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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, 2004
 [   ] 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.)
 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 [ X ] No [   ] Number of Units of beneficial interest of the Trust outstanding at May 1,
2004: 46,608,796.




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUSCONDENSED STATEMENTS OF DISTRIBUTABLE INCOMECONDENSED STATEMENTS OF CHANGES IN TRUST CORPUSNOTES TO CONDENSED FINANCIAL STATEMENTSItem 2. Trustees Discussion And AnalysisItem 3. Qualitative And Quantitative Disclosures About Market RiskItem 4. Controls and ProceduresPART II  OTHER INFORMATIONItems 1 through 5Item 6. Exhibits and Reports on Form 8-KSIGNATURESINDEX TO EXHIBITSRule 13a-14(a)/15d-14(a) CertificationCertification Pursuant to 18 U.S.C. Section 1350    Table of Contents  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, 2004, and the distributable income and changes in trust corpus for
the three-month periods ended March 31, 2004 and 2003 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, 2004 and
for the three-month periods ended March 31, 2004 and 2003 included herein. 2




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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, 2004 and
the related condensed statements of distributable income and changes in trust
corpus for the three-month periods ended March 31, 2004 and 2003. 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, 2003,
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
9, 2004, 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, 2003 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 5, 2004 3




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PERMIAN BASIN ROYALTY TRUST 
 CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS March 31,
    
    December 31,2004
    
    2003(Unaudited)ASSETSCash and short-term investments
    
    $
    3,038,718
    
    
    $
    2,873,975Net overriding royalty interests in
producing oil and gas properties (net of
accumulated amortization of $9,027,908 and
$8,983,700 at March 31, 2004 and December
31, 2003, respectively)
    
    
    1,947,308
    
    
    
    1,991,594TOTAL ASSETS
    
    $
    4,986,026
    
    
    $
    4,865,569LIABILITIES AND TRUST CORPUSDistribution payable to Unitholders
    
    $
    3,038,718
    
    
    $
    2,873,975Commitments and contingencies
Trust corpus - 46,608,796 Units of
beneficial interest authorized and
outstanding
    
    
    1,947,308
    
    
    
    1,991,594TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    4,986,026
    
    
    $
    4,865,569
 The accompanying notes to condensed financial statements are an integral part
of these statements.  4




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PERMIAN BASIN ROYALTY TRUST 
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED) THREE MONTHS ENDED
    
    THREE MONTHS ENDEDMarch 31, 2004
    
    March 31, 2003Royalty income
    
    $
    9,206,674
    
    
    $
    6,983,374Interest income
    
    
    3,498
    
    
    
    3,5349,210,172
    
    
    
    6,986,908General and
administrative
expenditures
    
    
    184,025
    
    
    
    217,428Distributable income
    
    $
    9,026,147
    
    
    $
    6,769,480Distributable income per
Unit (46,608,796 Units)
    
    $
    .19
    
    
    $
    .15
 The accompanying notes to condensed financial statements are an integral part
of these statements. 5




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PERMIAN BASIN ROYALTY TRUST 
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED) THREE MONTHS ENDED
    
    THREE MONTHS ENDEDMarch 31, 2004
    
    March 31, 2003Trust corpus,
beginning of period
    
    $
    1,991,594
    
    
    $
    2,172,393Amortization of net
overriding royalty
interests
    
    
    (44,286
    )
    
    
    (42,466
    )Distributable income
    
    
    9,026,147
    
    
    
    6,769,480Distributions declared
    
    
    (9,026,147
    )
    
    
    (6,769,480
    )Total Trust Corpus,
end of period
    
    $
    1,947,308
    
    
    $
    2,129,927Distributions per unit
    
    $
    .19
    
    
    $
    .15
 The accompanying notes to condensed financial statements are an integral part
of these statements. 6




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PERMIAN BASIN ROYALTY TRUST 
 NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)  1.
    
    BASIS OF ACCOUNTINGThe 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




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
    
    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.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.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.Unit holders should consult their tax advisors for further information.3.
    
    SUBSEQUENT EVENTSSubsequent to March 31, 2004, the Trust declared a distribution on April 20,
2004 of $.059152 payable on May 14, 2004, to Unitholders of record on April
30, 2004. 8




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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, 2004 Compared to Three Months Ended March 31, 2003 For the quarter ended March 31, 2004 royalty income received by the Trust
amounted to $9,206,674 compared to royalty income of $6,983,374 during the
first quarter of 2003. 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, 2004, was $3,498 compared to
$3,534 during the first quarter of 2003. The decrease in interest income is
primarily attributable to lower interest rates. General and administrative
expenses during the first quarter of 2004 amounted to $184,025 compared to
$217,428 during the first quarter of 2003. The decrease in general and
administrative expenses can be primarily attributed to the timing of payment of
year end expenses. 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 2003 and January 2004 from the properties from which the Trusts
net overriding royalty interests (Royalties) were carved. Oil 9




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and gas sales attributable to the Royalties and the properties from which the
Royalties were carved are as follows: First Quarter2004
    
    2003Royalties:Oil sales (Bbls)
    
    
    182,702
    
    
    
    163,593Gas sales (Mcf)
    
    
    881,167
    
    
    
    696,119Properties From Which The Royalties Were Carved:Oil:Total oil sales (Bbls)
    
    
    281,964
    
    
    
    307,978Average per day (Bbls)
    
    
    3,065
    
    
    
    3,348Average price per Bbl
    
    $
    29.66
    
    
    $
    28.82Gas:Total gas sales (Mcf)
    
    
    1,483,568
    
    
    
    1,558,654Average per day (Mcf)
    
    
    16,126
    
    
    
    16,942Average price per Mcf
    
    $
    4.86
    
    
    $
    3.99
 The posted price of oil increased to an average price per barrel of $29.66 per
Bbl in the first quarter of 2004 compared to $28.82 per Bbl in the first
quarter of 2003. The Trustee has been advised by BROG that for the period
August 1, 1993, through March 31, 2004, 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 $3.99 per Mcf in the first quarter of 2003
to $4.86 per Mcf in the first quarter of 2004 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 2004 compared to 2003. Capital expenditures for drilling, remedial and maintenance activities on the
Waddell Ranch properties during the first quarter of 2004 totaled $674,708 as
compared to $2,965,073 for the first quarter of 2003. BROG has informed the
Trustee that the 2004 capital expenditures budget has been revised to $132
million for the Waddell Ranch. The total amount of capital expenditures for
2003 was $9.1 million. Through the first quarter of 2004, capital expenditures
of $.6 million have been expended. The Trustee has been advised that there were no wells completed and no wells in
progress during the three months ended March 31, 2004 as compared to 2 wells
completed and 2 wells in progress for the three months ended March 31, 2003 on
the Waddell Ranch properties. 10




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Lease operating expense and property taxes totaled $2.37 million for the first
quarter of 2004, compared to $2.58 million in the first quarter of 2003 on the
Waddell Ranch properties. This decrease is primarily attributable to
additional maintenance costs for the quarter in 2003. 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, 2004
and 2003, respectively, were computed as shown in the table below: Three Months Ended March 31,2004
    
    2003Waddell
    
    Texas
    
    Waddell
    
    TexasRanch
    
    Royalty
    
    Ranch
    
    RoyaltyProperties
    
    Properties
    
    Properties
    
    PropertiesGross proceeds of sales from the
Underlying PropertiesOil proceeds
    
    $
    5,994,037
    
    
    $
    2,369,771
    
    
    $
    6,552,266
    
    
    $
    2,324,242Gas proceeds
    
    
    6,286,083
    
    
    
    928,991
    
    
    
    5,406,817
    
    
    
    810,547Total
    
    
    12,280,120
    
    
    
    3,298,762
    
    
    
    11,959,083
    
    
    
    3,134,789Less:Severance tax:Oil
    
    
    255,274
    
    
    
    94,377
    
    
    
    277,238
    
    
    
    85,319Gas
    
    
    356,326
    
    
    
    53,915
    
    
    
    338,737
    
    
    
    79,641Lease operating expense and
property tax:Oil and gas
    
    
    2,373,957
    
    
    
    264,383
    
    
    
    2,581,653
    
    
    
    195,000Capital expenditures
    
    
    674,708
    
    
    
    
    
    
    
    2,965,073
    
    
    
    Total
    
    
    3,660,265
    
    
    
    412,675
    
    
    
    6,162,701
    
    
    
    359,960Net profits
    
    
    8,619,855
    
    
    
    2,886,087
    
    
    
    5,796,382
    
    
    
    2,774,829Net overriding royalty interests
    
    
    75
    %
    
    
    95
    %
    
    
    75
    %
    
    
    95
    %Royalty income
    
    $
    6,464,891
    
    
    $
    2,741,783
    
    
    $
    4,347,287
    
    
    $
    2,636,087
 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. 11




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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 Royalties 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 1 to the Financial Statements). 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 accrual basis,
and amortization of the Royalty Interests is not charged against operating
results. Revenue Recognition Revenues from the Royalties 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 2004 generally reflects the proceeds, on an entitlements basis, from
natural gas produced and sold in the fourth quarter of 2003. Reserve Disclosure As of January 1, 2004, independent petroleum engineers estimated the net proved
reserves attributable to the Royalties. In accordance with Statement of
Financial Standards No. 69, Disclosure 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 reserves estimates. 12




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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, 2004. Use of Estimates The preparation of financial statements in conformity with the basis of
accounting described above requires management to make estimates and
assumptions that effect the reported amounts of certain assets, liabilities,
revenues and expenses as of and for the reporting period. Actual results may
differ from such estimates. 
 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,
2003. 
 Item 4. Controls and Procedures As of the end of the period covered by 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-15 and
15d-15. Based upon that evaluation, the Trustee concluded that the Trusts
disclosure control and procedures are effective in timely alerting the Trustee
to 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, the owner of the Waddell Ranch properties, and
River Hill Energy Corporation, the owner of the Texas Royalty properties.
There has not been any change in the Trusts internal control over financial
reporting during the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the Trusts internal
control over financial reporting. 13




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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.31.1
    
    Certification by Ron E. Hooper, Senior Vice
President and Trust Administrator of Bank of America, Trustee
of Permian Basin Royalty Trust, dated May 10, 2004 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 May 10, 2004 and submitted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. Section 1350). 14




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(b)
    
    Reports on Form 8-K The Trust did not file any reports on Form 8-K during the first quarter of
2004; however, the following reports on Form 8-K were furnished to the SEC
during the first quarter:  On January 21, 2004, the Trust furnished a report on Form 8-K indicating
that the Trust issued a press release announcing its monthly cash
distribution to Unitholders of record on January 30, 2004.On February 18, 2004, the Trust furnished a report on Form 8-K indicating
that the Trust issued a press release announcing its monthly cash
distribution to Unitholders of record on February 27, 2004.On March 23, 2004, the Trust furnished a report on Form 8-K indicating
that the Trust issued a press release announcing its monthly cash
distribution to Unitholders of record on March 31, 2004. 15




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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 TRUSTBy /s/ RON E. HOOPERRon E. HooperSenior Vice
President
      Trust Administrator Date: May 10, 2004 (The Trust has no directors or executive officers.) 16




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INDEX TO EXHIBITS ExhibitNumber
    
    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.*(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.*31.1
    
    Certification by Ron E. Hooper, Senior Vice President and Trust
Administrator of Bank of America, Trustee of Permian Basin Royalty Trust,
dated May 10, 2004 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 May 10, 2004 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.