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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 1934For the Quarterly Period Ended
    March 31, 2011oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission File
    No. 1-8032
  San Juan
    Basin Royalty Trust
 (Exact name of registrant as
    specified in the Amended and Restated San Juan Basin
    Royalty Trust Indenture)
   Texas

75-6279898(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)   Compass Bank
 2525 Ridgmar Boulevard, Suite 100
 Fort Worth, Texas 76116
 (Address of principal executive
    offices)
 (Zip Code)
  (866) 809-4553
 (Registrants telephone
    number, including area code)
  N/A
 (Former name, former address and former fiscal year, if
    changed since last report)
   þ o
  Regulation S-T o o
  12b-2
  Large
    accelerated
    filer þ
    Accelerated
    filer o
    Non-accelerated
    filer o
    Smaller
    reporting
    company o   Rule 12b-2 o þ




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TABLE OF CONTENTS  PART I FINANCIAL INFORMATIONItem 1. Financial Statements.CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUSCONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations.Item 3. Quantitative and Qualitative Disclosures About Market Risk.Item 4. Controls and Procedures.PART II OTHER INFORMATIONItem 1. Legal Proceedings.SIGNATURESINDEX TO EXHIBITSEX-31EX-32    Table of Contents   SAN JUAN
    BASIN ROYALTY TRUST
  PART I
  FINANCIAL
    INFORMATION
 
  Item 1.
    Financial
    Statements.  Form 10-K
 2




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SAN JUAN
    BASIN ROYALTY TRUST
  CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND
    TRUST CORPUS
  March 31,


December 31,2011


2010(Unaudited)ASSETSCash and short-term investments

$
4,567,457


$
5,223,123Net overriding royalty interest in producing oil and gas
    properties (net of accumulated amortization of $118,933,254 and
    $118,529,644 at March 31, 2011 and December 31, 2010,
    respectively)


14,342,274



14,745,884$
18,909,731


$
19,969,007LIABILITIES AND TRUST CORPUSDistribution payable to Unit Holders

$
4,411,668


$
5,067,334Cash reserves


155,789



155,789Trust corpus  46,608,796 Units of beneficial interest
    authorized and outstanding


14,342,274



14,745,884$
18,909,731


$
19,969,007   CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME 
    (UNAUDITED)
  Three Months Ended March 31,2011


2010Royalty income

$
15,389,129


$
22,002,516Interest income


1,466



208,313Total revenue


15,390,595



22,210,829General and administrative expenditures


(521,685
)


(681,511
)Distributable income

$
14,868,910


$
21,529,318Distributable income per Unit (46,608,796 Units)

$
0.319015


$
0.461915   CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS
    (UNAUDITED)
  Three Months Ended March 31,2011


2010Trust corpus, beginning of period

$
14,745,884


$
16,843,731Amortization of net overriding royalty interest


(403,610
)


(520,241
)Distributable income


14,868,910



21,529,318Distributions declared


(14,868,910
)


(21,529,318
)Total corpus, end of period

$
14,342,274


$
16,323,490    3




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SAN JUAN
    BASIN ROYALTY TRUST
  NOTES TO
    CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
  1.
    BASIS OF
    ACCOUNTING    
    Royalty income recorded for a month is the amount computed and
    paid with respect to the Trusts 75% net overriding royalty
    interest (the Royalty) in certain oil and gas
    leasehold and royalty interests (the Underlying
    Properties) by Burlington Resources Oil & Gas
    Company LP (BROG), the present owner of the
    Underlying Properties, to the Trustee for the Trust. Royalty
    income consists of the proceeds received by BROG from the sale
    of production from the Underlying Properties less accrued
    production costs, development and drilling costs, applicable
    taxes, operating charges, and other costs and deductions,
    multiplied by 75%. The calculation of net proceeds by BROG for
    any month includes adjustments to proceeds and costs for prior
    months and impacts the Royalty income paid to the Trust and the
    distribution to Unit Holders for that month.
    Trust expenses recorded are based on liabilities paid and cash
    reserves established from Royalty income for liabilities and
    contingencies.
    Distributions to Unit Holders are recorded when declared by the
    Trustee.
    The conveyance which transferred the Royalty to the Trust
    provides that any excess of development and production costs
    applicable to the Underlying Properties over gross proceeds from
    such properties must be recovered from future net proceeds
    before Royalty income is again paid to the Trust.  unit-of-production
  2.
    FEDERAL
    INCOME TAXES         4




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SAN JUAN
    BASIN ROYALTY TRUST
  NOTES TO
    CONDENSED FINANCIAL STATEMENTS (UNAUDITED) 
    (Continued)
      3.
    CONTINGENCIES    4.
    SETTLEMENTS
    AND LITIGATION  United States of America ex rel. Harrold E.
    (Gene) Wright v. AGIP Petroleum Co. et al.
  San Juan Basin Royalty Trust vs.
    Burlington Resources Oil & Gas Company, L.P. No. D1329-CV-08-751,
    Jicarilla Apache
    Nation v. Department of Interior
 5




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SAN JUAN
    BASIN ROYALTY TRUST
  NOTES TO
    CONDENSED FINANCIAL STATEMENTS (UNAUDITED) 
    (Continued)
    Abraham et
    al. v. BP America Production Company Case No. 6:09-cv-00961,
   6




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Item 2.
    Trustees
    Discussion and Analysis of Financial Condition and Results of
    Operations.  Forward-Looking
    Information
  Form 10-Q
  Business
    Overview
           7




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Three
    Months Ended March 31, 2011 and 2010
  per-Unit
  January

$
.086012February


.138350March


.094653Quarter Total

$
.319015                8




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Three Months EndedMarch 31,2011

2010Gas:Total sales (Mcf)


8,098,905



8,528,870Mcf per day


88,032



92,705Average price (per Mcf)

$
4.39


$
5.16Oil:Total sales (Bbls)


13,294



13,160Bbls per day


145



143Average price (per Bbl)

$
71.86


$
67.66       year-to-year
   9




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inter
    alia
    Calculation
    of Royalty Income
    CALCULATION
    OF ROYALTY INCOME
  Three Months Ended March 31,2011


2010Gross proceeds of sales from the Underlying Properties:Gas proceeds

$
35,557,971


$
43,985,932Oil proceeds


955,324



890,469Total


36,513,295



44,876,401Less production costs:Severance tax  Gas


3,264,522



4,015,446Severance tax  Oil


98,451



82,151Lease operating expense and property tax


8,982,255



8,013,093Capital expenditures


3,649,228



3,429,023Total


15,994,456



15,539,713Net profits


20,518,839



29,336,688Net overriding royalty interest


75
%


75
%Royalty Income

$
15,389,129


$
22,002,516   Contractual
    Obligations
  1 20 1 30
 10




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Effects
    of Securities Regulation
    Critical
    Accounting Policies
    
    Royalty Income recorded for a month is the amount computed and
    paid pursuant to the Conveyance by BROG to the Trustee for the
    Trust. Royalty Income consists of the proceeds received by BROG
    from the sale of production from the Underlying Properties less
    accrued production costs, development and drilling costs,
    applicable taxes, operating charges, and other costs and
    deductions, multiplied by 75%. The calculation of net proceeds
    by BROG for any month includes adjustments to proceeds and costs
    for prior months and impacts the Royalty Income paid to the
    Trust and the distribution to Unit Holders for that month.
    Trust expenses recorded are based on liabilities paid and cash
    reserves established from Royalty Income for liabilities and
    contingencies.
    Distributions to Unit Holders are recorded when declared by the
    Trustee.
    The Conveyance which transferred the Royalty to the Trust
    provides that any excess of development and production costs
    applicable to the Underlying Properties over gross proceeds from
    such properties must be recovered from future net proceeds
    before Royalty Income is again paid to the Trust.  unit-of-production
 
  Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk.   11




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Item 4.
    Controls
    and Procedures.  Form 10-Q
    Form 10-Q
   12




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PART II
  OTHER
    INFORMATION
 
  Item 1.
    Legal
    Proceedings.  Form 10-Q
  United States of America ex rel. Harrold E.
    (Gene) Wright v. AGIP Petroleum Co. et al.
  San Juan Basin Royalty Trust vs.
    Burlington Resources Oil & Gas Company, L.P. No. D1329-CV-08-751,
    Jicarilla Apache
    Nation v. Department of Interior
 13




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Abraham et
    al. v. BP America Production Company Case No. 6:09-cv-00961,
  Item 6.
    Exhibits.  (4)(a)

Amended and Restated Royalty Trust Indenture, dated
    September 30, 2002 (the original Royalty
    Trust Indenture, dated November 1, 1980, having been
    entered into between Southland Royalty Company and The
    Fort Worth National Bank, as Trustee), heretofore filed as
    Exhibit 99.2 to the Trusts Current Report on
    Form 8-K
    filed with the Commission on October 1, 2002, is
    incorporated herein by reference.*(4)(b)

Net Overriding Royalty Conveyance from Southland Royalty Company
    to The Fort Worth National Bank, as Trustee, dated
    November 3, 1980 (without Schedules), heretofore filed as
    Exhibit 4(b) to the Trusts Annual Report on
    Form 10-K
    filed with the Commission for the fiscal year ended
    December 31, 2007, is incorporated herein by reference.*(4)(c)

Assignment of Net Overriding Royalty Interest (San Juan
    Basin Royalty Trust), dated September 30, 2002, between
    Bank One, N.A. and TexasBank, heretofore filed as
    Exhibit 4(c) to the Trusts Quarterly Report on
    Form 10-Q
    filed with the Commission for the quarter ended
    September 30, 2002, is incorporated herein by reference.*31

Certification required by
    Rule 13a-14(a),
    dated May 10, 2011, by Lee Ann Anderson, Vice President and
    Senior Trust Officer of Compass Bank, the Trustee of the
    Trust.**32

Certification required by
    Rule 13a-14(b),
    dated May 10, 2011, by Lee Ann Anderson, Vice President and
    Senior Trust Officer of Compass Bank, on behalf of Compass
    Bank, the Trustee of the Trust.***     *
    
    A copy of this exhibit is available to any Unit Holder (free of
    charge) upon written request to the Trustee, Compass Bank, 2525
    Ridgmar Boulevard, Suite 100, Fort Worth, Texas 76116.**
    
    Filed herewith.***
    
    Furnished herewith. 14




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SIGNATURES
       By:
    /s/  Lee
    Ann Anderson       (The Trust
    has no directors or executive officers.)




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INDEX TO
    EXHIBITS
  ExhibitNumber

Description(4)(a)

Amended and Restated Royalty Trust Indenture, dated
    September 30, 2002 (the original Royalty
    Trust Indenture, dated November 1, 1980, having been
    entered into between Southland Royalty Company and The
    Fort Worth National Bank, as Trustee), heretofore filed as
    Exhibit 99.2 to the Trusts Current Report on
    Form 8-K
    filed with the Commission on October 1, 2002, is
    incorporated herein by reference.*(4)(b)

Net Overriding Royalty Conveyance from Southland Royalty Company
    to The Fort Worth National Bank, as Trustee, dated
    November 3, 1980 (without Schedules), heretofore filed as
    Exhibit 4(b) to the Trusts Annual Report on
    Form 10-K
    filed with the Commission for the fiscal year ended
    December 31, 2007, is incorporated herein by reference.*(4)(c)

Assignment of Net Overriding Royalty Interest (San Juan
    Basin Royalty Trust), dated September 30, 2002, between
    Bank One, N.A. and TexasBank, heretofore filed as
    Exhibit 4(c) to the Trusts Quarterly Report on
    Form 10-Q
    with the Commission for the quarter ended September 30,
    2002, is incorporated herein by reference.*31

Certification required by
    Rule 13a-14(a),
    dated May 10, 2011, by Lee Ann Anderson, Vice President and
    Senior Trust Officer of Compass Bank, the Trustee of the
    Trust.**32

Certification required by
    Rule 13a-14(b),
    dated May 10, 2011, by Lee Ann Anderson, Vice President and
    Senior Trust Officer of Compass Bank, on behalf of Compass
    Bank, the Trustee of the Trust.***     *
    
    A copy of this exhibit is available to any Unit Holder (free of
    charge) upon written request to the Trustee, Compass Bank, 2525
    Ridgmar Boulevard, Suite 100, Fort Worth, Texas 76116.**
    
    Filed herewith.***
    
    Furnished herewith.