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. Argent Trust Company, a Tennessee chartered trust company, serves as the current Trustee. The Trust's principal office is located at 3838 Oak Lawn Ave, Suite 1720, Dallas, Texas. The Trust's assets consist of two main royalty interests conveyed by Southland Royalty Company on November 3, 1980, effective for production from and after November 1, 1980, at 7:00 a.m. These include 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 are equivalent to net profits interests. The Trustee's responsibilities involve collecting income generated from these royalty interests, paying all Trust expenses and charges, and then distributing 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.