Business: Hugoton Royalty Trust is an express trust created under the laws of Texas. Effective December 1, 1998, Cross Timbers conveyed to the trust 80% defined net profits interests in certain predominantly natural gas producing working interest properties in Kansas, Oklahoma and Wyoming under three separate conveyances. In exchange for these net profits interest conveyances to the trust, 40 million units of beneficial interest were issued to Cross Timbers. In April and May 1999, Cross Timbers sold a total of 17 million units in the trust's initial public offering. In 1999 and 2000, Cross Timbers also sold 1.3 million trust units to certain of its officers. Cross Timbers owns over 21 units in the trust. The net profits interests entitle the trust to receive 80% of net proceeds from the sale of oil and gas from the underlying properties.