<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q

              [X] Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934
                  For the quarterly period ended March 31, 2003
                                                 --------------

                                       or

              [ ] 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
             (Exact name of registrant as specified in its charter)


                   Delaware                               75-6437433
         (State or other jurisdiction                  (I.R.S. Employer
              of incorporation or                     Identification No.)
                 organization)

                                 Trust Division
                              Bank of America, N.A.
                                 901 Main Street
                                   17th Floor
                               Dallas, Texas 75202
                    (Address of principal executive offices)
                                   (Zip code)

                                 (214) 209-2400
              (Registrant's telephone number, including area code)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days. Yes x  No
                                             ---    ---

         Indicate by check mark whether the registrant is an accelerated filer
(as defined in Rule 12b-2 of the Exchange Act Yes     No x  .
                                                  ---   ---

  Number of units of beneficial interest outstanding at May 1, 2003: 9,700,000.


<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

         The financial statements included herein have been prepared by Bank of
America, N.A., as Trustee (the "Trustee") of Williams Coal Seam Gas Royalty
Trust (the "Trust"), pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in annual financial statements have been condensed or omitted pursuant
to such rules and regulations, although the Trustee believes that the
disclosures are adequate to make the information presented not misleading. It is
suggested that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Trust's Annual Report
on Form 10-K for the year ended December 31, 2002 (the "2002 Annual Report").
The December 31, 2002 balance sheet is derived from the audited balance sheet of
that date. In the opinion of the Trustee, all adjustments, consisting only of
normal recurring adjustments, necessary to present fairly the assets,
liabilities and trust corpus of the Trust as of March 31, 2003, and the
distributable income and the changes in trust corpus for the three-month periods
ended March 31, 2003 and 2002, have been included. The distributable income for
such interim periods is not necessarily indicative of the distributable income
for the full year.

         The financial statements as of March 31, 2003 and for the three-month
periods ended March 31, 2003 and 2002 included herein have been reviewed by
Ernst & Young LLP, independent public accountants, as stated in their report
appearing herein.


                                       2
<PAGE>


                     INDEPENDENT ACCOUNTANTS' REVIEW REPORT

The Trustee
Williams Coal Seam Gas Royalty Trust


We have reviewed the accompanying condensed statement of assets, liabilities and
trust corpus of the Williams Coal Seam Gas Royalty Trust as of March 31, 2003,
and the related condensed statements of distributable income and changes in
trust corpus for the three-month periods ended March 31, 2003 and 2002. These
financial statements are the responsibility of the Trustee.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with auditing standards generally accepted in the United States,
which will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.

As described in Note 2 to the financial statements, these financial statements
have been prepared on a modified cash basis of accounting, which is a
comprehensive basis of accounting other than accounting principles generally
accepted in the United States.

Based on our reviews, we are not aware of any material modifications that should
be made to the accompanying condensed financial statements referred to above for
them to be in conformity with the basis of accounting described in Note 2.

We have previously audited, in accordance with auditing standards generally
accepted in the United States, the statement of assets, liabilities and trust
corpus of the Williams Coal Seam Gas Royalty Trust as of December 31, 2002, and
the related statements of distributable income and changes in trust corpus for
the year then ended (not presented herein) and in our report dated March 24,
2003, we expressed an unqualified opinion on those financial statements. In our
opinion, the information set forth in the accompanying condensed statement of
assets, liabilities and trust corpus as of December 31, 2002, is fairly stated,
in all material respects, in relation to the statement of assets, liabilities
and trust corpus from which it has been derived.




                                                               Ernst & Young LLP

Tulsa, Oklahoma
May 13, 2003


                                       3
<PAGE>


WILLIAMS COAL SEAM GAS ROYALTY TRUST

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (UNAUDITED)

--------------------------------------------------------------------------------

<Table>
<Caption>

                                             March 31,        December 31,
ASSETS                                         2003                2002
                                            -----------       ------------
<S>                                         <C>               <C>
Current Assets -
   cash and cash equivalents                $    99,384       $   115,051

Royalty interests in oil
   and gas properties
   (less accumulated
   amortization of
   $121,216,350 at
   March 31, 2003 and
   $120,441,263 at
   December 31, 2002)                        17,350,313        18,125,400
                                            -----------       -----------

TOTAL ASSETS                                $17,449,697       $18,240,451
                                            ===========       ===========


LIABILITIES AND TRUST CORPUS

Current Liabilities -
   trust expenses payable                   $   133,836       $    75,403

Trust corpus -
   9,700,000 units of
   beneficial interest
   authorized and
   outstanding                               17,315,861        18,165,048
                                            -----------       -----------

TOTAL LIABILITIES
   AND TRUST CORPUS                         $17,449,697       $18,240,451
                                            ===========       ===========
</Table>


The accompanying notes are an integral part of these financial statements. See
accountants' review report.

--------------------------------------------------------------------------------

                                       4
<PAGE>


WILLIAMS COAL SEAM GAS ROYALTY TRUST

CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)

--------------------------------------------------------------------------------

<Table>
<Caption>

                                             THREE MONTHS    THREE MONTHS
                                                 ENDED           ENDED
                                            March 31, 2003   March 31, 2002
                                            --------------   --------------
<S>                                         <C>              <C>
Royalty income                                $2,239,870       $2,055,073
Interest income                                    1,424            1,673
                                              ----------       ----------
                                               2,241,294        2,056,746

General and administrative
   expenses                                     (264,107)        (232,376)
                                              ----------       ----------
Distributable income                          $1,977,187       $1,824,370
                                              ==========       ==========

Distributable income
   per unit
   (9,700,000 units)                          $      .20       $      .19
                                              ==========       ==========
</Table>


The accompanying notes are an integral part of these financial statements. See
accountants' review report.

--------------------------------------------------------------------------------


                                       5
<PAGE>



WILLIAMS COAL SEAM GAS ROYALTY TRUST

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)

--------------------------------------------------------------------------------

<Table>
<Caption>

                                               THREE MONTHS        THREE MONTHS
                                                  ENDED               ENDED
                                              March 31, 2003      March 31, 2002
                                              --------------      --------------
<S>                                           <C>                 <C>
Trust corpus,
   beginning of period                         $ 18,165,048        $ 22,544,752
Amortization of royalty
   interests                                       (775,087)         (1,256,233)
Distributable income                              1,977,187           1,824,370
Distributions to unitholders                     (2,051,287)         (1,931,735)
                                               ------------        ------------

Trust corpus, end
   of period                                   $ 17,315,861        $ 21,181,154
                                               ============        ============

Distributions per unit
   (9,700,000 units)                           $        .21        $        .20
                                               ============        ============
</Table>


The accompanying notes are an integral part of these financial statements. See
accountants' review report.

--------------------------------------------------------------------------------


                                       6
<PAGE>


WILLIAMS COAL SEAM GAS ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

--------------------------------------------------------------------------------

1.       TRUST ORGANIZATION AND PROVISIONS

         Williams Coal Seam Gas Royalty Trust (the "Trust") was formed as a
Delaware business trust pursuant to the terms of the Trust Agreement of Williams
Coal Seam Gas Royalty Trust (as amended, the "Trust Agreement") entered into
effective as of December 1, 1992, by and among Williams Production Company, a
Delaware corporation ("WPC"), as trustor, The Williams Companies, Inc., a
Delaware corporation ("Williams"), and Bank of America, N.A., as successor to
NationsBank, N.A., a national banking association (the "Trustee"), and Chemical
Bank Delaware, a Delaware banking corporation (the "Delaware Trustee"), as
trustees. The trustees are independent financial institutions.

         The Trust was formed to acquire and hold certain net profits interests
(the "Royalty Interests") in proved natural gas properties located in the San
Juan Basin of New Mexico and Colorado (the "Underlying Properties") owned at the
time of the Trust's formation by WPC. The Trust was initially created effective
as of December 1, 1992, with a $100 contribution by WPC. On January 21, 1993,
the Royalty Interests were conveyed to the Trust by WPC pursuant to the Net
Profits Conveyance (the "Conveyance") dated effective as of October 1, 1992, by
and among WPC, Williams, the Trustee and the Delaware Trustee, in consideration
for all the 9,700,000 authorized units of beneficial interest in the Trust
("Units"). WPC transferred its Units by dividend to its parent, Williams, which
sold an aggregate of 5,980,000 Units to the public through various underwriters
in January and February 1993 (the "Public Offering"). Subsequently, Williams
sold to the public an additional 151,209 Units. During the second quarter of
1995 Williams transferred its remaining Units to Williams Holdings of Delaware,
Inc. ("WHD"), a separate holding company for Williams' non-regulated businesses.
Effective July 31, 1999, WHD was merged into Williams, and by operation of the
merger Williams assumed all assets, liabilities and obligations of WHD,
including without limitation ownership of WHD's Units. Effective August 11,
2000, Williams sold its Units to Quatro Finale IV LLC, a Delaware limited
liability company ("QFIV"), in a privately negotiated transaction. Williams has
agreed to hold the transferred Units as Nominee for QFIV. Williams retained the
voting rights and retained a "call" option on the transferred Units, and QFIV
was granted a "put" option on the Units. Substantially all of the production
attributable to the Underlying Properties is from the Fruitland coal formation
and constitutes "coal seam" gas that entitles the owners of such production,
provided certain requirements are met, to tax credits pursuant to Section 29 of
the Internal Revenue Code of 1986 (the "Code"), as amended, for coal seam gas
produced and sold before 2003 (unless extended by Congress). Effective May 1,
1997, WPC transferred the Underlying Properties, subject to and burdened by the
Royalty Interests, to Quatro Finale LLC, a non-affiliated Delaware limited
liability company ("Quatro Finale"). Ownership of the Underlying Properties
reverted back to WPC effective February 1, 2001, under the terms of the May 1,
1997 transaction. Pursuant to a Purchase and Sale Agreement dated March 14,
2001, and effective March 1, 2001, WPC sold the Underlying Properties subject to
and burdened by the Royalty Interests to Quatro Finale V LLC, a non-affiliated
Delaware limited liability company.


                                       7
<PAGE>



         As used in this Report, the term "Quatro Finale" generally refers to
either of Quatro Finale LLC or Quatro Finale V LLC that at the time in question
was or is the owner of the Underlying Properties. Consequently, unless otherwise
dictated by context, "Quatro Finale" generally means (a) with respect to the
period May 1, 1997 until February 1, 2001, Quatro Finale LLC (which entity
acquired and owned the Underlying Properties effective from May 1, 1997 until
February 1, 2001), and (b) with respect to the period from and after March 1,
2001, Quatro Finale V LLC (which entity acquired and has owned the Underlying
Properties effective and since March 1, 2001). With respect to the ownership of
the Underlying Properties for any period prior to May 1, 1997, and for the
period from February 1 through February 28, 2001, references herein to Quatro
Finale should be deemed to refer to WPC.

         The Trustee has the power to collect and distribute the proceeds
received by the Trust and to pay Trust liabilities and expenses. The Delaware
Trustee has only such powers as are set forth in the Trust Agreement and is not
empowered to otherwise manage or take part in the business of the Trust. The
Royalty Interests are passive in nature and neither the Delaware Trustee nor the
Trustee has any control over or any responsibility relating to the operation of
the Underlying Properties.

         The Trust will terminate no later than December 31, 2012, subject to
earlier termination under certain circumstances described in the Trust Agreement
(the "Termination Date"). Cancellation of the Trust will occur on or following
the Termination Date when all Trust assets have been sold and the net proceeds
therefrom distributed to Unitholders.

         The only assets of the Trust, other than cash and cash equivalents
being held for the payment of expenses and liabilities and for distribution to
Unitholders, are the Royalty Interests. The Royalty Interests consist primarily
of a net profits interest (the "NPI") in the Underlying Properties. Prior to
2001, the NPI generally entitled the Trust to receive 81 percent of the NPI Net
Proceeds, as defined below, attributable to (i) gas produced and sold from
Quatro Finale's net revenue interests (working interests less lease burdens) in
the properties in which Quatro Finale has a working interest (the "WI
Properties") and (ii) the revenue stream received by Quatro Finale attributable
to its 35 percent net profits interest in 5,348 gross acres in La Plata County,
Colorado (the "Farmout Properties"). The Royalty Interests also include a 20
percent interest in Quatro Finale's Infill Net Proceeds, as defined below, from
the sale of production if well spacing rules are effectively modified and
additional wells are drilled on producing drilling blocks on the WI Properties
(the "Infill Wells") during the term of the Trust. No Infill Wells have been
drilled on the WI Properties to date. "NPI Net Proceeds" consists generally of
the revenue stream received by Quatro Finale from its 35 percent net profits
interest in the Farmout Properties, plus the aggregate proceeds attributable to
Quatro Finale's net revenue interest, based on the price paid at or in the
vicinity of the wellhead (the "Wellhead"), of gas produced from the WI
Properties, less Quatro Finale's share of certain taxes and costs. "Infill Net
Proceeds" consists generally of the aggregate proceeds, based on the price at
the Wellhead, of gas produced from Quatro Finale's net revenue interest in any
Infill Wells less certain taxes and costs. The complete definitions of NPI Net
Proceeds and Infill Net Proceeds are set forth in the Conveyance. The NPI
percentage was subject to permanent reduction under certain conditions and such
a reduction to 60 percent occurred in the fourth quarter of 2000. Pursuant to
the Conveyance, the NPI percentage is not subject to further reduction or other
adjustment regardless of the future amount of cumulative production or the
achieved internal rate of return.


                                       8
<PAGE>





2.      BASIS OF ACCOUNTING

         The financial statements of the Trust are prepared on a modified cash
basis and are not intended to present financial positions and results of
operations in conformity with accounting principles generally accepted in the
United States ("GAAP"). Preparation of the Trust's financial statements on such
basis includes the following:

         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.

         Loss contingencies are recognized in the period in which amounts are
         paid by the Trust

         Distributions to Unitholders are recorded when declared by the Trustee
         (see Note 4).

         The financial statements of the Trust differ from financial statements
prepared in accordance with GAAP because royalty income is not accrued in the
period of production, amortization of the Royalty Interests is not charged
against operating results, and loss contingencies are not charged to operating
results until paid.

3.       FEDERAL INCOME TAXES

         The Trust is a grantor trust for Federal income tax purposes. As a
grantor trust, the Trust will not be required to pay Federal income taxes.
Accordingly, no provision for income taxes has been made in these financial
statements.

         Because the Trust will be treated as a grantor trust, and because a
Unitholder will be treated as directly owning an interest in the Royalty
Interests, each Unitholder will be taxed directly on his per Unit pro rata share
of income attributable to the Royalty Interests consistent with the Unitholder's
method of accounting and without regard to the taxable year or accounting method
employed by the Trust.

         Production from the coal seam gas wells drilled after December 31, 1979
and prior to January 1, 1993, qualifies for the Federal income tax credit for
producing nonconventional fuels under Section 29 of the Code. This tax credit is
calculated annually based on each year's qualified production through the year
2002. Williams provides the Trustee with Section 29 credit information related
to the Underlying Properties. Coal seam gas produced and sold after December 31,
2002, will no longer generate a Section 29 credit unless the applicability of
the Section 29 credit is extended by Congress. Legislation currently is proposed
to extend the Section 29 credit retroactively to January 1, 2003. Of course,
there can be no assurance that such legislation will be passed, and if passed,
will be effective retroactively to January 1, 2003.

         The Section 29 credit is based on the Unitholder's pro rata share of
qualifying production. It can be used only to the extent that a Unitholder's
regular tax liability exceeds the Unitholder's tentative minimum tax liability
after the regular tax liability has been reduced by the foreign tax credit and
certain nonrefundable personal credits. Any part of the Section 29 credit not
allowed for the tax year solely because of this alternative minimum tax
limitation is subject to certain carryover provisions


                                       9
<PAGE>


relating to the alternative minimum tax calculation. Except for the foregoing,
there are no Code provisions that allow for the carryback or carryforward of
Section 29 credits in any other circumstances. As the carryforward of unused
Section 29 credits is related to the alternative minimum tax calculation for
succeeding years, carryforwards should be allowed even if the Section 29 credit
is not extended after 2002.

         It is unclear at this time whether Unitholders will be entitled to the
Section 29 credit on distributions received in the first quarter of 2003 that
are attributable to coal seam gas produced and sold in the fourth quarter of
2002. The estimated Section 29 credit, if allowed on such distributions, equals
$0.15 per Unit. The Trustee intends to seek a private letter ruling from the
Internal Revenue Service on this issue.

         Each Unitholder should consult his tax adviser regarding Trust tax
compliance matters.

4.       DISTRIBUTIONS TO UNITHOLDERS

         The Trustee determines for each quarter the amount of cash available
for distribution to Unitholders. Such amount (the "Quarterly Distribution
Amount") is an amount equal to the excess, if any, of the cash received by the
Trust, on or prior to the last day of the month following the end of each
calendar quarter from the Royalty Interests, plus, with certain exceptions, any
other cash receipts of the Trust during such quarter, over the liabilities of
the Trust paid during such quarter, subject to adjustments for changes made by
the Trustee during such quarter in any cash reserves established for the payment
of contingent or future obligations of the Trust.

         The Trustee distributes the Quarterly Distribution Amount within 60
days after the end of each calendar quarter to each person who was a Unitholder
of record on the associated record date (i.e. the 45th day following the end of
each calendar quarter or if such day is not a business day, the next business
day thereafter), together with interest estimated to be earned on such amount
from the date of receipt thereof by the Trustee to the payment date.

         In addition to the regular quarterly distributions, under certain
circumstances specified in the Trust Agreement (such as upon a purchase price
adjustment, if any, or pursuant to the sale of a Royalty Interest), the Trust
would make a special distribution (a "Special Distribution Amount"). A Special
Distribution Amount would be made when amounts received by the Trust under such
circumstances aggregated in excess of $9,000,000. The record date for a Special
Distribution Amount will be the 15th day following receipt of amounts
aggregating a Special Distribution Amount by the Trust (unless such day is not a
business day in which case the record date will be the next business day
thereafter) unless such day is within 10 days of the record date for a Quarterly
Distribution Amount in which case the record date will be the date as is
established for the next Quarterly Distribution Amount. Distribution to
Unitholders of a Special Distribution Amount will be made no later than 15 days
after the Special Distribution Amount record date.


                                       10
<PAGE>
5.       SUBSEQUENT EVENTS

         Subsequent to March 31, 2003, the Trust declared the following
distribution:

<Table>
<Caption>

             Quarterly
              Record                   Payment              Distribution
               Date                     Date                  per Unit
           ------------             ------------            ------------
<S>                                 <C>                     <C>
           May 15, 2003             May 30, 2003              $ .378438
</Table>

         The distribution per unit increased from $.211473 in the first quarter
of 2003 to $.378438 in the second quarter of 2003. The increase in distributions
was mainly the result of much higher natural gas prices during the three month
period ended March 31, 2003 as compared to the three month period ended December
31, 2002.

6.       CONTINGENCIES

         WPX Gas Resources Company ("WPX Gas Resources", as successor in
interest to Williams Gas Marketing Company) purchases natural gas produced from
the WI Properties (except for certain small volumes) at the wellhead under the
terms of a gas purchase contract dated October 1, 1992, as amended (the "Gas
Purchase Contract"). The Gas Purchase Contract provides for a pricing mechanism
during an initial 5-year period, which expired on December 31, 1997, and
continuing for one or more consecutive additional one-year terms unless and
until WPX Gas Resources exercises its annual option, exercisable 15 days prior
to the end of each contract year, to discontinue purchasing gas under the
pricing mechanism of the Gas Purchase Contract and instead purchase gas at a
monthly market base price. WPX Gas Resources has not exercised this option and
therefore the pricing mechanism will continue to remain in effect through at
least December 31, 2003.

         Under the pricing mechanism of the Gas Purchase Contract, when the
market price is less than $1.70 per MMBtu (the "Minimum Purchase Price"), the
Trust will be paid the Minimum Purchase Price for the gas and an account (the
"Price Credit Account") will be maintained to identify the accrued and
unrecouped amount of payments made to the Trust in excess of the market price.
Any amounts in the Price Credit Account are subject to future recoupment when
the market price exceeds the Minimum Purchase Price. As of March 31, 2003, there
were no remaining unrecouped price credits in the Price Credit Account. To the
extent there may in the future be a balance in the Price Credit account, the
entitlement to recoup price credits means that if and when the index price is
above the Minimum Purchase Price, future royalty income paid to the Trust would
be reduced until such time as such Price Credit Account is once again reduced to
zero. Corresponding cash distributions to Unitholders would also be reduced.

         While the terms of the Gas Purchase Agreement pricing mechanism remain
in place and no balance exists in the Price Credit Account, when the market
price for natural gas exceeds $1.94 price per MMBtu, the Trust receives only 50
percent of the excess of the market price over the $1.94 price per MMBtu. For
production months in the fourth quarter of 2002, which are reported as Royalty
Income in the first quarter 2003, the index price remained above the Minimum
Purchase Price.


                                       11
<PAGE>
         The majority of the production attributable to the Trust is within
Federal units. Unit participating areas are formed by pooling production from
the participating area. Entitlement to the pooled production is based on each
party's acreage in the participating area divided by the total participating
acreage. Wells drilled outside the participating area may create an enlargement
to the participating area and a revision of the Unit ownership entitlement. The
Bureau of Land Management ("BLM") must approve Unit participating area
expansions. The effective date for Unit expansions is retroactive to the date
the well creating the expansion was tested. For fourth quarter 2002 natural gas
production, retroactive adjustments were processed on two of the Federal Units.
The first adjustment was related to the Federal Unit expansion of the San Juan
30-5 Unit. The second adjustment was not related to a Federal Unit expansion,
rather it resulted from a payout adjustment on certain wells in the San Juan
32-9 Unit, whereby the working interest supporting the net profits interest of
the Underlying Properties was reduced. The total impact of these adjustments
was to reduce the natural gas attributable to the net profits interest of the
Underlying Properties by approximately 500,000 MMbtu's and that of the Trust by
approximately 300,000 MMbtu's (approximately $357,000). The revenues presented
in the accompanying statements of distributable income are on an entitlement
basis and reflect the most recent BLM participating area approvals at March 31,
2003 and 2002, respectively. There are pending or anticipated applications or
approvals for additional participating area enlargements. WPC has advised the
Trustee that it does not believe that final approval of these Unit participating
area enlargements and the resulting retroactive adjustments, if any, will have a
material impact on the revenues as presented in these financial statements.

         The Trustee has been advised by WPC that the Minerals Management
Service ("MMS"), a subagency of the U.S. Department of the Interior, has from
time to time considered the inclusion of the value of the Section 29 tax credits
attributable to coal seam gas production in the calculation of gross proceeds
for purposes of calculating the royalty that is payable to the MMS. On August
30, 1993, the U.S. Office of the Inspector General (the "OIG") issued an audit
report stating that Section 29 tax credits should be included in the calculation
of gross proceeds and recommending that the MMS pursue collection of additional
royalties with respect to past and future production. On December 8, 1993,
however, the Office of the Solicitor of the U.S. Department of the Interior gave
its opinion to the MMS that the report of the OIG was incorrect and that Section
29 tax credits are not part of gross proceeds for the purpose of Federal royalty
calculations. WPC believes that any such inclusion of the value of Section 29
tax credits for the purposes of calculating royalty payments required to be made
on Federal and Indian lands would be inappropriate since all mineral interest
owners, including royalty owners, are entitled to Section 29 tax credits for
their proportionate share of qualifying coal seam gas production (to the extent
that the Section 29 credit is available). WPC has advised the Trustee that it
would vigorously oppose any attempt by the MMS to require the inclusion of the
value of Section 29 tax credits in the calculation of gross proceeds. However,
if such regulations were adopted and upheld, royalty payments would be
increased, which would decrease NPI Net Proceeds and, therefore, the amounts
payable to the Trust. The reduction in amounts payable to the Trust would cause
a corresponding reduction in associated Section 29 tax credits available to
Unitholders (to the extent the Section 29 credit is available).

         On January 5, 2001, the State of New Mexico, acting under authority of
the MMS, presented WPC with an Audit Issue Letter for the alleged underpayment
of royalties in the amount of $948,501, on gas produced from the Underlying
Properties due to federal royalty owners during the time period from January
1992 through December 1996. MMS regulations permit a lessee to deduct from its
gross proceeds its reasonable actual cost of transportation and processing to
transport the gas from the lease to the point of sale in calculating the market
value of its production. The State of New Mexico claims that certain costs of
removing and transporting carbon dioxide gas are not deductible. On March 22,
2001, WPC responded to the Audit Issue Letter and contested the State of New
Mexico's claim for additional royalties as being contrary to law. In early
November 2001, WPC received from the MMS an Order to Report and Pay Additional
Royalties and Perform Restructured Accounting on subsequent periods. The order
was dated October 30, 2001. The order requires WPC


                                       12
<PAGE>


to (1) pay additional royalties of $943,964 on production related to the audit
period of January 1, 1992 through December 31, 1996; (2) pay an estimated
incremental royalty amount of $991,549 for production covering January 1, 1997
through March 31, 2001; (3) perform a restructured accounting and pay any
additional royalties for months after March 2001. On January 30, 2002, WPC filed
its Statement of Reasons in support of its earlier appeal of the audit issue
letter. While WPC has informed the Trustee that it believes that its past
computations have been appropriately stated, applying the MMS methodology
asserted by the State of New Mexico could potentially result in negative
adjustments to amounts previously paid to the Trust of approximately $3,000,000.

Item 2. Trustee's Discussion and Analysis of Financial Condition and Results of
        Operations.

         The Trust makes quarterly cash distributions to holders of units of
beneficial interest ("Units") in the Trust ("Unitholders"). The only assets of
the Trust, other than cash and cash equivalents being held for the payment of
expenses and liabilities and for distribution to Unitholders, are net profits
interests (the "Royalty Interests") in certain proved coal seam gas properties
located in the San Juan Basin of New Mexico and Colorado (the "Underlying
Properties"). The Royalty Interests owned by the Trust burden the Underlying
Properties, which are owned by Quatro Finale LLC and not the Trust.

         Distributable income of the Trust consists of the excess of royalty
income plus interest income over the general and administrative expenses of the
Trust. Upon receipt by the Trust, royalty income is invested in short-term
investments in accordance with the Trust Agreement (as defined in Note 1 to the
financial statements of the Trust appearing elsewhere in this Form 10-Q) until
its subsequent distribution to Unitholders.

         The amount of distributable income of the Trust for any quarter may
differ from the amount of cash available for distribution to Unitholders in such
quarter due to differences in the treatment of the expenses of the Trust in the
determination of those amounts. The financial statements of the Trust are
prepared on a modified cash basis pursuant to which the expenses of the Trust
are recognized when incurred. Consequently, the reported distributable income of
the Trust for any quarter is determined by deducting from the income received by
the Trust the amount of expenses incurred by the Trust during such quarter. The
amount of cash available for distribution to Unitholders, however, is determined
in accordance with the provisions of the Trust Agreement and reflects the
deduction from the income actually received by the Trust of the amount of
expenses actually paid by the Trust and adjustments for changes in reserves for
unpaid liabilities. See Note 4 to the financial statements of the Trust
appearing elsewhere in this Form 10-Q for additional information regarding the
determination of the amount of cash available for distribution to Unitholders.

Three Months Ended March 31, 2003 Compared to Three Months Ended March 31, 2002

         For the quarter ended March 31, 2003, royalty income received by the
Trust amounted to $2,239,870 as compared to $2,055,073 received for the same
quarter in 2002. The increase in royalty income is primarily due to higher
natural gas prices. Production related to the royalty income received by the
Trust in the first quarter of 2003 was 1,358,850 MMBtu as compared to 2,204,354


                                       13
<PAGE>
MMBtu for the same quarter in 2002. The decrease in production volume for prior
year includes the 300,000 MMBtu effect of the Federal Unit expansion of the San
Juan 30-5 Unit and a decrease in the working interests of certain wells
supporting the net profits interest of the San Juan 32-9 Unit. In addition, the
decrease results from the natural gas production decline from the depleting
Royalty Interests. Interest income and general and administrative expenses for
the quarter ended March 31, 2003 were comparable to the quarter ended March 31,
2002.

         Distributable income for the quarter ended March 31, 2003 was
$1,977,187 or $.20 per Unit compared to $1,824,370 or $ .19 per Unit for the
first quarter of 2002. This increase was the result of much higher natural gas
prices. A distribution of $.211473 per Unit was made on March 1, 2003 to
Unitholders of record on February 14, 2003.

         Because the Trust incurs administrative expenses throughout a quarter
but receives its royalty income only once in a quarter, the Trustee established
in the first quarter of 1993 a cash reserve for the payment of expenses and
liabilities of the Trust. The Trustee thereafter has adjusted the amount of such
reserve in certain quarters as required for the payment of the Trust's expenses
and liabilities, in accordance with the provisions of the Trust Agreement. The
Trustee anticipates that it will maintain for the foreseeable future a cash
reserve which will fluctuate as expenses are paid and royalty income is
received.

         Royalty income to the Trust is attributable to the sale of depleting
assets. All of the Underlying Properties burdened by the Royalty Interests
consist of producing properties. Accordingly, the proved reserves attributable
to WPC's interest in the Underlying Properties are expected to decline
substantially during the term of the Trust and a portion of each cash
distribution made by the Trust will, therefore, be analogous to a return of
capital. Accordingly, cash yields attributable to the Units are expected to
decline over the term of the Trust.

         Royalty income received by the Trust in a given calendar quarter will
generally reflect the sum of (i) proceeds from the sale of gas produced from the
WI Properties during the preceding calendar quarter, plus (ii) cash received by
Quatro Finale with respect to the Farmout Properties either (a) during the
preceding calendar quarter or (b) if received in sufficient time to be paid to
the Trust, in the month immediately following such calendar quarter.
Accordingly, the royalty income included in distributable income for the quarter
ended March 31, 2003 was based on production volumes and natural gas prices for
the period October 2002 through December 2002, as shown in the table below. Due
to delays associated with the receipt of income related to the Farmout
Properties, the Trust's royalty income for the first quarter of 2003 reflects
estimated production volumes from the Farmout Properties for the months of
September 2002 through November 2002, as shown in the table below. The
production volumes included in the table below are for production attributable
to the net profits of the Underlying Properties, and not for production
attributable to the Trust's Royalty Interests.


                                       14
<PAGE>


<Table>
<Caption>
                                       Three Months             Three Months
                                           Ended                    Ended
                                     December 31, 2002        December 31, 2001
                                     -----------------        -----------------
<S>                                  <C>                      <C>
Production (MMBtu)(1)
     WI Properties                      1,810,731 (2)           2,967,995 (4)
     Farmout Properties                   454,019 (3)             705,927 (5)

Blanco Hub Spot Price
     ($/MMBtu)(6)                     $      3.11             $      2.04
                                      -----------
Net Wellhead Price
     WI Properties ($/MMBtu)(6)       $      1.95             $      1.01
                                      -----------
</Table>
----------

(1)      Million British Thermal Units.

(2)      Includes retroactive adjustments of (514,550) MMBtu. See "Item 1 --
         Note 6 of Notes to Financial Statements."

(3)      Reflects estimated volumes for September 2002 through November 2002.

(4)      Includes retroactive adjustments of 75,551 MMBtu.

(5)      Reflects estimated volumes for September 2001 through November 2001.

(6)      Simple average of estimates for the months included in the period
         presented.


         Production from the WI Properties is generally sold by WPC to WPX Gas
Resources pursuant to the Gas Purchase Contract that provides certain
protections for WPC and Unitholders by providing that WPX Gas Resources will
purchase gas from WPC at a minimum purchase price of $1.70 even when the
applicable index price (which is equal to 97% of the Blanco Hub Spot Price)
falls below $1.70 per MMBtu, provided that WPX Gas Resources is entitled to
accrue price credits in the amount of any excess of the minimum price so paid
over the applicable index price. When the applicable index price exceeds $1.70
per MMBtu WPX Gas Resources is entitled to recoup any price credits previously
accrued. When the applicable index price is greater than $1.94 per MMBtu, the
Gas Purchase Contract protects and benefits WPX Gas Resources by allowing it to
purchase gas from WPC at a contract price equal to $1.94 per MMBtu plus only 50
percent of the difference between the applicable index price and $1.94 per
MMBtu. The Gas Purchase Contract also provides that the price paid for gas by
WPX Gas Resources is reduced by the amount of gathering, processing and certain
other costs paid by WPX Gas Resources. See "Item 2 - The Royalty Interests - Gas
Purchase Contract" in the 2002 Annual Report for detailed information about the
Gas Purchase Contract and its impact on Trust income.

         The initial 5-year term of the pricing provision ("Primary Term") of
the Gas Purchase Contract expired on December 31, 1997. Following the expiration
of the Primary Term, the pricing provision will continue in effect for one or
more consecutive additional one-year terms (each such term a "Contract Year")
unless and until WPX Gas Resources exercises its annual option, exercisable 15
days prior to the end of each Contract Year, to discontinue purchasing gas from
WPC under the pricing provision of the Gas Purchase Contract and instead
purchase gas at a monthly price equal to the index price of 97 percent of the
Blanco Hub Spot Price. WPX has not yet exercised this option and the pricing
mechanism of the Primary Term therefore has been and will continue to remain in
effect through at least December 31, 2003.


                                       15
<PAGE>



         For the quarter ended March 31, 2003, which is based on production
volumes and natural gas prices for the three months ended December 31, 2002, the
Blanco Hub Spot Price was above $2.00 per MMBtu and therefore the applicable
index price under the Gas Purchase Contract, which is equal to 97% of the Blanco
Hub Spot Price, was above $1.94 per MMBtu. In general, under the Gas Purchase
Contract, the Trust only receives the benefit of 50 percent of any amount by
which the applicable index price exceeds $1.94 per MMBtu. Consequently, pursuant
to the terms of the Gas Purchase Contract, WPX Gas Resources paid Quatro Finale
(as successor to WPC) an amount for gas purchased equal to $1.94 per MMBtu, less
the costs paid by WPX Gas Resources to gather and process such gas and deliver
it to specified delivery points plus 50 percent of the excess of the applicable
index price over $1.94 per MMBtu. The Blanco Hub Spot Price remained above $2.00
per MMBtu in April 2003.

         The information in this Form 10-Q concerning production and prices
relating to the Underlying Properties is based on information prepared and
furnished by WPC to the Trustee. The Trustee has no control over and no
responsibility relating to the operation of the Underlying Properties.

Forward-Looking Statements

         This report on Form 10-Q includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All statements
other than statements of historical fact included in this Form 10-Q, including,
without limitation, statements contained in this "Trustee's Discussion and
Analysis of Financial Condition and Results of Operations" regarding the Trust's
financial position and industry conditions, are forward-looking statements.
Although the Trustee believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

         The only assets of and sources of income to the Trust are the Royalty
Interests, which generally entitle the Trust to receive a share of the net
profits from natural gas production from the Underlying Properties.
Consequently, the Trust's financial results can be significantly affected by
fluctuations in natural gas prices and the Trust has commodity price risk
exposure associated with the natural gas markets in the United States. The
Royalty Interests do not entitle the Trust to control or influence the operation
of the Underlying Properties or the sale of gas produced therefrom. Natural gas
produced from the WI Properties, which comprises the majority of production
attributable to the Royalty Interests, is currently sold by Quatro Finale
pursuant to the terms of the Gas Purchase Contract. Although the Trust is not a
party to the Gas Purchase Contract, the Gas Purchase Contract may significantly
impact revenues to the Trust. Although the Gas Purchase Contract mitigates the
risk to the Trust of low gas prices, it also limits the ability of the Trust to
benefit from the effects of higher gas prices. See "Item 2 -- The Royalty
Interests -- Gas Purchase Contract" in the 2002 Annual Report for detailed
information about the Gas Purchase Contract and its impact on the Trust and
Unitholders.



                                       16
<PAGE>


The Trust is a passive entity and other than the Trust's ability to periodically
borrow money as necessary to pay expenses, liabilities and obligations of the
Trust that cannot be paid out of cash held by the Trust, the Trust is prohibited
from engaging in borrowing transactions. The amount of any such borrowings is
unlikely to be material to the Trust. The Trust periodically holds short term
investments acquired with funds held by the Trust pending distribution to
Unitholders and funds held in reserve for the payment of Trust expenses and
liabilities. Because of the short-term nature of these borrowings and
investments and certain limitations upon the types of such investments which may
be held by the Trust, the Trustee believes that the Trust is not subject to any
material interest rate risk. The Trust does not engage in transactions in
foreign currencies which could expose the Trust or Unitholders to any foreign
currency related market risk.

Item 4.  Controls and Procedures.

         Within the 90 days prior to the date of this report, the Trustee
carried out an evaluation of the effectiveness of the design and operation of
the Trust's disclosure controls and procedures pursuant to Exchange Act Rule
13a-14. Based upon that evaluation, the Trustee concluded that the Trust's
disclosure controls and procedures are effective in timely alerting the trustee
to material information relating to the Trust required to be included in the
Trust's periodic filings with the Securities and Exchange Commission. In its
evaluation of disclosure controls and procedures, the Trustee has relied, to the
extent considered reasonable, on information provided by WPC. No significant
changes in the Trust's internal controls or other factors that could affect
these controls have occurred subsequent to the date of such evaluation.



                                       17
<PAGE>



                           PART II - OTHER INFORMATION

Items 1 through 5.

     Not applicable.

Item 6.  Exhibits and Reports on Form 8-K.

     (a) The exhibits listed below are filed as part of this report:

         Exhibit 15

               Letter regarding unaudited interim financial information dated
               May 13, 2003 from the independent accountant which acknowledges
               awareness of the use in registration statement of a report on
               unaudited interim financial information.


         Exhibit 99.1

               Certificate by Bank of America, Trustee of Williams Coal Seam Gas
               Royalty Trust, dated May 15, 2003 and submitted pursuant to
               Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
               1350).

     (b) No reports on Form 8-K were filed during the quarter for which this
         report is filed.



                                       18
<PAGE>


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                 WILLIAMS COAL SEAM GAS ROYALTY TRUST

                                 By: BANK OF AMERICA, N.A., Trustee



                                 By: /s/ Ron Hooper
                                     ---------------------------------------
                                     Ron Hooper
                                     Senior Vice President and Administrator


               (The Trust has no directors or executive officers.)


Date:  May 15, 2003




                                       19
<PAGE>

                                 CERTIFICATIONS

I, Ron Hooper, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Williams Coal Seam
       Gas Royalty Trust, for which Bank of America, N.A., acts as Trustee;

2.     Based on my knowledge, this quarterly report does not contain any untrue
       statement of a material fact or omit to state a material fact necessary
       to make the statements made, in light of the circumstances under which
       such statements were made, not misleading with respect to the period
       covered by this quarterly report;

3.     Based on my knowledge, the financial statements, and other financial
       information included in this quarterly report, fairly present in all
       material respects the financial condition, distributable income and
       changes in trust corpus of the registrant as of, and for, the periods
       presented in this quarterly report;

4.     I am responsible for establishing and maintaining disclosure controls and
       procedures (as defined in Exchange Act Rules 13a-14 and 15d-14), or for
       causing such procedures to be established and maintained, for the
       registrant and I have:

       a)   designed such disclosure controls and procedures, or caused such
            controls and procedures to be designed, to ensure that material
            information relating to the registrant, including its consolidated
            subsidiaries, is made known to me by others within those entities,
            particularly during the period in which this quarterly report is
            being prepared;

       b)   evaluated the effectiveness of the registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this quarterly report (the "Evaluation Date"); and

       c)   presented in this quarterly report my conclusions about the
            effectiveness of the disclosure controls and procedures based on my
            evaluation as of the Evaluation Date;

5.     I have disclosed, based on my most recent evaluation, to the registrant's
       auditors:

       a)   all significant deficiencies in the design or operation of internal
            controls which could adversely affect the registrant's ability to
            record, process, summarize and report financial data and have
            identified for the registrant's auditors any material weaknesses in
            internal controls; and

       b)   any fraud, whether or not material, that involves persons who have a
            significant role in the registrant's internal controls; and



                                       20
<PAGE>


6.     I have indicated in this quarterly report whether or not there were
       significant changes in internal controls or in other factors that could
       significantly affect internal controls subsequent to the date of my most
       recent evaluation, including any corrective actions with regard to
       significant deficiencies and material weaknesses.

       In giving the certifications in paragraphs 4, 5 and 6 above, I have
       relied to the extent I consider reasonable on information provided to me
       by Williams Production Company.



Date: May 15, 2003                  By: /s/ Ron Hooper
                                        ----------------------------------------
                                        Ron Hooper
                                        Senior Vice President and Administrator
                                        Bank of America, N.A.




                                       21
<PAGE>


                                INDEX TO EXHIBITS

<Table>
<Caption>

Exhibit
  No.             Description
-------           -----------
<S>               <C>
  15              Letter regarding unaudited interim financial information dated
                  May 13, 2003, from the independent accountant which
                  acknowledges awareness of the use in registration statement of
                  a report on unaudited interim financial information.

  99.1            Certificate by Bank of America, Trustee of Williams Coal Seam
                  Gas Royalty Trust., dated May 15, 2003 and submitted pursuant
                  to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.
                  Section 1350).
</Table>



                                       22