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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 March 31, 2009
 or
 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 No. 1-8032
 San Juan Basin Royalty Trust
  Texas
    
    75-6279898(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 Compass Bank
2525 Ridgmar Boulevard, Suite 100
Fort Worth, Texas 76116
 (866) 809-4553
 
 þ o
 o o
  Large accelerated filer þ
Accelerated filer o
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company o o þ




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TABLE OF CONTENTS  PART IItem 1. Financial Statements.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.Item 6. Exhibits.SIGNATURESEX-31EX-32    Table of Contents  SAN JUAN BASIN ROYALTY TRUST
 
 PART I
 FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
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SAN JUAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
 March 31,
    
    
    December 31,2009
    
    
    2008(Unaudited)ASSETSCash and short-term investments
    
    $
    2,584,262
    
    
    $
    7,449,767Net overriding royalty interest in producing
oil and gas properties (net of accumulated
amortization of $115,594,539 and $115,348,030
at March 31, 2009 and December 31, 2008, respectively)
    
    
    17,680,989
    
    
    
    17,927,498$
    20,265,251
    
    
    $
    25,377,265LIABILITIES AND TRUST CORPUSDistribution payable to Unit Holders
    
    $
    2,428,473
    
    
    $
    7,293,978Cash reserves
    
    
    155,789
    
    
    
    155,789Trust corpus  46,608,796 Units of beneficial
interest authorized and outstanding
    
    
    17,680,989
    
    
    
    17,927,498$
    20,265,251
    
    
    $
    25,377,265
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 Three Months EndedMarch 31,2009
    
    
    2008Royalty income
    
    $
    9,550,576
    
    
    $
    25,576,418Interest income
    
    
    2,605
    
    
    
    164,379Total Revenue
    
    
    9,553,181
    
    
    
    25,740,797General and administrative expenditures
    
    
    (583,745
    )
    
    
    (610,074
    )Distributable income
    
    $
    8,969,436
    
    
    $
    25,130,723Distributable income per Unit (46,608,796 Units)
    
    $
    0.192440
    
    
    $
    0.539184
 The accompanying notes to condensed financial statements are an integral part of these statements.
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SAN JUAN BASIN ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 Three Months EndedMarch 31,2009
    
    
    2008Trust corpus, beginning of period
    
    $
    17,927,498
    
    
    $
    19,880,888Amortization of net overriding royalty interest
    
    
    (246,509
    )
    
    
    (442,826
    )Distributable income
    
    
    8,969,436
    
    
    
    25,130,723Distributions declared
    
    
    (8,969,436
    )
    
    
    (25,130,723
    )Total corpus, end of period
    
    $
    17,680,989
    
    
    $
    19,438,062
 The accompanying notes to condensed financial statements are an integral part of these statements.
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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.
  2. FEDERAL INCOME TAXES
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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.
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7




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Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations.
 Forward-Looking Information
  Business Overview
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Three Months Ended March 31, 2009 and 2008
  January
    
    $
    .041447February
    
    
    .098890March
    
    
    .052103Quarter Total
    
    $
    .192440
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Three Months EndedMarch 31,2009
    
    2008Gas:Total sales (Mcf)
    
    
    8,558,550
    
    
    
    8,559,117Mcf per day
    
    
    93,028
    
    
    
    93,033Average price (per Mcf)
    
    $
    4.04
    
    
    $
    6.97Oil:Total sales (Bbls)
    
    
    10,982
    
    
    
    12,698Bbls per day
    
    
    119
    
    
    
    138Average price (per Bbl)
    
    $
    40.50
    
    
    $
    88.58
  Three Months EndedMarch 31,2009
    
    2008Gas sales (Mcf)
    
    
    2,522,083
    
    
    
    4,723,823Oil sales (Bbls)
    
    
    3,302
    
    
    
    6,922
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.
  Calculation of Royalty Income
  CALCULATION OF ROYALTY INCOME
 Three Months EndedMarch 31,2009
    
    
    2008Gross proceeds of sales from the Underlying Properties:Gas proceeds
    
    $
    34,594,861
    
    
    $
    53,108,214Oil proceeds
    
    
    444,735
    
    
    
    1,124,793Total
    
    
    35,039,596
    
    
    
    54,233,007Less production costs:Severance tax  Gas
    
    
    3,126,253
    
    
    
    5,436,476Severance tax  Oil
    
    
    42,796
    
    
    
    117,911Lease operating expense and property tax
    
    
    9,269,559
    
    
    
    8,329,283Capital expenditures
    
    
    9,866,887
    
    
    
    6,247,446Total
    
    
    22,305,495
    
    
    
    20,131,116Net profits
    
    
    12,734,101
    
    
    
    34,101,891Net overriding royalty interest
    
    
    75
    %
    
    
    75
    %Royalty income
    
    $
    9,550,576
    
    
    $
    25,576,418
 Contractual Obligations
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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.
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
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Item 4. Controls and Procedures.
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PART II
OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  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.
  15




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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 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 11, 2009, 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 11, 2009, 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. 16




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SIGNATURES
  COMPASS BANK, AS TRUSTEE OF THE
SAN JUAN BASIN ROYALTY TRUSTBy:
    /s/ Lee Ann AndersonLee Ann AndersonVice President and Senior Trust Officer




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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 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 11, 2009, 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 11, 2009, 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.