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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, 2008
 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
  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 Statements.Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations.Item 3. Quantitative and Qualitative Disclosures About Market Risk.Item 4. Controls and Procedures.PART II  OTHER INFORMATIONItems 1 through 5.Item 6. Exhibits.SIGNATURESLetter Regarding Unaudited Interim Financial InformationCertification by Ron E. Hooper, Senior Vice President - Section 302Certificate by Bank of America, Trustee - Section 906    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
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/s/ Ernst & Young LLP 
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (UNAUDITED)
 
 June 30,
    
    
    December 31,2008
    
    
    2007(Unaudited)ASSETSCurrent Assets  cash and cash equivalents
    
    $
    86,661
    
    
    $
    73,931Royalty interests in oil and gas properties
(less accumulated amortization
of $132,240,724 at June 30, 2008 and
$131,695,632 at December 31, 2007)
(Note 2)
    
    
    6,325,940
    
    
    
    6,871,032TOTAL ASSETS
    
    $
    6,412,601
    
    
    $
    6,944,963LIABILITIES AND TRUST CORPUSCurrent Liabilities:Accounts payable
    
    $
    32,582
    
    
    $
    66,986Trust corpus  9,700,000 units of
beneficial interest authorized
and outstanding (Note 2)
    
    
    6,380,019
    
    
    
    6,877,977TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    6,412,601
    
    
    $
    6,944,963
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDJune 30, 2008
    
    
    June 30, 2007Royalty income (Notes 2 and 7)
    
    $
    2,111,884
    
    
    $
    2,410,791Interest income
    
    
    3,419
    
    
    
    10,804Total
    
    
    2,115,303
    
    
    
    2,421,595General and administrative
expenses (Note 4)
    
    
    (249,185
    )
    
    
    (273,085
    )Distributable income
    
    $
    1,866,118
    
    
    $
    2,148,510Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .19
    
    
    $
    .22
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2008
    
    
    June 30, 2007Royalty income (Notes 2 and 7)
    
    $
    4,146,535
    
    
    $
    4,723,633Interest income
    
    
    7,895
    
    
    
    20,940Total
    
    
    4,154,430
    
    
    
    4,744,573General and administrative
expenses (Note 4)
    
    
    (548,901
    )
    
    
    (617,989
    )Distributable income
    
    $
    3,605,529
    
    
    $
    4,126,584Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .37
    
    
    $
    .43
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2008
    
    
    June 30, 2007Trust corpus, beginning of period
    
    $
    6,877,977
    
    
    $
    8,316,439Amortization of royalty interests (Note 2)
    
    
    (545,092
    )
    
    
    (707,942
    )Distributable income
    
    
    3,605,529
    
    
    
    4,126,584Distributions to Unitholders (Note 5)
    
    
    (3,558,395
    )
    
    
    (4,126,292
    )Trust corpus, end of period
    
    $
    6,380,019
    
    
    $
    7,608,789Distributions per unit
(9,700,000 units) (Note 5)
    
    $
    .37
    
    
    $
    .43
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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
  
    
    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.
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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
  QuarterlyRecord
    
    Payment
    
    DistributionDate
    
    Date
    
    per UnitAugust 14, 2008
    
    August 28, 2008
    
    $.349784
  7. CONTINGENCIES
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Three Months and Six Months Ended June 30, 2008 Compared to Three Months and Six Months Ended
June 30, 2007
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Three Months
    
    Three MonthsEnded
    
    EndedMarch 31, 2008
    
    March 31, 2007Production (MMBtu) (1)WI Properties
    
    
    878,626
    (2)
    
    
    1,156,019
    (3)Farmout Properties
    
    
    235,863
    
    
    
    271,125Blanco Hub Spot Price ($/MMBtu) (4)
    
    $
    7.25
    
    
    $
    6.26Net Wellhead Price WI Properties
($/MMBtu) (4)
    
    $
    3.20
    
    
    $
    2.70
 
 (1)
    
    Million British Thermal Units.(2)
    
    Includes unfavorable retroactive adjustments of (29,020) MMBtu.(3)
    
    Includes favorable retroactive adjustments of 65,081 MMBtu.(4)
    
    Simple average of estimates for the months included in the period presented.  16




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Termination and Liquidation of the Trust
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Forward-Looking Statements
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PART II  OTHER INFORMATION
 
   
   EXHIBITNUMBER
    
    EXHIBIT15.1 
    
    Letter regarding unaudited interim financial information
dated August 6, 2008, 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 8, 2008, 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 8, 2008, 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   22




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INDEX TO EXHIBITS
 EXHIBITNUMBER
    
    EXHIBIT15.1 
    
    Letter regarding unaudited interim financial information
dated August 6, 2008, 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 8, 2008, 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 8, 2008, and
submitted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 (18 U.S.C. Section 1350).
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