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 20, 2007

PERMIAN BASIN ROYALTY TRUST

(Exact name of Registrant as specified in its charter)

Texas
(State or other jurisdiction of
incorporation or organization)

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





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 20, 2007, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on March 30, 2007. 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 20, 2007.

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 21, 2007

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

EX-99.1

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release dated March 20, 2007.

Exhibit 99.1

Permian Basin Royalty Trust

News Release

PERMIAN BASIN ROYALTY TRUST
ANNOUNCES MARCH CASH DISTRIBUTION

     DALLAS, Texas, March 20, 2007 – 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 $.100074 per unit, payable on April 16, 2007, to unit holders of record on March 30, 2007.

     This month’s distribution increased from the previous month due primarily to a slight increase in oil production in the both the Waddell Ranch and Texas Royalty Properties, and higher gas prices. This would primarily reflect production for the month of January. As of January 1, 2007, gas produced on the Waddell Ranch was sold to Duke Energy. During the transition from one system to another, certain volumes were not recorded and should be captured for next month. 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 61,433 bbls and 241,361 mcf. The average price for oil was $49.24 per bbl and for gas was $7.94 per mcf. Capital expenditures were approximately $500,028. The numbers provided reflect what was net to the Trust.

	Net to Trust Sales
	Volumes				Average Price
	Oil				Oil		Gas
	(Bbls)		Gas (Mcf)		(per Bbl)		(per Mcf)
Current Month		61,433		241,361	$	49.24	$	7.94
Prior Month		52,291		251,687	$	54.53	$	6.85

     Burlington Resources Oil and Gas Company has advised the Trustee that the capital expenditures budget for 2007 totals approximately $32.4 million, of which approximately $18.9 million (gross) is attributable to the 2007 drilling program, and $12.4 million (gross) to workovers and recompletions. Accordingly, there is a 9.0% decrease in capital expenditures for 2007 as compared with the 2006 capital expenditures. The major reason for the variance is the decrease in the number of planned capital drill wells. There will be 20 new drill wells in 2007 as compared to 26 in 2006.

     The 2006 tax information packets were mailed directly to unitholders as of the first of March. A copy of the 2006 Tax Information booklet is available on the Trust website.

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

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