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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, 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 oAccelerated filer þNon-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.SIGNATURESINDEX 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)
 September 30,
    
    
    December 31,2008
    
    
    2007(Unaudited)ASSETSCurrent Assets  cash and cash equivalents
    
    $
    167,816
    
    
    $
    73,931Royalty interests in oil and gas properties
(less accumulated amortization
of $132,564,293 at
September 30, 2008 and
$131,695,632 at December 31,
2007) (Note 2)
    
    
    6,002,371
    
    
    
    6,871,032TOTAL ASSETS
    
    $
    6,170,187
    
    
    $
    6,944,963LIABILITIES AND TRUST CORPUSCurrent Liabilities:Accounts payable
    
    $
    27,042
    
    
    $
    66,986Trust corpus  9,700,000 units of
beneficial interest authorized
and outstanding (Note 2)
    
    
    6,143,145
    
    
    
    6,877,977TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    6,170,187
    
    
    $
    6,944,963
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDSeptember 30, 2008
    
    
    September 30, 2007Royalty income (Notes 2 and 7)
    
    $
    3,629,317
    
    
    $
    2,770,217Interest income
    
    
    6,058
    
    
    
    11,053Total
    
    
    3,635,375
    
    
    
    2,781,270General and administrative
expenses (Note 4)
    
    
    (155,777
    )
    
    
    (168,593
    )Distributable income
    
    $
    3,479,598
    
    
    $
    2,612,677Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .36
    
    
    $
    .27
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 NINE MONTHS
    
    
    NINE MONTHSENDED
    
    
    ENDEDSeptember 30, 2008
    
    
    September 30, 2007Royalty income (Notes 2 and 7)
    
    $
    7,775,852
    
    
    $
    7,493,850Interest income
    
    
    13,952
    
    
    
    31,993Total
    
    
    7,789,804
    
    
    
    7,525,843General and administrative
expenses (Note 4)
    
    
    (704,677
    )
    
    
    (786,582
    )Distributable income
    
    $
    7,085,127
    
    
    $
    6,739,261Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    0.73
    
    
    $
    0.69
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 NINE MONTHS
    
    
    NINE MONTHSENDED
    
    
    ENDEDSeptember 30, 2008
    
    
    September 30, 2007Trust corpus, beginning of period
    
    $
    6,877,977
    
    
    $
    8,316,439Amortization of royalty interests (Note 2)
    
    
    (868,661
    )
    
    
    (1,135,780
    )Distributable income
    
    
    7,085,127
    
    
    
    6,739,261Distributions to Unitholders (Note 5)
    
    
    (6,951,298
    )
    
    
    (6,657,313
    )Trust corpus, end of period
    
    $
    6,143,145
    
    
    $
    7,262,607Distributions per unit
(9,700,000 units) (Note 5)
    
    $
    0.72
    
    
    $
    0.69
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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
   th
  4. RELATED PARTY TRANSACTIONS
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5. DISTRIBUTIONS TO UNITHOLDERS
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6. SUBSEQUENT EVENTS
  QuarterlyRecord
    
    Payment
    
    DistributionDate
    
    Date
    
    per UnitNovember 14, 2008
    
    November 28, 2008
    
    $.755888
  7. CONTINGENCIES
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Three Months and Nine Months Ended September 30, 2008 Compared to Three Months and Nine Months
Ended September 30, 2007
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Three Months
    
    Three MonthsEnded
    
    EndedJune 30, 2008
    
    June 30, 2007Production (MMBtu) (1)WI Properties
    
    
    1,248,685
    (2)
    
    
    1,527,012
    (3)Farmout Properties
    
    
    269,960
    
    
    
    303,730Blanco Hub Spot Price ($/MMBtu) (4)
    
    $
    9.19
    
    
    $
    6.47Net Wellhead Price WI Properties
($/MMBtu)
    
    $
    4.08
    
    
    $
    2.80
 
 (1)
    
    Million British Thermal Units.(2)
    
    Includes unfavorable retroactive adjustments of 48,788 MMBtu.(3)
    
    Includes favorable retroactive adjustments of 37,287 MMBtu.(4)
    
    Weighted average of estimates for the months included in the period presented.   17




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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 November 5, 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 November 7, 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 November 7, 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   23




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INDEX TO EXHIBITS
 EXHIBIT NUMBER
    
    EXHIBIT15.1 
    
    Letter regarding unaudited interim financial information
dated November 5, 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 November 7, 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 November 7, 2008, and
submitted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 (18 U.S.C. Section 1350).