EXHIBIT 99.1 *LL&E-ROYALTY TRUST LL&E ROYALTY TRUST ANNOUNCES NO DISTRIBUTION FOR JUNE 2006 LL&E ROYALTY TRUST JPMORGAN CHASE BANK, N.A. - TRUSTEE NEWS RELEASE FOR IMMEDIATE RELEASE AUSTIN, TEXAS (May 26, 2006) -- LL&E Royalty Trust (NYSE SYMBOL-LRT) announced today there will be no Trust income distribution for the month of June 2006 for Unitholders of record on June 5, 2006. This release relates to production for the month of March 2006. As more fully described in the Trust's periodic reports filed with the SEC, the Trust Agreement and the related Partnership Agreement provide that, under certain circumstances, the Trustee may establish cash contingency reserves for the payment of claims that are likely to be asserted against the Trust. With certain exceptions, any such reserves are required to be deposited in non-interest bearing accounts. As more fully described in the Trust's Annual Report on Form 10-K for the year ended December 31, 2005, it appears highly likely that distributions to the Trust will be reduced significantly for a period of time as a result of the damage from Hurricanes Katrina and Rita to production facilities for properties in which the Trust has an interest. In light of this, the Trustee determined to reserve an additional $63,029, which would have otherwise been distributed to the unitholders on June 5, 2006, for the payment of the Trust's likely general and administrative expenses in the foreseeable future. As of May 25, 2006 the gross cumulative amount reserved is $1,305,238; net of Trust expense of $651,570, the reserve amount is $653,668. The Trustee intends to hold these funds for use in the payment of Trust expenses until it becomes reasonably clear that they are no longer necessary. As more fully described in the Annual Report, the Working Interest Owner ("Owner"), under the terms of the Trust Conveyances, is permitted to escrow funds for estimated future costs such as dismantlement costs and capital expenditures for the properties in which the Trust has an interest (Special Cost Escrow). Based on preliminary cost estimates and the most recent reserve report, the Owner believes that the amounts currently held in escrow are significantly less than the anticipated future amounts attributable to the Trust's share of costs. Consequently, the Owner has informed the Trust that, beginning with the April 2006 monthly distribution, the Owner plans to escrow for the foreseeable future all proceeds that would otherwise be distributed from the South Pass 89 and Offshore Louisiana properties. As more fully described in the Trust's Annual Report, the actual amounts of certain of these costs, including those affecting East Cameron 195, which is included in the Offshore Louisiana properties, appear likely to be substantially increased over those previously estimated as a result of damage caused by the 2005 hurricanes. The Owner intends to continue to monitor each of the properties in which the Trust has an interest for possible changes in relevant factors. The Trustee has participated in discussions with the Working Interest Owner regarding the insurance policies carried by the Working Interest Owner in effect at the dates of the various storms affecting the properties in which the Trust has an interest. The Working Interest Owner and its outside insurance counsel have advised the Trustee that they are in the process of analyzing the scope and applicability of the policies carried by the Working Interest Owner to the various types of damages that resulted from the storms, and are in the process of discussing these matters with the carriers. The Trustee has requested additional information about the policies, potential coverage to damages affecting the Trust, the likely timing of the resolution of issues relating to the possible insurance coverage and the various types of damages caused by the storms, and other information regarding the possibility of recovery under any insurance policy that, directly or indirectly, may be for the benefit of the Trust. The Working Interest Owner has undertaken to provide all such information as it becomes available, but has advised the Trustee that it remains in discussion with its insurance carriers, and does not yet have reliable information about the scope and applicability of the policies to the properties in which the Trust has an interest or the effects, if any, on the Trust. The $63,029 that the Trustee is reserving for the month of March does not include any proceeds from the Jay Field, South Pass or Offshore properties due to excess production costs. Excess production costs to be recouped from future proceeds at the Jay Field, South Pass and Offshore properties totaled $1,381,208, $95,618 and $67,594 respectively. Gross Proceeds prior to deductions for Production Costs for the month of March 2006 by property are as follows: $1,964,023 for Jay Field property, $0 for South Pass 89 property, and $0 for Offshore Louisiana property. Production Costs for the month of March 2006 by property are as follows: $3,345,231 for Jay Field property, $95,618 for South Pass 89 property and $67,594 for Offshore Louisiana property. There was $305,238 deducted from the Special Cost Escrow in March 2006 from the Offshore Louisiana Property. Fee Lands Royalties for the month of March 2006 totaled $63,029. Trust related expenses for the month of March 2006 totaled $116,403. The Gross Proceeds, Production Costs and Special Cost Escrow numbers stated above relate to each property as a whole. The Trust's interest in these properties is 50% for Jay Field, 50% for South Pass 89 and 90% for Offshore Louisiana. Status of the Trust Although the Trust cannot predict the effects of the matters described in this press release with any degree of precision, it appears highly likely that distributions to the Trust will be reduced significantly for an extended period of time. The Trust Agreement provides that the Trust will terminate in the event that the net revenues fall below $5,000,000 for two successive years ("the Termination Threshold"). As a result of the aforementioned damages to production facilities for properties in which the Trust has an interest, revenues for 2006 may fall below the Termination Threshold. It is therefore possible (depending on the timing of repairs, future production and drilling activities, market conditions, recoupment of unrecovered capital costs and other matters) that in 2006 Royalty income received by the Trust may be below the Termination Threshold. If Royalty income falls below the Termination Threshold for two successive years, the Trust would terminate. Upon termination of the Trust, the Trustee will sell for cash all the assets held in the Trust estate and make a final distribution to unit holders of any funds remaining after all Trust liabilities have been satisfied. However, whether the Trust's 2006 net revenues are above the Termination Threshold will depend on the timing of repairs to damaged properties in which the Trust has an interest, oil and natural gas prices for 2006, timing and level of hydrocarbon production, the level of capital expenditures, and other operational matters as well as administrative expenses of the Trust. Therefore, there can be no assurance that the net revenues of the Trust in 2006 will be above the Termination Threshold. There are numerous uncertainties inherent in forecasting projected net revenues for 2006 as certain of the Trust's properties are near the end of their productive lives. See "Estimates of Petroleum Engineers" in the Trust's 2005 Annual Report on Form 10-K. This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are "forward-looking statements" for purposes of these provisions. These forward-looking statements include the amount and date of any anticipated distribution to unit holders. An investment in Units issued by LL&E Royalty Trust is subject to the risks described in the Trust's Annual Report on Form 10-K for the year ended December 31, 2005, and all of its other filings with the Securities and Exchange Commission. The Trust's annual, quarterly and other filed reports are available over the Internet at the SEC's web site at http://www.sec.gov. The Trust income distribution announcement for the month of July will be made on or about June 23, 2006. CONTACT: LL&E ROYALTY TRUST JPMORGAN CHASE BANK, N.A., AS TRUSTEE MIKE ULRICH (800) 852-1422 WWW.BUSINESSWIRE.COM/CNN/LRT.HTM