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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended June 30, 2009
 or
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission File Number: 1-11608
 WILLIAMS COAL SEAM GAS ROYALTY TRUST
  Delaware
(State or other jurisdiction 
of incorporation or 
organization)
    
    75-6437433
(I.R.S. Employer
Identification No.)
 
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer
þ
    
    Non-accelerated filer o(Do not check if a smaller reporting
company)
    
    Smaller reporting company o
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONItem 1. Financial StatementsItem 2. Trustees Discussion and Analysis of Financial Condition and Results of OperationsItem 3. Quantitative and Qualitative Disclosures About Market RiskItem 4. Controls and ProceduresPART II  OTHER INFORMATIONItem 1. Legal ProceedingsItem 1A. Risk FactorsItems 2 through 5Item 6. ExhibitsSIGNATURESINDEX TO EXHIBITSEX-15.1EX-31.1EX-32.1    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (UNAUDITED)
 June 30,
    
    
    December 31,2009
    
    
    2008(Unaudited)ASSETSCurrent Assets  cash and cash equivalents
    
    $
    86,568
    
    
    $
    45,419Royalty interests in oil and gas properties
(less accumulated amortization
of $133,644,985 at June 30, 2009 and
$132,988,670 at December 31, 2008)
(Note 2)
    
    
    4,921,679
    
    
    
    5,577,994TOTAL ASSETS
    
    $
    5,008,247
    
    
    $
    5,623,413LIABILITIES AND TRUST CORPUSCurrent Liabilities:Accounts payable
    
    $
    120,753
    
    
    $
    31,193Trust corpus  9,700,000 units of  beneficial interest authorized
and outstanding (Note 2)
    
    
    4,887,494
    
    
    
    5,592,220TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    5,008,247
    
    
    $
    5,623,413
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDJune 30, 2009
    
    
    June 30, 2008Royalty income (Notes 2, 6 and 7)
    
    $
    931,608
    
    
    $
    2,111,884Interest income
    
    
    180
    
    
    
    3,419Total
    
    
    931,788
    
    
    
    2,115,303General and administrative
expenses (Note 4)
    
    
    (266,079
    )
    
    
    (249,185
    )Distributable income
    
    $
    655,709
    
    
    $
    1,866,118Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .07
    
    
    $
    .19
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2009
    
    
    June 30, 2008Royalty income (Notes 2, 6 and 7)
    
    $
    2,325,261
    
    
    $
    4,146,535Interest income
    
    
    799
    
    
    
    7,895Total
    
    
    2,326,060
    
    
    
    4,154,430General and administrative
expenses (Note 4)
    
    
    (638,367
    )
    
    
    (548,901
    )Distributable income
    
    $
    1,687,693
    
    
    $
    3,605,529Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .17
    
    
    $
    .37
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2009
    
    
    June 30, 2008Trust corpus, beginning of period
    
    $
    5,592,220
    
    
    $
    6,877,977Amortization of royalty interests (Note 2)
    
    
    (656,315
    )
    
    
    (545,092
    )Distributable income
    
    
    1,687,693
    
    
    
    3,605,529Distributions to Unitholders (Note 5)
    
    
    (1,736,104
    )
    
    
    (3,558,395
    )Trust corpus, end of period
    
    $
    4,887,494
    
    
    $
    6,380,019Distributions per unit
(9,700,000 units) (Note 5)
    
    $
    .18
    
    
    $
    .37
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 1. TRUST ORGANIZATION AND PROVISIONS
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2. BASIS OF ACCOUNTING
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##### Table of Contents




    
    Revenues are recognized in the period in which amounts are received by the
Trust. General and administrative expenses are recognized on an accrual basis.
    
    Amortization of the Royalty Interests is calculated on a unit-of-production
basis and charged directly to trust corpus.
    
    Distributions to Unitholders are recorded when declared by the Trustee (See
Note 5).
    
    Loss contingencies are recognized in the period in which amounts are paid by
the Trust.
  Modernization of Oil and Gas Reporting
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3. FEDERAL INCOME TAXES
     4. RELATED PARTY TRANSACTIONS
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5. DISTRIBUTIONS TO UNITHOLDERS
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6. SUBSEQUENT EVENTS
  .
 7. CONTINGENCIES
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Item 2.
    
    Trustees Discussion and Analysis of Financial Condition and Results of Operations.
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Three Months and Six Months Ended June 30, 2009 Compared to Three Months and Six Months Ended
June 30, 2008
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Three Months
    
    Three MonthsEnded
    
    EndedMarch 31, 2009
    
    March 31, 2008Production (MMBtu) (1)WI Properties
    
    
    517,461
    (2)
    
    
    878,626
    (3)Farmout Properties
    
    
    216,729
    
    
    
    235,863Infill Properties (5)
    
    
    165,212
    
    
    
    0Blanco Hub Spot Price ($/MMBtu) (4)
    
    $
    3.54
    
    
    $
    7.25Net Wellhead Price WI Properties
($/MMBtu) (4)
    
    $
    1.80
    
    
    $
    3.20
    (6)
 
 (1)
    
    Million British Thermal Units.(2)
    
    Includes unfavorable retroactive adjustments of (38,339) MMBtu.(3)
    
    Includes unfavorable retroactive adjustments of (29,020) MMBtu. 18




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(4)
    
    Simple average of estimates for the months included in the period presented.(5)
    
    Includes unfavorable retroactive adjustments of (36,055) MMBtu.(6)
    
    Reflects an overpayment by WPC of $765,816 which Williams has
waived any right to recoup.     19




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Termination and Liquidation of the Trust
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Pending Securities and Exchange Commission Rule
 Modernization of Oil and Gas Reporting
 Forward-Looking Statements
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Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk.
  See Funds held by the Trustee are not insured by the Federal
Deposit Insurance Corporation, and future royalty income may be subject to risks relating to the
creditworthiness of third parties.
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Item 4.
    
    Controls and Procedures.
  
 PART II  OTHER INFORMATION
 
 Item 1.
    
    Legal Proceedings
  
 Item 1A.
    
    Risk Factors.
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Current commodity prices may result in minimal or no future distributions, and distributions,
including any distributions upon a termination and liquidation of the Trust may not equal or exceed
the purchase price paid by a Unitholder for Units.
  There is substantial doubt about our ability to continue as a going concern.
  Funds held by the Trustee are not insured by the Federal Deposit Insurance Corporation, and future
royalty income may be subject to risks relating to the creditworthiness of third parties.
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Item 6.
    
    Exhibits.
  EXHIBITNUMBER
    
    EXHIBIT4.1
    
    Trust Agreement of Williams Coal Seam Gas Royalty Trust effective
as of December 1, 1992, by and among Williams Production Company,
The Williams Companies, Inc. and Chemical Bank Delaware and Bank
of America, N.A. (as successor to NationsBank of Texas, N.A.), as
trustees (filed as Exhibit 4.1 to the Registrants Form 10-K for
the year ended December 31, 1992 and incorporated herein by
reference).4.2
    
    First Amendment to the Trust Agreement of Williams Coal Seam Gas
Royalty Trust effective as of December 15, 1992, by and among
Williams Production Company, The Williams Companies, Inc.,
Chemical Bank Delaware and Bank of America, N.A. (as successor to
NationsBank of Texas, N.A.) (filed as Exhibit 4.2 to the
Registrants Form 10-K for the year ended December 31, 1992 and
incorporated herein by reference).4.3
    
    Second Amendment to the Trust Agreement of Williams Coal Seam Gas
Royalty Trust effective as of January 12, 1993, by and among
Williams Production Company, The Williams Companies, Inc.,
Chemical Bank Delaware and Bank of America, N.A. (as successor to
NationsBank of Texas, N.A.) (filed as Exhibit 4.3 to the
Registrants Form 10-K for the year ended December 31, 1992 and
incorporated herein by reference).
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EXHIBITNUMBER
    
    EXHIBIT4.4
    
    Net Profits Conveyance effective as of October 1, 1992, by and
among Williams Production Company, The Williams Companies, Inc.,
and Bank of America, N.A. (as successor to NationsBank of Texas,
N.A.), and Chemical Bank Delaware (filed as Exhibit 4.4 to the
Registrants Form 10-K for the year ended December 31, 1992 and
incorporated herein by reference).15.1 
    
    Letter regarding unaudited interim financial information dated
August 10, 2009, from the independent Registered Public Accounting
Firm which acknowledges awareness of the use in registration
statement of a report on unaudited interim financial information.31.1 
    
    Certification by Ron E. Hooper, Senior Vice President and
Administrator of Bank of America, Trustee of Williams Coal Seam
Gas Royalty Trust, dated August 10, 2009, and submitted pursuant
to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.32.1 
    
    Certificate by Bank of America, Trustee of Williams Coal Seam Gas
Royalty Trust, dated August 10, 2009, and submitted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350).
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SIGNATURES
  WILLIAMS COAL SEAM GAS ROYALTY TRUSTBy:
    
    BANK OF AMERICA, N.A., TrusteeBy:
    
    /s/ RON E. HOOPER

Ron E. HooperSenior Vice President and Administrator
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INDEX TO EXHIBITS
 EXHIBIT NUMBER
    
    EXHIBIT4.1
    
    Trust Agreement of Williams Coal Seam Gas Royalty Trust
effective as of December 1, 1992, by and among Williams
Production Company, The Williams Companies, Inc. and
Chemical Bank Delaware and Bank of America, N.A. (as
successor to NationsBank of Texas, N.A.), as trustees
(filed as Exhibit 4.1 to the Registrants Form 10-K for the
year ended December 31, 1992 and incorporated herein by
reference).4.2
    
    First Amendment to the Trust Agreement of Williams Coal
Seam Gas Royalty Trust effective as of December 15, 1992,
by and among Williams Production Company, The Williams
Companies, Inc., Chemical Bank Delaware and Bank of
America, N.A. (as successor to NationsBank of Texas, N.A.)
(filed as Exhibit 4.2 to the Registrants Form 10-K for the
year ended December 31, 1992 and incorporated herein by
reference).4.3
    
    Second Amendment to the Trust Agreement of Williams Coal
Seam Gas Royalty Trust effective as of January 12, 1993, by
and among Williams Production Company, The Williams
Companies, Inc., Chemical Bank Delaware and Bank of
America, N.A. (as successor to NationsBank of Texas, N.A.)
(filed as Exhibit 4.3 to the Registrants Form 10-K for the
year ended December 31, 1992 and incorporated herein by
reference).4.4
    
    Net Profits Conveyance effective as of October 1, 1992, by
and among Williams Production Company, The Williams
Companies, Inc., and Bank of America, N.A. (as successor to
NationsBank of Texas, N.A.), and Chemical Bank Delaware
(filed as Exhibit 4.4 to the Registrants Form 10-K for the
year ended December 31, 1992 and incorporated herein by
reference).15.1 
    
    Letter regarding unaudited interim financial information
dated August 10, 2009, from the independent Registered
Public Accounting Firm which acknowledges awareness of the
use in
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EXHIBIT NUMBER
    
    EXHIBITregistration statement of a report on unaudited
interim financial information.31.1 
    
    Certification by Ron E. Hooper, Senior Vice President and
Administrator of Bank of America, Trustee of Williams Coal
Seam Gas Royalty Trust, dated August 10, 2009, and
submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.32.1 
    
    Certificate by Bank of America, Trustee of Williams Coal
Seam Gas Royalty Trust, dated August 10, 2009, and
submitted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 (18 U.S.C. Section 1350).
 30