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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 September 30, 2010
 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
    
    75-6437433(State or other jurisdiction
    
    (I.R.S. Employerof incorporation or
    
    Identification No.)organization)
 
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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TABLE OF CONTENTS  PART I   FINANCIAL INFORMATIONItem 1. Financial StatementsItem 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-3.2EX-4.6EX-10.10EX-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)
 September 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent Assets  cash and cash equivalents
    
    $
    148,199
    
    
    $
    52,195Royalty interests in oil and gas properties
(less accumulated amortization
of $135,534,569 at
September 30, 2010 and
$134,091,719 at December 31,
2009) (Note 2)
    
    
    3,032,095
    
    
    
    4,474,945TOTAL ASSETS
    
    $
    3,180,294
    
    
    $
    4,527,140LIABILITIES AND TRUST CORPUSCurrent Liabilities:Accounts payable
    
    $
    29,739
    
    
    $
    116,341Trust corpus
 9,700,000 units of
beneficial interest authorized
and outstanding (Note 2)
    
    
    3,150,555
    
    
    
    4,410,799TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    3,180,294
    
    
    $
    4,527,140




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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDSeptember 30, 2010
    
    
    September 30, 2009Royalty
income (Notes 2, 4 and 6)
    
    $
    1,483,027
    
    
    $
    77,767Interest income
    
    
    206
    
    
    
    42Total
    
    
    1,483,233
    
    
    
    77,809General and administrative
expenses (Note 4)
    
    
    (217,014
    )
    
    
    (182,005
    )Distributable
income (expenses in excess of income)
    
    $
    1,266,219
    
    
    $
    (104,196
    )Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    0.13
    
    
    $
    (.01
    )




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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 NINE MONTHS
    
    
    NINE MONTHSENDED
    
    
    ENDEDSeptember 30, 2010
    
    
    September 30, 2009Royalty
income (Notes 2, 4 and 6)
    
    $
    2,655,212
    
    
    $
    2,403,029Interest income
    
    
    323
    
    
    
    841Total
    
    
    2,655,535
    
    
    
    2,403,870General and administrative
expenses (Note 4)
    
    
    (917,553
    )
    
    
    (820,886
    )Distributable income
    
    $
    1,737,982
    
    
    $
    1,582,984Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    0.18
    
    
    $
    0.16




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WILLIAMS
COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 NINE MONTHS
    
    
    NINE MONTHSENDED
    
    
    ENDEDSeptember 30, 2010
    
    
    September 30, 2009Trust corpus, beginning of period
    
    $
    4,410,799
    
    
    $
    5,592,220Amortization of royalty interests (Note 2)
    
    
    (1,442,850
    )
    
    
    (736,649
    )Distributable income
    
    
    1,737,982
    
    
    
    1,582,984Distributions to Unitholders (Note 5)
    
    
    (1,555,376
    )
    
    
    (1,736,104
    )Trust corpus, end of period
    
    $
    3,150,555
    
    
    $
    4,702,451Distributions per unit
(9,700,000 units) (Note 5)
    
    $
    0.16
    
    
    $
    0.18




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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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
    
    Revenues are recognized in the period in which amounts are received by the
Trust. Routine 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.
  3. FEDERAL AND STATE INCOME TAXES
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4. RELATED PARTY TRANSACTIONS




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5. DISTRIBUTIONS TO UNITHOLDERS
   th
 6. SUBSEQUENT EVENTS
   Type of
    
    Record
    
    Payment
    
    DistributionDistribution
    
    Date
    
    Date
    
    per UnitQuarterly Distribution
    
    November 15, 2010
    
    November 29, 2010
    
    $
    .034323Special Liquidating Distribution
    
    November 15, 2010
    
    November 29, 2010
    
    $
    2.381443




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Termination and Liquidation of the Trust




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Distributable Income




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Three Months and Nine Months Ended September 30, 2010 Compared to Three Months and Nine Months
Ended September 30, 2009




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Three Months
    
    
    Three MonthsEnded
    
    
    EndedJune 30, 2010
    
    
    June 30, 2009Production (MMBtu) (1)WI Properties
    
    
    985,514
    
    
    
    13,813
    (2)Farmout Properties
    
    
    195,085
    
    
    
    238,672Infill Properties
    
    
    596,018
    
    
    $
    8,676

(4)Blanco Hub
Spot Price ($/MMBtu) (3)
    
    $
    3.98
    
    
    $
    2.59Net Wellhead Price WI Properties
($/MMBtu) (3)
    
    $
    1.95
    
    
    $
    .  76
 
 (1)
    
    Million British Thermal Units.(2)
    
    The WI Properties realized a net deficit from the Net Profits Interest for the three month
period ended June 30, 2009; therefore, no production quantities related to that period are
presented. The production quantity above is comprised entirely of favorable retroactive
adjustments of 13,813 MMBtu.(3)
    
    Simple average of estimates for the months included in the period presented.(4)
    
    There was no distribution from the Infill Properties for the three month period ended June
30, 2009 as described in Note 1 to the financial statements of the
Trust. The production quantity above reflects favorable retroactive
adjustments of 8,676 MMBtu.




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Forward-Looking Statements




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PART II  OTHER INFORMATION
 
   
   The
Trust terminated on March 1, 2010, has sold its remaining Royalty Interests and no further Trust distributions are anticipated following distribution of the net sales proceeds (Note 6).




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The Trust will no longer be a reporting company and its Units will no longer trade on the New York
Stock Exchange.
  
   
   EXHIBITNUMBER
    
    EXHIBIT3.2 
    
    Certificate of Amendment to Certificate of Trust of
Williams Coal Seam Gas Royalty Trust dated as of October
21, 2010.4.1 
    
    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).




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EXHIBITNUMBER
    
    EXHIBIT4.3 
    
    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).4.5 
    
    Supplemental Net Profits Conveyance dated as of May 19,
2010 by and between Williams Production Company LLC and
Bank of America, N.A. as successor Trustee of the Williams
Coal Seam Gas Royalty Trust. (filed as Exhibit 4.5 to the
Registrants Form 10-Q for the six months ended June 30,
2010 and incorporated herein by reference).4.6 
    
    Amendment to Net Profits Conveyance dated as of October 27,
2010 by and between Williams Production Company, LLC and
Bank of America, N.A.10.10 
    
    Gas Purchase Agreement effective as of August 1, 2010
between WPX Gas Resources Company and Williams Production,
LLC10.11 
    
    Purchase and Sale Agreement dated as of October 27, 2010 by
and between Williams Coal Seam Gas Royalty Trust and
Williams Production Company, LLC (filed as Exhibit 10.1 to
the Registrants Form 8-K dated October 29, 2010 and
incorporated herein by reference).15.1 
    
    Letter regarding unaudited interim financial information
dated November 17, 2010, from the independent Registered
Public Accounting Firm which acknowledges awareness of the
use in a registration statement of a report on unaudited
interim financial information.




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EXHIBITNUMBER
    
    EXHIBIT31.1 
    
    Certification by Ron E. Hooper, Senior Vice President and
Administrator of Bank of America, Trustee of Williams Coal
Seam Gas Royalty Trust, dated November 17, 2010, 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 November 17, 2010, 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 TRUST

By: BANK OF AMERICA, N.A., TrusteeBy:
    /s/ RON E. HOOPERRon E. HooperSenior Vice President and Administrator




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INDEX TO EXHIBITS
 EXHIBIT NUMBER
    
    EXHIBIT3.2 
    
    Certificate of Amendment to Certificate of Trust of
Williams Coal Seam Gas Royalty Trust dated as of October
21, 2010.4.1 
    
    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).




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EXHIBIT NUMBER
    
    EXHIBIT4.5 
    
    Supplemental Net Profits Conveyance dated as of May 19,
2010 by and between Williams Production Company LLC and
Bank of America, N.A. as successor Trustee of the Williams
Coal Seam Gas Royalty Trust. (filed as Exhibit 4.5 to the
Registrants Form 10-Q for the six months ended June 30,
2010 and incorporated herein by reference).4.6 
    
    Amendment to Net Profits Conveyance dated as of October 27,
2010 by and between Williams Production Company, LLC and
Bank of America, N.A.10.10 
    
    Gas Purchase Agreement effective as of August 1, 2010
between WPX Gas Resources Company and Williams Production
Company, LLC10.11 
    
    Purchase and Sale Agreement dated as of October 27, 2010 by
and between Williams Coal Seam Gas Royalty Trust and
Williams Production Company, LLC (filed as Exhibit 10.1 to
the Registrants Form 8-K dated October 29, 2010 and
incorporated herein by reference).15.1 
    
    Letter regarding unaudited interim financial information
dated November 17, 2010, 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 November 17, 2010, 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 November 17, 2010, and
submitted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 (18 U.S.C. Section 1350).