the 1951
Contract now are held by Chevron Corporation ("Chevron"), Elf Acquitane, Inc.
("Elf"), and their assignees.

     The Tidelands Royalty Trust "B" Indenture, effective June 1, 1954, as
amended (the "Indenture"), provides that the corporate trustee is to distribute
all cash in Tidelands, less an amount reserved for the payment of accrued
liabilities and estimated future expenses, to unitholders of record on the last
business day of March, June, September, and December of each year. Bank of
America, N.A. serves as corporate trustee.

     The Indenture also provides that the term of the royalty trust created to
hold the rights under the 1951 Contract will expire on April 30, 2001 unless
extended by the vote of the holders of a majority of the outstanding units of
beneficial interest. Following the filing of this Annual Report the unitholders
will be asked to approve an amendment to the Indenture to extend the life of
Tidelands twenty years beyond the expiration date.

     Tidelands' wholly-owned subsidiary, Tidelands Royalty "B" Corporation
("Tidelands Corporation"), holds title to interests in properties subject to the
1951 Contract that are situated offshore of Louisiana. Ninety-five percent of
all oil, gas, and other mineral royalties collected by this subsidiary are paid
to Tidelands. Tidelands Corporation, like Tidelands, is prohibited from engaging
in a trade or business and does only those things necessary for the
administration and liquidation of its properties.

     Tidelands' only industry segment or purpose is the administration and
collection of royalties.

     The Contract. The 1951 Contract identifies 60 specific tracts in the Gulf
of Mexico. These tracts are not all the same size and collectively contain
approximately 1,370,000 acres (sometimes referred to herein as the "Royalty
Area"). If Chevron or Elf acquires a lease or leases on one of the 60 tracts
before April 30, 2001, and if oil or gas is produced and sold from any such
tract, then Chevron or Elf, as the case may be, will make production payments to
Tidelands in an amount equal to approximately 12.5% of the value of the oil and
gas sold from such tract until the sum of $1,500,000 has been paid on such
tract. Thereafter, Tidelands' interest in such tract will be converted to an
overriding royalty and Tidelands will receive payments equal to approximately
4.17% of the value of the oil and gas sold as long as the lease on such tract
exists. This interest applies to each of the 60 tracts that constitute the
Royalty Area.

     As of December 31, 2000, Devon Energy Production Company and others held
interests in six leases subject to Tidelands' interests in five of the 60 tracts
in the Royalty Area. Leases on all five tracts currently contain producing wells
subject to Tidelands' interests.

     The 1951 Contract provides that any assignment by Gulf (currently Chevron
and Elf) of any leases acquired by it in the Royalty Area and any assignment of
the information, data or records acquired under the 1951 Contract shall be made
subject to the production payments and the overriding royalty interests provided
therein. Chevron has not retained an interest in any of the leases subject to
Tidelands' interests in the Royalty Area.
<PAGE>   4

     The terms of the 1951 Contract also apply to the sale of minerals other
than oil and natural gas. However, there is no production payment due with
respect to these other minerals; the interest in other minerals is limited to an
approximately 4.17% overriding royalty.

     In 2000, approximately 24% of Tidelands' royalty revenues were attributable
to oil and approximately 76% were attributable to natural gas. The production
payments and royalty revenues received by the Trust in respect of natural gas
production are affected by seasonal fluctuations in demand for natural gas.
During 2000 Tidelands received royalty payments from nine working interest
owners. The following table shows the percentage received each year for the past
3 years from those working interest owners that accounted for over 5% of the
Trust's royalty revenues received during any of the last three years:

<TABLE>
<CAPTION>
                        COMPANY                           2000    1999    1998
                        -------                           ----    ----    ----
<S>                                                       <C>     <C>     <C>
American Explorer Company...............................   --      --      18%
Burlington Resources....................................    7%      6%     42%
Chevron, USA............................................    1%      7%      8%
Pennzenergy Exploration and Production Company..........   21%     81%     30%
Devon Energy Production Company.........................   68%     --      --
</TABLE>

     Tidelands derives no revenues from foreign sources and has no export sales.

     Trust Functions. Tidelands is administered by officers and employees of its
Trustee, Bank of America, N.A. and its principal accounting officer who performs
certain management, financial and administrative services for Tidelands. See
"Management and Principal Unitholders."

     Important aspects of Tidelands' operations are conducted by third parties.
These include the production and sale of oil and gas and the calculation of
royalty payments to Tidelands, which are conducted by oil and gas companies that
lease tracts subject to Tidelands' interests. Similarly, Tidelands'
distributions are processed and paid by The Bank of New York as the agent for
the trustee of Tidelands.

     Marine Petroleum Corporation, a wholly-owned subsidiary of Marine Petroleum
Trust ("Marine"), a 32.6% unitholder of Tidelands, leases office space in
Dallas, Texas to provide work space and record storage for Marine, Marine
Petroleum Corporation, Tidelands and Tidelands Corporation. The cost of this
office facility is shared by all four of these entities in proportion to each
entity's gross income to the total of such income of all entities.

     The ability of Tidelands to receive revenues is entirely dependent upon its
entitlement to its rights with respect to the leases held by Chevron and its
assignees in the Gulf of Mexico (as more fully described in "Properties" below).
Moreover, no revenues are payable to Tidelands until sales of production
commence from any such lease.

     The royalty interests held by Tidelands are depleting with each barrel of
oil and mcf of natural gas produced. No funds are reinvested by Tidelands; thus,
these depleting assets are not being replaced.

                                   PROPERTIES

     General. Tidelands is not engaged in oil and gas operations, even though
its income is based on oil and gas operations of others. Tidelands' only
income-producing property is the 1951 Contract, including the property interests
granted thereunder, which provides that payments in the nature of production
payments and overriding royalties will be made to Tidelands based on oil and gas
sales from certain leases in the Royalty Area in the Gulf of Mexico. Tidelands
does not own or directly lease any physical properties.

     Reserves. Tidelands' production payments and overriding royalties are
carved out of working interests in certain oil and gas leases in the Gulf of
Mexico. Tidelands does not have engineering data necessary to make an estimate
of the proved oil and gas reserves attributable thereto and is not entitled to
receive such data from the operators and/or owners of the working interests from
which Tidelands' interests are derived.

                                        2
<PAGE>   5

     Since Tidelands does not have access to this reserve information, Tidelands
is unable to compute the standardized measure of discounted future net cash
flows therefrom.

     No reports on oil and gas reserves were filed with any federal authority or
agency during 2000 by Tidelands.

     Production. Information concerning net quantities of oil and gas produced
for each of the last three fiscal years, as well as the average sales price per
unit of oil and gas produced upon which payments to Tidelands are based, is set
forth below in the following table:

<TABLE>
<CAPTION>
                                                         2000       1999       1998
                                                        -------    -------    -------
<S>                                                     <C>        <C>        <C>
Quantity of royalty oil and gas sold
  Oil (in barrels ("bbls"))...........................   12,497     12,810      9,935
  Gas (in thousand cubic feet ("mcf"))................  256,706    319,858    405,336
Weighted average sales price
  for royalty oil and gas sold
  Oil (per bbl)(1)....................................   $30.39     $14.73      $8.90
  Gas (per mcf)(1)....................................   $ 4.67     $ 2.87      $2.81
</TABLE>

---------------

(1) The weighted average sales price is based on the market value at the well as
     determined by the operators.

     Information about average production cost (lifting cost) per unit of
production has been omitted due to its unavailability and inapplicability to
Tidelands. For more recent information regarding crude oil sales prices, see
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" below.

     Interests in Properties. Tidelands' properties consist of production
payments and overriding royalty interests in 6 oil and gas leases covering
27,312 gross acres in the 1,370,000 acre Royalty Area. These leases are located
in the Gulf of Mexico in the Galveston, High Island, Sabine Pass and West
Cameron areas. In addition to interests in these existing leases, Tidelands is
entitled to receive an interest in any lease obtained before April 30, 2001, by
Chevron or Elf in the Royalty Area.

     Productive Properties.

     Set forth in the table below is certain information concerning gross
productive oil and gas wells and gross leased acres in which Tidelands owns its
interests:

<TABLE>
<S>                                                   <C>
Gross Productive Wells --
  Oil...............................................       3
                                                          --
                                                          --
  Gas...............................................       8
                                                          --
                                                          --
Gross Leased Acres --
  Productive........................................  27,312
                                                      ======
</TABLE>

     Information regarding net wells or acres is not included since Tidelands
does not own any working interests.

     The following table contains information about the average daily production
attributable to Tidelands' interest, by field, for the six month period, from
January through June 2000, 1999 and 1998. Only fields that were producing at the
end of the six-month period are listed. Production from these fields accounted
for substantially all of Tidelands' distributable income in 2000. The
information for the period ended June 2000 is

                                        3
<PAGE>   6

the most recent production information available to Tidelands from the Petroleum
Information Corporation, except with respect to High Island Block 128 for the
year 2000.

<TABLE>
<CAPTION>
                                                         NET MCF GAS & OIL
                                            YEAR       EQUIVALENT PER DAY(1)
                                           FIRST      -----------------------
                 FIELD                    PRODUCED    2000     1999     1998
                 -----                    --------    -----    -----    -----
<S>                                       <C>         <C>      <C>      <C>
Offshore Texas
  Galveston Block 303...................    1987        55      117      713
  High Island Block 128(3)..............    1989       119(4)    51       37
Offshore Louisiana
  Sabine Pass Block 13..................    1981       198      193      222
  West Cameron Block 165................    1969       613      751       97
  West Cameron Block 225................    1969        12       12       33
  West Cameron Block 333(2).............    1978        --       --       10
</TABLE>

---------------

(1) Net oil production is reflected in the amount of its mcf equivalent of
    natural gas on a btu basis.

(2) The lease on West Cameron Block 333 field was released by the working
    interest owner.

(3) The well on this lease was reworked in April 2000.

(4) The production information with respect to High Island Block 128 was derived
    from a production report from the operator.

     Royalty Area. The State of Texas and the United States own all the mineral
rights in the Royalty Area and possess the exclusive right to lease their
respective areas for oil, gas and other mineral development. Leases are granted
on the basis of sealed competitive bids at sales held on specified dates.
Tideland's right to receive an interest in leases acquired by Chevron and Elf
expires April 30, 2001. Sale Number 178 covering open tracts in the Central Gulf
Leasing Area is scheduled for March 28, 2001. This will be the final lease sale
prior to the expiration of the right to receive interests under the 1951
contract. There are approximately 160,000 acres in the Royalty Area that are not
leased. However, Tidelands does not have any indication that either Chevron or
Elf will bid on any tracts at the sale.

     Present Activities. Tidelands currently receives royalties from oil and
natural gas sold from all six leases in the Royalty Area, although delivery
quantities are subject to seasonal demand.

     Published reports indicate that during 2000, Chevron was high bidder and
received a lease on West Cameron Block 251. This is a 5,000 acre block and the
west half, 2,500 acres, is located in the Royalty Area.

     The Minerals Management Service of the United States Department of the
Interior will receive bids in a lease sale in the Central Gulf area on March 28,
2001. The sale covers a portion of the Royalty Area that lies in the West
Cameron area.

     Tidelands is not obligated to provide any fixed and determinable quantities
of oil or gas in the future under any existing contracts or agreements.

     Difficulty in Obtaining Certain Data. Tidelands' only activities are the
collection and distribution of revenues from production payments and overriding
royalties on certain oil and gas leases in the Gulf of Mexico, pursuant to
agreements between Tidelands' predecessors and Gulf and its transferees and
assignees. The leases that are subject to the interests held by Tidelands are
owned by Chevron or other oil and gas production and development companies.
Certain information as to reserves, availability of oil and gas, development
plans for undeveloped acreage, and other matters, with respect to the particular
leases subject to Tidelands' interests lies solely within the knowledge of these
other companies. Engineering data, if any, regarding these leaseholds would have
been compiled principally by or for the operators of these leaseholds and
Tidelands believes that it would not be provided access to such information.
Because of this, it appears that unreasonable effort and expense would be
involved in seeking to obtain all the information set forth under applicable
Securities and Exchange Commission rules and guides.

                                        4
<PAGE>   7

     Furthermore, certain information concerning net acreage and net wells has
been omitted due to the nature of Tidelands' interests (i.e., production
payments and overriding royalties) in such leaseholds. Also, certain information
concerning drilling results specified in Guide 2 of the Securities Exchange Act
of 1934 Industry Guides has been omitted since Tidelands has no control over
exploration decisions and such information is thus deemed irrelevant in
discussing operations within the control of Tidelands' administrators.

                                 LEGAL MATTERS

     Neither Tidelands nor Tidelands Corporation, nor any of their respective
properties, is a party to or subject to any material pending litigation as of
the date hereof.

                           UNITHOLDER VOTING MATTERS

     During 2000, no matter was submitted by Tidelands to a vote of its
unitholders.

     Following the filing of this Annual Report with the SEC, the unitholders
will be asked to approve an amendment to the Indenture to extend the life of the
trust twenty years beyond the current expiration date of April 30, 2001 to April
30, 2021.

     Tidelands is to continue until April 30, 2001, or until such later date as
holders of the units owning a majority of the outstanding units may designate,
but in any event, not more than 20 years from such designation. Alternatively,
instead of so extending the term of Tidelands, the holders of the units owning a
majority of the outstanding units may direct the Trustee to create one or more
corporations to receive and hold the trust estate, or any portion thereof,
unless the Trustee shall have received written objection from any unitholder
within 20 days from the date of mailing to the unitholders of the first notice
of the proposed consent. However, the unitholders owning eighty percent (80%) of
the outstanding units may terminate the trust on any date, whether earlier or
later than any such date determined as above, as they may specify.

     If the Indenture is not extended then the trust underlying Tidelands will
be terminated. Upon termination of the trust (other than by the transfer of all
the trust estate to a corporation pursuant to the provisions of the Indenture,
as described above), the Trustee, after paying all of the obligations of the
trust, shall transfer to an agent appointed by the holders of the units owning a
majority of the outstanding units, by recordable assignments but without
warranty, the interests in the trust estate. Prior to termination of the trust,
no unitholder shall have any legal title in or to any of the properties
comprising the trust estate nor the right to secure any partition thereof.

     Unitholders owning ten percent (10%) or more of the outstanding units may
at any time direct the Trustee to conduct an investigation to determine whether
the Trustee is receiving all revenues properly accruing to Tidelands' trust
estate. The Trustee may be removed by unitholders owning a majority of the
outstanding units. The unitholders owning eighty percent (80%) of the
outstanding units may amend and modify the Indenture or any contract, agreement
or undertaking which constitutes a part of the trust estate, but no such
amendment may change the nature of the trust from that of a purely ministerial
trust, nor can there be any change in the rights or responsibilities of the
Trustee without its consent. However, no such change shall be made with respect
to any amendment to the Indenture if the Trustee shall receive written objection
from any unitholder within 20 days from the date of mailing to the unitholders
of the first notice of the proposed consent. Each unitholder has the right to
examine, inspect and audit all records relating to the trust estate at
reasonable intervals and during reasonable business hours.

     The Indenture provides that the sole interest of each unitholder during the
existence of Tidelands shall be his right to receive his proportionate part of
the net proceeds in the form of money in the hands of the corporate trustee that
such unitholder is entitled to receive, and upon termination of Tidelands, to
receive conveyances or assignments of his share of the property then
constituting the trust estate. No unitholder has the right to call for or demand
or secure any partition during the existence of Tidelands.

                                        5
<PAGE>   8

                                   FINANCIAL

                        MARKET AND INVESTOR INFORMATION

     Tidelands is authorized to issue 1,386,525 units of beneficial interest;
1,386,375 units were held by 408 unitholders of record as of February 16, 2001.
The remaining 150 units are reserved to be issued to specific parties if and
when they decide to transfer their rights under the 1951 Contract to Tidelands.
There were no changes in the number of outstanding units of beneficial interest
during 2000.

     The units of beneficial interest in Tidelands trade in the over-the-counter
market and are listed in the NASD's Bulletin Board under the symbol "TIRTZ".
There is limited trading in Tidelands' units of beneficial interest. The
following table presents information obtained from the National Quotation
Bureau, Inc. as to the high and low bid prices and includes distributions to
unitholders, by quarter, for the past two years:

<TABLE>
<CAPTION>
                                          BID QUOTATION
               YEAR ENDED                 --------------      DISTRIBUTIONS
              DECEMBER 31,                HIGH      LOW        (PER UNIT)
              ------------                -----    -----      -------------
<S>                                       <C>      <C>        <C>
2000
  First quarter.........................  $4.50    $3.75          $.13
  Second quarter........................   4.75     4.00           .19
  Third quarter.........................   4.25     3.63           .33
  Fourth quarter........................   4.38     3.63           .22
1999
  First quarter.........................  $4.87    $4.62          $.17
  Second quarter........................   4.87     4.62           .16
  Third quarter.........................   4.87     4.50           .24
  Fourth quarter........................   4.56     4.00           .17
</TABLE>

     Such over-the-counter market quotations reflect interdealer prices without
retail mark-up, mark-down or commission and may not necessarily represent actual
transactions.

     Tidelands must distribute to its unitholders all cash accumulated each
quarter, less an amount reserved for accrued liabilities and estimated future
expenses. Such distributions have been made since the third quarter of 1977 and
will continue so long as the income from oil and gas royalties exceeds
administrative costs.

     The Securities and Exchange Commission has neither approved nor disapproved
Tidelands' Annual Report for its year ended December 31, 2000, nor has it passed
upon its accuracy or adequacy. While Tidelands' complete Form 10-K (excluding
exhibits) for the year ended December 31, 2000, is included in Tidelands' 2000
Annual Report, a copy of such Form 10-K (without exhibits) is available without
charge to interested parties. There will be copying and mailing charges for
copies of any exhibits requested. Written requests should be directed to Ms.
Cindy Stover Miller, Bank of America, N.A., P.O. Box 830241, Dallas, Texas
75283-0241.

                            SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>
                                          2000         1999         1998         1997         1996
                                       ----------   ----------   ----------   ----------   ----------
<S>                                    <C>          <C>          <C>          <C>          <C>
Income -- oil and gas royalties......  $1,579,911   $1,108,019   $1,228,313   $1,262,876   $1,103,926
Net income...........................   1,532,381    1,070,861   $1,192,688   $1,234,986   $1,076,335
Net income per unit..................       $1.11         $.77         $.86         $.89         $.78
Distributions to unitholders.........   1,213,007    1,028,369   $1,103,637   $1,165,924   $1,029,524
Distributions per unit...............        $.87         $.74         $.80         $.84         $.74
Total assets.........................  $1,688,390   $1,560,219   $1,645,925   $2,421,226   $1,945,260
</TABLE>

                                        6
<PAGE>   9

               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

     Liquidity and Capital Resources. Tidelands' only business purpose is to
collect revenues from its royalty-type interests in oil and gas leases, pay
administrative expenses, and distribute the remaining revenues to its
unitholders. Tidelands can neither purchase additional properties nor dispose of
its existing properties. Because of these limitations Tidelands does not require
long term or short term capital. Furthermore, because all Tidelands' revenues
are invested in liquid funds pending distribution, Tidelands does not face
liquidity problems.

     Results of Operations. Tidelands' revenues are derived from the oil and gas
production activities of unrelated parties. Tidelands' revenues and
distributions fluctuate from period to period based upon factors beyond
Tidelands' control, including without limitation the number of leases bid on and
obtained by parties subject to Tidelands' interests, the number of productive
wells drilled on leases subject to Tidelands' interests, the level of production
over time from such wells and the prices at which the oil and gas from such
wells is sold. Tidelands believes that it will continue to have revenues
sufficient to permit distributions to be made to unitholders for the foreseeable
future, although no assurance can be made regarding the amounts thereof. The
foregoing sentence is a forward-looking statement. Factors that might cause
actual results to differ from expected results include reductions in prices or
demand for oil and gas, which might then lead to decreased production;
reductions in production due to depletion of existing wells or disruptions in
service, including as the result of storm damage, blowouts or other production
accidents, and geological changes such as cratering of productive formations;
expiration or release of leases subject to Tidelands' interests; and the
discontinuation by parties subject to Tidelands' interests of their efforts to
obtain leases in the Royalty Area.

     Tidelands' income consists primarily of oil and gas royalties and is based
on the value at the wellhead of Tidelands' percentage interest in oil and gas
sold without reduction for production expenses. Value at the wellhead for oil is
the purchasers' posted price at its receiving point onshore, less the cost of
transportation from the offshore lease to the onshore receiving point. Value at
the wellhead for natural gas is based upon the proceeds from sales under
arms-length agreements. In the event an agreement is not arms-length in nature,
the value is based upon current market prices.

     Summary Review. Tidelands' net income in 2000 amounted to $1,532,381 or
$1.11 per unit as compared to $1,070,861 or $.77 per unit in 1999 and $1,192,688
or $.86 per unit in 1998. Distributions per unit were $.87 in 2000, $.74 in
1999, and $.80 in 1998.

     Tidelands' administrative expenses and interest income were approximately
the same during the past three years. The changes in net income are primarily
the result of changes in oil and gas royalties.

     While oil and gas production was down in 2000 as compared to 1999, the
decrease was offset by an increase in oil and gas prices, which resulted in an
increase in oil and gas royalties in 2000 as compared to 1999.

     Higher oil prices and increased production during 1999 resulted in an
increase in oil royalties over the amount realized in 1998. Gas royalties
declined in 1999 from amounts realized in 1998 primarily due to a decline in
production.

     Each of Tidelands' producing properties has paid out its $1,500,000
production payment and, therefore, Tidelands' present royalty interests
(4.17%)in such properties will not be further reduced.

     Tidelands has retained a funded reserve for possible royalty overpayments
received in various years from 1988 through 1993. During the years ended
December 31, 2000, 1999 and 1998, respectively, Tidelands restored to income
$251,534, $258,902 and $340,485 of its contingency reserve that management
determined was no longer needed to cover refunds that may be required upon
redetermination of gas prices for royalty payments in prior periods. Net income
per unit was increased $.18, $.19 and $.25 in 2000, 1999 and 1998, respectively
by this decision.

                                        7
<PAGE>   10

     Tidelands does not have any reportable quantitative or qualitative market
risk disclosure.

OIL AND GAS ROYALTIES -- 2000 AND 1999

     Income from oil and gas royalties increased 43% in 2000 as compared to
1999. Gas royalties increased 31% and accounted for 76% of income for 2000.
These increases primarily were caused by increased prices for oil and gas. Oil
production declined 2% and gas production declined 20%.

     The following table presents comparative operating data which reflects
these underlying circumstances.

                           COMPARATIVE OPERATING DATA

<TABLE>
<CAPTION>
                                                                                          CHANGE FROM
                                                                                          1999 TO 2000
                                                                                       ------------------
                                                                2000         1999       AMOUNT    PERCENT
                                                             ----------   ----------   --------   -------
<S>                                                          <C>          <C>          <C>        <C>
Income:
  Oil royalties(1).........................................  $  379,828   $  188,643   $191,185     101%
  Gas royalties............................................   1,200,083      919,376    280,707      31%
                                                             ----------   ----------   --------
                                                             $1,579,911   $1,108,019    471,892      43%
                                                             ==========   ==========   ========
Net production quantities
  Oil (bbls)...............................................      12,498       12,810       (313)     (2)%
  Gas (mcf)................................................     256,706      319,858    (63,152)    (20)%
Average net prices
  Oil(1)...................................................  $    30.39   $    14.73   $  15.66     106%
  Gas(2)...................................................  $     4.67   $     2.87   $   1.80      63%
</TABLE>

---------------

(1) These amounts are net of the cost of transportation from offshore leases to
    onshore receiving points.

(2) The average price in 2000 includes $.98 per mcf attributable to the $251,534
    reserve reduction for that year. The average price in 1999 includes $.81 per
    mcf attributable to the $258,902 reserve reduction for that year.

OIL AND GAS ROYALTIES -- 1999 AND 1998

     Income from oil and gas royalties decreased 10% in 1999 as compared to
1998. Gas royalties decreased 19% and accounted for 83% of income from royalties
in 1999. The decrease in oil and gas royalties was primarily caused by a
decrease in gas production of 21%.

     The following table presents comparative operating data which reflects
these underlying circumstances.

                           COMPARATIVE OPERATING DATA

<TABLE>
<CAPTION>
                                                                        CHANGE FROM
                                                                       1998 TO 1999
                                                                    -------------------
                                             1999         1998       AMOUNT     PERCENT
                                          ----------   ----------   ---------   -------
<S>                                       <C>          <C>          <C>         <C>
Income:
  Oil royalties(1)......................  $  188,643   $   88,389   $ 100,254     113%
  Gas royalties.........................     919,376    1,139,924    (220,548)    (19)%
                                          ----------   ----------   ---------
                                          $1,108,019   $1,228,313   $(120,294)    (10)%
                                          ==========   ==========   =========
Net production quantities
  Oil (bbls)............................      12,810        9,935       2,875      29%
  Gas (mcf).............................     319,858      405,336     (85,478)    (21)%
Average net prices
  Oil(1)................................  $    14.73   $     8.90   $    5.83      66%
  Gas(2)................................  $     2.87   $     2.81   $     .06       2%
</TABLE>

---------------

(1) These amounts are net of the cost of transportation from offshore leases to
    onshore receiving points.

(2) The average price in 1999 includes $.81 per mcf attributable to the $258,902
    reserve reduction for that year. The average price in 1998 includes $.84 per
    mcf attributable to the $340,485 reserve reduction for that year.

                                        8
<PAGE>   11

                  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     Tidelands' consolidated financial statements listed in the following index,
together with the related notes and the report of KPMG LLP, independent
certified public accountants, are presented on pages F-1 and F-7 hereof:

<TABLE>
<CAPTION>
                                                                     PAGE
                                                                    ------
<S> <C>                                                             <C>
--  Independent Auditors' Report................................     F-1

--  Consolidated Balance Sheets as of December 31, 2000 and
      1999......................................................     F-2

--  Consolidated Statements of Income and Undistributed Income
      for the Three Years Ended December 31, 2000...............     F-3

--  Consolidated Statements of Cash Flows for the Three Years
      Ended December 31, 2000...................................     F-4

--  Notes to Consolidated Financial Statements..................     F-5
</TABLE>

     All schedules have been omitted because they are not required or because
the required information is shown in the consolidated financial statements or
notes thereto.

                               ACCOUNTING MATTERS

     During 2000 and 1999 there were no disagreements by Tidelands with its
principal accountants on any matter of accounting principles or practices or
financial statement disclosure.

                      MANAGEMENT AND PRINCIPAL UNITHOLDERS

                                 ADMINISTRATORS

     Tidelands was created by a trust agreement effective June 1, 1954 and there
is no provision for the election of directors and officers. However, the
agreement does provide for the appointment of an individual trustee and a
corporate trustee.

     Bank of America, N.A. is the corporate trustee.

     Although the instruments pursuant to which Tidelands was created provide
for an individual trustee, none of the individuals identified therein as
possible individual trustees currently are available to serve as the individual
trustee. The Corporate Trustee of Tidelands believes that the duties of the
individual trustee can be administered by Mr. R. Ray Bell. The Corporate Trustee
of Tidelands also believes that Tidelands likely would incur substantial
expenses in recruiting and electing a new individual trustee.

     The trustees have entered into an arrangement with Marine Petroleum
Corporation to share certain administrative expenses. Mr. R. Ray Bell may be
considered an employee of Tidelands even though he is not directly employed by
Tidelands or Tidelands Corporation. Mr. Bell has been involved in the
administration of Tidelands since its inception and performs certain management,
administrative and financial services for Tidelands. He is 73 years old, and
since July 1, 1977, Mr. Bell has been employed by Marine Petroleum Corporation,
a subsidiary of Marine, as president, vice president and director. Mr. Bell will
serve in such capacities until the next annual meeting of directors of Marine
Petroleum Corporation or until his successor is elected and qualified. Mr. Bell
acts as the principal accounting officer of Tidelands for purposes of Tidelands'
filings with the SEC.

                                        9
<PAGE>   12

                            MANAGEMENT COMPENSATION

     During Tidelands' fiscal year ended December 31, 2000, Tidelands paid or
accrued fees of $19,418 to Bank of America, N.A., as corporate trustee.

     During Tidelands' fiscal year ended December 31, 2000, Tidelands paid
$19,507 to Marine Petroleum Corporation as its share of certain administrative
expenses. These expenses are shared in the ratio of each of Tidelands' and
Marine's gross receipts to the total gross receipts of both trusts.

                             PRINCIPAL UNITHOLDERS

     The following table sets forth the persons known to Tidelands who own
beneficially more than five percent of its outstanding units of beneficial
interest:

<TABLE>
<CAPTION>
                                                                                   AMOUNT
                                                                                BENEFICIALLY
                                                                                OWNED AS OF
                                                    NAME AND ADDRESS            DECEMBER 31,    PERCENT
             TITLE OF CLASS                        OF BENEFICIAL OWNER              2000        OF CLASS
             --------------                        -------------------          ------------    --------
<S>                                          <C>                                <C>             <C>
Units of Beneficial Interest.............    Marine Petroleum Trust               452,366        32.6%
                                             P.O. Box 830241
                                             Dallas, Texas 75283-0241
</TABLE>

                                 MISCELLANEOUS

                  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND
                              REPORTS ON FORM 8-K

(a) Financial Statements -- See "Financial Statements and Supplementary Data"
    above.

(b) Reports on Form 8-K -- None.

(c) Exhibits

<TABLE>
  <C>          <S>
      3.1      Indenture of Trust dated June 1, 1954, as amended (filed as
               Exhibit (3) to the Annual Report on Form 10-K of Tidelands
               Royalty Trust "B" for the year ended December 31, 1994,
               filed with the Securities and Exchange Commission on March
               30, 1995, and incorporated herein by reference).
     21.1      Subsidiaries of Tidelands.
</TABLE>

                                       10
<PAGE>   13

                          INDEPENDENT AUDITORS' REPORT

The Trustee
Tidelands Royalty Trust "B":

     We have audited the accompanying consolidated balance sheets of Tidelands
Royalty Trust "B" ("Tidelands") and subsidiary as of December 31, 2000 and 1999,
and the related consolidated statements of income and undistributed income and
cash flows for each of the years in the three-year period ended December 31,
2000. These consolidated financial statements are the responsibility of
Tidelands' management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

     In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Tidelands
Royalty Trust "B" and subsidiary as of December 31, 2000 and 1999 and the
results of their operations and their cash flows for each of the years in the
three-year period ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States of America.

                                            /s/ KPMG LLP

Dallas, Texas
February 1, 2001

                                      F-1
<PAGE>   14

                   TIDELANDS ROYALTY TRUST "B" AND SUBSIDIARY

                          CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 2000 AND 1999

                                     ASSETS

<TABLE>
<CAPTION>
                                                                 2000         1999
                                                              ----------   ----------
<S>                                                           <C>          <C>
Current assets:
  Cash and cash equivalents.................................  $1,339,233   $1,464,127
  Oil and gas royalties receivable..........................     346,705       96,090
  Federal income taxes receivable...........................       2,450           --
                                                              ----------   ----------
            Total current assets............................   1,688,388    1,560,217

Oil, gas and other mineral properties.......................           2            2
                                                              ----------   ----------
                                                              $1,688,390   $1,560,219
                                                              ==========   ==========
                            LIABILITIES AND TRUST EQUITY
Current liabilities:
  Accounts payable (note 3).................................  $  131,885   $  385,015
  Income distributable to unitholders.......................     301,615      239,477
  Federal income tax payable................................          --          211
                                                              ----------   ----------
            Total current liabilities.......................     433,500      624,703
                                                              ----------   ----------

Trust equity:
  Corpus -- authorized 1,386,525 units of beneficial
     interest,
     issued 1,386,375 units at nominal value................           2            2
  Undistributed income (note 2).............................   1,254,888      935,514
                                                              ----------   ----------
            Total trust equity..............................   1,254,890      935,516
                                                              ----------   ----------
                                                              $1,688,390   $1,560,219
                                                              ==========   ==========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       F-2
<PAGE>   15

                   TIDELANDS ROYALTY TRUST "B" AND SUBSIDIARY

           CONSOLIDATED STATEMENTS OF INCOME AND UNDISTRIBUTED INCOME
                      THREE YEARS ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                              2000         1999          1998
                                                           ----------   ----------    ----------
<S>                                                        <C>          <C>           <C>
Income:
  Oil and gas royalties..................................  $1,579,911   $1,108,019    $1,228,313
  Interest and other.....................................      70,438       66,786        76,569
                                                           ----------   ----------    ----------
            Total income.................................   1,650,349    1,174,805     1,304,882
Expenses:
  General and administrative.............................      93,140       87,144        99,194
                                                           ----------   ----------    ----------
            Income before federal income taxes...........   1,557,209    1,087,661     1,205,688
Federal income taxes of subsidiary (note 1(e))...........      24,828       16,800        13,000
                                                           ----------   ----------    ----------
            Net income...................................   1,532,381    1,070,861     1,192,688
Undistributed income at beginning of year................     935,514      893,022       803,971
                                                           ----------   ----------    ----------
                                                            2,467,895    1,963,883     1,996,659
Distributions to unitholders.............................   1,213,007    1,028,369     1,103,637
                                                           ----------   ----------    ----------
Undistributed income at end of year......................  $1,254,888    $ 935,514     $ 893,022
                                                           ==========   ==========    ==========
Net income per unit......................................       $1.11         $.77          $.86
                                                           ==========   ==========    ==========
Distributions per unit...................................        $.87         $.74          $.80
                                                           ==========   ==========    ==========
Weighted average units outstanding.......................   1,386,375    1,386,375     1,386,375
                                                           ==========   ==========    ==========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       F-3
<PAGE>   16

                   TIDELANDS ROYALTY TRUST "B" AND SUBSIDIARY

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                      THREE YEARS ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                          2000           1999          1998
                                                       -----------    ----------    -----------
<S>                                                    <C>            <C>           <C>
Cash flows from operating activities:
  Net income.........................................  $ 1,532,381    $1,070,861    $ 1,192,688
  Adjustments to reconcile net income to net cash
     provided by operating activities:
     Change in assets and liabilities:
       Oil and gas royalties receivable..............     (250,615)       17,124         46,523
       Federal income taxes receivable...............       (2,450)        7,578         (4,000)
       Accounts payable..............................     (253,130)     (260,552)      (342,074)
       Federal income tax payable....................         (211)          211             --
                                                       -----------    ----------    -----------
          Net cash provided by operating
            activities...............................    1,025,975       835,222        893,137
Cash flows from financing activities -- cash
  distributions to unitholders.......................   (1,150,869)     (896,226)    (1,625,915)
                                                       -----------    ----------    -----------
          Net increase (decrease) in cash and cash
            equivalents..............................     (124,894)      (61,004)      (732,778)
Cash and cash equivalents at beginning of year.......    1,464,127     1,525,131      2,257,909
                                                       -----------    ----------    -----------
Cash and cash equivalents at end of year.............  $ 1,339,233    $1,464,127    $ 1,525,131
                                                       ===========    ==========    ===========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       F-4
<PAGE>   17

                   TIDELANDS ROYALTY TRUST "B" AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           DECEMBER 31, 2000 AND 1999

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL

  (a) General

     Tidelands Royalty Trust "B" ("Tidelands") was established on June 1, 1954
with a transfer of contract rights to certain properties to Tidelands in
exchange for units of beneficial interest. The contract rights enable Tidelands
to receive an interest in any oil, gas or other mineral leases obtained by Gulf
Oil Corporation, now Chevron U.S.A., Inc. (Chevron) which is a subsidiary of
Chevron Corporation, and its assignees in a designated area of the Gulf of
Mexico during a 50-year period beginning April 30, 1951.

     Tidelands is required under its indenture to distribute all income, after
paying its liabilities and obligations, to the unitholders quarterly. Tidelands
cannot invest any of its money for any purpose and cannot engage in a trade or
business.

     Tidelands' wholly-owned subsidiary, Tidelands Royalty "B" Corporation
("Tidelands Corporation"), holds title to interests in properties that are
situated offshore of Louisiana. Ninety-five percent of all oil, gas, and other
mineral royalties collected by this subsidiary are paid to Tidelands. Tidelands
Corporation, like Tidelands, is prohibited from engaging in a trade or business
and does only those things necessary for the administration and liquidation of
its properties. Tidelands is authorized to pay expenses of Tidelands Corporation
should it be necessary.

     Tidelands and its subsidiary have no employees. Tidelands has entered into
an arrangement with Marine Petroleum Corporation (a wholly-owned subsidiary of
Marine Petroleum Trust, an affiliate of Tidelands) to share certain
administrative expenses. The sole purpose of this arrangement is to assist the
trustees in the administration of the trusts. At December 31, 2000 and 1999,
Marine Petroleum Trust owned 32.6% of Tidelands' outstanding units of beneficial
interest.

  (b) Unitholder Voting Matters

     Tidelands is to continue until April 30, 2001, or until such later date as
holders of the units owning a majority of the outstanding units may designate,
but in any event, not more than 20 years from such designation. Alternatively,
instead of so extending the term of the trust, the holders of the units owning a
majority of the outstanding units may direct the Trustee to create one or more
corporations to receive and hold the trust estate, or any portion thereof,
unless the Trustee shall have received written objection from any unitholder
within 20 days from the date of mailing to the unitholders of the first notice
of the proposed consent. However, the unitholders owning eighty percent (80%) of
the outstanding units may terminate the trust on any date.

     Following the filing of this Annual Report with the SEC, the unitholders
will be asked to approve an amendment to the Indenture to extend the life of the
trust twenty years beyond the current expiration date to April 30, 2021.

  (c) Principles of Consolidation

     The consolidated financial statements include Tidelands and its
wholly-owned subsidiary. All intercompany accounts and transactions have been
eliminated in consolidation.

  (d) Oil, Gas and Other Mineral Properties

     At the time Tidelands was established, no determinable market value was
available for the assets transferred to Tidelands; consequently, nominal values
were assigned. Accordingly, no allowance for depletion has been computed.

                                       F-5
<PAGE>   18
                   TIDELANDS ROYALTY TRUST "B" AND SUBSIDIARY

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

     Tidelands' revenues are derived from production payments and overriding
royalty interests related to properties located in the Gulf of Mexico.

     Net revenues from oil and gas royalties related to proved developed oil and
gas reserves were $1,579,911, $1,108,019 and $1,228,313 in 2000, 1999 and 1998,
respectively.

  (e) Federal Income Taxes

     No provision has been made for Federal income taxes on Tidelands' income
since such taxes are the liability of the unitholders. Federal income taxes have
been provided on the income of Tidelands Corporation, excluding the 95% of oil
and gas royalties to be distributed to Tidelands and after deducting statutory
depletion.

  (f) Credit Risk Concentration and Cash Equivalents

     Financial instruments which potentially subject Tidelands and its
wholly-owned subsidiary to concentrations of credit risk are primarily
investments in cash equivalents and unsecured oil and gas royalties receivable.
Tidelands and its wholly-owned subsidiary place their cash investments with
financial institutions that management considers creditworthy and limit the
amount of credit exposure from any one financial institution. Royalties
receivable are from large creditworthy companies and Tidelands historically has
not encountered collection problems. The estimated fair values of cash
equivalents and oil and gas royalties receivable approximate the carrying values
due to the short term nature of these financial instruments.

     Cash equivalents of $1,007,057 and $1,213,304 at December 31, 2000 and
1999, respectively, consist of cash held in a money market account that invests
in U.S. Treasury securities. For purposes of the statements of cash flows,
Tidelands considers all investments with original maturities of three months or
less to be cash equivalents.

  (g) Statements of Cash Flows

     Tidelands Corporation paid $27,488, $9,011 and $17,000 in federal income
taxes in 2000, 1999 and 1998, respectively. No payments of interest were made in
2000, 1999 and 1998.

  (h) Use of Estimates

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

  (i) Net Income per Unit

     Net income per unit is determined by dividing net income by the weighted
average number of units of beneficial interest outstanding during the period.

                                       F-6
<PAGE>   19
                   TIDELANDS ROYALTY TRUST "B" AND SUBSIDIARY

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)

  (j) Significant Royalty Sources

     Royalty revenue received by Tidelands from producers is summarized as
follows:

<TABLE>
<CAPTION>
                                                              2000   1999   1998
                                                              ----   ----   ----
<S>                                                           <C>    <C>    <C>
Devon Energy Production Company.............................   68%    --     --
Pennzenergy.................................................   21%    81%    30%
Burlington Resources Oil and Gas Company....................    7%     6%    42%
American Explorer Company...................................   --     --     18%
Others......................................................    4%    13%    10%
                                                              ---    ---    ---
                                                              100%   100%   100%
                                                              ===    ===    ===
</TABLE>

(2) UNDISTRIBUTED INCOME

     Undistributed income includes $768,503 and $676,822 applicable to the
subsidiary corporation at December 31, 2000 and 1999, respectively.

(3) OVERPAID ROYALTIES

     Tidelands recorded a liability for possible royalty overpayments received
in various years from 1988 through 1993, which is reflected in accounts payable
in the accompanying consolidated balance sheets. During 2000, 1999 and 1998,
Tidelands determined that $251,534, $258,902, and $340,485, respectively, was no
longer required to be reserved, because it was no longer probable that repayment
of such amounts actually would be required. Accordingly, accounts payable was
reduced and oil and gas royalties was increased by such amounts for each
respective year.

(4) SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS RESERVES (UNAUDITED)

     Oil and gas reserve information relating to Tidelands' royalty interests is
not presented because such information is not available to Tidelands. Tidelands'
share of oil and gas produced for its royalty interests was as follows: oil
(barrels) -- 12,497 in 2000, 12,810 in 1999 and 9,935 in 1998; and gas
(mcf) -- 256,706 in 2000, 319,858 in 1999, and 405,336 in 1998.

(5) SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED)

     The following quarterly financial information for the years ended December
31, 2000 and 1999 is unaudited; however, in the opinion of management, all
adjustments necessary to present a fair statement of the results of operations
for the interim periods have been included.

<TABLE>
<CAPTION>
                                                 OIL AND GAS       NET        NET INCOME
                                                  ROYALTIES       INCOME       PER UNIT
                                                 -----------    ----------    ----------
<S>                                              <C>            <C>           <C>
Quarter ended:
  March 31, 2000...............................  $  228,498     $  216,758      $ .16
  June 30, 2000................................     247,622        233,253        .17
  September 30, 2000...........................     633,667        617,334        .45
  December 31, 2000............................     470,124        465,036        .34
                                                 ----------     ----------      -----
                                                 $1,579,911     $1,532,381      $1.11
                                                 ==========     ==========      =====
Quarter ended:
  March 31, 1999...............................  $  372,190     $  361,207      $ .26
  June 30, 1999................................     198,294        184,848        .13
  September 30, 1999...........................     272,059        265,053        .19
  December 31, 1999............................     265,476        259,753        .19
                                                 ----------     ----------      -----
                                                 $1,108,019     $1,070,861      $ .77
                                                 ==========     ==========      =====
</TABLE>

                                       F-7
<PAGE>   20

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Annual Report on Form
10-K to be signed by the undersigned thereunto duly authorized.

                                            Tidelands Royalty Trust "B"
                                            (Registrant)

                                            By: Bank of America, N.A.
                                              (in its capacity as Corporate
                                                Trustee
                                              of Tidelands Royalty Trust "B"
                                              and not in its individual capacity
                                              or otherwise)

Date: February 20, 2001                     By:   /s/ CINDY STOVER MILLER
                                              ----------------------------------
                                                     Cindy Stover Miller
                                                        Vice President

     Pursuant to the requirements of the Securities Exchange Act of 1934, this
Annual Report on Form 10-K has been signed below by the following persons on
behalf of the Registrant and in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
                        NAME                                         CAPACITIES                       DATE
                        ----                                         ----------                       ----
<C>                                                      <S>                                <C>
Bank of America, N.A.                                    Corporate Trustee                         February 20, 2001

             By: /s/ CINDY STOVER MILLER
  -------------------------------------------------
                 Cindy Stover Miller
                   Vice President

                   /s/ R. RAY BELL                       Principal Accounting Officer              February 20, 2001
-----------------------------------------------------
                     R. Ray Bell
</TABLE>
<PAGE>   21
                                EXHIBIT INDEX


EXHIBIT
NUMBER                          DESCRIPTION
-------                         -----------

21.1            Subsidiaries of Tideland Royalty Trust "B"