The Permian Basin Royalty Trust (the Trust) is an express trust. The net overriding royalties conveyed to the Trust (the Royalties) include a 75%
overriding royalty carved out of Southland Royalty's fee mineral interests in the Waddell Ranch in Crane County, Texas (the Waddell Ranch properties), and a 95% net overriding royalty carved out of Southland Royalty's major producing royalty interests in Texas (the Texas Royalty properties). The Waddell Ranch properties consist of 76,922 gross (33,246 net) producing acres. A majority of the proved reserves are attributable to six fields: Dune, Sand Hills (Judkins), Sand Hills (McKnight), Sand Hills (Tubb), University-Waddell (Devonian) and Waddell. The Texas Royalty properties consist of royalty interests in mature producing oil fields, such as Yates, Wasson, Sand Hills, East Texas, Kelly-Snyder, Panhandle Regular, N. Cowden, Todd, Keystone, Kermit, McElroy, Howard-Glasscock, Seminole and others.
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