PERMIAN BASIN ROYALTY TRUST

PERMIAN BASIN ROYALTY TRUST is an express trust established under Texas law on November 3, 1980. The Trust's primary function is to hold and manage specific net overriding royalty interests in oil and gas properties for the benefit of its unitholders. These interests were conveyed to the Trust by Southland Royalty Company. Specifically, the Trust holds a 75% net overriding royalty interest derived from Southland Royalty's fee mineral interests in the Waddell Ranch properties located in Crane County, Texas. Additionally, the Trust holds a 95% net overriding royalty interest carved out of Southland Royalty's major producing royalty properties, also in Texas. These interests, collectively referred to as the "Royalties," were conveyed on November 3, 1980, and became effective for production from and after November 1, 1980, at 7:00 a.m. The Trustee, currently Argent Trust Company, a Tennessee chartered trust company, is responsible for collecting the income generated by these Royalties. After paying all Trust expenses and charges, the Trustee distributes the remaining available income to the unitholders. The Trust itself does not engage in any business activities and has no employees; all administrative functions are handled by the Trustee. The principal office of the Trust is located at 3838 Oak Lawn Ave, Suite 1720, Dallas, Texas.