<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549



                                   Form 10-Q



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



                 For the Quarterly Period Ended June 30, 1997


                          Commission File No. 1-8032



                         SAN JUAN BASIN ROYALTY TRUST


Texas                                                      I.R.S. No. 75-6279898


                     Bank One, Texas, NA, Trust Department
                                P. O. Box 2604
                            Fort Worth, Texas 76113

                         Telephone Number 817/884-4630



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.  Yes  X  No
                      -----  -----

Number of units of beneficial interest outstanding at August 14, 1997: 
46,608,796



                                 Page 1 of 13
<PAGE>
 
                         SAN JUAN BASIN ROYALTY TRUST

                        PART I - FINANCIAL INFORMATION


Item 1.  Financial Statements.

The condensed financial statements included herein have been prepared by Bank
One, Texas, NA as Trustee for the San Juan Basin Royalty Trust, without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in annual
financial statements have been condensed or omitted pursuant to such rules and
regulations, although the Trustee believes that the disclosures are adequate to
make the information presented not misleading.  It is suggested that these
condensed financial statements be read in conjunction with the financial
statements and the notes thereto included in the Trust's latest annual report on
Form 10-K.  In the opinion of the Trustee, all adjustments, consisting only of
normal recurring adjustments, necessary to present fairly the assets,
liabilities and trust corpus of the San Juan Basin Royalty Trust at June 30,
1997, and the distributable income and changes in trust corpus for the three-
month and six-month periods ended June 30, 1996 and 1997 have been included.
The distributable income for such interim periods is not necessarily indicative
of the distributable income for the full year.

Deloitte & Touche LLP, independent certified public accountants, has made a
limited review of the condensed financial statements as of June 30, 1997 and for
the three-month and six-month periods ended June 30, 1997 and 1996 included
herein.

                                      -2-
<PAGE>
 
INDEPENDENT ACCOUNTANTS' REPORT

Bank One, Texas, NA as Trustee
 for the San Juan Basin Royalty Trust:

We have reviewed the accompanying condensed statement of assets, liabilities and
trust corpus of the San Juan Basin Royalty Trust as of June 30, 1997 and the
related condensed statements of distributable income and changes in trust corpus
for the three-month and six-month periods ended June 30, 1997 and 1996.  These
financial statements are the responsibility of the Trustee.

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

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

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

We have previously audited, in accordance with generally accepted auditing
standards, the statement of assets, liabilities and trust corpus of the San Juan
Basin Royalty Trust as of December 31, 1996, and the related statements of
distributable income and changes in trust corpus for the year then ended (not
presented herein); and in our report dated March 25, 1997, we expressed an
unqualified opinion on those financial statements.  In our opinion, the
information set forth in the accompanying condensed statement of assets,
liabilities and trust corpus as of December 31, 1996 is fairly stated, in all
material respects, in relation to the statement of assets, liabilities and trust
corpus from which it has been derived.

DELOITTE & TOUCHE LLP

August 8, 1997

                                      -3-
<PAGE>
 
SAN JUAN BASIN ROYALTY TRUST

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                      June 30,    December 31,
<S>                                                                 <C>           <C> 
ASSETS                                                                 1997           1996
                                                                    (Unaudited)
Cash and short-term investments                                     $ 2,893,637   $  3,127,828
Net overriding royalty interest in producing
   oil and gas properties (net of accumulated
   amortization of $74,048,424 and $70,467,380
   at June 30, 1997 and December 31, 1996, respectively)             59,227,104     62,808,148
                                                                    -----------   ------------

                                                                    $62,120,741   $ 65,935,976
                                                                    ===========   ============



LIABILITIES AND TRUST CORPUS

Distribution payable to Unit holders                                $ 2,893,637   $  3,127,828
Trust corpus - 46,608,796 Units of beneficial
   interest authorized and outstanding                               59,227,104     62,808,148
                                                                    -----------   ------------

                                                                    $62,120,741   $ 65,935,976
                                                                    ===========   ============

</TABLE>


CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                      Three Months Ended         Six Months Ended
                                            June 30,                 June 30,
                                   -----------------------   ------------------------
                                      1997         1996          1997         1996

<S>                                <C>          <C>          <C>           <C>       
Royalty income                     $8,899,973   $4,047,512   $27,371,235   $8,755,129
Interest income                        26,888        7,325        54,545       13,832
                                   ----------   ----------   -----------   ----------

                                    8,926,861    4,054,837    27,425,780    8,768,961

General and administrative
   expenditures                       361,751    1,111,813       593,253    1,899,587
                                   ----------   ----------   -----------   ----------

Distributable income               $8,565,110   $2,943,024   $26,832,527   $6,869,374
                                   ==========   ==========   ===========   ==========

Distributable income per Unit
   (46,608,796 Units)              $  .183766   $  .063143   $   .575696   $  .147382
                                   ==========   ==========   ===========   ==========
</TABLE>


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


                                      -4-

<PAGE>
 
SAN JUAN BASIN ROYALTY TRUST

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                             Three Months Ended             Six Months Ended
                                                   June 30,                      June 30,
                                        ---------------------------   ---------------------------
                                             1997           1996           1997           1996

<S>                                     <C>            <C>            <C>            <C>         
Trust corpus, beginning of period       $ 60,637,211   $ 68,491,379   $ 62,808,148   $ 70,133,536
Amortization of net overriding
   royalty interest                       (1,410,107)    (1,712,545)    (3,581,044)    (3,354,702)
Distributable income                       8,565,110      2,943,024     26,832,527      6,869,374
Distributions declared                    (8,565,110)    (2,943,024)   (26,832,527)    (6,869,374)
                                        ------------   ------------   ------------   ------------

Trust corpus, end of period             $ 59,227,104   $ 66,778,834   $ 59,227,104   $ 66,778,834
                                        ============   ============   ============   ============

</TABLE>

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


                                      -5-
<PAGE>
 
SAN JUAN BASIN ROYALTY TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

1. BASIS OF ACCOUNTING

   The San Juan Basin Royalty Trust ("Trust") was established as of November 1,
   1980.  The financial statements of the Trust are prepared on the following
   basis:

   .  Royalty income recorded for a month is the amount computed and paid by the
      interest owner, Burlington Resources Oil & Gas Company ("BROG"), to the
      Trustee for the Trust. Royalty income consists of the amounts received by
      the owner of the interest burdened by the net overriding royalty interest
      ("Royalty") 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%.

   .  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 overriding royalty interest to the
      Trust provides that any excess of production costs over gross proceeds
      must be recovered from future net profits.

   The financial statements of the Trust differ from financial statements
   prepared in accordance with generally accepted accounting principles ("GAAP")
   because revenues are not accrued in the month of production and certain cash
   reserves may be established for contingencies which would not be accrued in
   financial statements prepared in accordance with GAAP.  Amortization of the
   Royalty calculated on a unit-of-production basis is charged directly to trust
   corpus.

2. FEDERAL INCOME TAXES

   For 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
   time such income is received or accrued by the Trust rather than when
   distributed by the Trust.

   The Royalty constitutes an "economic interest" in oil and gas properties for
   Federal income tax purposes.  Unit holders must report their share of the
   revenues of the Trust as ordinary income from oil and gas royalties and are
   entitled to claim depletion with respect to such income.  The Royalty is
   treated as a single property for depletion purposes.

   The Trust has on file technical advice memoranda confirming the tax treatment
   described above.

   The Trust began receiving royalty income from coal seam wells beginning in
   1989.  Under Section 29 of the Internal Revenue Code, production from coal
   seam gas wells drilled prior to January 1, 1993, qualifies for the federal
   income tax credit for producing non-conventional fuels.  This tax credit was
   approximately $1.03 per MMBtu for the year 1996 and is adjusted for inflation
   annually.  The credit currently applies to production through the year 2002.
   Each Unit holder must determine his pro rata share of such production based
   upon the number of Units owned during each month of the year and apply the
   tax credit against his own income tax liability, but such credit may not
   reduce his regular tax 

                                      -6-
<PAGE>
 
   liability (after the foreign tax credit and certain other nonrefundable
   credits) below his tentative minimum tax. Section 29 also provides that any
   amount of Section 29 credit disallowed for the tax year solely because of
   this limitation will increase his credit for prior year minimum tax
   liability, which may be carried forward indefinitely as a credit against the
   taxpayer's regular tax liability, subject, however, to the limitations
   described in the preceding sentence. There is no provision for the carryback
   or carryforward of the Section 29 credit in any other circumstances.

   The classification of the Trust's income for purposes of the passive loss
   rules may be important to a Unit holder.  As a result of the Tax Reform Act
   of 1986, royalty income will generally be treated as portfolio income and
   will not reduce passive losses.

                                     ******

                                      -7-
<PAGE>
 
Item 2.   Trustee's Discussion and Analysis

Forward Looking Information

Certain information included in this report contains,  and other materials filed
or to be filed by the Trust with the Securities and Exchange Commission (as well
as information  included in oral statements or other written  statements made or
to be made by the Trust) may  contain or  include,  forward  looking  statements
within the meaning of Section 21E of the  Securities  Exchange  Act of 1934,  as
amended, and Section 27A of the Securities Act of 1933, as amended. Such forward
looking  statements  may  be  or  may  concern,   among  other  things,  capital
expenditures,  drilling activity, development activities, production efforts and
volumes,  hydrocarbon  prices and the results thereof,  and regulatory  matters.
Such forward  looking  statements  generally  are  accompanied  by words such as
"estimate,"  "expect,"  "predict,"  "anticipate,"  "goal,"  "should,"  "assume,"
"believe,"  or other  words that  convey  the  uncertainty  of future  events or
outcomes.

THREE MONTHS ENDED JUNE 30, 1997 AND JUNE 30, 1996:

The San Juan Basin  Royalty Trust  received  royalty  income of  $8,899,973  and
interest  income of $26,888 during the second quarter of 1997.  After  deducting
administrative  expenses of $361,751,  distributable  income for the quarter was
$8,565,110  ($.183766  Unit). In the second quarter of 1996,  royalty income was
$4,047,512,  interest income was $7,325, administrative expenses were $1,111,813
and distributable income was $2,943,024 ($.063143 Unit). The tax credit relating
to production from coal seam wells totaled  approximately  $.04 per Unit for the
second quarter of 1997 and $.04 per Unit for the second  quarter of 1996.  Based
on 46,608,796 Units outstanding,  the per Unit  distributions  during the second
quarter of 1997 were as follows:

April                                 $ .076326
May                                     .045357
June                                    .062083
                                      ---------

Quarter Total                         $ .183766
                                      =========

The royalty  income  distributed  in the second  quarter of 1997 was higher than
that  distributed  in the second quarter of 1996 primarily due to an increase in
the average gas price from $1.09 per Mcf for the second quarter of 1996 to $1.75
per Mcf for the second quarter of 1997.  Interest earnings for the quarter ended
June 30,  1997,  as  compared to the quarter  ended June 30,  1996,  were higher
primarily due to increased  funds  available for investment and higher  interest
rates.  Administrative  expenses  decreased,  primarily as a result of decreased
expenses  relating  to the  settlement  of  litigation  between  the  Trust  and
Burlington  Resources Oil & Gas Company  ("BROG").  Unit holders are referred to
"Trustee's  Discussion  and  Analysis"  in the Trust's  1996  Annual  Report for
additional information regarding the settlement.

The capital costs  attributable to the properties from which the Trust's 75% net
overriding  royalty  ("Royalty")  was carved for the second quarter of 1997 were
reported by BROG as $1,793,762 versus $1,288,864 for the second quarter of 1996.
BROG has  informed  the Trust that they have  revised the  estimate for the 1997
capital  plan from $1.7 million  reported in the Trust's  1996 Annual  Report to
$4.5 million.  The revision is due to $1.0 million for  facilities  expenditures
and an  additional  $1.8  million  for 1997  projects,  both of  which  were not
included in the original estimate. Additionally,  approximately $2.0 million has
been or will be spent  in 1997  for  projects  planned  or begun in 1996.  Lease
operating  expenses and property taxes were $2,767,104 for the second quarter of
1997 as compared to $3,108,603 for the second quarter of 1996.


                                      -8-
<PAGE>
 
BROG has informed the Trustee that during the second  quarter of 1997,  16 gross
(1.55 net)  conventional  wells were completed on the properties  from which the
Royalty was carved. There was 1 gross (.05 net) coal seam and 18 gross (.81 net)
conventional   wells  in  progress  at  June  30,  1997.  One  gross  (.87  net)
conventional  well  recompletion  and 4 gross (.16 net) coal seam  recompletions
were in progress at June 30, 1997.  One gross (.004 net)  conventional  well was
completed  on the  properties  from which the  Royalty  was carved in the second
quarter of 1996.  There were 2 gross (.25 net) coal seam and 8 gross  (1.32 net)
conventional wells in progress at June 30, 1996. Four gross (3.08 net) coal seam
wells  were  recavitated  in the  second  quarter  of 1996.  Two gross (.66 net)
conventional   well   recompletions  and  6  gross  (.16  net)  coal  seam  well
recavitations were in progress at June 30, 1996.

Unit holders are referred to "Description of the Properties" in the Trust's 1996
Annual  Report for  further  information  concerning  BROG's  coal seam gas well
drilling  program in the San Juan Basin.  This program  includes  properties  in
which the Trust owns an interest.

Gas and oil sales  from the  properties  from which the  Royalty  was carved and
sales  attributable to the Royalty for the quarters ended June 30, 1997 and 1996
were as follows:
<TABLE>
<CAPTION>

                                                     1997             1996
PROPERTIES FROM WHICH THE ROYALTY WAS CARVED:
Gas:
<S>                                              <C>               <C>      
    Total sales (Mcf)                            10,213,566        9,885,383
    Mcf per day                                     114,759          109,838
    Average price (per Mcf)                           $1.75            $1.09

Oil:
    Total sales (Bbls)                               27,524           19,475
    Bbls per day                                        309              216
    Average price (per Bbl)                          $19.06           $20.13

ROYALTY:
Gas sales (Mcf)                                   5,522,845        4,064,427
Oil sales (Bbls)                                     14,550            8,128
</TABLE>

During the second quarter of 1997, gas prices were higher than during the second
quarter of 1996. Gas production  increased slightly in 1997 as compared to 1996.
The price per barrel of oil  during  the  second  quarter of 1997 was lower than
that received for the second quarter of 1996.

The second quarter sales figures are associated with actual oil and gas
production during February through April from the properties from which the
Royalty was carved. Since the oil and gas production attributable to the Royalty
is based on an allocation formula that is dependent on such factors as price and
cost, including capital expenditures, the production amounts do not provide a
meaningful comparison.

BROG's contract with a third-party purchaser as it pertains to baseload gas
volumes in the firm amount of 45,000 MMBtu per day has been extended through
December 31, 1997. Negotiations for the sale of these volumes after December 31,
1997, will be entered into prior to the expiration of the extended term of that
contract. The remaining volumes of Trust gas continue to be marketed by El Paso
Energy Marketing Company. Unit holders are referred to "Trustee's Discussion and
Analysis" in the Trust's 1996 Annual Report for further information concerning
the marketing of Trust gas.

SIX MONTHS ENDED JUNE 30, 1997 AND JUNE 30, 1996:

For the six months  ended June 30,  1997  distributable  income was  $26,832,527
($.575696 per Unit) which was greater than the $6,869,374 ($.147382 per Unit) of
income  distributed  during  the same  period  in 1996.  The  increase  resulted
primarily  from an increase in gas  prices.  Interest  income for the six months
ended June 30, 1997 was $54,545  compared to $13,832 during the first six months
of 1996.  This increase is due to an increase in funds available for investment.
General and administrative expenses decreased to $593,253

                                      -9-
<PAGE>
 
from  $1,899,587  during the 1996  period  primarily  due to the  settlement  of
litigation  between the Trust and BROG.  Unit holders are referred to "Trustee's
Discussion  and  Analysis"  in the  Trust's  1996 Annual  Report for  additional
information regarding the settlement.

Capital expenditures incurred by BROG, attributable to the properties from which
the Royalty was carved, for the first six months of 1997 amounted to $4,113,968.
Capital expenditures were $2,662,955 for the first six months of 1996.

Lease  operating  expenses and property taxes totaled  $5,654,117 for the first 
six months of 1997 compared to $5,768,151 for the first six months of 1996.

BROG advised the Trustee that during the six months ended June 30, 1997, 29
gross (2.06 net) conventional gas wells were completed on the properties from
which the Royalty was carved. One gross (.83 net) conventional well and 1 gross
(.84 net) coal seam well were recompleted, and 4 gross (.55 net) coal seam wells
were recavitated during the first six months of 1997. During the six months
ended June 30, 1996, 8 gross (1.144 net) conventional gas wells and 1 gross (.5
net) coal seam gas well were completed on the properties from which the Royalty
was carved. Six gross (4.67 net) coal seam and 8 gross (4.54 net) conventional
wells were recompleted during the first six months of 1996.

For the six months  ended June 30, 1997 and 1996  comparative  gas and oil sales
are as follows:
<TABLE>
<CAPTION>

                                                       1997            1996

PROPERTIES FROM WHICH THE ROYALTIES WERE CARVED:
Gas:
<S>                                                <C>              <C>       
   Total sales (Mcf)                               20,827,086       19,546,632
   Mcf per day                                        115,067          107,399
   Average price (per Mcf)                            $  2.41          $  1.13

Oil:
   Total sales (Bbls)                                  48,486           39,554
   Bbls per day                                           268              217
   Average price (per Bbl)                            $ 20.61          $ 18.94

ROYALTY:
Gas sales (Mcf)                                    12,064,934        8,504,049
Oil sales (Bbls)                                       27,213           17,244
</TABLE>

The first six  months  sales  figures  are  associated  with  actual oil and gas
production  during  November  1996 through April 1997 from the  properties  from
which the Royalties were carved. During the first six months of 1997, gas prices
were higher than during the first six months of 1996. The average oil price for
the first six  months of 1997 was  higher  than that for the first six months of
1996. Since the oil and gas production attributable to the Royalty is based on
an allocation formula that is dependent on such factors as price and cost,
including capital expenditures, the production amounts do not provide a
meaningful comparison.

                                      -10-
<PAGE>
 
ROYALTY CALCULATION:

Royalty income received by the Trust for the three months and six months ended 
June 30,  1997 and 1996,  respectively,  was computed as shown in the following 
table:

<TABLE>
<CAPTION>

                                              Three Months Ended                Six Months Ended
                                                    June 30,                        June 30,
                                        ------------------------------   -----------------------------
                                             1997             1996            1997            1996

<S>                                     <C>              <C>             <C>             <C>    
Gross  proceeds  of sales  from the    
   properties  from  which the net
   overriding royalty was carved:
   

   Gas proceeds                         $  17,840,045    $  10,781,798   $  50,244,916   $  22,046,595
   Oil proceeds                               524,649          395,525         999,186         759,040
                                        -------------    -------------   -------------   -------------

Total                                      18,364,694       11,177,323      51,244,102      22,805,635
                                        -------------    -------------   -------------   -------------

Less production costs:
   Severance tax - Gas                      1,890,896        1,342,394       4,885,760       2,617,209
   Severance tax - Oil                         46,302           40,779          95,277          83,814
   Lease operating expenses and
      property tax                          2,767,104        3,108,603       5,654,117       5,768,151
   Capital expenditures                     1,793,762        1,288,864       4,113,968       2,662,955
                                        -------------    -------------   -------------   -------------

Total                                       6,498,064        5,780,640      14,749,122      11,132,129
                                        -------------    -------------   -------------   -------------

Net profits                                11,866,630        5,396,683      36,494,980      11,673,506
                                        -------------    -------------   -------------   -------------

Net overriding royalty interest                    75%             75%              75%             75%
                                        -------------    ------------    -------------   -------------

Royalty income                          $   8,899,973    $  4,047,512    $  27,371,235   $   8,755,129
                                        =============    ============    =============   =============
</TABLE>


                                      -11-
<PAGE>
 
                          PART II - OTHER INFORMATION

Items 2-5  Not Applicable

Item 6.    Exhibits and Reports on Form 8-K

           (a)  Exhibits

                (4)(a) San Juan Basin Royalty Trust Indenture dated November 3,
                       1980, between Southland Royalty Company (now Burlington
                       Resources Oil & Gas Company) and The Fort Worth National
                       Bank (now Bank One, Texas, NA), 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)(b) Net Overriding Royalty Conveyance from Southland Royalty
                       Company (now Burlington Resources Oil & Gas Company) to
                       The Fort Worth National Bank (now Bank One, Texas, NA),
                       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.

                (27)   Financial Data Schedule

           (b)  Reports on Form 8-K

                No reports on Form 8-K were filed during the quarter ended June
                30, 1997.

                                      -12-
<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.

                                 BANK ONE, TEXAS, NA, AS TRUSTEE FOR
                                 THE SAN JUAN BASIN ROYALTY TRUST



                                        By  /s/ LEE ANN ANDERSON
                                          ----------------------------------
                                              Lee Ann Anderson
                                               Vice President

Date:  August 14, 1997


              (The Trust has no directors or executive officers.)

                                      -13-
<PAGE>
 
                               INDEX TO EXHIBITS


                                                                   SEQUENTIALLY
        EXHIBIT                                                      NUMBERED
        NUMBER              EXHIBIT                                    PAGE

        (4)(a)     San Juan Basin Royalty Trust Indenture dated 
                   November 3, 1980, between Southland Royalty 
                   Company (now Burlington Resources Oil & Gas 
                   Company) and The Fort Worth National Bank  
                   (now Bank One, Texas, 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)(b)     Net Overriding Royalty Conveyance from Southland 
                   Royalty Company (now Burlington Resources Oil & 
                   Gas Company) to The Fort Worth National Bank 
                   (now Bank One, Texas, 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.*

        (27)       Financial Data Schedule **


*   A copy of this Exhibit is available to any Unit holder, at the actual cost
    of reproduction, upon written request to the Trustee, Bank One, Texas, N.A.,
    P.O. Box 2604, Fort Worth, Texas 76113.

**  Filed herewith.

                                      -14-