8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 21, 2006

PERMIAN BASIN ROYALTY TRUST

(Exact name of Registrant as specified in its charter)

Texas (State or other jurisdiction of incorporation or organization)	1-8033 (Commission File Number)	75-6280532 (I.R.S. Employer Identification No.)
Trust Division Royalty Trust Group Bank of America, N.A. 901 Main Street, 17th Floor Dallas, Texas (Address of principal executive offices)		75202 (Zip Code)

Registrant’s Telephone Number, including area code: (214) 209-2400

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations And Financial Condition.

     On March 21, 2006, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on March 31, 2006. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

     This Report on Form 8-K is being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.

     (c) Exhibits

          99.1 Press Release dated March 21, 2006.

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.

	PERMIAN BASIN ROYALTY TRUST
	By:	BANK OF AMERICA, N.A., TRUSTEE FOR
		PERMIAN BASIN ROYALTY TRUST
	By:	/s/ RON E. HOOPER
		Ron E. Hooper
		Senior Vice President, Royalty Management
Date: March 22, 2006

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release dated March 21, 2006.

EX-99.1

Permian Basin Royalty Trust Exhibit 99.1

News Release

PERMIAN BASIN ROYALTY TRUST
ANNOUNCES MARCH CASH DISTRIBUTION

     DALLAS, Texas, March 21, 2006 – Bank of America, N.A., as Trustee of the Permian Basin Royalty Trust (NYSE – PBT), today declared a cash distribution to the holders of its units of beneficial interest of $.134437 per unit, payable on April 14, 2006, to unit holders of record on March 31, 2006.

     This month’s distribution increased from the previous month due primarily to increased oil and gas production in both the Waddell Ranch and the Texas Royalty properties, and slightly higher oil prices. The worldwide market conditions continue to affect the pricing for domestic production. It is difficult to predict what effect these conditions will have on future distributions.

     Production for Waddell Ranch and the Texas Royalty Properties combined for oil and gas respectively was 69,952 bbls and 295,210 mcf. The average price for oil was $58.47 per bbl and for gas was $8.82 per mcf. This would primarily reflect production for the month of January. Capital expenditures were approximately $397,177. The numbers provided reflect what was net to the Trust.

     Burlington Resources Oil and Gas Company has advised the Trustee that the capital expenditures budget for 2006 totals approximately $23.4 million, of which approximately $7.4 million is attributable to the 2006 drilling program, $15 million gross to workovers and recompletions, and $1 million for facilities. Accordingly, there is a 59% increase in capital expenditures for 2006 as compared with the 2005 capital expenditures. The net costs to the Trust will be approximately $11.1 million. Also, lease operating expense (LOE) is projected to have a substantial increase due to electricity costs. The budget for LOE for 2006 is estimated to be $27.4 million.

     The independent petroleum engineers’ reports as to the proved oil and gas reserves attributable to the Royalties conveyed to the Trust were obtained from Cawley, Gillespie &

Associates, Inc. The following table presents the proved reserve quantities as of December 31, 2005 (in thousands):

Waddell Ranch

Texas Royalty

Properties

Properties

Total

Oil

Gas

Oil

Gas

Oil

Gas

(Bbls)

(Mcf)

(Bbls)

(Mcf)

(Bbls)

(Mcf)

December 31, 2005

3,315

20,929

3,535

5,603

6,850

26,532

     Except for historical information contained in this news release, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Permian Basin Royalty Trust are subject to a number of risks and uncertainties that may cause actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, governmental regulation or action, litigation, and uncertainties about estimates of reserves. These and other risks are described in the Trust’s reports and other filings with the Securities and Exchange Commission

For information, including the latest financial reports on Permian Basin Royalty Trust, please visit our website at http://www.pbt-permianbasintrust.com/.

*     *     *

Contact:	Ron E. Hooper
	Senior Vice President
	Bank of America, N.A.
	Toll Free – 877 .228.5085