---
schema_version: "secwatch.filing_event.v1"
accession: "0001193125-23-229780"
form_type: "8-K"
ticker: "SJT"
cik: "0000319655"
company_name: "SAN JUAN BASIN ROYALTY TRUST"
filed_at: "2023-09-07T23:59:59+00:00"
generated_at: "2026-06-10T23:04:09.597083+00:00"
event_type: "other_material"
sentiment: "positive"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# San Juan Basin Royalty Trust settles with Hilcorp for $1.04M over 2017-2020 expenses

## Summary
- Settlement amount of $1,037,093.45 includes interest to resolve 2017-2020 underpaid royalties.
- Disputed expenses covered offsite labor, overhead, operator-owned compressors, and saltwater disposal.
- Hilcorp also entered into an amendment to the Conveyance re: saltwater disposal facility expenses.
- Payment to be made in a future distribution to trust unitholders; scheduled within 10 business days.
- Trustee identified exceptions during routine audit; settlement reached August 30, 2023.

## SEC filing metadata
- accession: 0001193125-23-229780
- form_type: 8-K
- ticker: SJT
- cik: 0000319655
- company_name: SAN JUAN BASIN ROYALTY TRUST
- filed_at: 2023-09-07T23:59:59+00:00
- event_type: other_material
- sentiment: positive
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 1.01, 5.03, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/319655/000119312523229780/0001193125-23-229780-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/319655/000119312523229780/d535184d8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001193125-23-229780
- JSON: https://secwatch.observer/filing/0001193125-23-229780.json
- Plain text: https://secwatch.observer/filing/0001193125-23-229780.txt

## Key facts
- Governance Changes
  SAN JUAN BASIN ROYALTY TRUST: First Amendment to the Conveyance (Net Overriding Royalty Conveyance) to modify terms regarding expenses for saltwater disposal facilities (effective 2023-08-30).
  - Change: charter amendment
  - Effective: 2023-08-30
  source text: Effective August 30, 2023, the Trustee, in its capacity as Trustee of the Trust, and Hilcorp, entered into a First Amendment to the Conveyance (the “Amendment”) to amend the Net Overriding Royalty Conveyance dated effective November 1, 1980, from Southland Royalty Company to the original trustee, The Fort Worth National Bank (the “Conveyance”). The Amendment was entered into pursuant to the terms of the Settlement Agreement to modify certain terms of the Conveyance with respect to expenses associated with the operator’s saltwater disposal facilities.
  evidence_url: https://www.sec.gov/Archives/edgar/data/319655/000119312523229780/0001193125-23-229780-index.htm
- Material Agreements
  SAN JUAN BASIN ROYALTY TRUST entered into Compromise and Settlement Agreement with Hilcorp San Juan, L.P. valued at $1,037,093.45 (effective 2023-08-30).
  - Action: entry
  - Agreement: settlement
  - Counterparty: Hilcorp San Juan, L.P.
  - Value: $1,037,093.45
  - Effective: 2023-08-30
  source text: Effective August 30, 2023, PNC Bank, N.A. (the “Trustee”), in its capacity as Trustee of the San Juan Basin Royalty Trust (the “Trust”) entered into a Compromise and Settlement Agreement (the “Settlement Agreement”) with Hilcorp San Juan, L.P. (“Hilcorp”), the owner of the Trust’s subject interests, that will result in the payment of $1,037,093.45 (the “Settlement Amount”) to the Trust by Hilcorp to resolve the 2017-2020 Disputed Expenses (as defined below).
  evidence_url: https://www.sec.gov/Archives/edgar/data/319655/000119312523229780/0001193125-23-229780-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.