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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the Quarterly Period ended June 30, 2006
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission file number 1-8033
 PERMIAN BASIN ROYALTY TRUST
 (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture)
 Texas
    
    75-6280532(State or Other Jurisdiction of
    
    (I.R.S. Employer Identification No.)Incorporation or Organization)
 
 
 þ o
  o þ o
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONItem1. Financial StatementsItem 2. Trustees Discussion And AnalysisItem 3. Qualitative and Quantitative Disclosures About Market RiskItem 4. Controls and ProceduresPART II  OTHER INFORMATIONItems 1 through 5Item 6.Exhibits and Reports on Form 8-KSIGNATURESINDEX TO EXHIBITSAwareness Letter of Deloitte & Touche LLPCertification by Ron E. HooperCertification by Bank of America Pursuant to Section 906    Table of Contents  PERMIAN BASIN ROYALTY TRUST
 
 PART I  FINANCIAL INFORMATION
 
 Item1. Financial Statements
   2




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
       
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##### Table of Contents



PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
 June 30,
    
    
    December 31,2006
    
    
    2005(Unaudited)ASSETSCash and short-term investments
    
    $
    4,924,094
    
    
    $
    7,264,048Net overriding royalty interests in
producing oil and gas properties (net of
accumulated amortization of $9,447,917
and $9,364,586 at June 30, 2006 and
December 31, 2005, respectively)
    
    
    1,527,299
    
    
    
    1,610,630TOTAL ASSETS
    
    $
    6,451,393
    
    
    $
    8,874,678LIABILITIES AND TRUST CORPUSDistribution payable to Unit holders
    
    $
    4,924,094
    
    
    $
    7,264,048Commitments and contingenciesTrust corpus - 46,608,796 Units of
beneficial interest authorized and
outstanding
    
    
    1,527,299
    
    
    
    1,610,630TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    6,451,393
    
    
    $
    8,874,678
 
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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE
    
    
    THREEMONTHS
    
    
    MONTHSENDED
    
    
    ENDEDJune 30, 2006
    
    
    June 30, 2005Royalty income
    
    $
    14,040,544
    
    
    $
    12,746,016Interest income
    
    
    28,202
    
    
    
    11,56914,068,746
    
    
    
    12,757,585General and administrative
expenditures
    
    
    (224,361
    )
    
    
    (237,206
    )Distributable income
    
    $
    13,844,385
    
    
    $
    12,520,379Distributable income per Unit
(46,608,796 Units)
    
    $
    .297034
    
    
    $
    .268627
  5




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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 SIX
    
    
    SIXMONTHS
    
    
    MONTHSENDED
    
    
    ENDEDJune 30, 2006
    
    
    June 30, 2005Royalty income
    
    $
    32,958,471
    
    
    $
    26,277,087Interest income
    
    
    63,715
    
    
    
    23,04333,022,186
    
    
    
    26,300,130General and administrative
expenditures
    
    
    (524,827
    )
    
    
    (535,899
    )Distributable income
    
    $
    32,497,359
    
    
    $
    25,764,231Distributable income per Unit
(46,608,796 Units)
    
    $
    .697237
    
    
    $
    .552776
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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 THREE
    
    
    THREEMONTHS
    
    
    MONTHSENDED
    
    
    ENDEDJune 30, 2006
    
    
    June 30, 2005Trust corpus, beginning of
Period
    
    $
    1,570,156
    
    
    $
    1,745,977Amortization of net overriding
royalty interests
    
    
    (42,857
    )
    
    
    (40,271
    )Distributable income
    
    
    13,844,385
    
    
    
    12,520,379Distributions declared
    
    
    (13,844,385
    )
    
    
    (12,520,379
    )Total Trust Corpus, end of
period
    
    $
    1,527,299
    
    
    $
    1,705,706Distributions per Unit
    
    $
    .297034
    
    
    $
    .268627




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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 SIX
    
    
    SIXMONTHS
    
    
    MONTHSENDED
    
    
    ENDEDJune 30, 2006
    
    
    June 30, 2005Trust corpus, beginning of Period
    
    $
    1,610,630
    
    
    $
    1,795,267Amortization of net overriding
royalty interests
    
    
    (83,331
    )
    
    
    (89,561
    )Distributable income
    
    
    32,497,359
    
    
    
    25,764,231Distributions declared
    
    
    (32,497,359
    )
    
    
    (25,764,231
    )Total Trust Corpus, end of
period
    
    $
    1,527,299
    
    
    $
    1,705,706Distributions per Unit
    
    $
    .697237
    
    
    $
    .552776
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PERMIAN BASIN ROYALTY TRUST
 NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
 1.
    
    BASIS OF ACCOUNTINGThe Permian Basin Royalty Trust (Trust) was established as of November 1, 1980. The net
overriding royalties conveyed to the Trust include: (1) a 75% net overriding royalty carved out
of Southland Royalty Companys fee mineral interests in the Waddell ranch in Crane County, Texas
(the Waddell Ranch properties); and (2) a 95% net overriding royalty carved out of Southland
Royalty Companys major producing royalty interests in Texas (the Texas Royalty properties).
The net overriding royalty for the Texas Royalty properties is subject to the provisions of the
lease agreements under which such royalties were created. The financial statements of the Trust
are prepared on the following basis:
 
    
    Royalty income recorded for a month is the amount computed and paid to Bank of America,
N.A. (Trustee) as Trustee for the Trust by the interest owners: Burlington Resources Oil
& Gas Company LP (BROG), a subsidiary of Burlington Resources Inc. (BRI) for the
Waddell Ranch properties and Riverhill Energy Corporation (Riverhill Energy), formerly a
wholly owned subsidiary of Riverhill Capital Corporation (Riverhill Capital) and formerly
an affiliate of Coastal Management Corporation (CMC), for the Texas Royalty properties.
Schlumberger Technology Corporation (STC) currently conducts all field, technical and
accounting operations on behalf of BROG with regard to the Waddell Ranch properties.
Riverhill Energy currently conducts the accounting operations for the Texas Royalty
properties. Royalty income consists of the amounts received by the owners of the interests
burdened by the net overriding royalty interests (Royalties) 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% in the case of the Waddell Ranch
properties and 95% in the case of the Texas Royalty properties.As was previously reported, in February 1997, BROG sold its interest in the Texas Royalty
properties to Riverhill Energy.The Trustee has been advised that in the first quarter of 1998, STC acquired all of the
shares of stock of Riverhill Capital. Prior to such acquisition by STC, CMC and Riverhill
Energy were wholly owned subsidiaries of Riverhill Capital. The Trustee has further been
advised that in connection with STCs acquisition of Riverhill Capital, the shareholders of
Riverhill Capital acquired ownership of all of the shares of stock of Riverhill Energy.
Thus, the ownership in the Texas Royalty properties referenced above remained in Riverhill
Energy, the stock ownership of which was acquired by the former shareholders of Riverhill
Capital.
 
    
    On March 31, 2006, ConocoPhillips announced that it had completed an acquisition of BRI.
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
    
    Trust expenses recorded are based on liabilities paid and cash reserves established out
of cash received or borrowed funds for liabilities and contingencies.
    
    Distributions to Unit holders are recorded when declared by the Trustee.
    
    Royalty income is computed separately for each of the conveyances under which the
Royalties were conveyed to the Trust. If monthly costs exceed revenues for any conveyance
(excess costs), such excess cannot reduce royalty income from other conveyances, but is
carried forward with accrued interest to be recovered from future net proceeds of that
conveyance.The financial statements of the Trust differ from financial statements prepared in
accordance with accounting principles generally accepted in the United States of America
(GAAP) because revenues are not accrued in the month of production and certain cash
reserves may be established for contingencies which would not be accrued in financial
statements. Amortization of the Royalties calculated on a unit-of-production basis is
charged directly to trust corpus. This comprehensive basis of accounting other than GAAP
corresponds to the accounting permitted for royalty trusts by the U.S. Securities and
Exchange Commission as specified by Staff Accounting Bulletin Topic 12:E, Financial
Statements of Royalty Trusts.
 New Accounting Pronouncements
 In February 2006, the FASB amended issued SFAS No. 155, Accounting for Certain Hybrid Financial
Instruments  an amendment of FASB Statements No. 133 Accounting for Derivative Instruments and
No. 140 Accounting for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities. This statement resolves issues addressed in Statement 133 Implementation Issue No.
D1, Application of Statement 133 to Beneficial interests in Securitized Financial Assets. This
statement is effective for all financial instruments acquired or issued after the beginning of
an entitys first fiscal year that begins after September 15, 2006. The Trust has no financial
instruments and accordingly, the impact of this new Standard will not impact the financial
statements of the Trust.In March 2006, the FASB amended issued SFAS No. 156, Accounting for Servicing of Financial
Assets  an amendment of FASB Statements No. 140 Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities. This statement requires an entity to
recognize a servicing asset or servicing liability each time it undertakes an obligation to
service a financial asset by entering into a servicing contract in certain situations. This
statement is effective as of the beginning of an entitys first fiscal year that begins after
September 15, 2006. The Trust does not believe the adoption of this statement will have a
material effect on its financial statements.In July 2006, the Financial Accounting Standards
Board (FASB) issued FASB Interpretation No. 48 (FIN
48), Accounting for Uncertainty in Income Taxes,
which clarifies the accounting for uncertainty in income taxes
recognized in the financial statements in accordance with SFAS No.
109, Accounting for Income Taxes. FIN 48 is effective for
fiscal years beginning after December 15, 2006. The Trust does not
believe that the adoption of this statement will have a material
effect on its financial statements.
 2.
    
    FEDERAL INCOME TAXESFor Federal income tax purposes, the Trust constitutes a fixed investment trust which is taxed
as a grantor trust. A grantor trust is not subject to tax at the trust level. The Unit holders
are considered to own the Trusts income and principal as though no trust were in existence.
The income of the Trust is deemed to have been received or accrued by each Unit holder at the
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time such income is received or accrued by the Trust and not when distributed by the Trust and
not when distributed by the Trust.The Royalties constitute economic interests in oil and gas properties for Federal income tax
purposes. Unit holders must report their share of the revenues from the Royalties as ordinary
income from oil and gas royalties and are entitled to claim depletion with respect to such
income.The Trust has on file technical advice memoranda confirming the tax treatment described above.The classification of the Trusts income for purposes of the passive loss rules may be important
to a Unit holder. Royalty income generally is treated as portfolio income and does not offset
passive losses.Unit holders should consult their tax advisors for further information.
 3.
    
    SUBSEQUENT EVENTSSubsequent to June 30, 2006, the Trust declared a distribution on July 21, 2006 of $.129940 per
unit payable on August 14, 2006, to Unit holders of record on July 31, 2006.4.
    
    STATE TAX CONSIDERATIONSAll revenues from the Trust are from sources within Texas, which has no individual income tax.
However, the franchise tax currently imposed by the state of Texas on corporations (the
definition of which generally includes limited liability companies) is partly based on federal
taxable income, which will include income from the Trust.The Texas legislature recently passed H.B. 3, 79th Leg., 3d C.S. (2006), which was signed into
law on May 18, 2006. H.B. 3 significantly reforms the Texas franchise tax system and replaces
it with a new Texas margin tax system. The margin tax expands the type of entities subject to
tax to generally include all active business entities, including corporations and limited
liability companies currently subject to the franchise tax. The new margin tax also will apply
to the following common entity types that are not currently subject to tax: general and limited
partnerships (unless otherwise exempt), limited liability partnerships, trusts (unless otherwise
exempt), business trusts, business associations, professional associations, joint stock
companies, holding companies, and joint ventures. The effective date of the margin tax is
January 1, 2008, but the tax generally will be imposed on gross revenues generated in 2007 and
thereafter.Trusts and partnerships that meet statutory requirements and receive at least 90% of their gross
income from designated sources, including royalties from mineral properties, and do not receive
more than 10% of their income from operating an active trade or business, are generally exempt
from the margin tax as passive entities. Although the income of the Trust consists primarily
of royalty income from the sale of crude oil and natural gas, there is no clear authority that
the Trust satisfies all the margin tax statutory requirements for the exemption for passive
entities to apply. Therefore, prior to clarification by additional legislative action or the
issuance of applicable administrative rules promulgated by the Texas
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Comptroller, it is uncertain whether the Trust would be exempt from the margin tax as a passive
entity or subject to the margin tax at the trust level.If the Trust is exempt from the margin tax at the trust level as a passive entity, each Unit
holder that is a taxable entity would generally include its share of the Trusts revenues in its
margin tax computation. If, however, the margin tax is imposed on the Trust at the trust level,
each Unit holder would generally exclude its share of the Trusts revenues from its margin tax
calculation. Each purchaser is urged to consult his own tax advisor regarding the requirements
for filing state income, franchise and margin tax returns.
 
 Item 2. Trustees Discussion And Analysis
 Forward Looking Information
  Texas
Margin Tax
 All revenues from the Trust are from sources within Texas, which has no individual income tax.
However, the franchise tax currently imposed by the state of Texas on corporations (the
definition of which generally includes limited liability companies) is partly based on federal
taxable income, which will include income from the Trust.The Texas legislature recently passed H.B. 3, 79th Leg., 3d C.S. (2006), which was signed into
law on May 18, 2006. H.B. 3 significantly reforms the Texas franchise tax system and replaces
it with a new Texas margin tax system. The margin tax expands the type of entities subject to
tax to generally include all active business entities, including corporations and limited
liability companies currently subject to the franchise tax. The new margin tax also will apply
to the following common entity types that are not currently subject to tax: general and limited
partnerships (unless otherwise exempt), limited liability partnerships, trusts (unless otherwise
exempt), business trusts, business associations, professional associations, joint stock
companies, holding companies, and joint ventures. The effective date of the margin tax is
January 1, 2008, but the tax generally will be imposed on gross revenues generated in 2007 and
thereafter.Trusts and partnerships that meet statutory requirements and receive at least 90% of their gross
income from designated sources, including royalties from mineral properties, and do not receive
more than 10% of their income from operating an active trade or business, are generally exempt
from the margin tax as passive entities. Although the income of the Trust consists primarily
of royalty income from the sale of crude oil and natural gas, there is no clear authority that
the Trust satisfies all the margin tax statutory requirements for the exemption for passive
entities to apply. Therefore, prior to clarification by additional legislative action or the
issuance of applicable administrative rules promulgated by the Texas
 Three Months Ended June 30, 2006 Compared to Three Months Ended June 30, 2005
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Second Quarter2006
    
    2005Royalties:Oil sales (Bbls)
    
    
    170,398
    
    
    
    181,562Gas sales (Mcf)
    
    
    654,765
    
    
    
    747,306Properties From Which The Royalties Were Carved:Oil:Total oil sales (Bbls)
    
    
    301,624
    
    
    
    312,749Average per day (Bbls)
    
    
    3,389
    
    
    
    3,514Average price per Bbl
    
    $
    57.44
    
    
    $
    46.61Gas:Total gas sales (Mcf)
    
    
    1,433,943
    
    
    
    1,518,099Average per day (Mcf)
    
    
    16,112
    
    
    
    17,057Average price per Mcf
    
    $
    7.23
    
    
    $
    6.43
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Six Months Ended June 30, 2006 and 2005
    14




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First Six Months2006
    
    2005Royalties:Oil sales (Bbls)
    
    
    376,310
    
    
    
    389,586Gas sales (Mcf)
    
    
    1,550,103
    
    
    
    1,659,975Properties From Which The Royalties Were Carved:Oil:Total oil sales (Bbls)
    
    
    604,562
    
    
    
    621,641Average per day (Bbls)
    
    
    3,340
    
    
    
    3,434Average price per Bbl
    
    $
    56.11
    
    
    $
    43.41Gas:Total gas sales (Mcf)
    
    
    2,855,906
    
    
    
    3,020,045Average per day (Mcf)
    
    
    15,778
    
    
    
    16,685Average price per Mcf
    
    $
    8.39
    
    
    $
    6.39
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Calculation of Royalty Income
  Three Months Ended June 30,2006
    
    
    2005Waddell
    
    
    Texas
    
    
    Waddell
    
    
    TexasRanch
    
    
    Royalty
    
    
    Ranch
    
    
    RoyaltyProperties
    
    
    Properties
    
    
    Properties
    
    
    PropertiesGross proceeds of sales from the Underlying
PropertiesOil proceeds
    
    $
    12,049,454
    
    
    $
    5,275,847
    
    
    $
    10,479,780
    
    
    $
    4,098,342Gas proceeds
    
    
    8,926,146
    
    
    
    1,445,849
    
    
    
    8,609,544
    
    
    
    1,154,657Total
    
    
    20,975,600
    
    
    
    6,721,696
    
    
    
    19,089,324
    
    
    
    5,252,999Less:Severance tax:Oil
    
    
    522,406
    
    
    
    177,414
    
    
    
    429,141
    
    
    
    157,934Gas
    
    
    577,998
    
    
    
    90,916
    
    
    
    494,545
    
    
    
    71,968Lease operating expense and
property tax:Oil and gas
    
    
    3,300,435
    
    
    
    285,000
    
    
    
    2,744,168
    
    
    
    225,000Other
    
    
    42,695
    
    
    
    
    
    
    
    42,504Capital expenditures
    
    
    5,624,603
    
    
    
    
    
    
    
    4,461,869Total
    
    
    10,068,137
    
    
    
    553,330
    
    
    
    8,172,227
    
    
    
    454,902Net profits
    
    
    10,907,463
    
    
    
    6,168,366
    
    
    
    10,917,097
    
    
    
    4,798,097Net overriding royalty interests
    
    
    75
    %
    
    
    95
    %
    
    
    75
    %
    
    
    95
    %Royalty income
    
    $
    8,180,597
    
    
    $
    5,859,947
    
    
    $
    8,187,823
    
    
    $
    4,558,193
 Critical Accounting Policies and Estimates
  Basis of Accounting
  16




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
    
    Royalty income and interest income are recorded in the period in which amounts are
received by the Trust rather than in the period of production and accrual, respectively.
    
    General and administrative expenses recorded are based on liabilities paid and cash
reserves established out of cash received.
    
    Amortization of the royalty interests is calculated on a unit-of-production basis and
charged directly to trust corpus when revenues are received.
    
    Distributions to Unit holders are recorded when declared by the Trustee (see Note 1 to
the Financial Statements).
  New Accounting Pronouncements
    Revenue Recognition
 st
 17




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Reserve Disclosure
   Contingencies
  Use of Estimates
  
 Item 3. Qualitative and Quantitative Disclosures About Market Risk
  
 Item 4. Controls and Procedures
  18




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PART II  OTHER INFORMATION
 
 Items 1 through 5.
  
 Item 6. Exhibits and Reports on Form 8-K
 4.1
    
    Permian Basin Royalty Trust Indenture dated November 3, 1980,
between Southland Royalty Company (now Burlington Resources Oil & Gas Company
LP) and The First National Bank of Fort Worth (now Bank of America, N.A.), as
Trustee, heretofore filed as Exhibit (4)(a) to the Trusts Annual Report on
Form 10-K to the Securities and Exchange Commission for the fiscal year ended
December 31, 1980 is incorporated herein by reference.4.2
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty Trust)
from Southland Royalty Company (now Burlington Resources Oil & Gas Company LP)
to The First National Bank of Fort Worth (now Bank of America, N.A.), as
Trustee, dated November 3, 1980 (without Schedules), heretofore filed as
Exhibit (4)(b) to the Trusts Annual Report on Form 10-K to the Securities and
Exchange Commission for the fiscal year ended December 31, 1980 is incorporated
herein by reference.4.3
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty Trust
  Waddell Ranch) from Southland Royalty Company (now Burlington Resources Oil &
Gas Company LP) to The First National Bank of Fort Worth (now Bank of America,
N.A.), as Trustee, dated November 3, 1980 (without Schedules), heretofore filed
as Exhibit (4)(c) to the Trusts Annual Report on Form 10-K to the Securities
and Exchange Commission for the fiscal year ended December 31, 1980 is
incorporated herein by reference.10.1
    
    Registration Rights Agreement dated as of July 21, 2004 by and
between Burlington Resources Inc. and Bank of America, N.A., as trustee of
Permian Basin Royalty Trust, heretofore filed as Exhibit 10.1 to the Trusts
Quarterly Report on Form 10-Q to the Securities and Exchange Commission for the
quarterly period ended June 30, 2004 is incorporated herein by reference.10.2
    
    Underwriting Agreement dated December 15, 2005 among the
Permian Basin Royalty Trust, Burlington Resources, Inc., Burlington Resources
Oil & Gas L.P. and Lehman Brothers Inc. and Wachovia Capital Markets, LLC as
representatives of the several underwriters, heretofore filed as Exhibit 10.1
to the Trusts current report filed on Form 8-K to the
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Securities and Exchange Commission filed on December 19, 2005, is
incorporated herein by reference.10.3
    
    Underwriting Agreement dated August 2, 2005 among the Permian
Basin Royalty Trust, Burlington Resources, Inc., Burlington Resources Oil & Gas
L.P. and Goldman Sachs & Co. and Lehman Brothers Inc. as representatives of the
several underwriters, heretofore filed as Exhibit 10.1 to the Trusts current
report filed on Form 8-K to the Securities and Exchange Commission filed on
August 8, 2005, is incorporated herein by reference.15.1
    
    Awareness Letter of Deloitte and Touche LLP, dated as of August
7, 2006.31.1
    
    Certification by Ron E. Hooper, Senior Vice President and Trust
Administrator of Bank of America, Trustee of Permian Basin Royalty Trust, dated
August 8, 2006 and submitted pursuant to Rule 13a-14(a)/15d-14(a).32.1
    
    Certificate by Bank of America, Trustee of Permian Basin
Royalty Trust, dated August 8, 2006 and submitted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
 20




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SIGNATURES
  BANK OF AMERICA, N.A.,
TRUSTEE FOR THE
PERMIAN BASIN ROYALTY TRUSTBy:
    /s/ Ron E. HooperRon E. HooperSenior Vice President
Trust Administrator   21




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##### Table of Contents



INDEX TO EXHIBITS
 ExhibitNumber
    
    Exhibit4.1
    
    Permian Basin Royalty Trust Indenture dated November 3,
1980, between Southland Royalty Company (now Burlington
Resources Oil & Gas Company LP) and The First National Bank
of Fort Worth (now Bank of America, N.A.), as Trustee,
heretofore filed as Exhibit (4)(a) to the Trusts Annual
Report on Form 10-K to the Securities and Exchange
Commission for the fiscal year ended December 31, 1980 is
incorporated herein by reference.*4.2
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty
Trust) from Southland Royalty Company (now Burlington
Resources Oil & Gas Company LP) to The First National Bank
of Fort Worth (now Bank of America, N.A.), as Trustee,
dated November 3, 1980 (without Schedules), heretofore
filed as Exhibit (4)(b) to the Trusts Annual Report on
Form 10-K to the Securities and Exchange Commission for the
fiscal year ended December 31, 1980 is incorporated herein
by reference.*4.3
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty
Trust  Waddell Ranch) from Southland Royalty Company (now
Burlington Resources Oil & Gas Company LP) to The First
National Bank of Fort Worth (now Bank of America, N.A.), as
Trustee, dated November 3, 1980 (without Schedules),
heretofore filed as Exhibit (4)(c) to the Trusts Annual
Report on Form 10-K to the Securities and Exchange
Commission for the fiscal year ended December 31, 1980 is
incorporated herein by reference.*10.1
    
    Registration Rights Agreement dated as of July 21, 2004 by
and between Burlington Resources Inc. and Bank of America,
N.A., as trustee of Permian Basin Royalty Trust, heretofore
filed as Exhibit 10.1 to the Trusts Quarterly Report on
Form 10-Q to the Securities and Exchange Commission for the
quarterly period ended June 30, 2004 is incorporated herein
by reference.10.2
    
    Underwriting Agreement dated December 15, 2005 among the
Permian Basin Royalty Trust, Burlington Resources, Inc.,
Burlington Resources Oil & Gas L.P. and Lehman Brothers
Inc. and Wachovia Capital Markets, LLC as representatives
of the several underwriters, heretofore filed as Exhibit
10.1 to the Trusts current report filed on Form 8-K to the
Securities and Exchange Commission filed on December 19,
2005, is incorporated herein by reference.10.3
    
    Underwriting Agreement dated August 2, 2005 among the
Permian Basin Royalty Trust, Burlington Resources, Inc.,
Burlington Resources Oil & Gas L.P. and Goldman Sachs & Co.
and Lehman Brothers Inc. as representatives of the several
underwriters, heretofore filed as Exhibit 10.1 to the
Trusts current report filed on Form 8-K to the Securities
and Exchange Commission filed on August 8, 2005, is
incorporated herein by reference.
 22




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##### Table of Contents



ExhibitNumber
    
    Exhibit15.1
    
    Awareness Letter of Deloitte &
Touche LLP, dated as of August 7, 2006.31.1
    
    Certification by Ron E. Hooper, Senior Vice President and
Trust Administrator of Bank of America, Trustee of Permian
Basin Royalty Trust, dated August 8, 2006 and submitted
pursuant to Rule 13a-14(a)/15d-14(a).32.1
    
    Certificate by Bank of America, Trustee of Permian Basin
Royalty Trust, dated August 8, 2006 and submitted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    A copy of this Exhibit is available to any Unit holder, at the actual cost of
reproduction, upon written request to the Trustee, Bank of America, N.A., 901
Main Street, Dallas, Texas 75202. 23