<PAGE>

--------------------------------------------------------------------------------
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
--------------------------------------------------------------------------------


                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

              [ ] 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)


                              Bank of America, N.A.
                                Trust Department
                                 901 Main Street
                               Dallas, Texas 75202
                         (Address of Principal Executive
                               Offices; Zip Code)

                                 (214) 209-2400
              (Registrant's Telephone Number, Including Area Code)


         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 [ ]

         Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes[ ] No[X]

         Number of Units of beneficial interest of the Trust outstanding at May
1, 2003: 46,608,796.


<PAGE>




                           PERMIAN BASIN ROYALTY TRUST

                         PART I - FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS

The condensed financial statements included herein have been prepared by Bank of
America, N.A. as Trustee for the Permian 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 Permian Basin Royalty Trust at March 31,
2003, and the distributable income and changes in trust corpus for the
three-month periods ended March 31, 2003 and 2002 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 March 31, 2003 and
for the three-month periods ended March 31, 2003 and 2002 included herein.










                                       2
<PAGE>


                         INDEPENDENT ACCOUNTANTS' REPORT


Bank of America, N.A.,
as Trustee for the Permian Basin Royalty Trust

We have reviewed the accompanying condensed statement of assets, liabilities and
trust corpus of the Permian Basin Royalty Trust as of March 31, 2003 and the
related condensed statements of distributable income and changes in trust corpus
for the three-month periods ended March 31, 2003 and 2002. These financial
statements are the responsibility of the Trustee.

We conducted our review 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 auditing standards generally accepted in the United States of America, 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.

As described in Note 1 to the condensed financial statements, these condensed
financial statements have been prepared on a modified cash basis of accounting,
which is a comprehensive basis of accounting other than accounting principles
generally accepted in the United States of America.

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 auditing standards generally
accepted in the United States of America, the statement of assets, liabilities
and trust corpus of the Permian Basin Royalty Trust as of December 31, 2002, 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,
2003, 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, 2002 is fairly stated,
in all material respects, in relation to the statement of assets, liabilities
and trust corpus from which it has been derived.


/s/  DELOITTE & TOUCHE LLP


Dallas, Texas
May 7, 2003



                                       3
<PAGE>


PERMIAN BASIN ROYALTY TRUST

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

<Table>
<Caption>
                                                                           March 31,     December 31,
                                                                             2003           2002
                                                                          ------------   ------------
                                                                         (Unaudited)
<S>                                                                       <C>            <C>
ASSETS

Cash and short-term investments                                           $  2,620,747   $  2,371,387

Net overriding royalty interests in producing
    oil and gas properties (net of accumulated
    amortization of $8,845,289 and $8,802,823 at
    March 31, 2003 and December 31, 2002, respectively)                      2,129,927      2,172,393
                                                                          ------------   ------------

TOTAL ASSETS                                                              $  4,750,674   $  4,543,780
                                                                          ============   ============

LIABILITIES AND TRUST CORPUS

Distribution payable to Unit holders                                      $  2,620,747   $  2,371,387

Commitments and contingencies
Trust corpus - 46,608,796 Units of
    beneficial interest authorized and
    outstanding                                                              2,129,927      2,172,393
                                                                          ------------   ------------

TOTAL LIABILITIES
      AND TRUST CORPUS                                                    $  4,750,674   $  4,543,780
                                                                          ============   ============
</Table>


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





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




                                       4
<PAGE>
PERMIAN BASIN ROYALTY TRUST

CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)


<Table>
<Caption>
                                                  THREE           THREE
                                                 MONTHS          MONTHS
                                                  ENDED           ENDED
                                                March 31,       March 31,
                                                   2003            2002
                                               ------------    ------------
<S>                                            <C>             <C>
Royalty income                                 $  6,983,374    $  4,574,228
Interest income                                       3,534           4,834
                                               ------------    ------------
                                                  6,986,908       4,579,062

General and administrative expenditures
                                                    217,428        (160,752)
                                               ------------    ------------

Distributable income                           $  6,769,480    $  4,418,310
                                               ============    ============

Distributable income per Unit
    (46,608,796 Units)                         $        .15    $        .09
                                               ============    ============
</Table>


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




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






                                       5
<PAGE>
PERMIAN BASIN ROYALTY TRUST

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)

<Table>
<Caption>
                                                THREE           THREE
                                               MONTHS          MONTHS
                                                ENDED           ENDED
                                               March 31,       March 31,
                                                 2003            2002
                                             ------------    ------------
<S>                                          <C>             <C>
Trust corpus, beginning of period            $  2,172,393    $  2,371,187

Amortization of net overriding royalty
    interests                                      42,466         (41,612)
Distributable income                            6,769,480       4,418,310
Distributions declared                         (6,769,480)     (4,418,310)
                                             ------------    ------------
Total Trust Corpus, end of period            $  2,129,927    $  2,329,575
                                             ============    ============

Distributions per unit                       $        .15    $        .09
                                             ============    ============
</Table>





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






                                       6
<PAGE>


PERMIAN BASIN ROYALTY TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


1.       BASIS OF ACCOUNTING

         The 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 ("BROG") for the Waddell Ranch properties and River
                  Hill Energy Corporation ("River Hill Energy"), formerly a
                  wholly owned subsidiary of River Hill Capital Corporation
                  ("River Hill Capital") and formerly an affiliate of Coastal
                  Management Corporation ("CMC"), for the Texas Royalty
                  properties. CMC currently conducts all field, technical and
                  accounting operations on behalf of BROG with regard to the
                  Waddell Ranch properties. CMC also conducts the accounting
                  operations for the Texas Royalty properties on behalf of River
                  Hill Energy. Royalty income consists of the amounts received
                  by the owners of the interest 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 River Hill Energy.

                  The Trustee has been advised that in the first quarter of
                  1998, Schlumberger Technology Corporation ("Schlumberger")
                  acquired all of the shares of stock of River Hill Capital.
                  Prior to such acquisition by Schlumberger, CMC and River Hill
                  Energy were wholly owned subsidiaries of River Hill Capital.
                  The Trustee has further been advised that in connection with
                  Schlumberger's acquisition of River Hill Capital, the
                  shareholders of River Hill Capital acquired ownership of all
                  of the shares of stock of River Hill Energy. Thus, the
                  ownership in the Texas Royalty properties referenced above
                  remained in River Hill Energy, the stock ownership of which
                  was acquired by the former shareholders of River Hill Capital.

         --       Trust expenses recorded are based on liabilities paid and cash
                  reserves established out of cash received or borrowed funds
                  for liabilities and contingencies.



                                       7
<PAGE>

         -        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.

         Statement of Financial Accounting Standards ("SFAS") No. 143,
         "Accounting for Asset Retirement Obligations" was issued in June 2001,
         and was adopted by the Trust on January 1, 2003. This Statement
         addresses financial accounting and reporting for obligations associated
         with the retirement of tangible long-lived assets and the associated
         asset retirement costs. The effect of adopting SFAS No. 143 did not
         have a material impact on the Trust's financial statements.

         SFAS No. 145, "Rescission of FASB Statements No. 4, 44, and 64,
         Amendment of FASB Statement No. 13, and Technical Corrections" was
         issued in April 2002 and is effective for fiscal years beginning after
         May 15, 2002. This Statement includes the rescission of FASB Statement
         No. 4, "Reporting Gains and Losses from Extinguishment of Debt," and an
         amendment to FASB Statement No. 13, "Accounting for Leases," to
         eliminate an inconsistency between the required accounting for
         sale-leaseback transactions and the required accounting for certain
         lease modifications that have economic effects that are similar to
         sale-leaseback transactions. The effect of adopting SFAS No. 145 has
         not had a material impact on the Trust's financial statements.

         SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal
         Activities" was issued in June 2002 and is effective for exit or
         disposal activities subsequent to December 31, 2002. The Trust
         experienced no material impact on its financial statements from the
         adoption of this accounting standard.

         SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and
         Disclosure, an amendment of FASB Statement No. 123," was issued in
         December 2002 and provides new transition methods if an entity adopts
         the fair value based method of valuing stock-based compensation
         suggested in SFAS No. 123 "Accounting for Stock-Based Compensation," as
         well as requiring additional disclosures in interim and annual
         financial statements. The Trust has no options or other stock-based
         instruments and accordingly, the impact of this new Standard has not
         been material to the financial statements of the Trust.

         FASB Interpretation ("FIN") No. 45, "Guarantor's Accounting and
         Disclosure Requirements for Guarantees, Including Indirect Guarantees
         of Indebtedness of Others," requires disclosures beginning with
         financial statements ending after December 15, 2002, and requires
         liability recognition beginning January 1, 2003. The Trust had no such
         guarantees outstanding as of March 31, 2003.

         FIN No. 46, "Consolidation of Variable Interest Entities" was issued in
         January 2003. This interpretation of Accounting Research Bulletin No.
         51, "Consolidated Financial Statements," applies immediately to
         variable interest entities created after January 31, 2003, and applies
         to the first period beginning after June 15, 2003, to entities acquired
         before February 1, 2003. This FIN does not affect the Trust as it has
         no unconsolidated subsidiaries accounted for under the equity method of
         accounting.

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 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.

3.       SUBSEQUENT EVENTS

         Subsequent to March 31, 2003, the Trust declared a distribution on
         April 17, 2003 of $0.054327 payable on May 14, 2003, to unitholders of
         record on April 30, 2003.



                                       8
<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.
Although the Trustee believes that the expectations reflected in such
forward-looking statements are reasonable, such expectations are subject to
numerous risks and uncertainties and the Trustee can give no assurance that they
will prove correct. There are many factors, none of which is within the
Trustee's control, that may cause such expectations not to be realized,
including, among other things, factors such as actual oil and gas prices and the
recoverability of reserves, capital expenditures, general economic conditions,
actions and policies of petroleum-producing nations and other changes in the
domestic and international energy markets. 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 MARCH 31, 2003 COMPARED TO THREE MONTHS ENDED MARCH 31, 2002

For the quarter ended March 31, 2003 royalty income received by the Trust
amounted to $6,983,374 compared to royalty income of $4,574,228 during the first
quarter of 2002. The increase in royalty income is primarily attributable to
significant increases in both oil and gas prices.

Interest income for the quarter ended March 31, 2003, was $3,534 compared to
$4,834 during the first quarter of 2002. The decrease in interest income is
primarily attributable to lower interest rates. General and administrative
expenses during the first quarter of 2003 amounted to $217,428 compared to
$160,752 during the first quarter of 2002. The increase in general and
administrative expenses can be primarily attributed to the timing of payment of
year end expenses.

These transactions resulted in distributable income for the quarter ended March
31, 2003 of $6,769,480 or $.15 per Unit of beneficial interest. Distributions of
$.050096, $.038915 and $.056228 per Unit were made to Unit holders of record as
of January 31, February 28 and March 31, 2003, respectively. For the first
quarter of 2002, distributable income was $4,418,310, or $.09 per Unit of
beneficial interest.

Royalty income for the Trust for the first quarter of the calendar year is
associated with actual oil and gas production for the period November and
December of 2002 and January 2003 from the properties from which the Trust's net
overriding royalty interests ("Royalties") were carved. Oil and gas sales
attributable to the Royalties and the properties from which the Royalties were
carved are as follows:



                                       9
<PAGE>



<Table>
<Caption>
                                                             FIRST QUARTER
                                                       -----------------------
                                                          2003         2002
                                                       ----------   ----------
<S>                                                       <C>          <C>
ROYALTIES:
Oil sales (Bbls)                                          163,593      175,238
Gas sales (Mcf)                                           696,119      759,642

PROPERTIES FROM WHICH THE ROYALTIES WERE CARVED:
Oil:
    Total oil sales (Bbls)                                307,978      323,909
    Average per day (Bbls)                                  3,348        3,521
    Average price per Bbl                              $    28.82   $    16.97

Gas:
    Total gas sales (Mcf)                               1,558,654    1,555,506
    Average per day (Mcf)                                  16,942       16,908
    Average price per Mcf                              $     3.99   $     2.36

</Table>

The posted price of oil increased to an average price per barrel of $28.82 per
Bbl in the first quarter of 2003, compared to $16.97 per Bbl in the first
quarter of 2002. The Trustee has been advised by BROG that for the period August
1, 1993, through March 31, 2003, the oil from the Waddell Ranch properties was
being sold under a competitive bid to a third party. The average price of gas
increased from $2.36 per Mcf in the first quarter of 2002 to $3.99 per Mcf in
the first quarter of 2003 due to strong energy pricing and more demand for
products.

Since the oil and gas sales attributable to the Royalties are based on an
allocation formula that is dependent on such factors as price and cost
(including capital expenditures), the production amounts in the Royalties
section of the above table do not provide a meaningful comparison. Oil and gas
sales volumes from the Underlying Properties decreased for the applicable period
in 2003 compared to 2002.

Capital expenditures for drilling, remedial and maintenance activities on the
Waddell Ranch properties during the first quarter of 2003 totaled $2,950,000 as
compared to $885,649 for the first quarter of 2002. BROG has informed the
Trustee that the 2003 capital expenditures budget has been revised to $9.9
million for the Waddell Ranch. The total amount of capital expenditures for 2002
was $9.6 million. Through the first quarter of 2003, capital expenditures of
$2.96 million have been expended.

The Trustee has been advised that there was 2 wells completed and 2 wells in
progress during the three months ended March 31, 2003 as compared to 1 well
completed or in progress for the three months ended March 31, 2002 on the
Waddell Ranch properties.

Lease operating expense and property taxes totaled $2.58 million for the first
quarter of 2003, compared to $2 million in the first quarter of 2002 on the
Waddell Ranch properties. This increase is primarily attributable to additional
maintenance costs for the quarter.




                                       10
<PAGE>
CALCULATION OF ROYALTY INCOME

The Trust's royalty income is computed as a percentage of the net profit from
the operation of the properties in which the Trust owns net overriding royalty
interests. These percentages of net profits are 75% and 95% in the case of the
Waddell Ranch properties and the Texas Royalty properties, respectively. Royalty
income received by the Trust for the three months ended March 31, 2003 and 2002,
respectively, were computed as shown in the table below:

<Table>
<Caption>
                                                      THREE MONTHS ENDED MARCH 31,
                                       ------------------------------------------------------------
                                                   2003                           2002
                                       ------------------------------------------------------------
                                         WADDELL          TEXAS          WADDELL          TEXAS
                                          RANCH          ROYALTY          RANCH          ROYALTY
                                        PROPERTIES      PROPERTIES      PROPERTIES      PROPERTIES
                                       ------------    ------------    ------------    ------------
<S>                                    <C>             <C>             <C>             <C>
Gross proceeds of sales from the
    Underlying Properties
    Oil proceeds                       $  6,552,266    $  2,324,242    $  4,008,109    $  1,490,222
    Gas proceeds                          5,406,817         810,547       3,067,957         600,278
                                       ------------    ------------    ------------    ------------
                      Total              11,959,083       3,134,789       7,076,066       2,090,500
                                       ------------    ------------    ------------    ------------

Less:
    Severance tax:
        Oil                                 277,238          85,319         167,894          57,880
        Gas                                 338,737          79,641         162,016          45,925
    Lease operating expense and
         property tax:
        Oil and gas                       2,581,653         195,000       2,050,017         180,000
    Capital expenditures                  2,965,073                         885,649
                                       ------------    ------------    ------------    ------------
                      Total               6,162,701         359,960       3,265,576         283,805
                                       ------------    ------------    ------------    ------------

Net profits                               5,796,382       2,774,829       3,810,490       1,806,695
Net overriding royalty interests                 75%             95%             75%             95%
                                       ------------    ------------    ------------    ------------
Royalty income                         $  4,347,287    $  2,636,087    $  2,857,868    $  1,716,360
                                       ============    ============    ============    ============
</Table>

Critical Accounting Policies and Estimates

        The Trust's financial statements reflect the selection and application
of accounting policies that require the Trust to make significant estimates and
assumptions. The following are some of the more critical judgment areas in the
application of accounting policies that currently affect the Trust's financial
condition and results of operations.

        Basis of Accounting

        The financial statements of the Trust are prepared on a modified cash
basis and are not intended to present financial positions and results of
operations in conformity with accounting principles generally accepted in the
United States of America. Preparation of the Trust's financial statements on
such basis includes the following:

-       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 Unitholders are recorded when declared by the Trustee
        (see Note 4).

        The financial statements of the Trust differ from financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America because royalty income is not accrued in the period of
production, general and administrative expenses recorded are based on
liabilities paid and cash reserves established rather than on an accrual basis,
and amortization of the Royalty Interests is not charged against operating
results.

        Revenue Recognition

        Revenues from Royalty Interests are recognized in the period in which
amounts are received by the Trust. Royalty income received by the Trust in a
given calendar year will generally reflect the proceeds, on an entitlements
basis, from natural gas produced and sold for the twelve-month period ended
September 30th in that calendar year. Royalty income received by the Trust in
the first quarter of 2003 generally reflects the proceeds, on an entitlements
basis, from natural gas produced and sold in the fourth quarter of 2002.

        Reserve Disclosure

        As of January 1, 2003, independent petroleum engineers estimated the net
proved reserves attributable to the Royalty Interest. In accordance with
Statement of Financial Standards No. 69, "Disclosures About Oil and Gas
Producing Activities", estimates of future net revenues from proved reserves
have been prepared using year-end contractual gas prices and related costs.
Numerous uncertainties are inherent in estimating volumes and the value of
proved reserves and in projecting future production rates and the timing of
development of non-producing reserves. Such reserve estimates are subject to
change as additional information becomes available. The reserves actually
recovered and the timing of production may be substantially different from the
reserve estimates.

        Contingencies

        Contingencies related to the Underlying Properties that are unfavorably
resolved would generally be reflected by the Trust as reductions to future
royalty income payments to the Trust with corresponding reductions to cash
distributions to Unitholders. The Trustee is aware of no such items as of March
31, 2003.

        New Accounting Pronouncements

        SFAS No. 143, "Accounting for Asset Retirement Obligations" was issued
in June 2001, and was adopted by the Trust on January 1, 2003. This Statement
addresses financial accounting and reporting for obligations associated with the
retirement of tangible long-lived assets and the associated asset retirement
costs. The effect of adopting SFAS No. 143 has not had a material impact on the
Trust's financial statements.

        SFAS No. 145, "Rescission of FASB Statements No. 4, 44, and 64,
Amendment of FASB Statement No. 13, and Technical Corrections" was issued in
April 2002 and is effective for fiscal years beginning after May 15, 2002. This
Statement includes the rescission of FASB Statement No. 4, "Reporting Gains and
Losses from Extinguishment of Debt," and an amendment to FASB Statement No. 13,
"Accounting for Leases," to eliminate an inconsistency between the required
accounting for sale-leaseback transactions and the required accounting for
certain lease modifications that have economic effects that are similar to
sale-leaseback transactions. The effect of adopting SFAS No. 145 has not had a
material impact on the Trust's financial statements.

        SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal
Activities" was issued in June 2002 and is effective for exit or disposal
activities subsequent to December 31, 2002. The Trust experienced no material
impact on its financial statements from the adoption of this accounting
standard.

        SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and
Disclosure, an amendment of FASB Statement No. 123," was issued in December 2002
and provides new transition methods if an entity adopts the fair value based
method of valuing stock-based compensation suggested in SFAS No. 123 "Accounting
for Stock-Based Compensation," as well as requiring additional disclosures in
interim and annual financial statements. The Trust has no options or other
stock-based instruments and accordingly, the impact of this new Standard is not
material to the financial statements of the Trust.

        FASB Interpretation ("FIN") No. 45, "Guarantor's Accounting and
Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others," requires disclosures beginning with financial
statements ending after December 15, 2002 and requires liability recognition
beginning January 1, 2003. The Trust had no such guarantees outstanding as of
March 31, 2003.

        FIN No. 46, "Consolidation of Variable Interest Entities" was issued in
January 2003. This interpretation of Accounting Research Bulletin No. 51,
"Consolidated Financial Statements," applies immediately to variable interest
entities created after January 31, 2003, and applies to the first period
beginning after June 15, 2003, to entities acquired before February 1, 2003.
This FIN does not affect the Trust as it has no unconsolidated subsidiaries
accounted for under the equity method of accounting.

Use of Estimates

        The preparation of financial statements in conformity with the basics of
accounting described above requires management to make estimates and assumptions
that affect the reported amounts of certain assets, liabilities, revenues and
expenses as of and for the reporting period. Actual results may differ from such
estimates.

Forward-Looking Statements

        This report on 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 fact included in this Form 10-Q, including,
without limitation, statements contained in this "Trustee's Discussion and
Analysis of Financial Condition and Results of Operations" regarding the Trust's
financial position and industry conditions, are forward-looking statements.
Although the Trustee believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct.

ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Trust's market risk, as disclosed in
the Trust's annual report on Form 10-K for the fiscal year ended December 31,
2002.

ITEM 4. CONTROLS AND PROCEDURES

         Within the 90 days prior to the date of this report, the Trustee
carried out an evaluation of the effectiveness of the design and operation of
the Trust's disclosure controls and procedures pursuant to Exchange Act Rule
13a-14. Based upon that evaluation, the Trustee concluded that the Trust's
disclosure controls and procedures are effective in timely alerting the Trustee
to



                                       11
<PAGE>

material information relating to the Trust required to be included in the
Trust's periodic filings with the Securities and Exchange Commission. In its
evaluation of disclosure controls and procedures, the Trustee has relied, to the
extent considered reasonable, on information provided by Burlington Resources
Oil & Gas Company and River Hill Energy Corporation. No significant changes in
the Trust's internal controls or other factors that could affect these controls
have occurred subsequent to the date of such evaluation.






















                                       12
<PAGE>


                           PART II - OTHER INFORMATION


ITEMS 1 THROUGH 5.

Not applicable.


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits

                  (4)(a)   Permian Basin Royalty Trust Indenture dated November
                           3, 1980, between Southland Royalty Company (now
                           Burlington Resources Oil & Gas Company) 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)(b)   Net Overriding Royalty Conveyance (Permian Basin
                           Royalty Trust) from Southland Royalty Company (now
                           Burlington Resources Oil & Gas Company) 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)(c)   Net Overriding Royalty Conveyance (Permian Basin
                           Royalty Trust - Waddell Ranch) from Southland Royalty
                           Company (now Burlington Resources Oil & Gas Company)
                           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.

                  99.1     Certificate by Bank of America, Trustee of Permian
                           Basin Royalty Trust, dated May 14, 2003 and submitted
                           pursuant to Section 906 of the Sarbanes-Oxley Act of
                           2002 (18 U.S.C. Section 1350).

         (b)      Reports on Form 8-K

                  No reports were filed during the quarter ended March 31, 2003.




                                       13
<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 OF AMERICA, N.A.,
                                             TRUSTEE FOR THE
                                             PERMIAN BASIN ROYALTY TRUST




                                          By /s/ RON E. HOOPER
                                             --------------------------
                                             Ron E. Hooper
                                             Senior Vice President
                                             Trust Administrator

Date:  May 14, 2003


               (The Trust has no directors or executive officers.)













                                       14
<PAGE>



                                 CERTIFICATIONS

I, Ron Hooper, certify that:

1. I have reviewed this quarterly report of Form 10-Q of Permian Basin Royalty
Trust, for which Bank of America, N.A., acts as Trustee;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, distributable income and changes in trust
corpus of the registrant as of, and for, the periods presented in this quarterly
report;

4. I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14), or for causing
such procedures to be established and maintained, for the registrant and I have:

     a)   designed such disclosure controls and procedures, or caused such
          controls and procedures to be designed, to ensure that material
          information relating to the registrant, including its consolidated
          subsidiaries, is made known to me by others within those entities,
          particularly during the period in which this quarterly report is being
          prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report my conclusions about the
          effectiveness of the disclosure controls and procedures based on my
          evaluation as of the Evaluation Date;

5. I have disclosed, based on my most recent evaluation, to the registrant's
auditors:

     a)   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b)   any fraud, whether or not material, that involves persons who have a
          significant role in the registrant's internal controls; and

6. I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of my most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.



                                       15
<PAGE>

In giving the certifications in paragraphs 4, 5 and 6 above, I have relied to
the extent I consider reasonable on information provided to me by Burlington
Resources Oil & Gas Company and River Hill Energy Corporation.


Date May 14, 2003              By:   /s/  Ron E. Hooper
                                     -----------------------------------------
                                     Ron E. Hooper,
                                     Senior Vice President, Royalty Management
                                     Bank of America, N.A.




















                                       16
<PAGE>


                                INDEX TO EXHIBITS


Sequentially
Numbered          Exhibit
Page              Number             Exhibit

                  (4)(a)   Permian Basin Royalty Trust Indenture dated November
                           3, 1980, between Southland Royalty Company (now
                           Burlington Resources Oil & Gas Company) 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.*

                  (b)      Net Overriding Royalty Conveyance (Permian Basin
                           Royalty Trust) from Southland Royalty Company (now
                           Burlington Resources Oil & Gas Company) 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.*

                  (c)      Net Overriding Royalty Conveyance (Permian Basin
                           Royalty Trust - Waddell Ranch) from Southland Royalty
                           Company (now Burlington Resources Oil & Gas Company)
                           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.*

                  99.1     Certificate by Bank of America, Trustee of Permian
                           Basin Royalty Trust, dated May 14, 2003 and submitted
                           pursuant to Section 906 of the Sarbanes-Oxley Act of
                           2002 (18 U.S.C. Section 1350).

*        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.




                                       17