Southland Royalty’s board rejected a takeover bid.

The Fort Worth-based independent oil and gas company advised its shareholders to also reject the $17-per-share offer from Burlington Northern. Southland, which plans to reorganize as a limited partnership, raised its intended distribution per unit to $2.70 from $2 a year and said it intended to pay that amount in each of the next three years. Southland said it would make the first quarterly distribution of 67.5 cents per unit after March 31, 1986, instead of after the June 30 quarter.