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SOUTHLAND ROYALTY COMPANY ADVISES SAN JUAN BASIN ROYALTY TRUST OF RECEIPT OF FINAL INSTALLMENT OF SETTLEMENT PAYMENT

 SOUTHLAND ROYALTY COMPANY ADVISES SAN JUAN BASIN ROYALTY TRUST OF
 RECEIPT OF FINAL INSTALLMENT OF SETTLEMENT PAYMENT
 FORT WORTH, Texas, March 5 /PRNewswire/ -- Southland Royalty Company advised the San Juan Basin Royalty Trust (NYSE: SJT) that it has received the third and final installment of the payment of proceeds from the settlement of litigation between Southland and others, and Gas Company of New Mexico, a division of Public Service Company of New Mexico ("PNM"), and Sunterra Gas Gathering Company, a subsidiary of PNM. This payment is in the amount of $19,802,300.
 The litigation, which was settled effective March 1, 1990, concerned purchase agreements between Southland, as seller, and PNM and Sunterra, as purchasers, of gas produced in the San Juan Basin of New Mexico.
 As part of the settlement, PNM and Sunterra agreed to pay Southland $54,500,000 in two installments. An initial payment of $18,166,000 was paid in connection with the execution of the Settlement Agreement. The second payment of the remaining balance of $36,334,000 was payable one year after the effective date of the Settlement Agreement. At the option of PNM, however, one-half of the balance due in 1991 ($18,167,000) could be extended until two years after the effective date of the Settlement Agreement, with interest payable at 9 percent of the deferred balance, if any. PNM elected to so defer one-half of the final payment ($18,167,000) until 1992.
 The portion of the third installment in the amount of $19,802,300, which includes interest of $1,635,000, less $2,233,000 attributable to quantity claims and less applicable severance taxes and royalties, if any, is anticipated to be included in gross proceeds in calculating royalty income for April 1992 and will be distributed to unit holders of record on June 30, 1992.
 -0- 3/5/92
 /CONTACT: Lee Ann Anderson, vice president and trust officer of Team Bank, 817-884-4630/
 (SJT) CO: Southland Royalty Company; San Juan Basin Royalty Trust ST: Texas IN: OIL SU:


AH -- NY083 -- 5660 03/05/92 17:38 EST
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Publication:PR Newswire
Date:Mar 5, 1992
Words:348
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