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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 March 31, 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 organization)
    
    Identification No.)
 
 
 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 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 ProceedingsItems 1A through 5Item 6. ExhibitsSIGNATURESEX-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)
 March 31,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent Assets  cash and cash equivalents
    
    $
    63,598
    
    
    $
    52,195Royalty interests in oil and gas properties
(less accumulated amortization
of $134,516,989 at
March 31, 2010 and
$134,091,719 at December 31, 2009)
(Note 2)
    
    
    4,049,675
    
    
    
    4,474,945TOTAL ASSETS
    
    $
    4,113,273
    
    
    $
    4,527,140LIABILITIES AND TRUST CORPUSCurrent Liabilities  other accounts payable:
    
    $
    53,596
    
    
    $
    116,341Contingencies (Note 7)Trust corpus
 9,700,000 units of beneficial
interest authorized and outstanding
(Note 2)
    
    
    4,059,677
    
    
    
    4,410,799TOTAL LIABILITIES AND TRUST CORPUS
    
    $
    4,113,273
    
    
    $
    4,527,140
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDMarch 31, 2010
    
    
    March 31, 2009Royalty income (Notes 2, 4 and 7)
    
    $
    764,578
    
    
    $
    1,393,653Interest income
    
    
    67
    
    
    
    619Total
    
    
    764,645
    
    
    
    1,394,272General and administrative expenses (Note 4)
    
    
    (525,869
    )
    
    
    (372,288
    )Distributable income
    
    $
    238,776
    
    
    $
    1,021,984Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .02
    
    
    $
    .11
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDMarch 31, 2010
    
    
    March 31, 2009Trust corpus, beginning of period
    
    $
    4,410,799
    
    
    $
    5,592,220Amortization of royalty interests (Note 2)
    
    
    (425,270
    )
    
    
    (387,003
    )Distributable income
    
    
    238,776
    
    
    
    1,021,984Distributions to Unitholders (Note 5)
    
    
    (164,628
    )
    
    
    (1,103,966
    )Trust corpus, end of period
    
    $
    4,059,677
    
    
    $
    5,123,235Distributions per unit (9,700,000 units) (Note 5)
    
    $
    .02
    
    
    $
    .11
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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
   6. SUBSEQUENT EVENTS
  QuarterlyRecord
    
    Payment
    
    DistributionDate
    
    Date
    
    per UnitMay 17, 2010
    
    May 28, 2010
    
    $.0111
  th
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7. CONTINGENCIES
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Termination and Liquidation of the Trust
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th th
   Distributable Income
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Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009
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th
  Three Months
    
    
    Three MonthsEnded
    
    
    EndedDecember 31, 2009
    
    
    December 31, 2008Production (MMBtu) (1)WI Properties
    
    
    533,288
    (2)
    
    
    743,506
    (3)Farmout Properties
    
    
    216,340
    
    
    
    240,682Infill Properties
    
    
    452,153
    (6)
    
    
    324,040
    (5)Blanco Hub Spot Price ($/MMBtu) (4)
    
    $
    3.99
    
    
    $
    3.91Net Wellhead Price WI Properties
($/MMBtu)
    
    $
    1.54
    
    
    $
    1.69
 
 (1)
    
    Million British Thermal Units.(2)
    
    Includes retroactive adjustments of (47,526) MMBtu.(3)
    
    Includes retroactive adjustments of (42,364) MMBtu.(4)
    
    Weighted average of estimates for the months included in the period presented.(5)
    
    Includes 127,022 MMBtu Retroactive Adjustment.(6)
    
    Includes (11,188) MMBtu Retroactive Adjustment.  19




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Forward-Looking Statements
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PART II  OTHER INFORMATION
 
   
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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).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
May 13, 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 May 13, 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 May 13, 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 TRUSTBy: BANK OF AMERICA, N.A., TrusteeBy:
    /s/ RON E. HOOPERRon E. HooperSenior Vice President and Administrator   24




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INDEX TO 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).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 May 13, 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 May 13, 2010, and submitted pursuant to
Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
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EXHIBITNUMBER
    
    EXHIBIT32.1 
    
    Certificate by Bank of America, Trustee of Williams Coal Seam Gas
Royalty Trust, dated May 13, 2010, and submitted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350).
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