SCHEDULE 13D


                   Under the Securities Exchange Act of 1934
                              (Amendment No. 10)

                           The Sabine Royalty Trust
                     ------------------------------------
                               (Name of Issuer)


                         Units of Beneficial Interest
                ----------------------------------------------
                        (Title of Class of Securities)


                                   785688102
                      ----------------------------------
                                (CUSIP Number)

                              Michael S. Paquette
                  Vice President and Chief Accounting Officer
                   Fund American Enterprises Holdings, Inc.
                                The 1820 House,
                                 Main Street,
                          Norwich, Vermont 05055-0850
                                (802) 649-3633
                  ------------------------------------------
           (Name, Address and Telephone Number of Person Authorized
                    to Receive Notices and Communications)

                               January 27, 1995
                -----------------------------------------------
            (Date of Event which Requires Filing of this Statement)

     If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box _____.

     Check the following box if a fee is being paid with this statement _____.
(A fee is not required only if the reporting person:  (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto re-reporting beneficial ownership of five percent or less of
such class.  See Rule 13d-7.)

     NOTE:  Six copies of this statement, including all exhibits, should be
filed with the Commission.  See Rule 13d-1(a) for other parties to whom copies
are to be sent.

 
                             CUSIP NO. 785688 10 2
- --------------------------------------------------------------------------------

(1)  Name of Reporting Person.  S.S. or I.R.S. Identification No. of Above
     Person

                   Fund American Enterprises Holdings, Inc.
                                  94-2708455

- --------------------------------------------------------------------------------

(2)  Check the Appropriate Box if a Member  (a)  _______________________
     of a Group (See Instructions)
                                            (b)  _______________________

(3)  (SEC Use Only)

- --------------------------------------------------------------------------------

(4)  Source of Funds (See Instructions)

- --------------------------------------------------------------------------------

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
     or 2(e)

- --------------------------------------------------------------------------------

(6)  Citizenship or Place of Organization               Delaware               
                                                        --------               
                                                                               
     Number of Units                               (7)  Sole Voting Power      
     Beneficially Owned                                 -----------------      
     by Each Reporting                                                         
     Person With                                   (8)  Shared Voting Power    
                                                        -------------------    
                                                        851,300                

                                                   (9)  Sole Dispositive Power  
                                                        ----------------------  
                                                                               
                                                   (10) Shared Dispositive Power
                                                        ------------------------
                                                        851,300                 
                                                                               
(11) Aggregate Amount Beneficially Owned by Each Reporting Person              
     851,300                                                                    

- --------------------------------------------------------------------------------

(12) Check if the Aggregate Amount in Row (11) Excludes Certain Units (See     
     Instructions)                                                             
                                                                               
- --------------------------------------------------------------------------------
                                                                               
(13) Percent of Class Represented by Amount in Row (11)                        
     Approximately 5.8%                                                        
                                                                               
- --------------------------------------------------------------------------------
                                                                               
(14) Type of Reporting Person (See Instructions)  HC, CO                       
                                                                               
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                             CUSIP NO. 785688 10 2

- --------------------------------------------------------------------------------

(1)  Name of Reporting Person.  S.S. or I.R.S. Identification No. of Above
     Person

                        Fund American Enterprises, Inc.
                                  51-0328932

- --------------------------------------------------------------------------------

(2)  Check the Appropriate Box if a Member  (a)  _______________________
     of a Group (See Instructions)
                                            (b)  _______________________

(3)  (SEC Use Only)

- --------------------------------------------------------------------------------

(4)  Source of Funds (See Instructions)

- --------------------------------------------------------------------------------

(5)  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
     or 2(e)

- --------------------------------------------------------------------------------

(6)  Citizenship or Place of Organization               Delaware
                                                        --------

     Number of Units                               (7)  Sole Voting Power      
     Beneficially Owned                                 -----------------      
     by Each Reporting                                                         
     Person With                                   (8)  Shared Voting Power    
                                                        -------------------    
                                                        851,300                

                                                   (9)  Sole Dispositive Power  
                                                        ----------------------  
                                                                               
                                                   (10) Shared Dispositive Power
                                                        ------------------------
                                                        851,300                 
                                                                               
(11) Aggregate Amount Beneficially Owned by Each Reporting Person              
     851,300                                                                    

- --------------------------------------------------------------------------------

(12) Check if the Aggregate Amount in Row (11) Excludes Certain Units (See     
     Instructions)                                                             
                                                                               
- --------------------------------------------------------------------------------
                                                                               
(13) Percent of Class Represented by Amount in Row (11)                        
     Approximately 5.8%                                                        
                                                                               
- --------------------------------------------------------------------------------
                                                                               
(14) Type of Reporting Person (See Instructions)  CO                       
                                                                               
- --------------------------------------------------------------------------------
                                                                               
                                    3 of 7                                      

 
ONLY ITEMS REPORTED IN THIS AMENDMENT NO. 10 TO SCHEDULE 13D ARE AMENDED FROM 
THE FILING ON SCHEDULE 13D FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON 
DECEMBER 20, 1990, AS AMENDED BY AMENDMENT NO. 1 DATED SEPTEMBER 29, 1992, 
AMENDMENT NO. 2 DATED MARCH 8, 1993, AMENDMENT NO. 3 DATED JUNE 23, 1993, 
AMENDMENT NO. 4 DATED OCTOBER 4, 1993, AMENDMENT NO. 5 DATED APRIL 7, 1994, 
AMENDMENT NO. 6 DATED JUNE 3, 1994, AMENDMENT NO. 7 DATED JULY 22, 1994, 
AMENDMENT NO. 8 DATED NOVEMBER 9, 1994, AND AMENDMENT NO. 9 DATED DECEMBER 29, 
1994.  ALL OTHER ITEMS REMAIN UNCHANGED.  UNLESS OTHERWISE SPECIFIED, ALL 
DEFINED TERMS USED HEREIN HAVE THE MEANING PREVIOUSLY ASCRIBED TO THEM IN THE 
SCHEDULE 13D.


Item 1.  Security and Issuer.
         -------------------

Item 2.  Identity and Background.
         -----------------------

Item 3.  Source and Amount of Funds or Other Consideration.
         -------------------------------------------------

Item 4.  Purpose of Transaction.
         ----------------------

         Sales by FAE outlined in Schedule II attached hereto, which is 
incorporated herein by reference, were made in the ordinary course of business 
and not for the purpose or effect of changing or influencing the control of the 
Issuer or in connection with, or as a participant in, any transaction having 
such purpose or effect.


                                    4 of 7

 
Item 5.  Interest in Securities of the Issuer.
         ------------------------------------

         (a) & (b) FAEH owns all 851,300 Units indirectly through FAE.  The 
aggregate number of Units and the corresponding percentage of the outstanding 
Units such number represents is as follows:

Percentage of Units Units Beneficially Beneficially Person Owned Owned ------ ------------ ------------- FAEH 851,300 5.8% FAE 851,300 5.8%
FAEH shares voting power and dispositive power with respect to its 851,300 Units with FAE. 5 of 7 SIGNATURE After reasonable inquiry and to the best of the knowledge and belief of the undersigned, the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: February 6, 1995 FUND AMERICAN ENTERPRISES HOLDINGS, INC. BY: /s/ --------------------------- Name: Michael S. Paquette Title: Vice President and Chief Accounting Officer FUND AMERICAN ENTERPRISES, INC. BY: /s/ --------------------------- Name: Terry L. Baxter Title: President and Secretary 6 of 7 SCHEDULE II TO SCHEDULE 13D Sales of Units of Beneficial Interest of The Sabine Royalty Trust by the Reporting Persons and by persons listed in Schedule I, attached hereto, within the last 60 days.
Sold by Date Number Sold Unit Price ------- ---- ----------- ---------- FAE 11-30-94 22,000 $12.00 FAE 12-01-94 5,500 $11.875 FAE 12-05-94 2,100 $11.50 FAE 12-09-94 10,000 $11.1688 FAE 12-14-94 19,500 $11.00 FAE 12-15-94 10,000 $11.125 FAE 12-21-94 6,000 $10.8688 FAE 12-29-94 88,400 $10.00 FAE 1-04-95 18,200 $9.8269 FAE 1-06-95 15,900 $10.25 FAE 1-09-95 10,200 $10.1752 FAE 1-13-95 12,500 $10.015 FAE 1-19-95 14,900 $10.042 FAE 1-20-95 12,500 $10.00 FAE 1-27-95 26,900 $9.7709
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