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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the Quarterly Period ended June 30, 2011
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission file number 1-8033
 PERMIAN BASIN ROYALTY TRUST
 (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture)
 Texas
(State or Other Jurisdiction 
of Incorporation or Organization)
    
    75-6280532
(I.R.S. Employer Identification No.)
 
 
 þ o
 o o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONItem1. Financial StatementsItem 2. Trustees Discussion and AnalysisItem 3. Qualitative and Quantitative Disclosures About Market RiskItem 4. Controls and ProceduresPART II  OTHER INFORMATIONItem 1Item 1A. Risk FactorsItems 2 through 5Item 6. ExhibitsSIGNATURESINDEX TO EXHIBITSEX-31.1EX-32.1    Table of Contents  PERMIAN BASIN ROYALTY TRUST
 
 PART I  FINANCIAL INFORMATION
 
 Item1. Financial Statements
   2




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
      /s/ Deloitte & Touche LLPAustin, TexasAugust 3, 2011 3




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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
 June 30,2011
    
    
    December 31,(Unaudited)
    
    
    2010ASSETSCash and short-term investments
    
    $
    6,708,026
    
    
    $
    4,580,923Net overriding royalty interests in
producing oil and gas properties (net of
accumulated amortization of $10,047,463
and $10,004,009 at June 30, 2011 and
December 31, 2010, respectively)
    
    
    927,753
    
    
    
    971,207TOTAL ASSETS
    
    $
    7,635,779
    
    
    $
    5,552,130LIABILITIES AND TRUST CORPUSDistribution payable to Unit holders
    
    $
    6,708,026
    
    
    $
    4,580,923Commitments and contingencies
    
    
    
    
    
    
    Trust corpus - 46,608,796 Units of
beneficial interest authorized and
outstanding
    
    
    927,753
    
    
    
    971,207TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    7,635,779
    
    
    $
    5,552,130
  4




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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE
    
    
    THREEMONTHS
    
    
    MONTHSENDED
    
    
    ENDEDJune 30, 2011
    
    
    June 30, 2010Royalty income
    
    $
    18,398,691
    
    
    $
    18,444,207Interest income
    
    
    165
    
    
    
    25118,398,856
    
    
    
    18,444,458General and administrative
expenditures
    
    
    (502,935
    )
    
    
    (459,539
    )Distributable income
    
    $
    17,895,921
    
    
    $
    17,984,919Distributable income per Unit
(46,608,796 Units)
    
    $
    .38
    
    
    $
    .39
  5




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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 SIX
    
    
    SIXMONTHS
    
    
    MONTHSENDED
    
    
    ENDEDJune 30, 2011
    
    
    June 30, 2010Royalty income
    
    $
    35,196,974
    
    
    $
    34,952,943Interest income
    
    
    364
    
    
    
    38835,197,338
    
    
    
    34,953,331General and administrative
expenditures
    
    
    (842,452
    )
    
    
    (863,335
    )Distributable income
    
    $
    34,354,886
    
    
    $
    34,089,996Distributable income per Unit
(46,608,796 Units)
    
    $
    .74
    
    
    $
    .73
  6




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PERMIAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 SIX
    
    
    SIXMONTHS
    
    
    MONTHSENDED
    
    
    ENDEDJune 30, 2011
    
    
    June 30, 2010Trust corpus, beginning of
period
    
    $
    971,207
    
    
    $
    1,079,986Amortization of net overriding
royalty interests
    
    
    (43,454
    )
    
    
    (55,991
    )Distributable income
    
    
    34,354,886
    
    
    
    34,089,996Distributions declared
    
    
    (34,354,886
    )
    
    
    (34,089,996
    )Total Trust Corpus, end of
period
    
    $
    927,753
    
    
    $
    1,023,995Distributions per Unit
    
    $
    .74
    
    
    $
    .73
  7




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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 LP (BROG), a subsidiary of ConocoPhillips for the Waddell Ranch properties
and Riverhill Energy Corporation (Riverhill Energy), formerly a wholly owned subsidiary
of Riverhill Capital Corporation (Riverhill Capital) and formerly an affiliate of Coastal
Management Corporation (CMC), for the Texas Royalty properties. Schlumberger Technology
Corporation (STC) currently conducts all field, technical and accounting operations on
behalf of BROG with regard to the Waddell Ranch properties. Riverhill Energy currently
conducts the accounting operations for the Texas Royalty properties. Royalty income
consists of the amounts received by the owners of the 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.In February 1997, BROG sold its interest in the Texas Royalty properties to Riverhill
Energy.The Trustee was advised that in the first quarter of 1998, STC acquired all of the shares of
stock of Riverhill Capital. Prior to such acquisition by STC, CMC and Riverhill Energy were
wholly owned subsidiaries of Riverhill Capital. The Trustee was further advised that in
connection with STCs acquisition of Riverhill Capital, the shareholders of Riverhill
Capital acquired ownership of all of the shares of stock of Riverhill Energy. Thus, the
ownership in the Texas Royalty properties referenced above remained in Riverhill Energy, the
stock ownership of which was acquired by the former shareholders of Riverhill Capital.In 2007 the Bank of America private wealth management group officially became known as U.S.
Trust, Bank of America Private Wealth Management. The legal entity that serves as Trustee
of the Trust did not change, and references in this Form 10-Q to U.S.
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Trust, Bank of America Private Wealth Management shall describe the legal entity Bank of
America, N.A.
    
    Trust expenses recorded are based on liabilities paid and cash reserves established out
of cash received or borrowed funds for liabilities and contingencies.
    
    Distributions to Unit holders are recorded when declared by the Trustee.
    
    Royalty income is computed separately for each of the conveyances under which the
Royalties were conveyed to the Trust. If monthly costs exceed revenues for any conveyance
(excess costs), such excess costs cannot reduce royalty income from other conveyances,
but is carried forward with accrued interest to be recovered from future net proceeds of
that conveyance.
  Use of Estimates
  
 2.
    
    FEDERAL INCOME TAXESFor federal income tax purposes, the Trust constitutes a fixed investment trust which is taxed
as a grantor trust. A grantor trust is not subject to tax at the trust level. The Unit holders
are considered to own the Trusts income and principal as though no trust were in existence.
The income of the Trust is deemed to have been received or accrued by each Unit holder at the
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.
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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.Some Trust Units are held by middlemen, as such term is broadly defined in U.S. Treasury
Regulations (and includes custodians, nominees, certain joint owners, and brokers holding an
interest for a customer in street name, collectively referred to herein as middlemen).
Therefore, the Trustee considers the Trust to be a non-mortgage widely held fixed investment
trust (WHFIT) for U.S. federal income tax purposes. U.S. Trust, Bank of America Private
Wealth Management, EIN: 56-0906609, 901 Main Street, 17th Floor, Dallas, Texas 75202, telephone
number (214) 209-2400, is the representative of the Trust that will provide tax information in
accordance with applicable U.S. Treasury Regulations governing the information reporting
requirements of the Trust as a WHFIT. Tax information is also posted by the Trustee at
www.pbt-permianbasintrust.com. Notwithstanding the foregoing, the middlemen holding Trust Units
on behalf of Unit holders, and not the Trustee of the Trust, are solely responsible for
complying with the information reporting requirements under the U.S. Treasury Regulations with
respect to such Trust Units, including the issuance of IRS Forms 1099 and certain written tax
statements. Unit holders whose Trust Units are held by middlemen should consult with such
middlemen regarding the information that will be reported to them by the middlemen with respect
to the Trust Units.Unit holders should consult their tax advisors regarding Trust tax compliance matters.
 3.
    
    STATE TAX CONSIDERATIONSAll revenues from the Trust are from sources within Texas, which has no individual income tax.
However, Texas imposes a franchise tax on generally all entity types providing limited liability
protection at a rate of 1% on gross revenues less certain deductions, as specifically set forth
in the Texas franchise tax statute. Entities subject to tax generally include trusts unless
otherwise exempt. Trusts that receive at least 90% of their federal gross income from
designated passive sources, including royalties from mineral properties and other non-operated
mineral interest income, and that do not receive more than 10% of their income from operating an
active trade or business generally are exempt from the Texas franchise tax as passive
entities. The Trust should be exempt from Texas franchise tax as a passive entity. Since the
Trust should be exempt from Texas franchise tax at the Trust level as a passive entity, each
Unit holder that is considered a taxable entity under the Texas franchise tax will generally be
required to include its portion of Trust revenues in its own Texas franchise tax computation.
This revenue is sourced to Texas under provisions of the Texas Administrative Code sourcing such
income according to the principal place of business of the Trust, which is Texas.Each Unit holder is urged to consult his own tax advisor regarding the requirements for filing
state tax returns.
 4.
    
    SUBSEQUENT EVENTSSubsequent to June 30, 2011, the Trust declared a distribution of $.148472 per unit on July 19,
2011 payable on August 12, 2011, to Unit holders of record on July 29, 2011.
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5.
    
    CONTINGENCIESContingencies 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 Unit holders.On May 2, 2011, ConocoPhillips, as the parent company of BROG, the operator of the Waddell Ranch
properties, notified the Trustee that as a result of inaccuracies in ConocoPhillips accounting
and record keeping relating to the Trusts interest in proceeds
from the gas plant production
since January 2007, ConocoPhillips overpaid the Trust approximately $5.9 million.
ConocoPhillips informed the Trustee that it intends to recoup the overpayment through
adjustments to future distributions over the next year, in a manner not yet determined, to the
Trust. Additionally, ConocoPhillips informed the Trustee that beginning with the June 2011
distribution, proceeds to the Trust relating to the gas plant production will be adjusted to
reflect ConocoPhillips calculation of the corrected interest.The Trustee is in the process of evaluating the claim and at this time cannot determine the
likely outcome of this matter.
 * * * * *
 
 Item 2.
    
    Trustees Discussion and Analysis
 Forward Looking Information
  Three Months Ended June 30, 2011 Compared to Three Months Ended June 30, 2010
  11




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Second Quarter2011
    
    
    2010Production:Oil sales (Bbls)
    
    
    152,584
    
    
    
    174,469Gas sales (Mcf)
    
    
    632,460
    
    
    
    799,308Product Sales From Which
The Royalties Were Carved:Oil:Total oil sales (Bbls)
    
    
    240,626
    
    
    
    257,558Average per day (Bbls)
    
    
    2,704
    
    
    
    2,894Average price per Bbl
    
    $
    93.97
    
    
    $
    77.01Gas:Total gas sales (Mcf)
    
    
    1,159,749
    
    
    
    1,310,250Average per day (Mcf)
    
    
    13,031
    
    
    
    14,722Average price per Mcf
    
    $
    7.59
    
    
    $
    7.10
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Six Months Ended June 30, 2011 Compared to Six Months Ended June 30, 2010
    13




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Six Months Ended2011
    
    
    2010Royalties:Oil sales (Bbls)
    
    
    306,605
    
    
    
    338,555Gas sales (Mcf)
    
    
    1,294,334
    
    
    
    1,528,398Properties From Which The Royalties Were Carved:Oil:Total oil sales (Bbls)
    
    
    501,717
    
    
    
    520,268Average per day (Bbls)
    
    
    2,772
    
    
    
    2,874Average price per Bbl
    
    $
    88.26
    
    
    $
    74.56Gas:Total gas sales (Mcf)
    
    
    2,469,708
    
    
    
    2,639,931Average per day (Mcf)
    
    
    13,645
    
    
    
    14,585Average price per Mcf
    
    $
    7.32
    
    
    $
    7.20
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Calculation of Royalty Income
  Three Months Ended June 30,2011
    
    
    2010Waddell
    
    
    Texas
    
    
    Waddell
    
    
    TexasRanch
    
    
    Royalty
    
    
    Ranch
    
    
    RoyaltyProperties
    
    
    Properties
    
    
    Properties
    
    
    PropertiesGross proceeds of sales from the
Underlying PropertiesOil proceeds
    
    $
    15,598,929
    
    
    $
    7,013,101
    
    
    $
    13,823,194
    
    
    $
    6,010,461Gas proceeds
    
    
    7,803,005
    
    
    
    996,692
    
    
    
    8,073,140
    
    
    
    1,229,067Total
    
    
    23,401,934
    
    
    
    8,009,793
    
    
    
    21,896,334
    
    
    
    7,239,528Less:Severance tax:Oil
    
    
    633,581
    
    
    
    255,781
    
    
    
    483,917
    
    
    
    215,396Gas
    
    
    422,182
    
    
    
    48,155
    
    
    
    367,022
    
    
    
    79,408Lease operating expenses and
property tax:Oil and gas
    
    
    5,076,209
    
    
    
    420,000
    
    
    
    4,565,424
    
    
    
    360,000Other
    
    
    39,802
    
    
    
    
    
    
    
    70,565
    
    
    
    Capital expenditures
    
    
    1,927,325
    
    
    
    
    
    
    
    157,779
    
    
    
    Total
    
    
    8,099,099
    
    
    
    723,936
    
    
    
    5,644,707
    
    
    
    654,804Net profits
    
    
    15,302,835
    
    
    
    7,285,857
    
    
    
    16,251,627
    
    
    
    6,584,724Net overriding royalty interests
    
    
    75
    %
    
    
    95
    %
    
    
    75
    %
    
    
    95
    %Royalty income
    
    
    11,477,127
    
    
    
    6,921,564
    
    
    
    12,188,720
    
    
    
    6,255,487
 Critical Accounting Policies and Estimates
  Basis of Accounting
  15




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
    
    Royalty income and interest income are recorded in the period in which amounts are
received by the Trust rather than in the period of production and accrual, respectively.
    
    General and administrative expenses recorded are based on liabilities paid and cash
reserves established out of cash received.
    
    Amortization of the royalty interests is calculated on a unit-of-production basis and
charged directly to trust corpus when revenues are received.
    
    Distributions to Unit holders are recorded when declared by the Trustee (see Note 1 to
the Financial Statements).
  Revenue Recognition
 st
 Reserve Disclosure
   16




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Contingencies
    Use of Estimates
  
 Item 3.
    
    Qualitative and Quantitative Disclosures About Market Risk
  
 Item 4.
    
    Controls and Procedures
  17




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PART II  OTHER INFORMATION
 
 Item 1.
  
 Item 1A. Risk Factors.
 ConocoPhillips claim for overpayment could reduce or eliminate distributions in the following
year.
  
 Items 2 through 5.
  
 Item 6. Exhibits
 4.1
    
    Permian Basin Royalty Trust Indenture dated November 3, 1980,
between Southland Royalty Company (now Burlington Resources Oil & Gas Company
LP) and The First National Bank of Fort Worth (now Bank of America, N.A.), as
Trustee, heretofore filed as Exhibit (4)(a) to the Trusts Annual Report on
Form 10-K to the Securities and Exchange Commission for the fiscal year ended
December 31, 1980 is incorporated herein by reference.4.2
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty Trust)
from Southland Royalty Company (now Burlington Resources Oil & Gas Company LP)
to The First National Bank of Fort Worth (now Bank of America, N.A.), as
Trustee, dated November 3, 1980 (without Schedules), heretofore filed as
Exhibit (4)(b) to the Trusts Annual Report on Form 10-K to the Securities and
Exchange Commission for the fiscal year ended December 31, 1980 is incorporated
herein by reference.4.3
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty Trust
  Waddell Ranch) from Southland Royalty Company (now Burlington Resources Oil &
Gas Company LP) to The First National Bank of Fort Worth (now Bank of America,
N.A.), as Trustee, dated November 3, 1980 (without Schedules), heretofore filed
as Exhibit (4)(c) to the Trusts Annual Report on Form 10-K to the Securities
and Exchange Commission
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for the fiscal year ended December 31, 1980 is incorporated herein by
reference.10.1
    
    Registration Rights Agreement dated as of July 21, 2004 by and
between Burlington Resources Inc. and Bank of America, N.A., as trustee of
Permian Basin Royalty Trust, heretofore filed as Exhibit 10.1 to the Trusts
Quarterly Report on Form 10-Q to the Securities and Exchange Commission for the
quarterly period ended June 30, 2004 is incorporated herein by reference.10.2
    
    Underwriting Agreement dated December 15, 2005 among the
Permian Basin Royalty Trust, Burlington Resources, Inc., Burlington Resources
Oil & Gas L.P. and Lehman Brothers Inc. and Wachovia Capital Markets, LLC as
representatives of the several underwriters, heretofore filed as Exhibit 10.1
to the Trusts current report on Form 8-K to the Securities and Exchange
Commission filed on December 19, 2005, is incorporated herein by reference.10.3
    
    Underwriting Agreement dated August 2, 2005 among the Permian
Basin Royalty Trust, Burlington Resources, Inc., Burlington Resources Oil & Gas
L.P. and Goldman Sachs & Co. and Lehman Brothers Inc. as representatives of the
several underwriters, heretofore filed as Exhibit 10.1 to the Trusts current
report on Form 8-K to the Securities and Exchange Commission filed on August 8,
2005, is incorporated herein by reference.10.4
    
    Underwriting Agreement dated August 17, 2006, among Permian
Basin Royalty Trust, ConocoPhillips, Burlington Resources Oil & Gas Company LP
and Lehman Brothers Inc. and Wachovia Capital Markets, LLC as representatives
of the several underwriters heretofore filed as Exhibit 10.1 to the Trusts
current report on Form 8-K to the Securities and Exchange Commission filed on
August 22, 2006, is incorporated herein by reference.31.1
    
    Certification by Ron E. Hooper, Senior Vice President and Trust
Administrator of Bank of America, Trustee of Permian Basin Royalty Trust, dated
August 3, 2011 and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certificate by Bank of America, Trustee of Permian Basin
Royalty Trust, dated August 3, 2011 and submitted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).
 19




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SIGNATURES
  BANK
OF AMERICA, N.A.,
TRUSTEE FOR THE
PERMIAN BASIN ROYALTY TRUSTBy:
    /s/ Ron E. HooperRon E. HooperSenior Vice President
Trust Administrator   20




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INDEX TO EXHIBITS
 Exhibit Number
    
    Exhibit4.1
    
    Permian Basin Royalty Trust Indenture dated November 3,
1980, between Southland Royalty Company (now Burlington
Resources Oil & Gas Company LP) and The First National Bank
of Fort Worth (now Bank of America, N.A.), as Trustee,
heretofore filed as Exhibit (4)(a) to the Trusts Annual
Report on Form 10-K to the Securities and Exchange
Commission for the fiscal year ended December 31, 1980 is
incorporated herein by reference.*4.2
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty
Trust) from Southland Royalty Company (now Burlington
Resources Oil & Gas Company LP) to The First National Bank
of Fort Worth (now Bank of America, N.A.), as Trustee,
dated November 3, 1980 (without Schedules), heretofore
filed as Exhibit (4)(b) to the Trusts Annual Report on
Form 10-K to the Securities and Exchange Commission for the
fiscal year ended December 31, 1980 is incorporated herein
by reference.*4.3
    
    Net Overriding Royalty Conveyance (Permian Basin Royalty
Trust  Waddell Ranch) from Southland Royalty Company (now
Burlington Resources Oil & Gas Company LP) to The First
National Bank of Fort Worth (now Bank of America, N.A.), as
Trustee, dated November 3, 1980 (without Schedules),
heretofore filed as Exhibit (4)(c) to the Trusts Annual
Report on Form 10-K to the Securities and Exchange
Commission for the fiscal year ended December 31, 1980 is
incorporated herein by reference.*10.1
    
    Registration Rights Agreement dated as of July 21, 2004 by
and between Burlington Resources Inc. and Bank of America,
N.A., as trustee of Permian Basin Royalty Trust, heretofore
filed as Exhibit 10.1 to the Trusts Quarterly Report on
Form 10-Q to the Securities and Exchange Commission for the
quarterly period ended June 30, 2004 is incorporated herein
by reference.*10.2
    
    Underwriting Agreement dated December 15, 2005 among the
Permian Basin Royalty Trust, Burlington Resources, Inc.,
Burlington Resources Oil & Gas L.P. and Lehman Brothers
Inc. and Wachovia Capital Markets, LLC as representatives
of the several underwriters, heretofore filed as Exhibit
10.1 to the Trusts current report on Form 8-K to the
Securities and Exchange Commission filed on December 19,
2005, is incorporated herein by reference.*10.3
    
    Underwriting Agreement dated August 2, 2005 among the
Permian Basin Royalty Trust, Burlington Resources, Inc.,
Burlington Resources Oil & Gas L.P. and Goldman Sachs & Co.
and Lehman Brothers Inc. as representatives of the several
underwriters, heretofore filed as Exhibit 10.1 to the
Trusts current report on Form 8-K to the Securities and
Exchange Commission filed on August 8, 2005, is
incorporated herein by reference.*
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Exhibit Number
    
    Exhibit10.4
    
    Underwriting Agreement dated August 17, 2006, among Permian
Basin Royalty Trust, ConocoPhillips, Burlington Resources
Oil & Gas Company LP and Lehman Brothers Inc. and Wachovia
Capital Markets, LLC as representatives of the several
underwriters heretofore filed as Exhibit 10.1 to the
Trusts current report on Form 8-K to the Securities and
Exchange Commission filed on August 22, 2006, is
incorporated herein by reference.*31.1
    
    Certification by Ron E. Hooper, Senior Vice President and
Trust Administrator of Bank of America, Trustee of Permian
Basin Royalty Trust, dated August 3, 2011 and submitted
pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certificate by Bank of America, Trustee of Permian Basin
Royalty Trust, dated August 3, 2011 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, U.S. Trust, Bank of America
Private Wealth Management, 901 Main Street, Dallas, Texas 75202. 22