Texas Pacific Land Trust (the Trust) is engaged in sale and lease of land owned by it, retaining oil and gas royalties, temporary cash investments and the overall management of the land owned by it. The Trust�s income is derived primarily from land sales, oil and gas royalties, grazing leases and interest. As of February 29, 2012, the Trust owned the surface estate in 926,535 acres of land, comprised of numerous separate tracts, located in 19 counties in the western part of Texas. The Trust also owns a 1/128 nonparticipating perpetual oil and gas royalty interest under 85,414 acres of land and a 1/16 nonparticipating perpetual oil and gas royalty interest under 373,777 acres of land in the western part of Texas. At December 31, 2011, grazing leases were in effect on 97% or approximately 898,837 acres of the Trust�s land. During the year ended December 31, 2011, it sold approximately 31,446 acres of land.