Sabine Royalty Trust owns royalty interests in oil and gas properties located on about 2.1 million gross acres (216,551 net) in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. The trust, which was formed in 1983, receives royalties based on the amount of oil and gas produced and sold and distributes them on a monthly basis to shareholders. Although royalty trusts distribute essentially all royalties received to shareholders (at substantial tax advantage), their profitability depends on the price of oil and gas and the continued productivity of the properties. Sabine Royalty Trust's properties have proved reserves of about 5.3 million barrels of oil and 35.6 billion cu. ft. of natural gas.