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

San Juan Basin Royalty Trust

(Exact name of registrant as specified in the
Amended and Restated San Juan Basin Royalty Trust Indenture)

Texas	1-8032	75-6279898
(State or other jurisdiction of incorporation	(Commission File Number)	(I.R.S. Employer
or organization)		Identification Number)
Compass Bank, Trust Department		76116
2525 Ridgmar Boulevard, Suite 100		(Zip Code)
Fort Worth, Texas
(Address of principal
executive offices)

Registrant’s telephone number, including area code: (866) 809-4553

N/A

(Former name or former address, 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:

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))

TABLE OF CONTENTS

Press Release

Item 2.02 Results of Operations and Financial Condition.

     On March 20, 2007, the San Juan Basin Royalty Trust (the “Trust”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing, among other things, a monthly cash distribution to the holders of its units of beneficial interest of $5,410,468.38, or $0.116083 per unit, based principally upon production during the month of January 2007.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
	99.1  Press release, dated March 20, 2007.

     In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

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 hereunto duly authorized.

	COMPASS BANK, AS TRUSTEE FOR THE SAN JUAN BASIN ROYALTY TRUST (Registrant)
	By:	/s/ Lee Ann Anderson
		Lee Ann Anderson
Date: March 21, 2007		Vice President and Senior Trust Officer

(The Trust has no directors or executive officers.)

EX-99.1

Exhibit 99.1

San Juan Basin Royalty Trust

Compass Bank, Trustee
2525 Ridgmar Boulevard, Suite 100
Fort Worth, Texas 76116

News Release

San Juan Basin Royalty Trust
Declares Monthly Cash Distribution

     FORT WORTH, Texas, March 20, 2007 — Compass Bank, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), today declared a monthly cash distribution to the holders of its units of beneficial interest of $5,410,468.38 or $0.116083 per unit, based principally upon production during the month of January 2007. The distribution is payable April 16, 2007, to unit holders of record as of March 30, 2007.

     Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 2,889,905 Mcf (3,115,510 MMBtu). Dividing revenues by production volume yielded an average gas price for January 2007 of $5.39 per Mcf ($5.00 per MMBtu) as compared to $6.39 per Mcf ($5.87 per MMBtu) for December 2006. The average gas price may vary significantly from the posted index price for the San Juan Basin. The index price is a gross sales price, and the revenues used in the calculation of average gas prices are net of transportation, processing and gathering costs. Furthermore, the distribution to the Trust in any given month may include significant volume adjustments for sales in prior months that reflect pricing for those prior months. Capital costs for the month were $4,363,244. Lease operating expenses were $2,377,726 and taxes were $1,512,031.

     This month’s distribution decreased from the prior month primarily due to lower gas pricing and lower production volumes. Capital costs and lease operating expenses increased significantly from the previous month. Market conditions continue to affect natural gas pricing. It is difficult to predict what effect these conditions will have on future distributions.

Contact:	San Juan Basin Royalty Trust
	Lee Ann Anderson, Vice President and Senior Trust Officer
	Kaye Wilke, Investor Relations, toll-free: (866) 809-4553
	Fax: (817) 735-0936
	Website: www.sjbrt.com
	E-mail: sjt@compassbank.com