Permian Basin Royalty Trust (the Trust) is an express trust. The Trust's principal assets are net overriding royalties conveyed to the Trust, including a 75% net 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). Bank of America, N.A. is the Trustee for the Trust. At December 31, 2012, the Waddell Ranch properties contained 889 gross (400 net) productive oil wells, 64 gross (30 net) productive gas wells and 177 gross (506 net) injection wells. As of December 31, 2012, there were no drill wells and 13 workovers in progress on the Waddell Ranch properties. The Texas Royalty properties consist of approximately 125 separate royalty interests containing approximately 303,000 gross (approximately 51,000 net) producing acres.