<SEC-DOCUMENT>0001571049-16-018930.txt : 20161021
<SEC-HEADER>0001571049-16-018930.hdr.sgml : 20161021
<ACCEPTANCE-DATETIME>20161021115112
ACCESSION NUMBER:		0001571049-16-018930
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20161021
DATE AS OF CHANGE:		20161021
EFFECTIVENESS DATE:		20161021

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SAN JUAN BASIN ROYALTY TRUST
		CENTRAL INDEX KEY:			0000319655
		STANDARD INDUSTRIAL CLASSIFICATION:	OIL ROYALTY TRADERS [6792]
		IRS NUMBER:				756279898
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08032
		FILM NUMBER:		161945737

	BUSINESS ADDRESS:	
		STREET 1:		COMPASS BANK, TRUST DEPARTMENT
		STREET 2:		300 W. 7TH STREET SUITE B
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76102
		BUSINESS PHONE:		8668094553

	MAIL ADDRESS:	
		STREET 1:		COMPASS BANK, TRUST DEPARTMENT
		STREET 2:		300 W. 7TH STREET SUITE B
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76102

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Southwest Bank
		CENTRAL INDEX KEY:			0001682358
		IRS NUMBER:				751105980
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		2200 WEST 7TH STREET, SUITE 210
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76107
		BUSINESS PHONE:		817.298.5587

	MAIL ADDRESS:	
		STREET 1:		2200 WEST 7TH STREET, SUITE 210
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76107
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>t1600651_dfan14a.htm
<DESCRIPTION>SCHEDULE 14A
<TEXT>
<HTML>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 14A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Rule 14a-101)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION REQUIRED IN PROXY STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 14A INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proxy Statement pursuant to Section 14(a)
of the<BR>
Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by the Registrant <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by a Party other than the Registrant <FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Preliminary Proxy Statement</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Confidential, for Use of the Commission Only (as Permitted
by Rule 14a-6(e)(2))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Definitive Proxy Statement</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD STYLE="text-align: justify">Definitive Additional Materials</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Soliciting Material Pursuant to &sect;240.14a-12</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>SAN JUAN
BASIN ROYALTY TRUST</B></FONT><BR>
<B>(Name of Registrant as Specified In Its Charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45.65pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>Southwest
Bank</B></FONT><BR>
<FONT STYLE="font-size: 12pt"><B>Robert Lansford</B></FONT><BR>
<B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45.65pt"><B>&nbsp;</B></P>

<P STYLE="margin: 0pt 0px; font: 10pt Times New Roman, Times, Serif">Payment of Filing Fee (Check the
appropriate box):</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD STYLE="text-align: justify">No fee required.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
and 0-11.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Title of each class of securities to which transaction
applies:</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Aggregate number of securities to which transaction applies:</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined):</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Proposed maximum aggregate value of transaction:</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(5)</TD><TD STYLE="text-align: justify">Total fee paid:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Fee paid previously with preliminary materials.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Check box if any part of the fee is offset as provided
by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the Form or Schedule and the date of its filing.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Amount Previously Paid:</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Form, Schedule or Registration Statement No.:</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Filing Party:</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Date Filed:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.9pt 12pt 0">Southwest Bank and Robert Lansford (collectively, the
&ldquo;Southwest Bank Participants&rdquo;) have made a definitive filing with the Securities and Exchange Commission of a proxy
statement and an accompanying WHITE proxy card in connection with the solicitation of proxies for a special meeting of the unitholders
of San Juan Basin Royalty Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.9pt 12pt 0">On October 21, 2016, the Southwest Bank Participants
delivered the following letter to unitholders of the Trust and issued the following press release with respect to the unitholder
letter.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.9pt 12pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.9pt 12pt 0; text-align: center">*******************************</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: center">October 21, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">Dear San Juan Basin Royalty Trust Unitholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">Prior to my departure from Compass Bank
last fall, I wrote to you quarterly since 1985 when I first began working on the administration of the San Juan Basin Royalty Trust
(the &ldquo;<B><I>Trust</I></B>&rdquo; or &ldquo;<B><I>SJT</I></B>&rdquo;.) It has been a long and I believe mutually beneficial
relationship. A lot has transpired over thirty years, with numerous changes in the oil and gas industry, securities and energy
regulation, mergers and changes of the operator of the Trust properties and of the trustee bank! <B>Thank you for your confidence
over the many years, and I am asking for your support now in a matter of utmost importance to the future of the Trust.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">I resigned from Compass Bank last fall
to join the impressive royalty trust management group at Southwest Bank which now administers seven other royalty trusts and has
an experienced staff of nine. Given my long-standing history with the Trust, I was surprised and disappointed when Compass Bank
determined that it would retain the trustee bank role rather than transfer it to Southwest Bank. Since joining Southwest Bank,
I have personally observed that Southwest Bank has devoted many hours and dollars to support the creation of a department that
specializes in the administration of royalty trusts and that Southwest Bank&rsquo;s management has made a commitment to continue
to do so. I fully supported our decision to commence a proxy solicitation for you to be able to request a special meeting to consider
the appointment of Southwest Bank as successor trustee for the Trust. I am happy to report that over 22% of you quickly acted to
request the special meeting so that you may express your views on this important matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">The record date for the special meeting
is October 24, 2016, meaning that you must hold your units on that date to be able to vote your units at the special meeting.
Compass Bank has not yet announced the date, time and location for the special meeting, but we anticipate that they will schedule
the meeting for a date in November&mdash;<B>giving us a very short amount of time to solicit votes while competing with a presidential
election and the approaching Thanksgiving holiday</B>. We believe that Compass Bank&rsquo;s meeting date timing is an obvious
tactic to frustrate your voting franchise and a self-interested attempt by Compass Bank to prevent its removal and preserve its
own economic benefit. <B>Given the timing, it is very important that you make your preference of trustee known by voting the <U>WHITE
</U>proxy card as soon as possible.</B>&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: center"><B><U>Experience Matters</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">I suppose it is not surprising that a well-oiled machine like
the Trust can continue to function without the benefit of experienced leadership for some period of time. But new issues, changes
and developments with the operator will arise, and we firmly believe the Trust is better served by a department of officers skilled
and experienced in administering grantor royalty trusts in general and the San Juan Basin Royalty Trust in particular. <B>Are you
confident that Compass Bank has the ability to proactively identify and address new issues, changes and developments impacting
the Trust on your behalf?</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 8pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B><I>Inexperienced Trust Officer&mdash;</I></B>When I resigned, Compass Bank gave Josh Peterson a &ldquo;field promotion&rdquo;
to Vice President and Senior Trust Officer, an office I spent 15-20 years to earn, after only eighteen months of experience as
an oil and gas manager with Compass Bank. Mr. Peterson&rsquo;s background before joining Compass Bank in 2014 was in land title
examination, not oil and gas accounting or operations. In Mr. Peterson&rsquo;s deposition relating to the pending Burlington litigation
in January 2016, he admitted under oath that he had no experience in the administration of royalty trusts, no experience with SEC
filings, and very little experience with oil and gas other than that relating to title work. Prior to assuming full responsibility
of the Trust, he spent only four days of training with me for background on the Trust&rsquo;s administration and history. He had
very little acquaintance with trusts involving oil and gas assets prior to February 2014, and none of those were publicly traded.
Most importantly as far as the current litigation, he could not testify about anything in the litigation with personal knowledge
about the facts. Even though Mr. Peterson had no experience or training in SEC reporting or the audit compliance process prior
to November 2015, he is the one who now must personally certify as to the accuracy and effectiveness of the Trust&rsquo;s SEC reports,
financial statements, disclosure controls and procedures and internal control over financial reporting. <B>We believe that a publicly-traded
entity in the midst of complex litigation with Burlington is not the place for a principal trust officer to learn on the job.</B></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 8pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B><I>No &ldquo;Long-Term&rdquo; Decision Makers Employed by Compass Bank</I></B>&mdash;We believe that Compass Bank&rsquo;s
reference to individuals with 25 years of experience with the Trust is misleading. The only remaining employee of Compass Bank
with any long-term experience working on the Trust, while a capable clerical assistant, has never acted in a managerial role or
had any responsibility for discretionary decision-making for the Trust. In making the foregoing representation, Compass Bank may
instead be alluding to the team of petroleum engineers, gas marketers, trial counsel, CPA&rsquo;s, compliance auditors and investor
relations contractors that I assembled and managed over the years for the Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt 0.75in">The concern remains that the outside consultants are
not the ones who ultimately act on behalf of the Trust. For example, compliance auditors conduct the diligence and develop audit
exceptions, but they do not make the decisions as to what to do when those exceptions are not granted by the operator. Bottom line,
the compliance auditor can write the exceptions, but if the person tasked with coordinating all of the consultants does not understand
the reported material or, at the very least, does not have contextual experience or background history, we believe he is going
to be severely disadvantaged going forward in communicating and negotiating with the operator to find solutions. One of the most
important aspects as trustee is to have the ability to gather, understand, synthesize and apply the disparate information received
from the operator and consultants in sound administration of the Trust. During my tenure with the Trust, I was continually immersed
in the audit process since 1992.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: center"><B><U>Critical Knowledge of Burlington
Relationship and Pending Litigation</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in"><U>During my 30-year tenure with the Trust,
I routinely interacted with Burlington representatives on matters related to the Trust and compiled a demonstrated record of recouping
millions of dollars on behalf of the Trust</U>. In those instances in which it was impossible to resolve a dispute with Burlington,
it was up to me as principal trust officer to determine whether to take legal action on behalf of the Trust to recover disputed
amounts. As an example, after filing royalty litigation against Burlington in 1992, the Trust received over $20 million in the
related 1996 settlement agreement. Being involved in that process was an invaluable experience for me as a royalty trust administrator.
Few trustees of royalty trusts, if any, at that time were performing any audits of the operators of royalty trust properties. Following
the 1996 settlement, I developed and worked with a team of compliance auditors skilled in auditing joint operating agreements for
energy industry clients to implement an audit process for the Trust that has resulted in payments to the Trust of more than an
additional $42 million to date.</P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">In July 2014 and after consulting with
the Trust&rsquo;s legal and financial advisors, I made the determination for Compass Bank to file the pending lawsuit against Burlington
on behalf of the Trust alleging underpayments and overcharges made by Burlington as the operator of the Trust&rsquo;s underlying
properties. At the time the lawsuit was filed, I worked closely with the Trust&rsquo;s legal team to prepare the claims and to
provide them with the necessary background. In May 2016, seven months <U>after</U> I left Compass Bank, I provided deposition testimony
on behalf of the Trust with respect to the issues involved in the litigation and underlying unresolved audit exceptions. <B>If
I can rejoin the team I assembled to conduct the pending litigation, my institutional knowledge and experience would be extremely
valuable in evaluating and providing input</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">Below are specific examples of my institutional
knowledge essential to the resolution of claims against Burlington which I am certain would have been overlooked by and unknown
to Mr. Peterson or any of the consultants currently retained by Compass Bank:</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>I requested that a 2014 recoupment of under-paid severance tax be spread over multiple monthly distributions based on a prior
arrangement in which this was done. The impact of a large one-time deduction could have had a much greater impact on the unit price
and/or made distributions negative for a period of time.</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We recovered a payment of $2.6 million for the Trust in 2010 after I reminded Burlington that a claim by the Minerals Management
Service for royalty on proceeds of a 1990 settlement with the Gas Company of New Mexico should not be fully allocated to the Trust
because the &ldquo;take-or-pay&rdquo; portion of the settlement had not been shared with the Trust in 1990.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 8pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Based on my participation in the negotiation of the 1996 settlement agreement, I knew to object to Burlington&rsquo;s deduction
from unitholder distributions in 2008 of $4.9 million that Burlington agreed to pay to a third party in settlement of a separate
litigation matter. This is one of the key issues in the pending litigation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: center"><B><U>Anticipated Cost Savings and Additional
Services</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">If Southwest Bank is appointed as successor
trustee, Southwest Bank can leverage its experience from the administration of multiple royalty trusts, which we anticipate will
result in cost savings to the Trust and additional benefits or efficiencies to you as unitholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">Specifically, Southwest Bank anticipates
that it can offer the following benefits to the Trust and unitholders if appointed as successor trustee:</P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Estimated reduction in the Trust&rsquo;s annual administrative costs of at least $200,000</B> through incorporating the
Trust into the existing structure at Southwest Bank;</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Individualized tax reporting for the Trust&rsquo;s beneficial holders</B> by using the vendors and process already established
for other royalty trusts in Southwest Bank&rsquo;s portfolio; and</TD></TR></TABLE>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Higher interest rates on the Trust&rsquo;s reserve funds</B> compared to rates historically earned through Compass Bank.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">Importantly, the Southwest Bank royalty
trust management group already in place and centrally located in the Dallas/Fort Worth metroplex allows for cross-training and
backup administration of all of Southwest Bank&rsquo;s royalty trust accounts. <B>We believe that our approach will lead to a more
efficient administration of the Trust as it will permit a more effective transition of the Trust&rsquo;s administration without
the need to incur the expense and distraction of identifying, recruiting, retaining and training appropriately qualified individuals
for the Trust&rsquo;s principal trust officer role or other positions when a replacement becomes necessary.</B></P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: center"><B>CHOOSE SOUTHWEST BANK&mdash;VOTE THE
<U>WHITE</U> PROXY CARD TODAY!</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in"><B>Changing from Compass Bank to Southwest
Bank as trustee of the Trust actually will be a CONTINUATION of the experienced and tested service you have known.</B> I have devoted
my career to this enterprise and feel a strong duty to you as unitholders. I believe the proactive, experienced administrative
team at Southwest Bank will benefit the Trust and the unitholders. <B>Please let your voice be heard and vote your <U>WHITE</U>
proxy card &ldquo;<U>FOR</U>&rdquo; removal of Compass Bank as trustee and nomination and approval of Southwest Bank as successor
trustee.</B> <U>Continue the history of the Trust with those who actually know the history</U>!</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">We urge you <U>NOT</U> to sign the blue
proxy card or return any voting instructions that may be sent to you by the Trust or Compass Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-indent: 0.5in">If you have any questions or need more
information, please call me at (817) 298-5587 or contact our proxy solicitor, Okapi Partners, at (212) 297-0720 or toll-free at
(877) 279-2311 or by email at infor@okappipartners.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">Thank you.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">Lee Ann Anderson<BR>
<I>Senior Vice President, Senior Trust Administrator</I><BR>
<I>Southwest Bank</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 8pt"><I>*******************************</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0pt"><B>Southwest Bank Trust
Officer Lee Ann Anderson Sends Letter to Unitholders</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0pt"><B>of San Juan Basin
Royalty Trust (SJT) Outlining Reasons</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0pt"><B>Southwest Bank is
Best Choice as SJT Trustee<BR>
</B></P><BR>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 6pt"><B><I>Urges Unitholders
to Vote the WHITE Proxy Card Today</I></B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">FORT WORTH,
                                         TEXAS, October 21, 2016-Southwest Bank and Robert Lansford (collectively, the &ldquo;<B><I>Southwest
                                         Bank Participants</I></B><I>&rdquo;</I>) today announced that they have sent to unitholders
                                         of the San Juan Basin Royalty Trust (the &ldquo;<B><I>Trust</I></B><I>&rdquo;</I> or
                                         &ldquo;<B><I>SJT</I></B><I>&rdquo;</I>) a letter from Southwest Bank Trust Officer Lee
                                         Ann Anderson encouraging unitholders to vote for the removal of Compass Bank as trustee
                                         of the Trust and the appointment of Southwest Bank as successor trustee at the upcoming
                                         special meeting of the Trust's unitholders. The Trust has not yet announced the date,
                                         time and location of the special meeting, but has set the record date for the special
                                         meeting as October 24, 2016.</p>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">The letter from Ms. Anderson is available at <FONT STYLE="color: Black"><U>http://www.okapivote.com/sanjuanbasin/Unitholder%20Letter%2010-21-2016.pdf</U>.
</FONT>In addition, all other proxy materials filed by the Southwest Bank are available at <FONT STYLE="color: Black"><U>www.okapivote.com/sanjuanbasin</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">Unitholders are urged to sign, date and return the WHITE
proxy card today, or they may vote online or by telephone by following the instructions on the voting materials they have received.
The Southwest Bank Participants also encourage unitholders to contact their proxy solicitor, Okapi Partners, at (212) 297-0720
or toll-free at (877) 279-2311 or by email at <U>info@okapipartners.com</U> with any questions, or if they need assistance with
their vote.</p>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt"><B><U></U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt"><B><U>About Southwest Bank</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">Proudly serving North Texas for 50 years, Southwest Bank
is the largest locally owned, independent bank in Tarrant County. In addition to full-service banking centers in Fort Worth, Dallas,
Arlington, Burleson, Grapevine, Mansfield and Saginaw, Southwest Bank maintains mortgage offices in Fort Worth, Dallas and Austin
and a royalty trust management office in Dallas. Southwest Bank values its customers and believes in building loyal, lasting relationships
through personalized service, honesty and integrity. For more information, visit <U>www.SouthwestBank.com</U>. Member FDIC.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-decoration: underline"><FONT STYLE="font-size: 10pt"><B><U>Contacts</U></B>:</FONT></TD>
    <TD STYLE="width: 45%"><FONT STYLE="font-size: 10pt">Lee Ann Anderson</FONT></TD>
    <TD STYLE="width: 45%"><FONT STYLE="font-size: 10pt">Okapi Partners</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Senior Vice President and Senior Trust Administrator</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Patrick McHugh/Charles Garske/Lydia Mulyk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Southwest Bank</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">(212) 297-0720</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">(817) 298-5587</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">(877) 279-2311 (Toll-Free)</FONT></TD></TR>
</TABLE>
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