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): December 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 (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))

Item 2.02 Results of Operations and Financial Condition.

     On December 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 $8,927,669.56, or $0.191545 per unit, based principally upon production during the month of October 2007.

Item 9.01 Financial Statements and Exhibits.

     (d) Exhibits.

99.1 Press release, dated December 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
	Vice President and Senior Trust Officer

Date: December 21, 2007

(The Trust has no directors or executive officers.)

EX-99.1

Exhibit 99.1

San Juan Basin Royalty Trust

News Release

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

San Juan Basin Royalty Trust
Declares Monthly Cash Distribution

     FORT WORTH, Texas, December 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 $8,927,669.56 or $0.191545 per unit, based principally upon production during the month of October 2007. The distribution is payable January 15, 2008, to unit holders of record as of December 31, 2007.

     Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 3,137,225 Mcf (3,390,575 MMBtu). Dividing revenues by production volume yielded an average gas price for October 2007 of $5.75 per Mcf ($5.32 per MMBtu) as compared to $5.17 per Mcf ($4.84 per MMBtu) for September 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 $2,204,726. Lease operating expenses were $2,337,361 and taxes were $1,758,115.

     As reported in various media, Williams Field Services has shut down its Ignacio gas processing plant due to a fire which occurred at the facility on November 28, 2007. The Ignacio plant has a processing capacity of approximately 450 MMcf per day. Williams reports that it has rerouted approximately 100 MMcf of the plant’s normal daily production capacity to other facilities in the San Juan Basin and that it continues to work on rerouting additional volumes. The mishap did not affect the current distribution but may affect future distributions. However, at this time, the Trustee has no basis on which to estimate the affect on future distributions. In addition, Burlington Resources Oil & Gas Company LP has informed the Trustee that it is attempting to temporarily shift volumes to other facilities while the Ignacio plant is down.

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