San Juan Basin Royalty Trust (the Trust) is an express trust created by the San Juan Basin Royalty Trust Indenture (the Original Indenture) between Southland Royalty Company (Southland Royalty) and The Fort Worth National Bank. The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty, to pay all expenses and charges of the Trust, and then distribute the remaining available income to the Unit Holders. The Royalty conveyed to the Trust was carved out of Southland Royalty's working interests and royalty interests in certain properties situated in the San Juan Basin in northwestern New Mexico. The Underlying Properties consist of working interests, royalty interests, overriding royalty interests and other contractual rights in 151,900 gross producing acres in San Juan, Rio Arriba and Sandoval Counties of northwestern New Mexico.