UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)ý

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 30, 2008ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
from                                    to


Commission File Number 1-11748

EASTERN AMERICAN NATURAL GAS TRUST(Exact name of registrant as specified in its charter)

Delaware(State or other jurisdiction of
incorporation or organization)

36-7034603(I.R.S. Employer
Identification No.)The Bank of New York Trust Company, N.A, Trustee
Global Corporate Trust
919 Congress Avenue Suite 500
Austin, Texas(Address of principal executive offices)78701(Zip Code)(800) 852-1422(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 ý        No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act (Check one).

Large accelerated filer o

Accelerated filer ý

Non-accelerated filer o

Smaller reporting company o


Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes o        No ý

As of August 1, 2008, 5,900,000 Units of Beneficial Interest in Eastern American Natural Gas Trust were issued, outstanding and held by
non-affiliates of the registrant (the "Outstanding Units"). Of the Outstanding Units, 131,600 Units of Beneficial Interest (the "Withdrawn Units") have been withdrawn from trading by
voluntary action of Holders and may not be traded unless such Holders comply with certain requirements provided in the related Trust Agreement.



---





PART IFINANCIAL INFORMATION

ITEM 1.    Financial Statements

EASTERN AMERICAN NATURAL GAS TRUST        CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME(unaudited)

Six Months Ended
June 30,

Three Months Ended
June 30,2008

2007

2008

2007Royalty Income

$
8,227,008

$
7,419,571

$
4,679,117

$
3,854,720Operating ExpensesTaxes on Production and Property


606,450


558,527


344,328


289,454Operating Cost Charges


308,782


294,080


154,391


147,040Total Operating Expenses


915,232


852,607


498,719


436,494Net Proceeds to the Trust


7,311,776


6,566,964


4,180,398


3,418,226General and Administrative Expenses


582,105


591,410


223,570


274,647Distributable Income


6,729,671


5,975,554


3,956,828


3,143,579Cash Reserve Refunded





500,000





200,000Distribution Amount

$
6,729,671

$
6,475,554

$
3,956,828

$
3,343,579Distributable Income per Unit (5,900,000 Trust Units authorized and outstanding)

$
1.1406

$
1.0128

$
0.6706

$
0.5328Distribution Amount per Unit (5,900,000 Trust Units authorized and outstanding)

$
1.1406

$
1.0976

$
0.6706

$
0.5667


The accompanying notes are an integral part of these unaudited condensed financial statements.

2

---





EASTERN AMERICAN NATURAL GAS TRUST        CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

June 30, 2008

December 31, 2007(unaudited)Assets:Cash

$
120,661

$
197,972Net Proceeds Receivable


4,180,398


3,132,003Net Profits Interests in Gas Properties


93,162,180


93,162,180Accumulated Amortization


(72,821,943
)

(71,539,020
)20,340,237


21,623,160Total Assets

$
24,641,296

$
24,953,135Liabilities and Trust Corpus:Trust General and AdministrativeExpenses Payable

$
144,231

$
183,150Distributions Payable


3,956,828


2,946,825Trust Corpus (5,900,000 Trust Units authorized and outstanding)


20,540,237


21,823,160Total Liabilities and Trust Corpus

$
24,641,296

$
24,953,135


The accompanying notes are an integral part of these unaudited condensed financial statements.

3

---





EASTERN AMERICAN NATURAL GAS TRUST        CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS        (unaudited)

Six Months Ended
June 30,2008

2007Trust Corpus, beginning of period

$
21,823,160

$
25,261,218Distributable Income


6,729,671


5,975,554Distributions Payable to Unitholders


(6,729,671
)

(6,475,554
)Amortization of Net Profits Interests inGas Properties


(1,282,923
)

(1,484,719
)Trust Corpus, end of period

$
20,540,237

$
23,276,499


The accompanying notes are an integral part of these unaudited condensed financial statements.

4

---





EASTERN AMERICAN NATURAL GAS TRUST        NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 1. Organization of the Trust

The Eastern American Natural Gas Trust (the "Trust") was formed under the Delaware Business Trust Act pursuant to a Trust Agreement (the "Trust Agreement") among Eastern American Energy
Corporation ("Eastern American"), as grantor, Bank of Montreal Trust Company, as Trustee, and Wilmington Trust Company, as Delaware Trustee (the "Delaware Trustee"). Effective May 8, 2000, The
Bank of New York acquired the corporate trust business of the Bank of Montreal Trust Company / Harris Trust, and consequently, The Bank of New York served as trustee of the Trust. On
November 20, 2004, the holders of a majority of the Trust Units voting at a special meeting approved the resignation of The Bank of New York as trustee and depository of the Trust and the
appointment of JPMorgan Chase Bank, N.A. as successor trustee of the Trust, effective as of January 1, 2005. Effective October 2, 2006, The Bank of New York Trust Company, N. A. replaced
JPMorgan Chase Bank, N.A. as trustee in connection with the sale by JPMorgan Chase Bank of substantially all of its corporate trust business to The Bank of New York. Consequently, references herein to
the "Trustee" mean Bank of Montreal Trust Company until May 8, 2000; The Bank of New York as successor Trustee from May 8, 2000 through December 31, 2004; JPMorgan Chase Bank,
N.A. as successor Trustee from January 1, 2005 through October 2, 2006; and The Bank of New York Trust Company, N.A. as successor Trustee, effective as of October 2, 2006. The
transfer agent for the Trust is Bondholder Communications, an affiliate of The Bank of New York Trust Company, N.A.

The
Trust was formed to acquire and hold net profits interests (the "Net Profits Interests") created from the working interests owned by Eastern American in 650 producing gas wells and
65 proved development well locations (the "Development Wells") in West Virginia and Pennsylvania (the "Underlying Properties").

On
March 15, 1993, 5,900,000 Depositary Units were issued in a public offering at an initial public offering price of $20.50 per Depositary Unit. Each Depositary Unit consists of
beneficial ownership of one unit of beneficial interest ("Trust Unit") in the Trust and a $20 face amount beneficial ownership interest in a $1,000 face amount zero coupon United States Treasury
Obligation ("Treasury Obligation") maturing on May 15, 2013. The financial statements of the Trust to which these notes relate do not include information concerning the Treasury Obligations,
the beneficial interest in which is held for the Unitholders by the Depositary.

The
Net Profits Interests are passive in nature, and neither the Trustee nor the Delaware Trustee has management control or authority over, nor any responsibility relating to, the
operation of the properties subject to the Net Profits Interests. The Trust Agreement provides, among other things, that the Trust shall not engage in any business or commercial activity or acquire
any asset other than the Net Profits Interests initially conveyed to the Trust; the Trustee may establish a reserve for payment of any liability that is contingent, uncertain in amount or is not
currently due and payable; the Trustee is authorized to borrow funds required to pay liabilities of the Trust, provided that such borrowings are repaid in full prior to further distributions to
Unitholders; and the Trustee will make quarterly cash distributions to Unitholders from funds of the Trust.

After
the Trust was formed, 59 of the 65 Development Wells were drilled and completed. The remaining six Development Wells were not drilled. Clear title to two of the Development Wells
could not be established, and they were excluded from the Trust in accordance with the conveyance transferring them to the Trust. Eastern American asserted that the remaining four undrilled
Development Wells, if drilled, would be too close to then existing wells on adjoining property, and thereafter settled its dispute with the Trust about drilling those four Development Wells by
agreeing

5

---



EASTERN AMERICAN NATURAL GAS TRUST

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS (Continued)

NOTE 1. Organization of the Trust (Continued)

instead
to pay the Trust annually for the annual volume of gas projected to be produced from those Development Wells as if they had been drilled.

The
Net Profits Interests initially consisted of a royalty interest ("Royalty NPI") in 322 wells and a term interest ("Term NPI") in the remaining wells and locations. As of
June 30, 2008, the Trust held Net Profits Interests in 670 wells, consisting of Royalty NPI in 317 wells and Term NPI in the remaining wells. The Term NPI expire by their terms on
May 15, 2013, or such earlier time as 41,683 MMcf of gas has been produced that is attributable to Eastern American's net revenue interest in the properties burdened by the Term NPI. As of
December 31, 2007, based on the Independent Petroleum Engineer's Report, 25,419 MMcf of the maximum 41,683 MMcf has been produced.

Between
May 15, 2012 and May 15, 2013 (the "Liquidation Date"), the Trustee is required to sell all the Royalty NPI and liquidate the Trust. Under the Trust Agreement,
Eastern American has the right of first refusal to purchase any of the Royalty NPI the Trustee is required to sell after the Liquidation Date. If it exercises this right, Eastern American must pay the
appraised Fair Value (as defined in the Trust Agreement) of the Royalty NPI, or the relevant third party offer price if a third party has offered to purchase the Royalty NPI. Unitholders of record on
the relevant record dates will receive the net proceeds from selling the Royalty NPI in accordance with the Trust Agreement, and also will receive their respective share of the matured face amount of
the Treasury Obligations held by the Depositary.

NOTE 2. Basis of Presentation

The preparation of financial statements requires estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Without limiting the foregoing statement, the information furnished is based upon
certain estimates of production for the periods presented and is therefore subject to adjustment in future periods to reflect actual production for the periods presented.

The
information furnished reflects all adjustments which are, in the opinion of the Trustee, necessary for a fair presentation of the results for the interim periods presented. The
accompanying financial statements are unaudited interim financial statements, and should be read in conjunction with the audited financial statements and notes thereto included in the Trust's Annual
Report on Form 10-K for the year ended December 31, 2007. The year-end condensed balance sheet data was derived from audited financial statements, but does not
include all disclosures required by accounting principles generally accepted in the United States of America.

NOTE 3. Trust Accounting Policies

The Trust serves as a pass-through entity, with items of depletion, interest income and expense, and income tax attributes being based upon the status and election of the
Unitholders. Thus, the Statements of Distributable Income purport to show Distributable Income, defined as Trust income available for distribution to Unitholders before application of those
Unitholders' additional expenses, if any, for depletion, interest income and expense, and income taxes.

The
Trust uses the accrual basis to recognize revenue, with Royalty Income recorded as reserves are extracted from the Underlying Properties and sold. Expenses are also recognized on an
accrual

6

---



EASTERN AMERICAN NATURAL GAS TRUST

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS (Continued)

NOTE 3. Trust Accounting Policies (Continued)

basis.
Operating expenses, which include Taxes on Property and Production and Operating Cost Charges, are recognized as incurred pursuant to the Conveyances on a per well production basis. The payment
provisions of the Gas Purchase Contract between the Trust and Eastern Marketing Corporation ("Eastern Marketing"), a wholly owned subsidiary of Eastern American, require payment with respect to gas
production for a calendar quarter to be made to the Trust on or before the tenth day of the third month following such quarter.

The
Net Profits Interests are assessed annually to determine whether their net capitalized cost is impaired. The Trust will determine if a writedown is necessary to its investment in the
Net Profits Interests in Gas Properties to the extent that total capitalized costs, less accumulated amortization, exceed undiscounted future net revenues attributable to proved gas reserves of the
Underlying Properties. The Trust will then provide a writedown to the extent that the net capitalized costs exceed the discounted future net revenues attributable to proved gas reserves of the
Underlying Properties. Any such writedown would not reduce Distributable Income, although it would reduce Trust Corpus.

Amortization
of the Net Profits Interests in Gas Properties is calculated on a units-of-production basis, whereby the Trust's cost basis in the properties
is divided by total Trust proved reserves to derive an amortization rate per reserve unit. Such amortization does not reduce Distributable Income, rather it is charged directly to Trust Corpus.

The
financial statements of the Trust differ from financial statements prepared in accordance with accounting principles generally accepted in the United States of America due to the
following: (i) certain cash reserves may be established for contingencies which were not accrued in the financial statements; (ii) amortization of the Net Profits Interests in Gas
Properties is charged directly to Trust Corpus; and (iii) the sale of the Net Profits Interests, if any, is reflected in the Statements of Distributable Income as Cash Proceeds on Sale of Net
Profit Interests to the Trust.

Most
accounting pronouncements apply to entities whose financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.
Because the Trust's financial statements are prepared on a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America, as described above,
most accounting pronouncements are not applicable to the Trust's financial statements.

NOTE 4. Income Taxes

The Trust is a grantor trust and is not required to pay federal or state income taxes. Accordingly, no provision for federal or state income taxes has been made. All income is taxed to
the Unitholders of the Trust.

7

---





ITEM 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement

This 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 the statements under "Management's Discussion and Analysis of Financial Condition and Results of Operations" are forward-looking statements. Although Eastern American has
advised the Trustee that it believes that the expectations reflected in the forward-looking statements contained herein are reasonable, no assurance can be given that such expectations will prove to
have been correct. Important factors that could cause actual results to differ materially from expectations ("Cautionary Statements") are disclosed in this Form 10-Q and in the
Trust's Annual Report on Form 10-K for the year ended December 31, 2007 and include the fact that none of the Trust, the Trustee or Eastern American is able to predict future
changes in gas prices, gas production levels, economic activity, legislation or regulation, or certain changes in expenses of the Trust. All subsequent written and oral forward-looking statements
attributable to the Trust or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. The Trust, the Trustee and Eastern American disclaim any obligation to
update any forward-looking statements.

General

The Trust does not conduct any operations or activities. The Trust's purpose is, in general, to hold the Net Profits Interests, to
distribute the cash proceeds to Unitholders which the Trust receives in respect of the Net Profits Interests (net of Trust expenses), and to perform certain administrative functions in respect of the
Net Profits Interests and the Depositary Units. Accordingly, the Trust derives substantially all of its income and cash flows from the Net Profits Interests. The Trust has no source of liquidity or
capital resources other than the cash flows from the Net Profits Interests.

The
Net Profits Interests were created pursuant to conveyances (the "Conveyances") from Eastern American to the Trust. In connection therewith, Eastern American assigned its rights under
a gas purchase contract (the "Gas Purchase Contract"), which obligates Eastern Marketing Corporation, a subsidiary of Eastern American, to purchase all of the natural gas produced from the Underlying
Properties that is attributable to the Net Profits Interests.

The
Conveyances and the Gas Purchase Contract entitle the Trust to receive an amount of cash for each calendar quarter equal to the Net Proceeds for such quarter. "Net Proceeds" for any
calendar quarter generally means an amount of cash equal to (a) 90% of a volume of gas equal to (i) the volume of gas produced during such quarter attributable to the Underlying
Properties less (ii) a volume of gas equal to "Chargeable Costs" for such quarter, multiplied by (b) the applicable price for such quarter under the Gas Purchase Contract. "Chargeable
Costs" is that volume of gas which equates in value, determined by reference to the relevant sales price under the Gas Purchase Contract or the Conveyances, as applicable, to the sum of the "Operating
Cost Charge", "Capital Costs" and "Taxes".

The
"Operating Cost Charge" for 2008 is based on an annual rate of $617,564, and 2007 was based on an annual rate of $588,160. As provided in the Conveyances, the Operating Cost Charge
will fluctuate based on the lesser of (A) five percent (5%) or (B) a percentage, not less than zero percent (0%), equal to the percentage increase, if any, in the average weekly earnings
of Crude Petroleum and Gas Production Workers for the last calendar year, as shown by the index of average weekly earnings of Crude Petroleum and Gas Production Workers, as published by the United
States Department of Labor, Bureau of Labor Statistics, based on December-to-December comparison.

During
2003, the United States Department of Labor, Bureau of Labor Statistics converted all of its industry-based statistics to a different reporting system that was developed in
cooperation with the

8

---



United
States' North American Free Trade Agreement Partners, Canada and Mexico, in an effort to standardize and modernize reporting codes. As a result of this conversion, the Crude Petroleum and Gas
Production Workers index is no longer available for use in the annual calculation of overhead adjustment called for in the various Council of Petroleum Accountants Societies, or COPAS, model forms
after March 2003.

Research
by COPAS covering a ten year period indicated that by blending the Oil and Gas Extraction Index with the Professional and Technical Services Index, the results approximate the
data from the old Crude Petroleum and Natural Gas Workers Index. Accordingly, COPAS has calculated the percentage change in the simple average of the Oil and Extraction Index and the Professional and
Technical Services Index, commencing in April 2004. This "Overhead Adjustment Index" has been provided as a guidance to the industry as a replacement index for use in calculating the overhead
adjustment. The adjustment for the effective time period is 5.0%. Since the Conveyance Documents do not specifically provide for a replacement index if the Crude Petroleum and Gas Production Workers
Index was no longer published, Eastern American believes, and advised the Trustee, that the "Overhead Adjustment Index" as calculated by COPAS is a reasonable index to utilize since the industry is
generally adopting the same as a replacement. Eastern American, with the concurrence of the Trustee, will utilize this "Overhead Adjustment Index" to adjust the "Operating Cost Charge" so long as such
index is published by COPAS.

The
Operating Cost Charge will be reduced for each well that is sold (free of the Net Profits Interests) or plugged and abandoned. Capital Costs are defined as Eastern American's working
interest share of capital costs for operations on the Underlying Properties having a useful life of at least three years, and excluding any capital costs incurred in drilling the Development Wells.
Taxes refer to ad valorem taxes, production and severance taxes, and other taxes imposed on Eastern American's or the Trust's interests in the Underlying Properties, or production therefrom.

Pursuant
to the Gas Purchase Contract, Eastern Marketing is obligated to purchase such gas production at a purchase price per Mcf equal to the Index Price. The Index Price for any
quarter is determined solely by reference to the Variable Price component. The Variable Price for any quarter is equal to the Henry Hub Average Spot Price (as defined) per MMBtu plus $0.30 per MMBtu,
multiplied by 110% to effect a fixed adjustment for Btu content. The Henry Hub Average Spot Price is defined as the price per MMBtu determined for any calendar quarter equal to the price obtained with
respect to each of the three months in such quarter, in the manner specified below, and then taking the average of the prices determined for each of such three months. The price determined for any
month of such quarter is equal to the average of (i) the final settlement price per MMBtu for Henry Hub Gas Futures Contracts (as defined), as reported inThe Wall
Street Journal, for such contracts which expired in each of the five months prior to such month; (ii) the final settlement price per MMBtu for Henry Hub Gas Futures
Contracts, as reported inThe Wall Street Journal, for such contracts which expire during such month; and (iii) the closing settlement price per
MMBtu of Henry Hub Gas Futures Contracts determined as of the contract settlement date for such month, as reported inThe Wall Street
Journal, for such contracts which expire in each of the six months following such month. A Henry Hub Gas Futures Contract is defined as a gas futures contract for gas to be
delivered to the Henry Hub that is traded on the New York Mercantile Exchange.

Accordingly,
the Index Price payable to the Trust for production may be higher or lower based on the fluctuations in natural gas futures prices during the relevant calculation period.
The price payable to the Trust will have a direct impact, positively or negatively, on the quarterly Distributions Payable by the Trust to its Unitholders.

Eastern
American had a disagreement with the Trust over Eastern American's obligation to drill certain Development Wells that were closely offset by third parties. The Trust agreed that
in lieu of drilling these closely offset Development Wells, Eastern American could provide the Trust, on an

9

---



annual
basis commencing on April 1, 1997, and over the remaining life of the Trust, a volume of gas which is equal to the projected volumes of the wells as if they had been drilled. These
volumes have been estimated by Ryder Scott Company, independent petroleum engineers. During the quarter ended June 30, 2008, payment for an additional volume of 3,263 Mcf was delivered to the
Trust, as compared to a payment for 3,527 Mcf for the quarter ended June 30, 2007. These additional payments fulfill Eastern American's agreement to provide payment for volumes for Development
Wells that had been closely offset by third parties.

Eastern
American has fulfilled its obligation with respect to the drilling of the Development Wells. Since the inception of the Trust, Eastern has drilled a total of 59 Development
Wells, which are online and producing. (See the Trust's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, for a more complete description of the
Development Wells.)

Over
the remaining life of the Trust, wells may be disposed of from time to time in accordance with the documents governing the Trust.

The
administrative costs the Trust incurs in the future will fluctuate depending primarily on the expenses the Trust incurs for professional services, particularly legal, accounting and
engineering services.

Critical Accounting Policies

The following is a summary of the critical accounting policies followed by the Trust.

Basis of Accounting:

The financial statements of the Trust differ from financial statements prepared in accordance with accounting principles generally
accepted in the United States of America due to the following: (i) certain cash reserves may be established for contingencies which were not accrued in the financial statements;
(ii) amortization of the Net Profits Interests in Gas Properties is charged directly to Trust Corpus; and (iii) the sale of the Net Profits Interests is reflected in the Statements of
Distributable Income as cash proceeds to the Trust.

Most
accounting pronouncements apply to entities whose financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.
Because the Trust's financial statements are prepared on a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America, as described above,
most accounting pronouncements are not applicable to the Trust's financial statements.

Net Profits Interests in Gas Properties:

The Net Profits Interests in Gas Properties are periodically assessed to determine whether their net capitalized cost is impaired. The
Trust will determine if a writedown is necessary to its investment in the Net Profits Interests in Gas Properties to the extent that total capitalized costs, less accumulated amortization, exceed
undiscounted future net revenues attributable to proved gas reserves of the Underlying Properties. The Trust will then provide a writedown to the extent that the net capitalized costs exceed the
discounted future net revenues attributable to proved gas reserves of the Underlying Properties. Any such writedown would not reduce Distributable Income, although it would reduce Trust Corpus.

Amortization
of the Net Profits Interests in Gas Properties is calculated on a units-of-production basis, whereby the Trust's cost basis in the properties is
divided by total Trust proved reserves to derive an amortization rate per reserve unit. Such
amortization does not reduce Distributable Income, rather it is charged directly to Trust Corpus. Revisions to estimated future units-of-production are treated on a prospective
basis beginning on the date significant revisions are known.

10

---





The Net Profits Interest impairment test and the determination of amortization rates are dependent on estimates of proved gas reserves attributable to the Trust. Numerous uncertainties
are inherent in estimating reserve volumes and values, including economic and operating conditions, and such estimates are subject to change as additional information becomes available.

Recent Accounting Pronouncements

In September 2006, the FASB issued SFAS No. 157,Fair Value Measurements. This
statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This statement
is effective for financial statements issued for fiscal years beginning after November 15, 2007. The adoption of this statement did not have an effect on the Trust's financial statements.

In
February 2007, the FASB issued SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities-Including an amendment of FASB
Statement No. 115. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. This statement is effective as
of the beginning of an entity's first fiscal year that begins after November 15, 2007. The adoption of this statement did not have an effect on the Trust's financial statements.

Liquidity and Capital Resources

The Trust has no source of liquidity or capital resources other than the distributions received from the Net Profits Interests.

In
accordance with the provisions of the Conveyances, generally all revenues received by the Trust, net of Trust administrative and operating expenses and the amount of established
reserves, are distributed currently to the Unitholders.

The
Trust did not have any contractual obligations as of June 30, 2008. At June 30, 2008, the Trust had Trust General and Administrative Expenses Payable of $144,231 and
Distributions Payable of $3,956,828.

Comparison of Results of Operations for Three Months Ended June 30, 2008 and Three Months Ended June 30, 2007

The Trust's Distributable Income was $3,956,828 for the three months ended June 30, 2008 as compared to $3,143,579 for the three
months ended June 30, 2007. This increase was due to an increase in Royalty Income for the three months ended June 30, 2008 to $4,679,117 as compared to the three months ended
June 30, 2007 of $3,854,720. The increase in Royalty Income was related to an increase in the price payable to the Trust under the Gas Purchase Contract as discussed below ($11.305 per Mcf for
the three months ended June 30, 2008 as compared to $8.752 per Mcf for the three months ended June 30, 2007). This increase in income was partially offset by a decrease in production of
gas attributable to the Net Profits Interests for the three months ended June 30, 2008 (413 MMcf) as compared to the three months ended June 30, 2007 (438 MMcf). The decline in
production is primarily attributable to natural production declines. Taxes on Production and Property were $344,328 for the three months ended June 30, 2008 as compared to $289,454 for the
three months ended June 30, 2007. The increase in taxes is due directly to the increase in Royalty Income as discussed above. General and Administrative Expenses were $223,570 for the three
months ended June 30, 2008 as compared to $274,647 for the three months ended June 30, 2007. The decrease in General and Administrative Expenses was due primarily to a decrease in
professional fees.

The
price payable to the Trust for gas production attributable to the Net Profits Interests was $11.305 per Mcf for the three months ended June 30, 2008 and $8.752 per Mcf for the
three months ended June 30, 2007. The price per Mcf was higher for the three months ended June 30, 2008 than for

11

---



the
corresponding three month period ended June 30, 2007 due to an increase in the average spot market price for gas delivered at the Henry Hub near Henry, Louisiana ($9.977 per Dth for the
three months ended June 30, 2008 as compared to $7.656 per Dth for the three months ended June 30, 2007).

Comparison of Results of Operations for Six Months Ended June 30, 2008 and Six Months Ended June 30, 2007

The Trust's Distributable Income was $6,729,671 for the six months ended June 30, 2008 as compared to $5,975,554 for the six
months ended June 30, 2007. This increase was due to an increase in Royalty Income for the six months ended June 30, 2008 to $8,227,008 as compared to the six months ended
June 30, 2007 of $7,419,571. The increase in Royalty Income was due to an increase in the price payable to the Trust under the Gas Purchase Contract as discussed below ($9.997 per Mcf for the
six months ended June 30, 2008 as compared to $8.341 per Mcf for the six months ended June 30, 2007). This increase was offset partially due to a decrease in production of gas
attributable to the Net Profits Interests for the six months ended June 30, 2008 (821 MMcf) as compared to the six months ended June 30, 2007 (889 MMcf). The decline in production is
primarily attributable to natural production declines. Taxes on Production and Property were $606,450 for the six months ended June 30, 2008 as compared to $558,527 for the six months ended
June 30, 2007. The increase in taxes is due directly to the increase in Royalty Income as discussed above. General and Administrative Expenses were $582,105 for the six months ended
June 30, 2008 as compared to $591,410 for the six months ended June 30, 2007. The decrease in General and Administrative Expenses was due primarily to a decrease in professional fees.

The
price payable to the Trust for gas production attributable to the Net Profits Interests was $9.997 per Mcf for the six months ended June 30, 2008 and $8.341 per Mcf for the
six months ended June 30, 2007. The price per Mcf was higher for the six months ended June 30, 2008 than for the corresponding six month period ended June 30, 2007 due to an
increase in the average spot market price for gas delivered at the Henry Hub near Henry, Louisiana ($8.788 per Dth for the six months ended June 30, 2008 as compared to $7.283 per Dth for the
six months ended June 30, 2007).

Off-Balance Sheet Arrangements

The Trust does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future
effect on the Trust's financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to
investors.

Other Information

For the calendar quarter ended June 30, 2008, the high and low closing prices of the Treasury Obligations (which have $1,000
face principal amount), as quoted in the over-the-counter market for United States Treasury obligations were $885.10 and $830.00, respectively. On June 30, 2008, the
closing price of the Treasury Obligations, as quoted on such market, was $848.30.

The
Trust provides Unitholders with the option to separate the related Treasury Obligation from the Trust Units. Upon exercising this option, the Trustee transfers such Trust Units from
the name of the Depositary to the name of the withdrawing Unitholder. As of June 30, 2008, this option was exercised on 131,600 Trust Units. (See the Trust's Form 10-K for
the year ended December 31, 2007 for a more complete description of the Withdrawal of Trust Units and Restriction on Transfer.)

12

---



ITEM 3.    Quantitative and Qualitative Disclosures about Market Risk

The Trust does not engage in any operations, and does not utilize market risk sensitive instruments, either for trading purposes or for
other than trading purposes. As described elsewhere herein, the Depositary Units consist of beneficial ownership of one unit of beneficial interest in the Trust and a $20 face amount beneficial
ownership interest in a $1,000 face amount zero coupon Treasury Obligation maturing on May 15, 2013. High and low price information for the Treasury Obligations is included under Item 2.
As described elsewhere herein, gas production attributable to the
Net Profits Interests is sold to a wholly owned subsidiary of Eastern American pursuant to the Gas Purchase Contract described herein, and the Trust's quarterly distributions are highly dependent on
the price payable to the Trust for gas production attributable to the Net Profits Interests. Natural gas prices can fluctuate widely in response to many factors, all of which are out of the control of
the Trust, the Trustee and Eastern American.

ITEM 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures.The Trustee maintains disclosure controls and procedures designed to ensure that information required to be
disclosed by the Trust in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and regulations. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by
the Trust is accumulated and communicated by several parties, including without limitation, the working interest owner, Eastern American Energy Corporation ("Eastern American"), and the independent
reserve engineer to The Bank of New York Trust Company, N.A., as Trustee of the Trust, and its employees who participate in the preparation of the Trust's periodic reports as appropriate to allow
timely decisions regarding required disclosure. In addition, the Trustee is required by the Trust Agreement to engage and has engaged an independent registered public accounting firm to review the
quarterly financial statements of the Trust and audit the annual financial statements of the Trust, which includes financial data provided by Eastern American.

As
of June 30, 2008, the Trustee carried out an evaluation of the Trustee's disclosure controls and procedures. Mike Ulrich, as Trust Officer of the Trustee, has concluded that
the disclosure controls and procedures are effective.

Due
to (i) the contractual arrangements of the Trust Agreement and (ii) the rights of the Trustee under the Conveyances regarding information furnished by Eastern American,
there are certain potential weaknesses that may limit the effectiveness of disclosure controls and procedures established by the Trustee or its employees and their ability to verify the accuracy of
certain financial information. The contractual limitations creating potential weaknesses in disclosure controls and procedures may be deemed to include the
following:



13

---





Other
than reviewing the financial and other information provided to the Trust by Eastern American and the independent reserve engineer, the Trustee made no independent or direct
verification of this financial or other information.

The
Trustee does not intend to expand its responsibilities beyond those permitted or required by the Trust Agreement and those required under applicable law.

The
Trustee does not expect that the Trustee's disclosure controls and procedures or the Trustee's internal control over financial reporting will prevent all errors or all fraud.
Further, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints, and the benefits of controls must be
considered relative to costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if
any, have been detected.

Changes in Internal Control Over Financial Reporting

In connection with the evaluation by the Trustee of changes in internal control over financial reporting of the Trust that occurred
during the Trust's last fiscal quarter, no change in the Trust's internal control over financial reporting was identified that has materially affected, or is reasonably likely to materially affect,
the Trust's internal control over financial reporting.

PART IIOTHER INFORMATION

ITEM 1.    Legal Proceedings.

None.

ITEM 1A.    Risk Factors.

There have been no material changes in the risk factors disclosed under Part I, Item 1A of the Trust's Annual Report on
Form 10-K, for the year ended December 31, 2007.

ITEM 2.    Unregistered Sales of Equity Securities and Use of Proceeds.

None.

ITEM 3.    Defaults Upon Senior Securities.

None.

ITEM 4.    Submission of Matters to a Vote of Security Holders.

None.

ITEM 5.    Other Information.

None.

ITEM 6.    Exhibits.

Exhibit
Number

Description31.

Rule 13a-14(a)/15d-14(a) Certification32.

Section 1350 Certification


14

---





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.

EASTERN AMERICAN NATURAL GAS TRUSTBy: The Bank of New York Trust Company, N.A., Trustee/s/MIKE ULRICHName:

Mike UlrichTitle:

Vice President
The Bank of New York Trust Company, N.A., Trustee


Date:
August 11, 2008

The
Registrant, Eastern American Natural Gas Trust, has no principal executive officer, principal financial officer, board of directors or persons performing similar functions.
Accordingly, no additional signatures are available and none have been provided.

15

---



QuickLinks