San Juan Basin Royalty Trust is an express trust with working interests and royalty interests in 151,900 gross (119,000 net) producing acres in San Juan, Rio Arriba and Sandoval Counties of northwestern New Mexico. Based upon information received from the Trust's independent petroleum engineers, the Trust properties contain 3,305 gross (976 net) economic wells, including dual completions. Production from conventional gas wells is primarily from the Pictured Cliffs, Mesaverde and Dakota formations. During 1988, development of coal seam reserves in the Fruitland Coal formation was initiated. The properties are primarily gas-producing properties.