##### 



Exhibit 13
 2007
san juan basin
ANNUAL REPORT & FORM 10 K




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Architecture has always played an eclectic role in the history of new Maxico. From adobe
dwellings to Frank Lloyd wright designs, the wide variety of styles and striking hues still
captivate the attention of the people of this region, as well as its visitors.




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The Trust
 The
principal asset
 UNITS OF BENEFICIAL INTEREST
  DISTRIBUTIONSHIGH
    
    
    LOW
    
    
    PAID2007First Quarter
    
    $
    33.5400
    
    
    $
    29.3900
    
    
    $
    .515094Second Quarter
    
    
    33.6500
    
    
    30.6000
    
    
    .553449Third Quarter
    
    
    34.8900
    
    
    31.0300
    
    
    .802107Fourth Quarter
    
    
    38.0500
    
    
    33.0000
    
    
    .558534TOTAL FOR 2007
    
    
    
    
    
    
    
    
    
    $
    2.4291842006First Quarter
    
    $
    45.9900
    
    
    $36.0000
    
    $
    1.083276Second Quarter
    
    
    43.7500
    
    
    33.0000
    
    
    .599299Third Quarter
    
    
    41.2500
    
    
    32.8200
    
    
    .666989Fourth Quarter
    
    39.0000
    
    32.6200
    
    
    .565491TOTAL FOR 2006
    
    
    
    
    
    
    
    
    
    $
    2.915055
  NUMBER OFTYPE OF UNIT HOLDERS
    
    UNIT HOLDERS
    
    
    UNITS HELDIndividuals, Joint Holders and Minors
    
    
    1,423
    
    
    
    1,843,313Fiduciaries
    
    
    151
    
    
    
    476,414Government Bodies
    
    
    1
    
    
    
    30Clubs, Associations or Societies
    
    
    6
    
    
    
    13,117Depositary (for all beneficial holders)
    
    
    1
    
    
    
    43,963,502Corporations
    
    
    33
    
    
    
    312,420TOTAL
    
    
    1,615
    
    
    
    46,608,796
 - 2 -




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To Unit Holders
 We
are pleased to present the 2007 Annual Report
   By:
    
    LEE ANN ANDERSONVice President and Senior Trust Officer
 
   - 3 -




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A BEAUTIFUL SHADE OF RED sets this door apart. Rounded corners and wide planks are popular
features of doors in the region. In many cultures, a red door symbolizes refuge and sanctuary.




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Description
of the Properties
 The
principal asset
 vice versa.
   
 Trustees
Discussion and Analysis
 GAS AND OIL PRODUCTION
  2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003Gas  Mcf
    
    
    36,961,349
    
    
    
    40,900,570
    
    
    
    42,867,162
    
    
    
    44,015,816
    
    
    
    45,202,576Mcf per Day
    
    
    101,264
    
    
    
    112,056
    
    
    
    117,444
    
    
    
    120,262
    
    
    
    123,843Oil- Bbls
    
    
    65,755
    
    
    
    74,438
    
    
    
    69,558
    
    
    
    77,341
    
    
    
    74,727Bbls per Day
    
    
    180
    
    
    
    204
    
    
    
    191
    
    
    
    211
    
    
    
    205
 - 5 -




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Trustees Discussion and Analysis
 GAS AND OIL PRODUCTION CONT.
  2007
    
    2006
    
    2005
    
    2004
    
    2003Gas  Mcf
    
    
    20,116,806
    
    
    
    22,475,405
    
    
    
    26,600,644
    
    
    
    25,324,435
    
    
    
    25,922,650Average Price (per Mcf)
    
    $
    6.11
    
    
    $
    6.55
    
    
    $
    6.27
    
    
    $
    4.68
    
    
    $
    3.93Oil-Bbls
    
    
    35,129
    
    
    
    40,702
    
    
    
    43,142
    
    
    
    44,832
    
    
    
    43,123Average Price (per Bbl)
    
    $
    63.14
    
    
    $
    61.30
    
    
    $
    49.62
    
    
    $
    34.81
    
    
    $
    26.11
     - 6 -




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Trustees
Discussion
and Analysis
 ROYALTY INCOME
  2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003Gross
Proceeds from the Underlying
PropertiesGas
    
    $
    225,276,909
    
    
    $
    264,428,021
    
    
    $
    267,895,460
    
    
    $
    204,682,365
    
    
    $
    175,653,183Oil
    
    
    4,114,534
    
    
    
    4,561,342
    
    
    
    3,451,115
    
    
    
    2,670,763
    
    
    
    1,938,972Other
    
    
    279,101
    1
    
    
    1,384,848
    2
    
    
    2,405,486
    3
    
    
    3,314,808
    4
    
    
    (1,202,368
    )5TOTAL
    
    $
    229,670,544
    
    
    $
    270,374,211
    
    
    $
    273,752,061
    
    
    $
    210,667,936
    
    
    $
    176,389,787Less Production CostsCapital Expenditures
    
    $
    27,354,003
    
    
    $
    39,195,168
    
    
    $
    19,127,698
    
    
    $
    22,338,684
    
    
    $
    20,590,704Severance Tax  Gas
    
    
    21,213,310
    
    
    
    25,652,907
    
    
    
    26,717,315
    
    
    
    19,766,231
    
    
    
    17,281,986Severance Tax  Oil
    
    
    406,776
    
    
    
    460,702
    
    
    
    362,023
    
    
    
    253,022
    
    
    
    174,750Other
    
    
    -0-
    
    
    
    42,968
    
    
    
    273,766
    
    
    
    42,763
    
    
    
    41,850Lease Operating Expenses and Property Taxes
    
    
    28,958,669
    
    
    
    23,273,276
    
    
    
    22,126,907
    
    
    
    20,210,213
    
    
    
    15,637,481TOTAL
    
    $
    77,932,758
    
    
    $
    88,625,021
    
    
    $
    68,607,709
    
    
    $
    62,610,913
    
    
    $
    53,726,771Net Profits
    
    $
    151,737,786
    
    
    $
    181,749,190
    
    
    $
    205,144,352
    
    
    $
    148,057,023
    
    
    $
    122,663,016Net OverridingRoyalty Interest
    
    
    75
    %
    
    
    75
    %
    
    
    75
    %
    
    
    75
    %
    
    
    75
    %Royalty Income
    
    $
    113,803,339
    
    
    $
    136,311,892
    
    
    $
    153,858,264
    
    
    $
    111,042,767
    
    
    $
    91,997,262
 
 (1)
    
    Represents funds allocated to the Trust as part of the ongoing negotiation of joint
interest audit exceptions.(2)
    
    Represents funds allocated to the Trust as part of the ongoing negotiation of joint
interest audit exceptions, and a portion of the arbitration award issued November 11, 2005 in favor
of the Trust.(3)
    
    Represents funds allocated to the Trust as part of the negotiation of joint interest
audit exceptions.(4)
    
    Represents funds allocated to the Trust as part of the ongoing negotiation of joint
interest audit exceptions, interest received for resolved audit exceptions, and insurance proceeds
for a business interruption claim.(5)
    
    Represents a settlement between BROG and the
Mineral Management Service of the United States Department of the Interior. DISTRIBUTABLE INCOME
     - 7 -




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'

Trustees
Discussion and Analysis
   OPERATING EXPENSES
  SETTLEMENTS
  CAPITAL EXPENDITURES
       - 8 -




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Trustees
Discussion and Analysis
  CONTRACTUAL OBLIGATIONS
  EFFECTS
OF SECURITIES REGULATION
  CRITICAL ACCOUNTING POLICIES
  
    
    Royalty Income recorded for a month is the amount computed
and paid by BROG to the Trustee for the Trust. Royalty Income
consists of the proceeds received by BROG from the sale
of production from the Underlying Properties less accrued
production costs, development and drilling costs, applicable taxes,
operating charges, and other costs and deductions, multiplied
by 75%. The calculation of net proceeds by BROG for any month
includes adjustments to proceeds and costs for prior months
and impacts the Royalty Income paid to the Trust and the
distribution to Unit holders for that month.
    
    Trust expenses recorded are based on liabilities paid and cash
reserves established from Royalty Income for liabilities and
contingencies.
 
    
    Distributions to Unit holders are recorded when declared by the
Trustee.
 
    
    The conveyance which transferred the Royalty to the Trust provides
that any excess of production costs applicable to the Underlying
Properties over gross proceeds from such properties must be
recovered from future net profits before Royalty Income is again
paid to the Trust.
  
 - 9 -




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- 10 -




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Trustees
Discussion and Analysis
 RESULTS OF THE 4 TH QUARTERS OF 2007 & 2006
   2007
    
    2006Underlying
PropertiesGas  Mcf
    
    
    9,427,385
    
    
    
    9,782,562Mcf per Day
    
    
    102,472
    
    
    
    106,332Average Price (per Mcf)
    
    $
    5.41
    
    
    $
    5.49Oil-Bbls
    
    
    14,583
    
    
    
    14,992Bbls per Day
    
    
    159
    
    
    
    163Average Price (per Bbl)
    
    $
    75.59
    
    
    $
    60.72Attributable
to the RoyaltyGas  Mcf
    
    
    5,229,676
    
    
    
    5,156,724Oil  Bbls
    
    
    8,055
    
    
    
    7,794
    2007
    
    
    2006October
    
    $
    .193305
    
    
    $
    .257200November
    
    
    .173684
    
    
    
    .210820December
    
    
    .191545
    
    
    
    .097471QUARTER TOTAL
    
    $
    .558534
    
    
    $
    .565491
 - 11 -




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- 12 -




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San
Juan Basin Royalty Trust
 STATEMENTS
OF ASSETS, LIABILITIES AND TRUST CORPUS
 December 31, 2007 and 2006
 2007
    
    
    2006ASSETSCash and Short-Term Investments
    
    $
    9,042,528
    
    
    $
    4,657,886Net Overriding Royalty Interests in Producing Oil and Gas Properties  Net
    
    
    19,880,888
    
    
    
    21,823,390TOTAL
    
    $
    28,923,416
    
    
    $
    26,481,276
 2007
    
    
    2006Liabilities and Trust CorpusDistribution Payable to Unit holders
    
    $
    8,927,670
    
    
    $
    4,543,028Cash Reserves
    
    
    114,858
    
    
    
    114,858Trust Corpus  46,608,796 Units of Beneficial Interest Authorized and Outstanding
    
    
    19,880,888
    
    
    
    21,823,390TOTAL
    
    $
    28,923,416
    
    
    $
    26,481,276
 STATEMENTS
OF DISTRIBUTABLE INCOME
 For the
three years ended December 31, 2007
 2007
    
    
    2006
    
    
    2005Royalty Income
    
    $
    113,803,339
    
    
    $
    136,311,892
    
    
    $
    153,858,264Interest Income
    
    
    1,401,849
    
    
    
    1,207,360
    
    
    
    167,367115,205,188
    
    
    
    137,519,252
    
    
    
    154,025,631Expenditures 
General and
Administrative
    
    
    1,983,953
    
    
    
    1,651,927
    
    
    
    2,465,550Distributable
Income
    
    $
    113,221,235
    
    
    $
    135,867,325
    
    
    $
    151,560,081Distributable
Income per Unit
(46,608,796 Units)
    
    $
    2.429184
    
    
    $
    2.915055
    
    
    $
    3.251747
 STATEMENTS
OF CHANGES IN TRUST CORPUS
 For the three years ended December 31, 2007
 2007
    
    
    2006
    
    
    2005Trust Corpus, Beginning of Period
    
    $
    21,823,390
    
    
    $
    23,881,494
    
    
    $
    26,674,821Amortization of Net Overriding Royalty Interest
    
    
    (1,942,502
    )
    
    
    (2,058,104
    )
    
    
    (2,793,327
    )Distributable Income
    
    
    113,221,235
    
    
    
    135,867,325
    
    
    
    151,560,081Distributions Declared
    
    
    (113,221,235
    )
    
    
    (135,867,325
    )
    
    
    (151,560,081
    )Trust Corpus, End of Period
    
    $
    19,880,888
    
    
    $
    21,823,390
    
    
    $
    23,881,494
 These financial statements should be read in conjunction with the accompanying Notes to Financial
Statements included herein.
 - 13 -




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Notes
to Financial Statements
 1. TRUST ORGANIZATION AND PROVISIONS
    
    
    The Trust shall not engage in any business or commercial activity of any kind or acquire any assets other than those initially conveyed
to the Trust;
 
    
    The Trustee may sell up to one percent (1%) of the value (based on prior year engineering reports) of the Royalty in any
12-month period, but otherwise may not sell all or any part of the Royalty unless approved by
holders of 75% of all Units outstanding. In either case, the sale must be for cash and the proceeds promptly distributed;
 
    
    The Trustee may establish a cash reserve for the payment of any liability which is contingent or uncertain in amount;
 
    
    The Trustee is authorized to borrow funds to pay liabilities of the Trust; and
 
    
    The Trustee will make monthly cash distributions to Unit holders (see Note 2).
 2. NET
OVERRIDING ROYALTY INTEREST AND DISTRIBUTION TO UNIT HOLDERS
    3.
BASIS OF ACCOUNTING
  
    
    Royalty Income (as defined in the Glossary of Terms) recorded for a month is the amount computed and paid by the owner of
the Underlying Properties, Burlington Resources Oil & Gas Company LP (BROG), the present
owner of the Underlying
Properties, to the Trustee for the Trust. Royalty Income consists
of the proceeds received by BROG from the sale of production
less accrued production costs, development and drilling costs, applicable taxes, operating
charges, and other costs and deductions,
multiplied by 75%. The calculation of net proceeds by BROG for any month includes adjustments to
proceeds and costs for
prior months and impacts the Royalty Income paid to the Trust and the distribution to Unit holders for that month.
 
    
    Trust expenses recorded are based on liabilities paid and cash reserves established from Royalty Income for liabilities and
contingencies.
 
    
    Distributions to Unit holders are recorded when declared by the Trustee.
 
    
    The conveyance which transferred the Royalty to the Trust provides that any excess of production costs applicable to the Underlying
Properties over gross proceeds from such properties must be recovered from future net proceeds
before Royalty Income is
again paid to the Trust.
  4. FEDERAL INCOME TAXES
  - 14 -




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Notes
to Financial Statements
      5. CERTAIN CONTRACTS
   6. SIGNIFICANT CUSTOMERS
  7. SETTLEMENTS AND LITIGATION
    - 15 -




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Notes
to Financial Statements
   San Juan Basin Royalty Trust vs. Burlington Resources Oil & Gas
Company LP.
 8. PROVED OIL AND GAS RESERVES (UNAUDITED)
  9. AMENDMENTS to the TRUSTS INDENTURE
  10.
QUARTERLY SCHEDULE OF DISTRIBUTABLE INCOME (UNAUDITED)
  DISTRIBUTABLEROYALTY
    
    
    DISTRIBUTABLE
    
    
    INCOME ANDINCOME
    
    

INCOME
    
    
    DISTRIBUTION PER UNIT2007First Quarter
    
    $
    23,949
    
    
    $
    24,008
    
    
    $
    .515094Second Quarter
    
    
    26,288
    
    
    
    25,795
    
    
    
    .553449Third Quarter
    
    
    37,087
    
    
    
    37,385
    
    
    
    .802107Fourth Quarter
    
    
    26,479
    
    
    
    26,033
    
    
    
    .558534TOTAL
    
    $
    113,803
    
    
    $
    113,221
    
    
    $
    2.4291842006First Quarter
    
    $
    50,481
    
    
    $
    50,490
    
    
    $
    1.083276Second Quarter
    
    
    28,532
    
    
    
    27,933
    
    
    
    .599299Third Quarter
    
    
    30,780
    
    
    
    31,087
    
    
    
    .666989Fourth Quarter
    
    
    26,519
    
    
    
    26,357
    
    
    
    .565491TOTAL
    
    $
    136,312
    
    
    $
    135,867
    
    
    $
    2.915055
 - 16 -




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Report
of Independent Registered Public Accounting Firm
     Internal Control  Integrated Framework
 WEAVER AND TlDWELL, L.L.P.Fort Worth, TexasFebruary 29, 2008
    
    (WEAVER AND TlDWELL, L.L.P.)
 SAN JUAN BASIN ROYALTY TRUST
 
 AUDITORS
 
 LEGAL COUNSEL
 
 TRANSFER AGENT
 
 For questions about distribution checks, address changes, and transfer procedures call 312-360-5154
 - 17 -




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Glossary
of Terms
 AGGREGATE MONTHLY DISTRIBUTION:
 BBL:
 BCF:
 BROG:
 BTU:
 COAL SEAM WELL:
 COMMINGLED WELL:
 CONVENTIONAL WELL:
 DEPLETION:
 DISTRIBUTABLE INCOME:
 DUAL COMPLETION:
 ESTIMATED FUTURE NET REVENUES:
 GRANTOR TRUST:
 GROSS ACRES OR WELLS:
 GROSS PROCEEDS:
 HORIZONTAL WELL:
 INDENTURE:
 INFILL DRILLING:
 LEASE OPERATING EXPENSES:
 MCF:
 MMBTU:
 MULTIPLE
COMPLETION WELL:
 NET ACRES OR WELLS:
 NET OVERRIDING ROYALTY INTEREST:
 NET PROCEEDS:
 PAYADD:
 PRESENT VALUE OF ESTIMATED FUTURE NET REVENUES:
 PRODUCTION COSTS:
 PROVED DEVELOPED RESERVES: See CFR 210.4-10(a) (3).
 PROVED RESERVES: See 210.4- 10(a) (2)-2(iii).
 PROVED UNDEVELOPED RESERVES: See CFR 210.4- 10(a) (4).
 RECAVITATED
 RECOMPLETED WELL:
 ROYALTY:
 ROYALTY INCOME:
 SECTION 45K TAX CREDIT:
 SPOT PRICE:
 UNDERLYING PROPERTIES:
 UNITS OF BENEFICIAL INTEREST:
 WORKING INTEREST:
 - 18 -




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SAN AUAN BASIN ROYALTY TRUST
Compass Bank, Trustee  2525 Ridgmar Boulevard, Suite 100  Fort Worth, Texas 76116
TOLL FREE 866.809.4553  www.sjbrt.com  sjt@compassbank. com - 19 -