San Juan Basin Royalty Trust is an express trust, which was established on November 1, 1980. The Company was created under the laws of the state of Texas by the San Juan Basin Royalty Trust Indenture entered into on November 3, 1980, between Southland Royalty Company and The Fort Worth National 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 distribute the remaining available income to the Unit Holders. The Trust is a fixed investment trust classified as a non-mortgage held fixed investment trust for federal income tax purposes. The Company is subject to rules and regulations set forth by the federal and state government.