San Juan Basin Royalty Trust is a passive investment trust that holds a 75% net overriding royalty interest in oil and natural gas properties in the San Juan Basin of northwestern New Mexico. The Trust was created in 1980 and has no employees, conducts no operations, and holds no assets other than its royalty interest. The underlying properties are operated entirely by Hilcorp, which acquired them in 2017. The Trust's sole function is to collect royalty income from Hilcorp, pay Trust expenses, and distribute the remainder to unit holders as monthly cash distributions. Roughly 99% of proved reserves are natural gas, making the Trust essentially a pure-play natural gas royalty vehicle. The Trust earns royalty income equal to 75% of net proceeds — gross production revenues minus Hilcorp's production costs, including development drilling, operating costs, processing, and taxes. If costs exceed gross proceeds, the resulting Excess Production Costs must be fully recovered before the Trust receives any royalty income. The Trust's cash flow is driven by natural gas prices, Hilcorp's production costs, and production volumes. Critically, the Trustee has no ability to influence Hilcorp's operational or capital spending decisions. Hilcorp's aggressive horizontal drilling program in 2024-2025, combined with lower natural gas prices, generated substantial Excess Production Costs, suspending all Trust distributions since April 2024. As of December 2025, outstanding Excess Production Costs stood at approximately $8.4M gross, and the Trust has drawn on a $2M line of credit just to cover its own administrative expenses.