Page 5 of 16
                                 FORM 10-Q


                    SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D. C.  20549

(Mark One)

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2000

                                    OR

( )  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 0-16494

        Southwest Royalties Institutional Income Fund VIII-B, L.P.
                  (Exact name of registrant as specified
                   in its limited partnership agreement)

Delaware                                          75-2220418
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                         Identification No.)

                       407 N. Big Spring, Suite 300
                  _________Midland, Texas 79701_________
                 (Address of principal executive offices)

                      ________(915) 686-9927________
                      (Registrant's telephone number,
                           including area code)

Indicate  by  check  mark  whether 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 _____

         The total number of pages contained in this report is 16.

<PAGE>

                      PART I. - FINANCIAL INFORMATION

Item 1.  Financial Statements

The  unaudited  condensed financial statements included  herein  have  been
prepared  by  the Registrant (herein also referred to as the "Partnership")
in  accordance  with generally accepted accounting principles  for  interim
financial information and with the instructions to Form 10-Q and Rule 10-01
of Regulation S-X.  Accordingly, they do not include all of the information
and  footnotes  required  by generally accepted accounting  principles  for
complete   financial  statements.   In  the  opinion  of  management,   all
adjustments necessary for a fair presentation have been included and are of
a  normal  recurring nature.  The financial statements should  be  read  in
conjunction with the audited financial statements and the note thereto  for
the  year ended December 31, 1999 which are found in the Registrant's  Form
10-K  Report  for  1999 filed with the Securities and Exchange  Commission.
The December 31, 1999 balance sheet included herein has been taken from the
Registrant's  1999 Form 10-K Report.  Operating results for the  three  and
nine  month periods ended September 30, 2000 are not necessarily indicative
of the results that may be expected for the full year.

<PAGE>

        Southwest Royalties Institutional Income Fund VIII-B, L.P.

                              Balance Sheets

                                              September 30,   December 31,
                                                   2000           1999
                                              -------------   ------------
                                               (unaudited)
Assets

Current assets
 Cash and cash equivalents                     $  102,622         65,039
 Receivable from Managing General Partner         181,018        119,012
                                                ---------      ---------
     Total current assets                         283,640        184,051
                                                ---------      ---------
Oil and gas properties - using the
 full cost method of accounting                 4,133,496      4,133,496
  Less accumulated depreciation,
   depletion and amortization                   3,667,058      3,641,058
                                                ---------      ---------
     Net oil and gas properties                   466,438        492,438
                                                ---------      ---------
                                               $  750,078        676,489
                                                =========      =========

Liabilities and Partners' Equity

Current liability - Distribution payable       $       44            523
                                                ---------      ---------
 Partners' equity
  General partners                                 22,686         12,679
  Limited partners                                727,348        663,287
                                                ---------      ---------
     Total partners' equity                       750,034        675,966
                                                ---------      ---------
                                               $  750,078        676,489
                                                =========      =========
<PAGE>

        Southwest Royalties Institutional Income Fund VIII-B, L.P.

                         Statements of Operations
                                (unaudited)


                                Three Months Ended    Nine Months Ended
                                  September 30,         September 30,
                                  2000      1999        2000      1999
                                  ----      ----        ----      ----
Revenues

Income from net profits
 interests                   $   206,932   100,571     582,002   238,823
Interest                           1,846       485       4,400     1,019
Miscellaneous income                   -         -          59         -
                                 -------   -------     -------   -------
                                 208,778   101,056     586,461   239,842
                                 -------   -------     -------   -------
Expenses

General and administrative        19,349    18,393      61,393    58,905
Depreciation, depletion and
 amortization                     11,000     1,000      26,000    24,000
                                 -------   -------     -------   -------
                                  30,349    19,393      87,393    82,905
                                 -------   -------     -------   -------
Net income                   $   178,429    81,663     499,068   156,937
                                 =======   =======     =======   =======



Net income allocated to:

 Managing General Partner    $    17,049     7,440      47,256    16,285
                                 =======   =======     =======   =======
 General Partner             $     1,894       827       5,251     1,809
                                 =======   =======     =======   =======
 Limited Partners            $   159,486    73,396     446,561   138,843
                                 =======   =======     =======   =======
  Per limited partner unit   $     15.72      7.23        44.01    13.68
                                 =======   =======     =======   =======

<PAGE>

        Southwest Royalties Institutional Income Fund VIII-B, L.P.

                         Statements of Cash Flows
                                (unaudited)


                                                      Nine Months Ended
                                                        September 30,
                                                       2000       1999
                                                       ----      ----
Cash flows from operating activities

 Cash received from income from net
  profits interests                                $  503,965    148,081
 Cash paid to suppliers                              (45,303)   (42,166)
 Interest received                                      4,400      1,019
                                                      -------    -------
  Net cash provided by operating activities           463,062    106,934
                                                      -------    -------
Cash flows used in financing activities

 Distributions to partners                          (425,479)  (100,195)
                                                      -------    -------
Net increase in cash and cash equivalents              37,583      6,739

 Beginning of period                                   65,039     33,562
                                                      -------    -------
 End of period                                     $  102,622     40,301
                                                      =======    =======

                                                             (continued)
<PAGE>

        Southwest Royalties Institutional Income Fund VIII-B, L.P.

                    Statements of Cash Flows, continued
                                (unaudited)


                                                      Nine Months Ended
                                                        September 30,
                                                       2000       1999
                                                       ----       ----
Reconciliation of net income to net
 cash provided by operating activities

Net income                                         $  499,068    156,937

Adjustments to reconcile net income to
 net cash provided by operating activities

 Depreciation, depletion and amortization              26,000     24,000
 Increase in receivables                             (78,096)   (90,742)
 Increase in payables                                  16,090     16,739
                                                    ---------  ---------
Net cash provided by operating activities          $  463,062    106,934
                                                    =========  =========


<PAGE>

        Southwest Royalties Institutional Income Fund VIII-B, L.P.
                     (a Delaware limited partnership)

                      Notes to Financial Statements


1.   Organization
     Southwest  Royalties  Institutional  Income  Fund  VIII-B,  L.P.   was
     organized  under  the laws of the state of Delaware  on  November  30,
     1987,  for  the purpose of acquiring producing oil and gas  properties
     and to produce and market crude oil and natural gas produced from such
     properties  for a term of 50 years, unless terminated  at  an  earlier
     date  as  provided for in the Partnership Agreement.  The offering  of
     limited   partner   units  began  March  31,  1988,  minimum   capital
     requirements  were met July 11, 1988, with the offering  concluded  on
     March 31, 1989.

     The  Partnership  sells its oil and gas production  to  a  variety  of
     purchasers  with the prices it receives being dependent upon  the  oil
     and  gas  economy.  Southwest Royalties, Inc. serves as  the  Managing
     General  Partner  and  H. H. Wommack, III, as the  individual  general
     partner.  Revenues, costs and expenses are allocated as follows:

                                                     Limited      General
                                                     Partners     Partners
                                                     --------     --------
     Interest income on capital contributions          100%          -
     Oil and gas sales from net profits interests       90%         10%
     All other revenues                                 90%         10%
     Organization and offering costs (1)               100%          -
     Amortization of organization costs                100%          -
     Property acquisition costs                        100%          -
     Gain/loss on property dispositions                 90%         10%
     Operating and administrative costs (2)             90%         10%
     Depreciation, depletion and amortization
      of oil and gas properties                        100%          -
     All other costs                                    90%         10%

          (1)   All  organization costs in excess of 3% of initial  capital
          contributions  will be paid by the Managing General  Partner  and
          will  be treated as a capital contribution.  The Partnership paid
          the  Managing  General Partner an amount equal to 3%  of  initial
          capital contributions for such organization costs.

          (2)   Administrative costs in any year which exceed 2% of capital
          contributions shall be paid by the Managing Partner and  will  be
          treated as a capital contribution.

2.   Summary of Significant Accounting Policies
     The  interim financial information as of September 30, 2000,  and  for
     the  three  and  nine months ended September 30, 2000,  is  unaudited.
     Certain  information  and footnote disclosures  normally  included  in
     financial  statements prepared in accordance with  generally  accepted
     accounting principles have been condensed or omitted in this Form 10-Q
     pursuant  to the rules and regulations of the Securities and  Exchange
     Commission.   However,  in  the opinion of management,  these  interim
     financial  statements include all the necessary adjustments to  fairly
     present  the  results of the interim periods and all such  adjustments
     are  of a normal recurring nature.  The interim consolidated financial
     statements  should  be read in conjunction with the audited  financial
     statements for the year ended December 31, 1999.

<PAGE>
Item 2.  Management's  Discussion and Analysis of Financial  Condition  and
       Results of Operations

General
Southwest Royalties Institutional Income Fund VIII-B, L.P. was organized as
a  Delaware limited partnership on November 30, 1987. The offering of  such
limited  partnership  interests  began  March  31,  1988,  minimum  capital
requirements were met July 11, 1988, and concluded on March 31,  1989  with
total limited partner contributions of $5,073,500.

The Partnership was formed to acquire royalty and net profits interests  in
producing  oil  and  gas properties, to produce and market  crude  oil  and
natural  gas  produced  from such properties, and  to  distribute  the  net
proceeds from operations to the limited and general partners.  Net revenues
from  producing  oil  and gas properties will not be  reinvested  in  other
revenue  producing  assets except to the extent that production  facilities
and wells are improved or reworked or where methods are employed to improve
or enable more efficient recovery of oil and gas reserves.

Increases   or   decreases   in  Partnership   revenues   and,   therefore,
distributions  to partners will depend primarily on changes in  the  prices
received  for  production,  changes in volumes of  production  sold,  lease
operating  expenses, enhanced recovery projects, offset drilling activities
pursuant to farmout arrangements, sales of properties, and the depletion of
wells.  Since wells deplete over time, production can generally be expected
to decline from year to year.

Well  operating costs and general and administrative costs usually decrease
with   production   declines;  however,  these  costs  may   not   decrease
proportionately.  Net income available for distribution to the partners  is
therefore expected to fluctuate in later years based on these factors.

Based  on  current  conditions, management anticipates the  possibility  of
performing workovers during the next twelve months.  The Partnership  could
possibly experience a normal decline of 8% to 10% per year.

Oil and Gas Properties
Oil  and  gas  properties  are accounted for at cost  under  the  full-cost
method.  Under this method, all productive and nonproductive costs incurred
in  connection with the acquisition, exploration and development of oil and
gas  reserves  are capitalized.  Gain or loss on the sale of  oil  and  gas
properties  is not recognized unless significant oil and gas  reserves  are
involved.

The  Partnership's policy for depreciation, depletion and  amortization  of
oil  and  gas  properties is computed under the units  of  revenue  method.
Under the units of revenue method, depreciation, depletion and amortization
is  computed  on  the  basis of current gross revenues from  production  in
relation  to future gross revenues, based on current prices, from estimated
production of proved oil and gas reserves.

Should the net capitalized costs exceed the estimated present value of  oil
and gas reserves, discounted at 10%, such excess costs would be charged  to
current  expense.  As of September 30, 2000, the net capitalized costs  did
not exceed the estimated present value of oil and gas reserves.

<PAGE>

Results of Operations

A.  General Comparison of the Quarters Ended September 30, 2000 and 1999

The  following  table  provides certain information  regarding  performance
factors for the quarters ended September 30, 2000 and 1999:

                                                 Three Months
                                                    Ended        Percentage
                                                September 30,     Increase
                                                2000      1999   (Decrease)
                                                ----      ----   ---------
Average price per barrel of oil            $   29.73     20.20      47%
Average price per mcf of gas               $    5.48      1.86     195%
Oil production in barrels                     10,700     9,890       8%
Gas production in mcf                         10,300    13,000    (21%)
Income from net profits interests          $ 206,932   100,571     106%
Partnership distributions                  $ 200,000    50,000     300%
Limited partner distributions              $ 180,000    45,000     300%
Per unit distribution to limited partners  $   17.74      4.43     300%
Number of limited partner units               10,147    10,147

Revenues

The  Partnership's income from net profits interests increased to  $206,932
from  $100,571  for  the  quarters  ended  September  30,  2000  and  1999,
respectively,  an  increase of 106%.  The principal factors  affecting  the
comparison  of  the  quarters ended September 30,  2000  and  1999  are  as
follows:

1.   The  average  price  for a barrel of oil received by  the  Partnership
     increased  during the quarter ended September 30, 2000 as compared  to
     the  quarter  ended  September 30, 1999 by 47%, or $9.53  per  barrel,
     resulting in an increase of approximately $94,300 in income  from  net
     profits  interests.  Oil sales represented 85% of total  oil  and  gas
     sales  during the quarter ended September 30, 2000 as compared to  89%
     during the quarter ended September 30, 1999.

     The  average  price  for  an mcf of gas received  by  the  Partnership
     increased  during the same period by 195%, or $3.62 per mcf, resulting
     in  an  increase of approximately $47,100 in income from  net  profits
     interests.

     The  total  increase in income from net profits interests due  to  the
     change in prices received from oil and gas production is approximately
     $141,400.   The  market  price  for oil and  gas  has  been  extremely
     volatile over the past decade, and management expects a certain amount
     of volatility to continue in the foreseeable future.

<PAGE>

2. Oil  production  increased approximately 810 barrels or  8%  during  the
   quarter  ended  September  30, 2000 as compared  to  the  quarter  ended
   September  30,  1999, resulting in an increase of approximately  $24,100
   in income from net profits interests.

    Gas production decreased approximately 2,700 mcf or 21% during the same
    period, resulting in a decrease of approximately $14,800 in income from
    net profits interests.

    The  total net increase in income from net profits interests due to the
    change  in  production is approximately $9,300.  The  decrease  in  gas
    production  is due primarily to one well, which a gas leak occurred  in
    the  main  line,  and production is still low for the  quartered  ended
    September 30, 2000.

3. Lease  operating  costs  and  production  taxes  were  24%  higher,   or
   approximately $29,200 more during the quarter ended September  30,  2000
   as  compared  to the quarter ended September 30, 1999. The  increase  in
   lease operating costs and production taxes is primarily a result of  the
   higher  oil  and gas prices received by the Partnership.  Higher  prices
   have  made  it  possible  for the Partnership to  perform  needed  major
   repairs  and  maintenance.  Since production taxes are  based  on  gross
   revenues,  the  increase in oil and gas prices have  directly  increased
   production taxes.


Costs and Expenses

Total costs and expenses increased to $30,349 from $19,393 for the quarters
ended  September 30, 2000 and 1999, respectively, an increase of 56%.   The
increase  is  the  result  of  higher depletion  expense  and  general  and
administrative expense.

1.  General and administrative costs consists of independent accounting and
    engineering  fees,  computer services, postage,  and  Managing  General
    Partner personnel costs.  General and administrative costs increased 5%
    or  approximately $1,000 during the quarter ended September 30, 2000 as
    compared to the quarter ended September 30, 1999.

2.  Depletion  expense increased to $11,000 for the quarter ended September
    30,  2000 from $1,000 for the same period in 1999.  This represents  an
    increase of 1,000%.  Depletion is calculated using the units of revenue
    method  of  amortization based on a percentage of current period  gross
    revenues  to  total future gross oil and gas revenues, as estimated  by
    the  Partnership's  independent  petroleum  consultants.   Contributing
    factors  to  the increase in depletion expense between the  comparative
    periods were the increase in the price of oil and gas used to determine
    the Partnership's reserves. The increase in depletion expense is due to
    an  accrual  adjustment,  which  was  made  during  the  quarter  ended
    September 30, 1999 to adjust for the over accrual of depletion  in  the
    first  two quarters of 1999.  The rapid rise in prices during the first
    three  quarters of 1999 from $14/bbl to $23/bbl and from  $1.71/mcf  to
    $2.38/mcf caused an adjustment to be necessary during the third quarter
    of 1999.


<PAGE>

B.   General Comparison of the Nine Month Periods Ended September 30,  2000
and 1999

The  following  table  provides certain information  regarding  performance
factors for the nine month periods ended September 30, 2000 and 1999:

                                                 Nine Months
                                                    Ended        Percentage
                                                September 30,     Increase
                                                2000      1999   (Decrease)
                                                ----      ----   ---------
Average price per barrel of oil            $   28.18     15.54      81%
Average price per mcf of gas               $    4.14      2.22      86%
Oil production in barrels                     30,500    31,330     (3%)
Gas production in mcf                         32,900    39,140    (16%)
Income from net profits interests          $ 582,002   238,823     144%
Partnership distributions                  $ 425,000   100,000     325%
Limited partner distributions              $ 382,500    90,000     325%
Per unit distribution to limited partners  $   37.70      8.87     325%
Number of limited partner units               10,147    10,147

Revenues

The  Partnership's income from net profits interests increased to  $582,002
from  $238,823  for  the nine months ended September  30,  2000  and  1999,
respectively,  an  increase of 144%.  The principal factors  affecting  the
comparison  of  the nine months ended September 30, 2000 and  1999  are  as
follows:

1.  The  average  price  for a barrel of oil received  by  the  Partnership
    increased  during the nine months ended September 30, 2000 as  compared
    to  the  nine  months ended September 30, 1999 by 81%,  or  $12.64  per
    barrel,  resulting in an increase of approximately $396,000  in  income
    from net profits interests.  Oil sales represented 86% of total oil and
    gas  sales during the nine months ended September 30, 2000 as  compared
    to 85% during the nine months ended September 30, 1999.

    The  average  price  for  an  mcf of gas received  by  the  Partnership
    increased during the same period by 86%, or $1.92 per mcf, resulting in
    an  increase  of  approximately $75,100  in  income  from  net  profits
    interests.

    The  total  increase in income from net profits interests  due  to  the
    change  in prices received from oil and gas production is approximately
    $471,100.  The market price for oil and gas has been extremely volatile
    over  the  past  decade, and management expects  a  certain  amount  of
    volatility to continue in the foreseeable future.

<PAGE>

2. Oil  production  decreased approximately 830 barrels or  3%  during  the
   nine  months  ended September 30, 2000 as compared to  the  nine  months
   ended  September  30,  1999,  resulting in a decrease  of  approximately
   $23,400 in income from net profits interests.

    Gas production decreased approximately 6,240 mcf or 16% during the same
    period, resulting in a decrease of approximately $25,800 in income from
    net profits interests.

    The  total  decrease in income from net profits interests  due  to  the
    change  in  production is approximately $49,200.  The decrease  in  gas
    production  is due primarily to one well, which a gas leak occurred  in
    the main line, and production is still low.

3.  Lease  operating  costs  and  production  taxes  were  24%  higher,  or
    approximately  $78,800 more during the nine months ended September  30,
    2000  as  compared  to the nine months ended September  30,  1999.  The
    increase  in lease operating costs and production taxes is primarily  a
    result  of  the higher oil and gas prices received by the  Partnership.
    Higher  prices  have  made it possible for the Partnership  to  perform
    needed major repairs and maintenance.  Since production taxes are based
    on  gross  revenues, the increase in oil and gas prices  have  directly
    increased production taxes.

Costs and Expenses

Total  costs  and expenses increased to $87,393 from $82,905 for  the  nine
months ended September 30, 2000 and 1999, respectively, an increase of  5%.
The increase is the result of higher general and administrative expense and
depletion expense.

1.  General and administrative costs consists of independent accounting and
    engineering  fees,  computer services, postage,  and  Managing  General
    Partner personnel costs.  General and administrative costs increased 4%
    or approximately $2,500 during the nine months ended September 30, 2000
    as compared to the nine months ended September 30, 1999.

2.  Depletion  expense  increased to $26,000  for  the  nine  months  ended
    September  30,  2000 from $24,000 for the same period  in  1999.   This
    represents an increase of 8%.  Depletion is calculated using the  units
    of  revenue  method  of amortization based on a percentage  of  current
    period  gross  revenues to total future gross oil and gas revenues,  as
    estimated by the Partnership's independent petroleum consultants.

<PAGE>

Liquidity and Capital Resources

The  primary source of cash is from operations, the receipt of income  from
interests in oil and gas properties.  The Partnership knows of no  material
change, nor does it anticipate any such change.

Cash flows provided by operating activities were approximately $463,100  in
the  nine  months  ended  September 30, 1999 as compared  to  approximately
$106,900  in the nine months ended September 30, 1999.  The primary  source
of the 2000 cash flow from operating activities was profitable operations.

There  were  no  cash flows provided by investing activities  in  the  nine
months ended September 30, 2000 and 1999.

Cash flows used in financing activities were approximately $425,500 in  the
nine  months ended September 30, 2000 as compared to approximately $100,200
in  the  nine  months ended September 30, 1999.  The only use in  financing
activities was the distributions to partners.

Total  distributions during the nine months ended September 30,  2000  were
$425,000  of  which  $382,500 was distributed to the limited  partners  and
$42,500  to  the  general partners.  The per unit distribution  to  limited
partners during the nine months ended September 30, 2000 was $37.70.  Total
distributions during the nine months ended September 30, 1999 were $100,000
of which $90,000 was distributed to the limited partners and $10,000 to the
general partners.  The per unit distribution to limited partners during the
nine months ended September 30, 1999 was $8.87.

The  sources  for  the  2000 distributions of $425,000  were  oil  and  gas
operations  of  approximately  $463,100,  resulting  in  excess  cash   for
contingencies  or  subsequent  distributions.   The  source  for  the  1999
distributions  of  $100,000  was oil and gas  operations  of  approximately
$106,900,   resulting  in  excess  cash  for  contingencies  or  subsequent
distributions.

Since  inception of the Partnership, cumulative monthly cash  distributions
of  $6,186,587 have been made to the partners.  As of September  30,  2000,
$5,588,413 or $550.75 per limited partner unit has been distributed to  the
limited partners, representing a 110% return of the capital contributed.

As  of  September 30, 2000, the Partnership had approximately  $283,600  in
working  capital.   The  Managing  General  Partner  knows  of  no  unusual
contractual commitments and believes the revenues generated from operations
are adequate to meet the needs of the Partnership.


<PAGE>
Liquidity - Managing General Partner

The  Managing General Partner has a highly leveraged capital structure with
approximately, $33.8 million of cash interest and $5.9 million of principal
due  within  the  next  twelve  months.  The Managing  General  Partner  is
currently  in  the  process  of renegotiating  the  terms  of  its  various
obligations with its note holders and/or attempting to seek new lenders  or
equity  investors.   Additionally,  the  Managing  General  Partner   would
consider disposing of certain assets in order to meet its obligations.

There  can  be no assurance that the Managing General Partner's  continuing
debt  restructuring  efforts will be successful or that  the  lenders  will
agree  to  a course of action consistent with the Managing General Partners
requirements  in restructuring the obligations.  Even if such agreement  is
reached,  it  may  require approval of additional  lenders,  which  is  not
assured.   Furthermore, there can be no assurance that the sales of  assets
can  be  successfully  accomplished on terms  acceptable  to  the  Managing
General   Partner.   Under  current  circumstances,  the  Managing  General
Partner's  ability to continue as a going concern depends upon its  ability
to  (1)  successfully  restructure  its obligations  or  obtain  additional
financing  as  may  be  required, (2) maintain  compliance  with  all  debt
covenants, (3) generate sufficient cash flow to meet its obligations  on  a
timely  basis, and (4) achieve satisfactory levels of future earnings.   If
the  Managing  General Partner is unsuccessful in its efforts,  it  may  be
unable to meet its obligations making it necessary to undertake such  other
actions as may be appropriate to preserve asset values.



<PAGE>

                        PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         None

Item 3.  Defaults Upon Senior Securities

         None

Item 4.  Submission of Matter to a Vote of Security Holders

         None

Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

         (a)Exhibits:

             27 Financial Data Schedule

             (b)  No reports on Form 8-K were filed during the quarter for
             which this report is filed.


<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.

                                   Southwest Royalties Institutional
                                   Income Fund VIII-B, L.P.
                                   a Delaware limited partnership

                                   By:  Southwest Royalties, Inc.
                                        Managing General Partner


                                   By:  /s/ Bill E. Coggin
                                        ------------------------------
                                        Bill E. Coggin, Vice President
                                        and Chief Financial Officer

Date:     November 15, 2000

<PAGE>