James Robertson Nowlin

Ranch, Bastrop County, Texas — Distribution

RBC Dain Raucher — Interest

Affiliated Computer Services — None

Cisco Systems — None

Clear Channel Communications — None

General Electric Company — Int/Div

Nokia — None

Pfizer — Int/Div

AT&T — Int/Div

AT&T — Int/Div — buy — Market

Intl.House of Pancakes (THOP) — Int/Div

Caterpillar, Inc — Int/Div

Fox Hollow Tech, Inc — None

CCE, Inc — None

Notes,Sub SR 2004 D.C. W&S AU Pub Util — Interest

China Security & Surveillance Tech, Inc — None — buy — Market

Eaton Vance Glob Tax — Int/Div

18. Nuveen Quality PFD — Int/Div

19. Van Kampan SR INCM TR — Int/Div

20. D.Y. Exploration, Inc — Royalty

21. Navajo Refining Company — Royalty

22. Chaparral Energy, LLC — Royalty

23. Arena Resources, Inc — Royalty

24. Hunt Oil Company — Royalty

25. Strand Energy, L.C — Royalty

2, or ~~

Income — 2007 — State Employees’ Retirement System of Texas, State Legislative Retirement — $38.963.00

PART VII(A):

. Re: Oil and Gas Royalty Interests - Payors/Lease Operators - Items 20-25:

No new or additional royalty interests were bought, transferred or sold during this reporting period. Any change or difference in identity of payors/operators

listed herein from prior reports does not reflect or indicate any sale, acquisition or transfer of royalty interests but only reflects changes, if any, in lease

operator/payor or an absence of reportable royalty income from a particular operator/payor or interest during this reporting period.