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): May 18, 2007

San Juan Basin Royalty Trust

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

Texas
(State or other jurisdiction of incorporation
or organization) 1-8032
(Commission File Number) 75-6279898
(I.R.S. Employer
Identification Number)

Compass Bank, Trust Department
2525 Ridgmar Boulevard, Suite 100
Fort Worth, Texas
(Address of principal
executive offices) 76116
(Zip Code)

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 May 18, 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 $9,205,045.72, or $0.197496 per unit, based principally upon production during the month of March 2007.

Item 9.01 Financial Statements and Exhibits.

          (d) Exhibits.

99.1 Press release, dated May 18, 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
	Vice President and Senior Trust Officer

Date: May 21, 2007

(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, May 18, 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 $9,205,045.72 or $0.197496 per unit, based principally upon production during the month of March 2007. The distribution is payable June 14, 2007, to unit holders of record as of May 31, 2007.

     Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 2,934,862 Mcf (3,153,467 MMBtu). Dividing revenues by production volume yielded an average gas price for March 2007 of $6.62 per Mcf ($6.17 per MMBtu) as compared to $6.53 per Mcf ($6.02 per MMBtu) for February 2007. 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 $2,873,723. Lease operating expenses were $2,500,956 and taxes were $1,949,380.

     This month’s distribution increased from the prior month primarily due to higher gas volumes and lower capital costs. Production volumes for this period were reduced by 215,831 Mcf due to accrual adjustments in the operator’s settlement process for November 2006 production. The Trust has been informed by the operator that this will be the final such monthly adjustment for the over accrual of production volumes which occurred during 2006.

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