<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 SEPTEMBER 30, 2002

              [ ] 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 [ ]

         Number of Units of beneficial interest of the Trust outstanding at
November 1, 2002: 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 September 30,
2002, and the distributable income and changes in trust corpus for the
three-month and nine-month periods ended September 30, 2002 and 2001 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 September 30, 2002
and for the three-month and nine-month periods ended September 30, 2002 and 2001
as stated in their report appearing 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 September 30, 2002 and the
related condensed statements of distributable income and changes in trust corpus
for the three-month and nine-month periods ended September 30, 2002 and 2001.
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 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, 2001, 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 22,
2002, 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, 2001 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
November 6, 2002




                                       3
<PAGE>


PERMIAN BASIN ROYALTY TRUST

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

<Table>
<Caption>
                                                        September 30,         December 31,
                                                            2002                  2001
                                                        ------------          ------------
                                                        (Unaudited)
<S>                                                     <C>                   <C>
ASSETS

Cash and short-term investments                         $  2,158,014          $  1,842,420

Net overriding royalty interests in producing
    oil and gas properties (net of accumulated
    amortization of $8,750,210, and
    $8,604,029 at September 30, 2002 and
    December 31, 2001, respectively)                       2,225,006             2,371,187
                                                        ------------          ------------

TOTAL ASSETS                                            $  4,383,020          $  4,213,607
                                                        ============          ============

LIABILITIES AND TRUST CORPUS

Distribution payable to Unit holders                    $  2,158,014          $  1,842,420

Commitments and contingencies
Trust corpus - 46,608,796 Units of
    beneficial interest authorized and
    outstanding                                            2,225,006             2,371,187
                                                        ------------          ------------

TOTAL LIABILITIES
      AND TRUST CORPUS                                  $  4,383,020          $  4,213,607
                                                        ============          ============
</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 Months Ended                Nine Months Ended
                                           September 30                      September 30
                                  -----------------------------     -----------------------------
                                      2002             2001             2002             2001
                                  ------------     ------------     ------------     ------------

<S>                               <C>              <C>              <C>              <C>
Royalty income                    $  6,305,922     $  8,433,236     $ 16,534,462     $ 32,568,650
Interest income                          4,319           17,543           12,211           68,002
                                  ------------     ------------     ------------     ------------
                                     6,310,241        8,450,779       16,546,673       32,636,652

General and administrative
    expenditures                        69,703           74,320          365,082          371,336
                                  ------------     ------------     ------------     ------------

Distributable income              $  6,240,538     $  8,376,459     $ 16,181,591     $ 32,265,316
                                  ============     ============     ============     ============

Distributable income per Unit
    (46,608,796 Units)            $    .133892     $    .179718     $    .347179     $    .692258
                                  ============     ============     ============     ============
</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 Months Ended                  Nine Months Ended
                                                    September 30                       September 30
                                           ------------------------------      ------------------------------
                                               2002              2001              2002              2001
                                           ------------      ------------      ------------      ------------

<S>                                        <C>               <C>               <C>               <C>
Trust corpus, beginning of period          $  2,272,994      $  2,477,296      $  2,371,187      $  2,595,254

Amortization of net overriding royalty
    interests                                   (47,988)          (50,042)         (146,181)         (168,000)
Distributable income                          6,240,538         8,376,459        16,181,591        32,265,316
Distributions declared                       (6,240,538)       (8,376,459)      (16,181,591)      (32,265,316)
                                           ------------      ------------      ------------      ------------
Total Trust Corpus, end of period          $  2,225,006      $  2,427,254      $  2,225,006      $  2,427,254
                                           ============      ============      ============      ============

Distributions per unit                     $    .133892      $    .179718      $    .347179      $    .692258
                                           ============      ============      ============      ============
</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:

o        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.

o        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>

o        Distributions to Unit holders are recorded when declared by the
         Trustee.

o        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.

New Accounting Standards

The Company has not completed the process of evaluating the impact that will
result from adopting Statement of Financial Accounting Standards ("SFAS") No.
143 "Accounting for Asset Retirement Obligations" and SFAS 146 "Accounting for
Costs associated with exit or disposal activities". The Company is therefore
unable to disclose the impact that adopting SFAS 143 and SFAS 146 will have on
its financial position and results of operations when such statement is adopted.

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. As a result of the Tax Reform Act of 1986,
royalty income will generally be treated as portfolio income and will not offset
passive losses.

3. SUBSEQUENT EVENTS

Subsequent to September 30, 2002, the Trust declared a distribution on October
21, 2002 of $.052198 payable on November 15, 2002.




                                       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 SEPTEMBER 30, 2002 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 2001

For the quarter ended September 30, 2002 royalty income received by the Trust
amounted to $6,305,922 compared to royalty income of $8,433,236 during the third
quarter of 2001. The decrease in royalty income is primarily attributable to
significant decreases in both oil and gas prices and lower production for both
oil and gas.

Interest income for the quarter ended September 30, 2002, was $4,319 compared to
$17,543 during the third quarter of 2001. The decrease in interest income is
primarily attributable to less funds available for investment and lower interest
rates. General and administrative expenses during the third quarter of 2002
amounted to $69,703 compared to $74,320 during the third quarter of 2001. The
decrease in general and administrative expenses can be primarily attributed to
the timing of payment of expenses.

These transactions resulted in distributable income for the quarter ended
September 30, 2002 of $6,240,538, or $.13 per Unit of beneficial interest.
Distributions of $.036621, $.050969 and $.046300 per Unit were made to Unit
holders of record as of July 31, August 30 and September 30, 2002, respectively.
For the third quarter of 2001, distributable income was $8,376,459, or $.18 per
Unit of beneficial interest.

Royalty income for the Trust for the third quarter of the calendar year is
associated with actual oil and gas production for the period of May, June and
July 2002 from the properties from which the Trust's net overriding royalty
interests ("Royalties") were carved. Oil and gas sales





                                       9
<PAGE>

attributable to the Royalties and the properties from which the Royalties were
carved are as follows:


<Table>
<Caption>
                                                              THIRD QUARTER
                                                     -----------------------------
                                                         2002             2001
                                                     ------------     ------------
<S>                                                  <C>              <C>
ROYALTIES:
Oil sales (Bbls)                                          177,014          216,148
Gas sales (Mcf)                                           767,274          944,179

PROPERTIES FROM WHICH THE ROYALTIES WERE CARVED:
Oil:
    Total oil sales (Bbls)                                317,453          343,865
    Average per day (Bbls)                                  3,451            3,738
    Average price per Bbl                            $      24.41     $      24.59

Gas:
    Total gas sales (Mcf)                               1,565,863        1,636,098
    Average per day (Mcf)                                  17,020           17,784
    Average price per Mcf                            $       2.99     $       3.74
</Table>

The posted price of oil decreased to an average price per barrel of $24.41 per
Bbl in the third quarter of 2002, compared to $24.59 per Bbl in the third
quarter of 2001. The Trustee has been advised by BROG that for the period August
1, 1993, through September 30, 2002, the oil from the Waddell Ranch properties
was being sold under a competitive bid to a third party. The average price of
gas decreased from $3.74 per Mcf in the third quarter of 2001 to $2.99 per Mcf
in the third quarter of 2002. This decrease is primarily attributable to a
significant increase in gas prices earlier in the year of 2001.

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 2002 compared to 2001.

Capital expenditures for drilling, remedial and maintenance activities on the
Waddell Ranch properties during the third quarter of 2002 totaled $1,434,435 as
compared to $394,000 for the third quarter of 2001. BROG has informed the
Trustee that the 2002 capital expenditures budget has been revised to $4.1
million for the Waddell Ranch. The total amount of capital expenditures for 2001
was $4.6 million. Through the third quarter of 2002, capital expenditures of
$3.1 million have been expended.

The Trustee has been advised that there were 3 wells completed or in progress
during the three months ended September 30, 2002 as compared to 3 wells for the
three months ended September 30, 2001 on the Waddell Ranch properties.

Lease operating expense and property taxes totaled $2.4 million for the third
quarter of 2002, compared to $2.6 million in the third quarter of 2001 on the
Waddell Ranch properties. This decrease is primarily attributable to lower
maintenance costs for the quarter.





                                       10
<PAGE>

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001

For the nine months ended September 30, 2002, royalty income received by the
Trust amounted to $16,534,462 compared to royalty income of $32,568,650 for the
nine months ended September 30, 2001. The decrease in royalty income is
primarily due to a decrease in gas prices in the first nine months of 2002,
compared to the first nine months in 2001 and lower volume for both oil and gas.
Interest income for the nine months ended September 30, 2002 was $12,211
compared to $68,002 for the nine months ended September 30, 2001. The decrease
in interest income is attributable primarily to a decrease in funds available
for investment and lower interest rates. General and administrative expenses for
the nine months ended September 30, 2002 were $365,082. During the nine months
ended September 30, 2001, general and administrative expenses were $371,336. The
decrease in general and administrative expenses is primarily due to timing
differences in the receipt and payment of these expenses.

These transactions resulted in distributable income for the nine months ended
September 30, 2002 of $16,181,591, or $.35 per Unit. For the nine months ended
September 30, 2001, distributable income was $32,265,316 or $.69 per Unit.

Royalty income for the Trust for the period ended September 30, 2002 is
associated with actual oil and gas production for the period November 2001
through July 2002 from the properties from which the Royalties were carved. Oil
and gas production attributable to the Royalties and the properties from which
the Royalties were carved are as follows:

<Table>
<Caption>
                                                           FIRST NINE MONTHS
                                                     -----------------------------
                                                         2002             2001
                                                     ------------     ------------
<S>                                                  <C>              <C>
ROYALTIES:
Oil sales (Bbls)                                          543,182          701,263
Gas sales (Mcf)                                         2,317,218        2,960,147

PROPERTIES FROM WHICH THE ROYALTIES WERE CARVED:
Oil:
    Total oil sales (Bbls)                                963,555        1,084,061
    Average per day (Bbls)                                  3,530            3,970
    Average price per Bbl                            $      20.80     $      25.59
Gas:
    Total gas sales (Mcf)                               4,595,235        4,810,652
    Average per day (Mcf)                                  16,832           17,621
    Average price per Mcf                            $       2.62     $       5.36
</Table>

The average price of oil decreased during the nine months ended September 30,
2002 to $20.80 per barrel compared to $25.59 per barrel for the same period in
2001. The decrease in the average price of oil is primarily due to lagging
demand in 2002, caused by a worldwide economic slowdown. The decrease in the
average price of gas from $5.36 per Mcf for the nine months ended September 30,
2001 to $2.62 per Mcf for the nine months ended September 30, 2002 is primarily
the result of a decrease in the spot prices of natural gas.

Since the oil and gas sales volumes 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






                                       11
<PAGE>

comparison. The oil and gas sales volumes from the properties from which the
Royalties are carved have remained relatively constant for the applicable period
of 2002 compared to 2001.

The Trust has been advised that 8 gross and 3 net productive oil wells were
drilled and completed on the Waddell Ranch properties during the nine months
ended September 30, 2002 as compared to 7 gross and 3 net productive well during
the same period in 2001. Capital expenditures for the Waddell Ranch properties
for the nine months ended September 30, 2002 totaled $ 3.1 million compared to
$2,999,000 for the same period in 2001. BROG has previously advised the Trust
that the remaining 2002 capital expenditures budget for the Waddell Ranch
properties is $1.0 million.

Lease operating expense and property taxes totaled $6.5 million in 2002 compared
to $7.0 million in 2001. The decrease in lease operating expense is primarily
attributable to more efficient field operations on the Waddell Ranch properties.

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 September 30, 2002 and
2001, respectively, were computed as shown in the table below:

<Table>
<Caption>
                                                                   THREE MONTHS ENDED SEPTEMBER 30,
                                                  ------------------------------------------------------------------
                                                               2002                               2001
                                                  ------------------------------      ------------------------------
                                                    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                                  $  5,534,415      $  2,213,128      $  6,403,660      $  2,079,708
    Gas proceeds                                     4,092,292           584,290         5,077,883           841,330
                                                  ------------      ------------      ------------      ------------
                      Total                          9,626,707         2,797,418        11,481,543         2,921,038
                                                  ------------      ------------      ------------      ------------

Less:
    Severance tax:
        Oil                                            231,781            89,237           267,953            79,269
        Gas                                            228,661            40,568           275,778            54,729
    Lease operating expense and property tax:
        Oil and gas                                  2,435,911           180,000         2,623,728           155,125
    Capital expenditures                             1,434,435                --           393,528                --
    Other                                               38,999                --            10,000                --
                                                  ------------      ------------      ------------      ------------
                      Total                          4,369,787           309,805         3,570,987           289,123
                                                  ------------      ------------      ------------      ------------

Net profits                                          5,256,920         2,487,613         7,910,556         2,631,915
Net overriding royalty interests                            75%               95%               75%               95%
                                                  ------------      ------------      ------------      ------------
Royalty income                                    $  3,942,690      $  2,363,232      $  5,932,917      $  2,500,319
                                                  ============      ============      ============      ============
</Table>





                                       12
<PAGE>

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,
2001.



                                       13
<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 November 12, 2002 and
                           submitted pursuant to Section 906 of the
                           Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).

                  (b)      On August 14, 2002, the Trust filed a report on Form
                           8-K to furnish the Trustee's certification of the
                           Trust's Quarterly Repot on Form 10-Q for the period
                           ended June 30, 2002 as required by 18 U.S.C. Section
                           1350, as adopted pursuant to Section 906 of the
                           Sarbanes-Oxley Act of 2002.

       No reports were filed during the quarter ended September 30, 2002.



                                       14
<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:  November 12, 2002


               (The Trust has no directors or executive officers.)




                                       15
<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.

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 November 12, 2002        By:  /s/  Ron E. Hooper
                                     ------------------------------------------
                                     Ron E. Hooper,
                                     Senior Vice President, Royalty Management
                                     Bank of America, N.A.,







                                       16
<PAGE>


                                INDEX TO EXHIBITS



<Table>
<Caption>
                 EXHIBIT
                 NUMBER                          DESCRIPTION
                 -------                         -----------
<S>                        <C>
                  (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 November 12, 2002 and
                           submitted pursuant to Section 906 of the
                           Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).
</Table>

*        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., P. O. Box 830650, Dallas, Texas 75202.