8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION 

WASHINGTON, DC 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):  August 21, 2006

HUGOTON ROYALTY TRUST

(Exact Name of Registrant as Specified in Its Charter)

Texas

(State or Other Jurisdiction of Incorporation)

1-10476	58-6379215
(Commission File Number)	(IRS Employer Identification No.)
Trust Division
Royalty Trust Group
Bank of America, N.A.
901 Main Street, 17th Floor
P.O. Box 830650
Dallas, Texas	75283-0650
(Address of Principal Executive Offices)	(Zip Code)

(877) 228-5083

(Registrant’s Telephone Number, Including Area Code)

NONE

(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 (see General Instruction A.2. below):

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

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

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

¨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 August 21, 2006, the Registrant issued a news release announcing its monthly cash distribution to unitholders of record on August 31, 2006. A copy of the news release is furnished as Exhibit 99.1.

The information in this Current Report, including the news release attached hereto, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

         99.1 News Release dated August 21, 2006

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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.

HUGOTON ROYALTY TRUST
By:	BANK OF AMERICA, N.A., TRUSTEE FOR
	HUGOTON ROYALTY TRUST

Date: August 21, 2006	By:	/s/ NANCY G. WILLIS
		Nancy G. Willis
		Vice President

XTO ENERGY INC.
By:	/s/ BENNIE G. KNIFFEN
	Bennie G. Kniffen
	Senior Vice President and Controller

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EXHIBIT INDEX

Exhibit Number and Description

99.1 News Release dated August 21, 2006

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EX-99.1

EXHIBIT 99.1

[NEWS RELEASE LETTERHEAD OF HUGOTON ROYALTY TRUST APPEARS HERE]

HUGOTON ROYALTY TRUST

DECLARES AUGUST CASH DISTRIBUTION

 Dallas, Texas, August 21, 2006 - Bank of America, N.A., as Trustee of the Hugoton Royalty Trust (NYSE - HGT), today declared a cash distribution to the holders of its units of beneficial interest of $0.118769 per unit, payable on September 15, 2006, to unitholders of record on August 31, 2006. The following table shows underlying gas sales and average prices attributable to the current month and prior month distributions. Underlying gas sales volumes attributable to the current month distribution were primarily produced in June.

	Underlying Gas Sales Volumes (Mcf) (a)
		Total	Daily		Average Gas Price per Mcf
Current Month Distribution		2,395,000	80,000	$	5.42
Prior Month Distribution		2,525,000	81,000	$	6.07

(a)   Sales volumes are recorded in the month the trust receives the related net profits income. Because of this, sales volumes may fluctuate from month to month based on the timing of cash receipts.

 Twelve wells are currently being drilled on the underlying properties.  Budgeted development costs of $5,000,000 were deducted for this distribution.  Production expense for the month was $1,724,000 and overhead was $714,000.

Development Costs

 Because of increased development activity and higher drilling costs, XTO Energy has advised the Trustee that it has increased the monthly development cost deduction from $4,200,000 to $5,000,000 beginning with the August 2006 distribution. This increased monthly deduction is expected to be maintained through the December 2006 distribution, but will be reevaluated and revised as necessary.

Other 

XTO Energy announced on January 27, 2006 that, in connection with its distribution of Hugoton Royalty Trust (HGT) units to stockholders, it would consider divesting its underlying property interests in both HGT and Cross Timbers Royalty Trust (CRT).  XTO Energy has advised the Trustee, that after a full review, it has decided to retain ownership of these underlying property interests.

 For more information on the Trust, please visit our web site at www.hugotontrust.com.

* * *

Contacts: Nancy G. Willis Vice President Bank of America, N.A. (Toll Free) 877/228-5083 Louis G. Baldwin Executive Vice President & Chief Financial Officer XTO Energy, Inc. 817/870-2800