Permian Basin Royalty Trust is a Texas Corporation incorporated on November 1, 1980. The Company is an express trust created under the laws of the state of Texas by the Permian Basin Royalty Trust Indenture entered into on November 3, 1980, between Southland Royalty Company and The First National Bank of Fort Worth, as Trustee. Bank of America Private Wealth Management, a banking association organized under the laws of the United States, as the successor of The First National Bank of Fort Worth, is now the Trustee of the Trust. The function of the Trustee is to collect the income attributable to the Royalties, to pay all expenses and charges of the Trust, and then distribute the remaining available income to the Unit holders. In 1985, Southland Royalty became a wholly-owned subsidiary of Burlington Northern Inc. (BNI). In 1988, BNI transferred its natural resource operations to Burlington Resources Inc. (BRI) as a result of which Southland Royalty became a wholly-owned indirect subsidiary of BRI. Crude oil and natural gas prices could fluctuate widely on a month-to-month basis in response to a number of factors that are beyond the control of the Trust. Many aspects of the production, pricing, transportation and marketing of crude oil and natural gas are regulated by federal and state agencies. Exploration and production operations are subject to various types of regulation at the federal, state and local levels. Such regulation includes requiring permits for the drilling of wells, maintaining bonding requirements in order to drill or operate wells, and regulating the location of wells, the method of drilling and casing wells, the surface use and restoration of properties upon which wells are drilled and the plugging and abandonment of wells.