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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, 2006
 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 þ 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 INFORMATIONItems 1 through 5Item 6. ExhibitsSIGNATURESINDEX TO EXHIBITSLetter re: Unaudited Interim Financial InformationCertification by Senior Vice President Pursuant to Section 302Certification by Trustee Pursuant to Section 906    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 31,2006
    
    
    2005(Unaudited)ASSETSCurrent Assets  cash and cash equivalents
    
    $
    110,065
    
    
    $
    55,586Royalty interests in oil and gas properties
(less accumulated amortization
of $129,376,588 at June 30, 2006 and
$128,483,605 at December 31, 2005)
(Note 2)
    
    
    9,190,075
    
    
    
    10,083,058TOTAL ASSETS
    
    
    9,300,140
    
    
    
    10,138,644LIABILITIES AND TRUST CORPUSCurrent Liabilities:Accounts payable
    
    $
    121,742
    
    
    $
    47,475Trust corpus  9,700,000 units of
beneficial interest authorized
and outstanding (Note 2)
    
    
    9,178,398
    
    
    
    10,091,169TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    9,300,140
    
    
    $
    10,138,644




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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDJune 30, 2006
    
    
    June 30, 2005Royalty income (Notes 2 and 7)
    
    $
    2,925,511
    
    
    $
    3,464,252Interest income
    
    
    9,937
    
    
    
    6,297Total
    
    
    2,935,448
    
    
    
    3,470,549General and administrative
expenses (Note 4)
    
    
    (270,240
    )
    
    
    (193,782
    )Distributable income
    
    $
    2,665,208
    
    
    $
    3,276,767Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .27
    
    
    $
    .34




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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2006
    
    
    June 30, 2005Royalty income (Notes 2 and 7)
    
    $
    8,613,756
    
    
    $
    6,998,123Interest income
    
    
    28,643
    
    
    
    11,645Total
    
    
    8,642,399
    
    
    
    7,009,768General and administrative
expenses (Note 4)
    
    
    (620,694
    )
    
    
    (590,559
    )Distributable income
    
    $
    8,021,705
    
    
    $
    6,419,209Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .83
    
    
    $
    .66
 
    Table of Contents   WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2006
    
    
    June 30, 2005Trust corpus, beginning of period
    
    $
    10,091,169
    
    
    $
    12,285,070Amortization of royalty interests (Note 2)
    
    
    (892,983
    )
    
    
    (1,008,091
    )Distributable income
    
    
    8,021,705
    
    
    
    6,419,209Distributions to Unitholders (Note 5)
    
    
    (8,041,493
    )
    
    
    (6,479,765
    )Trust corpus, end of period
    
    $
    9,178,398
    
    
    $
    11,216,423Distributions per unit
(9,700,000 units) (Note 5)
    
    $
    .83
    
    
    $
    .67
 
    Table of Contents   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.
  3. FEDERAL INCOME TAXES




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4. RELATED PARTY TRANSACTIONS
   5. DISTRIBUTIONS TO UNITHOLDERS




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6. SUBSEQUENT EVENTS
  QuarterlyRecord
    
    Payment
    
    DistributionDate
    
    Date
    
    per UnitAugust 14, 2006
    
    August 29, 2006
    
    $.231941
  7. CONTINGENCIES




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Three Months and Six Months Ended June 30, 2006 Compared to Three Months and Six Months Ended
June 30, 2005




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Three Months
    
    Three MonthsEnded
    
    EndedMarch 31, 2006
    
    March 31, 2005Production (MMBtu) (1)WI Properties
    
    
    1,189,294
    (2)
    
    
    1,866,668
    (3)Farmout Properties
    
    
    348,386
    
    
    
    403,992Blanco Hub Spot Price ($/MMBtu) (4)
    
    $
    7.16
    
    
    $
    5.44Net Wellhead Price WI Properties
($/MMBtu) (4)
    
    $
    3.07
    
    
    $
    2.45
 
 (1)
    
    Million British Thermal Units.(2)
    
    Includes unfavorable retroactive adjustments of (267,460) MMBtu.(3)
    
    Includes favorable retroactive adjustments of 255,411 MMBtu.(4)
    
    Weighted average of estimates for the months included in the period presented.




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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 4, 2006, 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 9, 2006, 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 9, 2006, 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. HOOPERRon E. HooperSenior Vice President and Administrator




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INDEX TO EXHIBITS
 EXHIBIT NUMBER
    
    EXHIBIT15.1 
    
    Letter regarding unaudited interim financial information
dated August 4, 2006, 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 9, 2006, 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 9, 2006, and submitted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C. Section 1350).