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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, 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
(State or other jurisdiction 
of incorporation or 
organization)
    
    75-6437433
(I.R.S. Employer
Identification No.)
 
 
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
(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 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-4.5EX-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)
 June 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent Assets  cash and cash equivalents
    
    $
    166,226
    
    
    $
    52,195Royalty interests in oil and gas properties
(less accumulated amortization
of $134,882,068 at June 30, 2010 and
$134,091,719 at December 31, 2009)
(Note 2)
    
    
    3,684,596
    
    
    
    4,474,945TOTAL ASSETS
    
    $
    3,850,822
    
    
    $
    4,527,140LIABILITIES AND TRUST CORPUSCurrent Liabilities:Accounts payable
    
    $
    30,907
    
    
    $
    116,341Trust corpus
 9,700,000 units of
beneficial interest authorized
and outstanding (Note 2)
    
    
    3,819,915
    
    
    
    4,410,799TOTAL LIABILITIES
AND TRUST CORPUS
    
    $
    3,850,822
    
    
    $
    4,527,140
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 THREE MONTHS
    
    
    THREE MONTHSENDED
    
    
    ENDEDJune 30, 2010
    
    
    June 30, 2009Royalty income (Notes 2, 4 and 7)
    
    $
    407,607
    
    
    $
    931,608Interest income
    
    
    50
    
    
    
    180Total
    
    
    407,657
    
    
    
    931,788General and administrative
expenses (Note 4)
    
    
    (174,670
    )
    
    
    (266,079
    )Distributable income
    
    $
    232,987
    
    
    $
    655,709Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    .02
    
    
    $
    .07
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2010
    
    
    June 30, 2009Royalty income (Notes 2, 4 and 7)
    
    $
    1,172,185
    
    
    $
    2,325,261Interest income
    
    
    117
    
    
    
    799Total
    
    
    1,172,302
    
    
    
    2,326,060General and administrative
expenses (Note 4)
    
    
    (700,539
    )
    
    
    (638,367
    )Distributable income
    
    $
    471,763
    
    
    $
    1,687,693Distributable income per unit
(9,700,000 units) (Note 2)
    
    $
    0.05
    
    
    $
    .17
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WILLIAMS COAL SEAM GAS ROYALTY TRUST
 CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
 SIX MONTHS
    
    
    SIX MONTHSENDED
    
    
    ENDEDJune 30, 2010
    
    
    June 30, 2009Trust corpus, beginning of period
    
    $
    4,410,799
    
    
    $
    5,592,220Amortization of royalty interests (Note 2)
    
    
    (790,349
    )
    
    
    (656,315
    )Distributable income
    
    
    471,763
    
    
    
    1,687,693Distributions to Unitholders (Note 5)
    
    
    (272,298
    )
    
    
    (1,736,104
    )Trust corpus, end of period
    
    $
    3,819,915
    
    
    $
    4,887,494Distributions per unit
(9,700,000 units) (Note 5)
    
    $
    .03
    
    
    $
    .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
  QuarterlyRecord
    
    Payment
    
    DistributionDate
    
    Date
    
    per UnitAugust 4, 2010
    
    August 27, 2010
    
    $.132276
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7. CONTINGENCIES
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Termination and Liquidation of the Trust
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Distributable Income
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Three Months and Six Months Ended June 30, 2010 Compared to Three Months and Six Months Ended
June 30, 2009
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Three Months
    
    
    Three MonthsEnded
    
    
    EndedMarch 31, 2010
    
    
    March 31, 2009Production (MMBtu) (1)WI Properties
    
    
    494,670
    (2)
    
    
    517,461
    (3)Farmout Properties
    
    
    188,621
    
    
    
    216,729Infill Properties
    
    
    263,264
    
    
    
    165,212Blanco Hub Spot Price ($/MMBtu) (4)
    
    $
    5.52
    
    
    $
    3.54Net Wellhead Price WI Properties
($/MMBtu) (4)
    
    $
    2.80
    (2)
    
    $
    1.80
    (5)
 
 (1)
    
    Million British Thermal Units.(2)
    
    Excludes the impact of the retroactive unit expansion adjustment described in Note 7.(3)
    
    Includes unfavorable retroactive adjustments of (38,339) MMBtu.(4)
    
    Simple average of estimates for the months included in the period presented.(5)
    
    Reflects a prior year overpayment by WPC of $765,816 which Williams has waived any
right to recoup.  21




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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).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.15.1 
    
    Letter regarding unaudited interim financial information
dated August 16, 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 August 16, 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 August 16, 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   27




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INDEX TO EXHIBITS
 EXHIBIT NUMBER
    
    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).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.
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EXHIBIT NUMBER
    
    EXHIBIT15.1 
    
    Letter regarding unaudited interim financial information
dated August 16, 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.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 16, 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 August 16, 2010, and
submitted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 (18 U.S.C. Section 1350).
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