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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000950109-95-005326.txt : 19951221
<SEC-HEADER>0000950109-95-005326.hdr.sgml : 19951221
ACCESSION NUMBER:		0000950109-95-005326
CONFORMED SUBMISSION TYPE:	SC 13D/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		19951220
SROS:			NYSE

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CROSS TIMBERS ROYALTY TRUST
		CENTRAL INDEX KEY:			0000881787
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				756415930
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-42423
		FILM NUMBER:		95602901

	BUSINESS ADDRESS:	
		STREET 1:		500 WEST SEVENTH ST STE 1300
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76101
		BUSINESS PHONE:		8173906592

	MAIL ADDRESS:	
		STREET 1:		NATIONALBANK OF TEXAS  N A
		STREET 2:		P O  BOX 1317
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76101

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FUND AMERICAN ENTERPRISES HOLDINGS INC
		CENTRAL INDEX KEY:			0000776867
		STANDARD INDUSTRIAL CLASSIFICATION:	MORTGAGE BANKERS & LOAN CORRESPONDENTS [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
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<DESCRIPTION>AMENDMENT NUMBER 3
<TEXT>

<PAGE>
 
                                 SCHEDULE 13D


                   Under the Securities Exchange Act of 1934
                               (Amendment No. 3)


                          Cross Timbers Royalty Trust
                   ----------------------------------------
                               (Name of Issuer)


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


                                  22757R 10 9
                         -----------------------------
                                (CUSIP Number)


                              Michael S. Paquette
                         Vice President and Controller
                   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)


                               December 13, 1995
                   ----------------------------------------
            (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 re-porting 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. 22757R 10 9

- --------------------------------------------------------------------------------

(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)             N/A (See Item 3)

- --------------------------------------------------------------------------------

(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                           
     Person With                              (8)   Shared Voting Power
                                                    -------------------
                                                    243,088
                                              (9)   Sole Dispositive Power
                                                    ----------------------
                                                 
                                             (10)   Shared Dispositive Power
                                                    ------------------------
                                                    243,088

- --------------------------------------------------------------------------------

(11) Aggregate Amount Beneficially Owned by Each Reporting Person
                                                    243,088

- --------------------------------------------------------------------------------

(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 4.1%

- --------------------------------------------------------------------------------

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

- --------------------------------------------------------------------------------

                                     2 of 7
<PAGE>
 
                             CUSIP NO. 22757R 10 9

- --------------------------------------------------------------------------------

(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)             N/A (See Item 3)

- --------------------------------------------------------------------------------

(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                            
     Person With                              (8)   Shared Voting Power
                                                    -------------------
                                                    243,088
                                              (9)   Sole Dispositive Power
                                                    ----------------------
                                                  
                                             (10)   Shared Dispositive Power
                                                    ------------------------
                                                    243,088

- --------------------------------------------------------------------------------
 
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
                                                    243,088

- --------------------------------------------------------------------------------

(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 4.1%

- --------------------------------------------------------------------------------

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

- --------------------------------------------------------------------------------

                                     3 of 7
<PAGE>
 
ONLY ITEMS REPORTED IN THIS AMENDMENT NO. 3 TO SCHEDULE 13D ARE AMENDED FROM THE
FILING ON SCHEDULE 13D FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
NOVEMBER 9, 1992, AS AMENDED BY AMENDMENT NO. 1 DATED AUGUST 24, 1993 AND
AMENDMENT NO. 2 DATED MAY 1, 1995.  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 4.  Purpose of Transaction.
         -----------------------

         Sales by FAEH and FAE outlined in Schedule II, attached hereto, and
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 in connection with, or as a participant in, any transaction having
such purpose or effect.

Item 5.  Interest in Securities of the Issuer.
         -------------------------------------

         (a)  FAEH owns all 243,088 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                   243,088                       4.1%
                                                      
     FAE                    243,088                       4.1%
</TABLE>

                                     4 of 7
<PAGE>
 
Other than as set forth in the above table, only the following person named on
Schedule I beneficially owned any Units:

<TABLE> 
<CAPTION> 
                                                      Percentage of
                             Units                       Units
                          Beneficially                Beneficially
    Person                   Owned                       Owned
    ------                ------------                -------------
<S>                       <C>                         <C> 
 John J. Byrne               1,972                    less than .1%
</TABLE> 

     (b)  FAEH shares voting power and dispositive power with respect to its
243,088 Units with FAE.  Mr. Byrne has sole voting power and dispositive power
with respect to his 1,972 Units.

     (c)  Schedule II, attached hereto, describes all transactions by FAEH and
FAE, or to the knowledge of FAEH and FAE any of the persons listed on Schedule
I, in Units effected during the past 60 days.

     (d)  None

     (e)  As of December 13, 1995, FAEH and FAE ceased to be the beneficial
owners of more than five percent of the outstanding Units of the Issuer.
 

                                     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:  December 18, 1995


                                     FUND AMERICAN ENTERPRISES HOLDINGS, INC.


                                     BY:   /s/  Michael S. Paquette
                                        -------------------------------------
                                     Name:    Michael S. Paquette
                                     Title:   Vice President and Controller


                                     FUND AMERICAN ENTERPRISES, INC.


                                     BY:   /s/  Terry L. Baxter
                                        -------------------------------------
                                     Name:    Terry L. Baxter
                                     Title:   President and Secretary






                                     6 of 7
<PAGE>
 
                          SCHEDULE II TO SCHEDULE 13D
                          ---------------------------

          Sales of Units of Beneficial Interest of Cross Timbers Royalty Trust
by the Reporting Persons and by persons listed in Schedule I within the last 60
days.

<TABLE> 
<CAPTION> 

   Sold by        Date              Number Sold              Unit Price
   -------        ----              -----------              ----------
<S>             <C>                 <C>                      <C> 
     FAE        12-13-95              350,000                  10.000
</TABLE> 

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