-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: keymaster@town.hall.org
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 pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ==
MIC-Info: RSA-MD5,RSA,
 okIf6jXeGa8ZwHOs2rZWEGcDocTHI77pqb8hGLycRisYqDoHx7Nc7Arq3Bi7XOGH
 bCW/Jn0Q7ARnhsAt0uZqRg==

<IMS-DOCUMENT>0000950109-94-001309.txt : 19940801
<IMS-HEADER>0000950109-94-001309.hdr.sgml : 19940801
ACCESSION NUMBER:		0000950109-94-001309
CONFORMED SUBMISSION TYPE:	SC 13D/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		19940729

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SABINE ROYALTY TRUST
		CENTRAL INDEX KEY:			0000710752
		STANDARD INDUSTRIAL CLASSIFICATION:	6792
		IRS NUMBER:				756297143
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-35089
		FILM NUMBER:		94540883

	BUSINESS ADDRESS:	
		STREET 1:		901 MAIN ST - 12TH FLR
		STREET 2:		NATIONABANK OF TEXAS N A - TRUST DIV
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75202
		BUSINESS PHONE:		2145082400

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FUND AMERICAN ENTERPRISES HOLDINGS INC
		CENTRAL INDEX KEY:			0000776867
		STANDARD INDUSTRIAL CLASSIFICATION:	6162
		IRS NUMBER:				942708455
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A

	BUSINESS ADDRESS:	
		STREET 1:		THE 1820 HOUSE MAIN STREET
		CITY:			NORWICH
		STATE:			VT
		ZIP:			05055
		BUSINESS PHONE:		8026493633

	MAIL ADDRESS:	
		STREET 1:		1820 HOUSE MAIN STREET
		CITY:			NORWICH
		STATE:			VT
		ZIP:			05055

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FUND AMERICAN COMPANIES INC
		DATE OF NAME CHANGE:	19920701

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIREMANS FUND CORP
		DATE OF NAME CHANGE:	19900211
</IMS-HEADER>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<DESCRIPTION>AMENDMENT #7
<TEXT>

<PAGE>
 
                                 SCHEDULE 13D


                   Under the Securities Exchange Act of 1934
                               (Amendment No. 7)

                             SABINE ROYALTY TRUST
                        -------------------------------
                               (Name of Issuer)


                         Units of Beneficial Interest
                ----------------------------------------------
                        (Title of Class of Securities)


                                  785688 10 2
                     ------------------------------------
                                (CUSIP Number)

                              Michael S. Paquette
                  Vice President and Chief Accounting Officer
                   Fund American Enterprises Holdings, Inc.
                                The 1820 House,
                                 Main Street,
                          Norwich, Vermont 05055-0850
                                (802) 649-3633
                  ------------------------------------------
           (Name, Address and Telephone Number of Person Authorized
                    to Receive Notices and Communications)

                                 July 22, 1994
            ------------------------------------------------------
            (Date of Event which Requires Filing of this Statement)

     If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box ___.

     Check the following box if a fee is being paid with this statement ___.  (A
fee is not required only if the reporting person:  (1) has a previous statement
on file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.
(See Rule 13d-7.)

     NOTE:  Six copies of this statement, including all exhibits, should be
filed with the Commission.  See Rule 13d-1(a) for other parties to whom copies
are to be sent.
<PAGE>
 
                             CUSIP NO. 785688 10 2
_________________________________________________________________________

(1)  Name of Reporting Person. S.S. or I.R.S. Identification No. of Above
Person

                   Fund American Enterprises Holdings, Inc.
                                  94-2708455
_________________________________________________________________________

(2)  Check the Appropriate Box if a Member   (a) _______________
of a Group (See Instructions)
__________________________________________   (b) _______________

(3)  (SEC Use Only)
____________________________________________________________

(4)  Source of Funds (See Instructions)
____________________________________________________________

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
or 2(e)
____________________________________________________________

(6)  Citizenship or Place of Organization
                                   Delaware
                                   --------
____________________________________________________________

Number of Units                (7)  Sole Voting Power
Beneficially Owned             -------------------
by Each Reporting              (8)  Shared Voting Power
Person With                           1,350,000
                               -------------------    
                               (9)  Sole Dispositive Power
                               -------------------    
                               (10)  Shared Dispositive Power
                                      1,350,000
                               -------------------    
____________________________________________________________

(11)  Aggregate Amount Beneficially Owned by Each Reporting Person
                                     1,350,000
                               --------------------
____________________________________________________________

(12)  Check if the Aggregate Amount in Row (11) Excludes Certain Units (See
Instructions)
____________________________________________________________

(13)  Percent of Class Represented by Amount in Row (11)
                                      Approximately 9.3%
____________________________________________________________

(14)  Type of Reporting Person (See Instructions)  HC, CO


                                    2 of 7
<PAGE>
 
                             CUSIP NO. 785688 10 2
_________________________________________________________________________

(1)  Name of Reporting Person.  S.S. or I.R.S. Identification No. of Above
Person

                Fund American Enterprises, Inc.
                         51-0328932
_________________________________________________________________________

(2)  Check the Appropriate Box if a Member   (a) _______________
of a Group (See Instructions)
__________________________________________   (b) _______________

(3)  (SEC Use Only)
____________________________________________________________

(4)  Source of Funds (See Instructions)
____________________________________________________________

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
or 2(e)
____________________________________________________________

(6)  Citizenship or Place of Organization
                                   Delaware
                                   --------
____________________________________________________________

Number of Units                     (7)  Sole Voting Power
Beneficially Owned                  -----------------
by Each Reporting                   (8)  Shared Voting Power
Person With                              1,350,000
                                    -----------------
                                    (9)  Sole Dispositive Power
                                    -----------------
                                    (10)  Shared Dispositive Power
                                         1,350,000
                                    -----------------
____________________________________________________________

(11)  Aggregate Amount Beneficially Owned by Each Reporting Person
                            1,350,000
                       -------------------
____________________________________________________________

(12)  Check if the Aggregate Amount in Row (11) Excludes Certain Units (See
Instructions)
____________________________________________________________

(13)  Percent of Class Represented by Amount in Row (11)
                                      Approximately 9.3%
____________________________________________________________

(14)  Type of Reporting Person (See Instructions)   CO


                                    3 of 7
<PAGE>
 
ONLY ITEMS REPORTED IN THIS AMENDMENT NO. 7 TO SCHEDULE 13D ARE AMENDED FROM THE

FILING ON SCHEDULE 13D (THE "SCHEDULE 13D") DATED DECEMBER 20, 1990, AS AMENDED

BY AMENDMENT NO. 1 DATED SEPTEMBER 29, 1992, AMENDMENT NO. 2 DATED MARCH 8,

1993, AMENDMENT NO. 3 DATED JUNE 23, 1993, AMENDMENT NO. 4 DATED OCTOBER 4,

1993, AMENDMENT NO. 5 DATED APRIL 7, 1994 AND AMENDMENT NO. 6 DATED JUNE 3,

1994.  ALL OTHER ITEMS REMAIN UNCHANGED. UNLESS OTHERWISE SPECIFIED, ALL DEFINED

TERMS USED HEREIN HAVE THE MEANING PREVIOUSLY ASCRIBED TO THEM IN THE SCHEDULE

13D.

Item 2.  Identity and Background.
        -------------------------

Item 3.  Source and Amount of Funds or Other Consideration.
         --------------------------------------------------

Item 4.  Purpose of Transaction
         ----------------------

  Sales made by FAE to third parties, outlined in Schedule II attached hereto,

which is incorporated herein by reference, were made in the ordinary course of

business and not for the purpose or effect of changing or influencing the

control of the Issuer or inconnection with, or as a participant in, any

transaction having such purpose or effect.

  (a)  FAEH owns all 1,350,000 Units indirectly through FAE.  The aggregate

number of Units and the corresponding percentage of the outstanding Units such

number represents is as follows:
<TABLE>
<CAPTION>
 
                                                 Percentage of
                                  Units              Units
                               Beneficially       Beneficially
            Person                Owned              Owned
            ------              ---------          ----------
        <S>                     <C>                  <C>
            FAEH                1,350,000              9.3%
                                                  
            FAE                 1,350,000              9.3%
</TABLE>                                           


                                    4 of 7
<PAGE>
 
  (b)  FAEH shares voting power and dispositive power with respect to its

1,350,000 Units with FAE.

  (c)  Except as described in Schedule II attached hereto, neither FAEH nor FAE,

nor, to the best knowledge of FAEH, FAE, nor any of the persons listed on

Schedule I, has been party to any transaction in the Units during the sixty day

period ending on the date of this statement on Schedule 13D.

  (d)  None

  (e)  Not Applicable



                                    5 of 7
<PAGE>
 
                                   SIGNATURE


      After reasonable inquiry and to the best of the knowledge and belief of

the undersigned, the undersigned certifies that the information set forth in

this statement is true, complete and correct.



Dated:  July 29, 1994

                                 FUND AMERICAN ENTERPRISES HOLDINGS, INC.

                                 BY:



                                                     /S/ 
                                 -----------------------------------------
                                 Name:     Michael S. Paquette
                                 Title:    Vice President and
                                           Chief Accounting Officer


                                 FUND AMERICAN ENTERPRISES, INC.

                                 BY:



                                                     /S/ 
                                 -----------------------------------------
                                 Name:     Terry L. Baxter
                                 Title:    President






                                    6 of 7
<PAGE>
 
                          Schedule II to Schedule 13D
                          ---------------------------

Sales of Units of Beneficial Interest of The Sabine Royalty Trust by the

Reporting Persons and by persons listed in Schedule I, attached hereto, within

the last 60 days.

<TABLE>
<CAPTION>
   Sold by           Date         Number Sold     Unit Price
  ---------        --------       -----------     ----------
   <S>            <C>             <C>              <C>        
     FAE           05/23/94           5,000         $13.5
     FAE           05/24/94           1,800         $13.625
     FAE           05/25/94           3,200         $13.625
     FAE           05/27/94           1,500         $13.625
     FAE           05/31/94           2,500         $13.55
     FAE           06/01/94           1,000         $13.5
     FAE           06/02/94          16,900         $13.7041
     FAE           06/03/94           4,800         $13.5
     FAE           06/06/94           1,500         $13.5  
     FAE           06/07/94           1,000         $13.5
     FAE           06/08/94           7,800         $13.593
     FAE           06/09/94           5,200         $13.649
     FAE           06/10/94             200         $13.75
     FAE           06/13/94           2,000         $13.75
     FAE           06/14/94             500         $13.75
     FAE           06/15/94          19,100         $13.6257
     FAE           06/16/94           5,900         $13.625
     FAE           06/20/94           6,500         $13.6731
     FAE           06/22/94             700         $13.625
     FAE           06/23/94          12,200         $13.5062
     FAE           06/24/94           3,700         $13.5
     FAE           06/29/94             600         $13.625
     FAE           06/30/94          10,800         $13.5093
     FAE           07/05/94           3,800         $13.625
     FAE           07/06/94          11,400         $13.5154
     FAE           07/07/94           5,900         $13.5297
     FAE           07/11/94           5,000         $13.5
     FAE           07/13/94           5,000         $13.625
     FAE           07/14/94           1,500         $13.625
     FAE           07/15/94          13,000         $13.5
     FAE           07/18/94           9,100         $13.5
     FAE           07/20/94           3,900         $13.5
     FAE           07/21/94           8,100         $13.5
     FAE           07/22/94          30,000         $13.5
 
</TABLE>

                                    7 of 7
</TEXT>
</DOCUMENT>
</IMS-DOCUMENT>
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