SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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

                                   FORM 10-Q

(MARK ONE)

            [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

               FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                         COMMISSION FILE NUMBER 1-11450

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

                             SANTA FE ENERGY TRUST
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                   TEXAS                               76-6081498
 (STATE OF INCORPORATION OR ORGANIZATION    (I.R.S. EMPLOYER IDENTIFICATION NO.)

                    TEXAS COMMERCE BANK NATIONAL ASSOCIATION
                            CORPORATE TRUST DIVISION
                             600 TRAVIS, SUITE 1150
                              HOUSTON, TEXAS 77002
          (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)

      REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (713) 216-5100

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

     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 (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                Yes [X]   No [  ]

         Depository Units outstanding at November 1, 1996 -- 6,300,000

================================================================================
<PAGE>
                        PART I -- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

                             SANTA FE ENERGY TRUST
         STATEMENT OF CASH PROCEEDS AND DISTRIBUTABLE CASH (UNAUDITED)
                    (DOLLARS IN THOUSANDS, EXCEPT AS NOTED)
<TABLE>
<CAPTION>
                                         THREE MONTHS ENDED      NINE MONTHS ENDED
                                           SEPTEMBER 30,           SEPTEMBER 30,
                                       ----------------------  ----------------------
                                          1996        1995        1996        1995
                                       ----------  ----------  ----------  ----------
<S>                                    <C>         <C>         <C>         <C>       
Royalty Income
     ODC Royalty.....................  $    1,246  $    1,279  $    3,293  $    3,537
     Willard Royalty.................         635         497       1,689       1,349
     Net Profits Royalty.............       1,584         813       4,302       3,015
Support Payment Recoupments..........        (375)     --            (492)     --
                                       ----------  ----------  ----------  ----------
Total Royalties......................       3,090       2,589       8,792       7,901
Administrative Fee to Santa Fe.......         (55)        (54)       (162)       (160)
Advance from Santa Fe Energy
  Resources, Inc. ...................      --              75         200         165
Repayment of Advance from Santa Fe
  Energy Resources, Inc. ............        (100)        (15)       (225)       (165)
Cash Withheld for Trust Expenses.....        (100)        (75)       (377)       (181)
                                       ----------  ----------  ----------  ----------
Distributable Cash...................  $    2,835  $    2,520  $    8,228  $    7,560
                                       ==========  ==========  ==========  ==========
Distributable Cash per Trust Unit (in
  dollars)...........................     0.45000     0.40000     1.30609     1.20000
                                       ==========  ==========  ==========  ==========
Trust Units Outstanding
(thousands)..........................       6,300       6,300       6,300       6,300
                                       ==========  ==========  ==========  ==========
</TABLE>
               STATEMENT OF ASSETS, LIABILITIES AND TRUST CORPUS
                             (DOLLARS IN THOUSANDS)

                                        SEPTEMBER 30,    DECEMBER 31,
                                            1996             1995
                                        -------------    ------------
                                         (UNAUDITED)
                               ASSETS
Current Assets
  Cash...............................     $      79        $      4
                                        -------------    ------------
Investment in Royalty Interests, at
  cost...............................        87,276          87,276
Less: Accumulated Amortization.......       (36,580)        (29,601)
                                        -------------    ------------
                                             50,696          57,675
                                        -------------    ------------
                                          $  50,775        $ 57,679
                                        =============    ============
                    LIABILITIES AND TRUST CORPUS
Advance from Santa Fe Energy
  Resources, Inc.....................     $ --             $     25
Trust Corpus (6,300,000 Trust Units
  issued and outstanding)............        50,775          57,654
                                        -------------    ------------
                                          $  50,775        $ 57,679
                                        =============    ============

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

                                       2
<PAGE>
                             SANTA FE ENERGY TRUST
                STATEMENT OF CHANGES IN TRUST CORPUS (UNAUDITED)
                           (IN THOUSANDS OF DOLLARS)

Balance at December 31, 1995.........  $  57,654
  Cash Proceeds......................      8,630
  Cash Distributions.................     (8,228)
  Trust Expenses.....................       (302)
  Amortization of Royalty
     Interests.......................     (6,979)
                                       ---------
Balance at September 30, 1996........  $  50,775
                                       =========
Balance at December 31, 1994.........  $  67,392
  Cash Proceeds......................      7,741
  Cash Distributions.................     (7,560)
  Trust Expenses.....................       (238)
  Amortization of Royalty
     Interests.......................     (7,411)
                                       ---------
Balance at September 30, 1995........  $  59,924
                                       =========

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

                                       3

<PAGE>
                             SANTA FE ENERGY TRUST
                   NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

(1)  THE TRUST

     Santa Fe Energy Trust (the "Trust") was formed on October 22, 1992, with
Texas Commerce Bank National Association as trustee (the "Trustee"), to
acquire and hold certain royalty interests (the "Royalty Interests") in
certain properties (the "Royalty Properties") conveyed to the Trust by Santa
Fe Energy Resources, Inc. ("Santa Fe"). The Royalty Interests consist of two
term royalty interests in two production units in the Wasson field in west Texas
(the "Wasson Royalties") and a net profits royalty interest in certain royalty
and working interests in a diversified portfolio of properties located in twelve
states (the "Net Profits Royalties"). The Royalty Interests are passive in
nature and the Trustee has no control over or responsibility relating to the
operation of the Royalty Properties. The Trust will be liquidated on February
15, 2008 (the "Liquidation Date").

     In November 1992, 5,725,000 Depositary Units, each consisting of beneficial
ownership of one unit of undivided beneficial interest in the Trust ("Trust
Units") and a $20 face amount beneficial ownership interest in a $1,000 face
amount zero coupon United States Treasury obligation maturing on or about
February 15, 2008, were sold in a public offering for $20 per Depositary Unit. A
total of $114.5 million was received from public investors, of which $38.7
million was used to purchase the Treasury obligations and $5.7 million was used
to pay underwriting commissions and discounts. Santa Fe received the remaining
$70.1 million and 575,000 Depositary Units. In the first quarter of 1994 Santa
Fe sold in a public offering the 575,000 Depositary Units which it held.

     The trust agreement under which the Trust was formed (the "Trust
Agreement") provides, among other things, that:

           o   the Trustee shall not engage in any business or commercial
               activity or acquire any asset other than the Royalty Interests
               initially conveyed to the Trust;

           o   the Trustee may not sell all or any portion of the Wasson
               Royalties or substantially all of the Net Profits Royalties
               without the prior consent of Santa Fe;

           o   Santa Fe may sell the Royalty Properties, subject to and burdened
               by the Royalty Interests, without consent of the holders of the
               Trust Units; following any such transfer, the Royalty Properties
               will continue to be burdened by the Royalty Interests and after
               any such transfer the royalty payment attributable to the
               transferred property will be calculated separately and paid by
               the transferee;

           o   the Trustee may establish a cash reserve for the payment of any
               liability which is contingent, uncertain in amount or that is not
               currently due and payable;

           o   the Trustee is authorized to borrow funds required to pay
               liabilities of the Trust, provided that such borrowings are
               repaid in full prior to further distributions to the holders of
               the Trust Units;

           o   the Trustee will make quarterly cash distributions to the holders
               of the Trust Units.

(2)  BASIS OF ACCOUNTING

     The financial statements of the Trust are prepared on the cash basis of
accounting for revenues and expenses. Royalty income is recorded when received
(generally during the quarter following the end of the quarter in which the
income from the Royalty Properties is received by Santa Fe) and is net of any
cash

                                       4
<PAGE>
                             SANTA FE ENERGY TRUST
            NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
basis exploration and development expenditures and amounts reserved for any
future exploration and development costs. Expenses of the Trust, which will
include accounting, engineering, legal, and other professional fees, Trustee
fees, an administrative fee paid to Santa Fe and out-of-pocket expenses, are
recognized when paid. Under generally accepted accounting principles, revenues
and expenses would be recognized on an accrual basis. Amortization of the
Trust's investment in Royalty Interests is recorded using the unit-of-production
method in the period in which the cash is received with respect to such
production.

     The conveyance of the Royalty Interests to the Trust was accounted for as a
purchase transaction. The $87,276,000 reflected in the Statement of Assets and
Trust Corpus as Investment in Royalty Interests represents 6,300,000 Trust Units
valued at $20 per unit less the $38,724,000 paid for the Treasury obligations.
The carrying value of the Trust's investment in the Royalty Interests is not
necessarily indicative of the fair value of such Royalty Interests.

     The Trust is a grantor trust and as such is not subject to income taxes and
accordingly no recognition has been given to income taxes in the Trust's
financial statements. The tax consequences of owning Trust Units are included in
the income tax returns of the individual Trust Unit holders.

     During 1995 net cash proceeds (before deducting Trust expenses) exceeded
cash distributions by $256,000, a portion of which was used to repay advances
received from Santa Fe in 1994. In order to pay current Trust expenses, during
1995 Santa Fe advanced the Trust $190,000, of which $25,000 was due to Santa Fe
at December 31, 1995. During the first nine months of 1996 net cash proceeds
(before deducting Trust expenses) exceeded cash distributions by $402,000, a
portion of which was used to repay advances received from Santa Fe. In order to
pay current Trust expenses, during the first nine months of 1996 Santa Fe
advanced the Trust $200,000, none of which was due to Santa Fe at September 30,
1996.

(3)  THE ROYALTY INTERESTS

     The Wasson Royalties consist of interests conveyed out of Santa Fe's
royalty interest in the Wasson ODC Unit (the "ODC Royalty") and the Wasson
Willard Unit (the "Willard Royalty"). The ODC Royalty entitles the Trust to
receive quarterly royalty payments with respect to 12.3934% of the actual gross
oil production from the Wasson ODC Unit, subject to certain quarterly
limitations set forth in the conveyance agreement, for the period from November
1, 1992 to December 31, 2007. The Willard Royalty entitles the Trust to receive
quarterly royalty payments with respect to 6.8355% of the actual gross oil
production from the Wasson Willard Unit, subject to certain quarterly
limitations set forth in the conveyance agreement, for the period from November
1, 1992 to December 31, 2003.

     The Net Profits Royalties entitle the Trust to receive, on a quarterly
basis, 90% of the net proceeds, as defined in the conveyance agreement, from the
sale of production from the properties subject to the conveyance agreement. The
Net Profits Royalties are not limited in term, although the Trustee is required
to sell such royalties prior to the Liquidation Date.

     For any calendar quarter ending on or prior to December 31, 2002, the Trust
will receive additional royalty payments ("Support Payments") to the extent it
needs such payments to distribute $0.40 per Trust Unit per quarter (two-thirds
of such amount for the period ended December 31, 1992). Such Support Payments
are limited to Santa Fe's remaining royalty interest in the Wasson ODC Unit.
Santa Fe is entitled to recoup Support Payments in quarters in which the Trust
distribution would exceed $0.45 per Trust Unit.

                                       5
<PAGE>
                             SANTA FE ENERGY TRUST
            NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
The aggregate of the Support Payments, net of any amounts recouped, is limited
to $20,000,000 on a revolving basis. As of September 30, 1996 the Trust had
received Support Payments, net of recoupments, totalling $1,582,000.

(4)  DISTRIBUTIONS TO TRUST UNIT HOLDERS

     The Trust has received royalty payments and made distributions as follows
(in thousands of dollars, except as noted):

                                                         DISTRIBUTIONS
                                        ROYALTY     ------------------------
                                        PAYMENT               PER TRUST UNIT
                                        RECEIVED    AMOUNT     (IN DOLLARS)
                                        --------    ------    --------------
1995
     First quarter(a)................     2,600      2,520        0.40000
     Second quarter..................     2,606      2,520        0.40000
     Third quarter(b)................     2,535      2,520        0.40000
     Fourth quarter(c)...............     2,595      2,520        0.40000
                                        --------    ------    --------------
                                         10,336     10,080        1.60000
                                        ========    ======    ==============
1996
     First quarter...................     2,660      2,558        0.40609
     Second quarter(d)...............     2,935      2,835        0.45000
     Third quarter(e)................     3,035      2,835        0.45000

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

     (a) Includes a Support Payment of $677,000, or $0.10740 per Trust Unit.

     (b) Includes a Support Payment of $301,000, or $0.04776 per Trust Unit.

     (c) Includes a Support Payment of $228,000, or $0.03629 per Trust Unit.

     (d) Net of Support Payment recoupment of $117,000, or $0.01857 per Trust
         Unit.

     (e) Net of Support Payment recoupment of $375,000, or $0.05953 per Trust
         Unit.

                                       6
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

     This 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 facts included in this Form 10-Q are forward looking
statements. Although the Working Interest Owner has advised the Trust that they
believe that the expectations reflected in the forward-looking statements
contained herein are reasonable, no assurance can be given that such
expectations will prove to have been correct.

GENERAL; LIQUIDITY AND CAPITAL RESOURCES

     Santa Fe Energy Trust (the "Trust") was formed on October 22, 1992 with
Texas Commerce Bank National Association as trustee (the "Trustee"), to
acquire and hold certain royalty interests (the "Royalty Interests") in
certain properties (the "Royalty Properties") conveyed to the Trust by Santa
Fe Energy Resources, Inc. ("Santa Fe"). The Trust is a passive entity with the
Trustee's primary responsibility being the collection and distribution of
proceeds from the Royalty Interests and the payment of Trust liabilities and
expenses (see Note 1 to the financial statements of the Trust). The Royalty
Interests consist of two term royalty interests in two production units (the
Wasson ODC Unit and the Wasson Willard Unit) in the Wasson field in west Texas
(the "Wasson Royalties") and a net profits royalty interest (the "Net Profits
Royalties") in certain royalty and working interest properties in a diversified
portfolio of properties located predominantly in Texas, Louisiana and Oklahoma
(the "Net Profits Properties"). Under the terms of the Trust Agreement, the
Trustee cannot engage in any other business or commercial activity or acquire
any asset other than the Royalty Interests initially conveyed to the Trust.
Therefore, the Royalty Interests are the sole source of funds for the Trust from
which to pay expenses and liabilities and make distributions to the holders of
the Trust Units. The Trust will be liquidated on or before February 15, 2008
(the "Liquidation Date").

     The Wasson Royalties are fixed percentage royalty interests in specified
levels of quarterly maximum production from the underlying properties in each
year during the term of the respective royalty. The Wasson ODC Royalty and the
Wasson Willard Royalty terminate on December 31, 2007 and December 31, 2003,
respectively. The Net Profits Royalties are life-of-property interests which
will be sold by the Trust prior to the Liquidation Date. The Net Profits
Royalties entitle the Trust to receive 90% of the net proceeds (after deducting,
among other things, the costs of production and marketing and capital
expenditures) from the sale of production from the Net Profits Properties. The
Net Profits Properties are generally mature producing oil and gas properties and
the production and reserves attributable to such properties are expected to
decline substantially over the life of the Trust. The Net Profits Royalties are
expected to have a relatively small liquidation value at the Liquidation Date.

     For any calendar quarter ending on or prior to December 31, 2002, the Trust
will receive additional royalty payments ("Support Payments") to the extent it
needs such payments to distribute $0.40 per Trust Unit per quarter. Such Support
Payments are limited to Santa Fe's remaining royalty interest in the Wasson ODC
Unit. If Support Payments are received, certain proceeds otherwise payable to
the Trust in subsequent quarters may be reduced to recoup the amount of such
Support Payments. The aggregate amount of Support Payments, net of any amounts
recouped, is limited to $20.0 million on a revolving basis. Santa Fe is entitled
to recoup Support Payments in quarters in which the Trust distributions would
exceed $0.45 per Trust Unit. The total amount available for distribution in the
third quarter of 1996 was $3,210,000, or $0.50953 per Trust Unit. Accordingly,
Santa Fe recouped $375,000, or $0.05953 per Trust Unit, and $2,835,000, or
$0.45000 per Trust Unit, was distributed to unitholders. As of September 30,
1996 the Trust had received Support Payments, net of recoupments, totalling
$1,582,000. In the fourth quarter of 1996 Santa Fe will recoup $517,000, or
$0.08213 per Trust Unit, and $2,835,000, or $0.45000 per Trust Unit, will be
distributed to unitholders. Following such recoupment, the net Support Payments
received by the Trust will

                                       7
<PAGE>
total $1,065,000. Depending on factors such as sales prices and volumes and the
level of operating costs and capital expenditures, Support Payments may be
required in subsequent quarters to allow the Trust to make distributions of
$0.40 per Trust Unit per quarter.

     Trust expenses include accounting, engineering, legal and other
professional fees, Trustee fees, an administrative fee paid to Santa Fe and
other out-of-pocket expenses. From time to time Santa Fe may, at its sole
discretion and without any obligation to do so, advance funds to the Trust for
the timely payment of such expenses and receive reimbursement therefore in later
periods. In addition, the Trustee is authorized to borrow funds required to pay
liabilities of the Trust, provided that such borrowings are repaid in full prior
to making further distributions to the holders of the Trust Units. Currently
there are no such borrowings outstanding or contemplated other than the
above-described advances which Santa Fe has made or may continue to make.

     The Trust's results of operations are dependent upon the sales prices and
quantities of oil and gas produced from the Royalty Properties, the costs of
producing such resources and the amount of capital expenditures made with
respect to such properties. Royalty income is recorded by the Trust when
received, generally during the quarter following the end of the quarter in which
revenues are received and costs and expenses are paid by Santa Fe. Cash proceeds
from the Royalty Properties may fluctuate from quarter to quarter due to the
timing of receipts and payments of revenues and expenses as well as changes in
prices and production volumes. In addition, amounts for future exploration and
development costs may be reserved from time to time.

     Since, on an equivalent basis, the majority of the Trust's proved reserves
are crude oil, even relatively modest changes in crude oil prices may
significantly affect the Trust's revenues and results of operations. Crude oil
prices are subject to significant changes in response to fluctuations in the
domestic and world supply and demand and other market conditions as well as the
world political situation as it affects OPEC, the Middle East and other
producing countries. In addition, a substantial portion of the Trust's revenues
come from properties which produce sour (i.e., high sulfur content) crude oil
which sells at prices lower than sweeter (i.e., low sulfur content) crude oils.
The sales prices of crude oil, which declined in the fourth quarter of 1995,
showed improvement in 1996 (see Results of Operations).

     Natural gas prices fluctuate due to weather conditions, the level of
natural gas in storage, the relative balance between supply and demand and other
economic factors. The Trust's average price for natural gas, which was $1.43 per
Mcf in the first quarter of 1996, increased to $1.79 per Mcf in the second
quarter of 1996, $1.98 per Mcf in the third quarter of 1996 and $2.01 per Mcf in
the fourth quarter of 1996. (see Results of Operations).

RESULTS OF OPERATIONS

     Royalty income is recorded by the Trust when received, generally during the
quarter following the end of the quarter in which revenues are received and
costs and expenses are paid by Santa Fe. Cash proceeds from the Royalty
Properties may fluctuate from quarter to quarter due to the timing of receipts
and payments of revenues and costs and expenses as well as changes in prices and
production volumes. The following table reflects pertinent information with
respect to the cash proceeds from the Royalty Properties and the net
distributable cash of the Trust. The information presented with respect to the
fourth quarter of 1996 reflects revenues received and costs and expenses paid by
Santa Fe in the third quarter of 1996. On November 29, 1996 the Trust will make
a cash distribution of $2,835,000, or $0.45 per Trust Unit, to unitholders of
record on November 14, 1996.

                                       8
<PAGE>
<TABLE>
<CAPTION>
                                        THREE MONTHS ENDED      NINE MONTHS ENDED
                                          SEPTEMBER 30,           SEPTEMBER 30,           FOURTH
                                       --------------------  ------------------------     QUARTER
                                         1996       1995        1996         1995          1996
                                       ---------  ---------  -----------  -----------    ---------
<S>                                       <C>        <C>         <C>          <C>           <C>   
VOLUMES AND PRICES
  Oil Volumes (Bbls)
     Wasson ODC Royalty..............     64,600     63,800      193,000      179,400       64,600
     Wasson Willard Royalty..........     32,400     33,800       98,600      102,700       32,400
     Net Profits Royalties...........     71,685     73,511      228,225      227,201       72,930
     Support Payments................     --         17,222      --            60,101       --
  Gas Volumes (Mcf)
     Net Profits Royalties...........    595,150    795,705    1,978,812    2,122,230      726,342
  Oil Average Prices ($/Bbl)
     Wasson ODC Royalty..............      21.31      17.47        18.98        16.65        22.10
     Wasson Willard Royalty..........      21.32      17.47        18.94        16.59        22.10
     Net Profits Royalties...........      18.63      16.46        16.41        15.41        17.73
     Support Payments................     --          17.47      --             16.26       --
  Gas Average Prices ($/Mcf)
     Net Profits Royalties...........       1.98       1.19         1.72         1.39         2.01
CASH PROCEEDS AND DISTRIBUTABLE CASH
  (thousands of dollars, except as
  noted)
  Wasson ODC Royalty
     Sales...........................      1,377      1,115        3,663        2,987        1,428
     Operating Expenses..............       (131)      (137)        (370)        (428)        (133)
                                       ---------  ---------  -----------  -----------    ---------
                                           1,246        978        3,293        2,559        1,295
                                       ---------  ---------  -----------  -----------    ---------
  Wasson Willard Royalty
     Sales...........................        691        591        1,868        1,704          716
     Operating Expenses..............        (56)       (94)        (179)        (355)         (57)
                                       ---------  ---------  -----------  -----------    ---------
                                             635        497        1,689        1,349          659
                                       ---------  ---------  -----------  -----------    ---------
  Net Profits Royalties
     Sales...........................      2,555      2,180        7,186        6,528        2,764
     Operating Expenses..............       (810)      (747)      (2,479)      (2,182)        (823)
     Capital Expenditures............       (161)      (620)        (405)      (1,331)        (388)
                                       ---------  ---------  -----------  -----------    ---------
                                           1,584        813        4,302        3,015        1,553
                                       ---------  ---------  -----------  -----------    ---------
  Support Payments (Recoupments).....       (375)       301         (492)         978         (517)
                                       ---------  ---------  -----------  -----------    ---------
  Total Royalties....................      3,090      2,589        8,792        7,901        2,990
  Administrative Fee to Santa Fe.....        (55)       (54)        (162)        (160)         (55)
                                       ---------  ---------  -----------  -----------    ---------
  Payment Received...................      3,035      2,535        8,630        7,741        2,935
  Cash Advance From Santa Fe.........     --         --              200           90       --
  Repayment of Cash Advance from
     Santa Fe........................       (100)       (15)        (225)        (165)      --
  Cash Withheld for Trust Expenses...       (100)    --             (377)        (106)        (100)
                                       ---------  ---------  -----------  -----------    ---------
  Distributable Cash.................      2,835      2,520        8,228        7,560        2,835
                                       =========  =========  ===========  ===========    =========
  Distributable Cash Per Trust Unit
     (in dollars)....................    0.45000    0.40000      1.30609      1.20000      0.45000
                                       =========  =========  ===========  ===========    =========
</TABLE>
                                       9
<PAGE>
     Oil prices improved in the third quarter of 1996, averaging $21.31 per
barrel for the Wasson Royalties and $18.63 per barrel for the Net Profits
Royalties compared to $17.47 per barrel and $16.46 per barrel, respectively, in
the third quarter of 1995. Oil prices in the first nine months of 1996 averaged
$18.97 per barrel for the Wasson Royalties and $16.41 per barrel for the Net
Profits Royalties compared to $16.63 per barrel and $15.41 per barrel,
respectively, in the first nine months of 1995. Oil prices in the fourth quarter
of 1996 average $22.10 per barrel for the Wasson Royalties and $17.73 per barrel
for the Net Profits Royalties.

     Natural gas prices increased in 1996 averaging $1.98 per Mcf in the third
quarter and $1.72 per Mcf in the first nine months compared to $1.19 per Mcf in
the third quarter of 1995 and $1.39 per Mcf in the first nine months of 1995.
Natural gas sales prices increased to an average of $2.01 per Mcf in the fourth
quarter of 1996.

     Cash proceeds in the first and third quarters of 1995 included Support
Payments of $677,000 and $301,000, respectively, primarily reflecting low
natural gas prices and a continuation of drilling expenditures. In the second
and third quarters of 1996 Santa Fe recouped Support Payments totalling
$117,000, or $.018571 per Trust Unit, and $375,000, or $0.05952 per Trust Unit.
In the fourth quarter of 1996 Santa Fe will recoup Support Payments of $517,000,
or $0.08213 per Trust Unit (see -- General; Liquidity and Capital Resources).

     Proceeds from the Net Profits Royalties are net of capital expenditures
with respect to the exploration and development of the Net Profits Properties.
Capital expenditures for 1996 total $793,000, including $388,000 in the fourth
quarter. Operating expenses for the Net Profits Royalties averaged $4.74 per
barrel of oil equivalent ("BOE") in the third quarter of 1996 compared to
$3.62 per BOE in the third quarter of 1995, primarily due to higher property
taxes.

                                    PART II
                               OTHER INFORMATION

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

     (a)  Exhibits

     (Asterisk indicates exhibit previously filed with the Securities and
Exchange Commission and incorporated herein by reference.)

                                                        SEC FILE OR
                                                       REGISTRATION     EXHIBIT
                                                          NUMBER        NUMBER
                                                       -------------    ------
      3(a)*    Form of Trust Agreement of Santa Fe
               Energy Trust.........................        33-51760      3.1
      4(a)*    Form of Custodial Deposit
               Agreement............................        33-51760      4.2
      4(b)*    Form of Secure Principal Energy
               Receipt (included as
               Exhibit A to Exhibit 4(a))...........        33-51760      4.1
     10(a)*    Form of Net Profits Conveyance
               (Multi-State)........................        33-51760     10.1
     10(b)*    Form of Wasson Conveyance............        33-51760     10.2
     10(c)*    Form of Louisiana Mortgage...........        33-51760     10.3
     27        Financial Data Schedule..............

     (b)  Reports on Form 8-K

            None

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<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.

                                        SANTA FE ENERGY TRUST

                                        By  TEXAS COMMERCE BANK NATIONAL
                                             ASSOCIATION, TRUSTEE

                                        By /s/ PETE FOSTER
                                               PETE FOSTER
                                           SENIOR VICE PRESIDENT & TRUST OFFICER

Date:  November 13, 1996

     The Registrant, Santa Fe Energy Trust, has no principal executive officer,
principal financial officer, controller or principal accounting officer, board
of directors or persons performing similar functions. Accordingly, no additional
signatures are available and none have been provided.

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