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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(MARK ONE)

         |X|         QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                       OF THE SECURITIES EXCHANGE ACT OF 1934

                    FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998

                                       OR

        |_|          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                        OF THE SECURITION EXCHANGE ACT OR 1934

                    FOR 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                                            36-7034603
  (State or other jurisdiction of                           (I.R.S. Employer
  incorporation or organization)                            Identification No.)

                         BANK OF MONTREAL TRUST COMPANY
                        C/O HARRIS TRUST AND SAVINGS BANK
                        311 W. MONROE STREET, 12TH FLOOR
                             CHICAGO, ILLINOIS 60606
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (312) 461-4662
              (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   |_|

================================================================================
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                         PART I - FINANCIAL INFORMATION

ITEM 1.        Financial Statements

                       EASTERN AMERICAN NATURAL GAS TRUST

                       STATEMENTS OF DISTRIBUTABLE INCOME

                                   (UNAUDITED)

                                                         THREE MONTHS ENDED
                                                               MARCH 31
                                                         -------------------
                                                         1998           1997
                                                         ----           ----

Royalty Income ...................................   $ 2,746,543    $ 2,933,727
                                                     -----------    -----------
Operating Expenses:

    Taxes on production and property .............       189,353        198,630
    Operating cost charges .......................       119,191        114,410
                                                     -----------    -----------
       Total Operating Expenses ..................       308,544        313,040
                                                     -----------    -----------
Net Proceeds to the Trust ........................     2,437,999      2,620,687

General and Administrative Expenses ..............      (137,280)      (173,397)
Interest Income ..................................         1,581          2,547

Cash Proceeds on Sale of Net Profits Interest ....       442,164              0
                                                     -----------    -----------
       Distributable Income ......................   $ 2,744,464    $ 2,449,837
                                                     ===========    ===========
Distributable Income Per Unit (5,900,000

       units authorized and Outstanding): ........   $    0.4652    $    0.4152
                                                     ===========    ===========

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

                                        2
<PAGE>
                       EASTERN AMERICAN NATURAL GAS TRUST

               STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

                                                      MARCH 31,     DECEMBER 31,
                                                        1998           1997
                                                   --------------  -------------
                                                      (Unaudited)
Assets:
    Cash .........................................  $      1,581   $      1,905
    Net Proceeds Receivable ......................     2,880,163      2,218,406
    Net Profits Interests in Gas Properties ......    93,162,180     93,162,180
    Accumulated Amortization .....................   (30,302,140)   (28,846,663)
                                                    ------------   ------------

        Total Assets .............................  $ 65,741,784   $ 66,535,828
                                                    ============   ============
Liabilities and Trust Corpus:
    Trust General and Administrative
        Expenses Payable .........................  $    137,280   $    118,944
    Distributions Payable ........................     2,744,464      2,101,367
    Trust Corpus (5,900,000 Trust Units authorized
        and outstanding) .........................    62,860,040     64,315,517
                                                    ------------   ------------
        Total Liabilities and Trust Corpus .......  $ 65,741,784   $ 66,535,828
                                                    ============   ============

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

                                        3
<PAGE>
                       EASTERN AMERICAN NATURAL GAS TRUST

                      STATEMENTS OF CHANGES IN TRUST CORPUS
                                   (UNAUDITED)

                                                  THREE MONTHS     THREE MONTHS
                                                      ENDED           ENDED
                                                  MARCH 31, 1998  MARCH 31, 1997
                                                  --------------  --------------

Trust Corpus, Beginning of Period ............   $ 64,315,517     $ 70,016,943
Distributable Income .........................      2,744,464        2,449,837
Distributions Declared to Unitholders ........     (2,744,464)      (2,449,837)

Amortization of Net Profits Interests
    in Gas Properties ........................     (1,455,477)      (1,473,717)
                                                 ------------     ------------
 Trust Corpus, End of Period .................   $ 62,860,040       68,543,226
                                                 ============     ============

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

                                        4
<PAGE>
                       EASTERN AMERICAN NATURAL GAS TRUST

                     NOTES TO UNAUDITED 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 ("Trustee"), and Wilmington
Trust Company, as Delaware Trustee (the "Delaware Trustee"). 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 in West Virginia and
Pennsylvania (the "Underlying Properties"). The Net Profits Interests consist of
a royalty interest in 322 wells and a term interest in the remaining wells and
locations. Prior to or on May 15, 2013, the Trustee is required to sell the
royalty interests and liquidate the Trust.

    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 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 which is
contingent, uncertain in amount or that 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.

NOTE 2.  Basis of Presentation

    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, 1997.

                                        5
<PAGE>
                       EASTERN AMERICAN NATURAL GAS TRUST

              NOTES TO UNAUDITED FINANCIAL STATEMENTS - (CONTINUED)

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
elections of Unitholders. Thus, the Statements of Distributable Income shows
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
income as reserves are extracted from properties and sold. Expenses are also
presented on an accrual basis. Actual cash receipts will vary from the accrual
of revenues and expenses due to, among other reasons, the payment provisions of
the gas purchase contract between the Trust and Eastern Marketing Corporation (a
subsidiary of Eastern American), which requires 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.

    Net Profits Interests in Gas Properties are periodically assessed to
determine whether their net capitalized cost has been impaired. The Trust will
provide a write-down 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. Any such write-down would not reduce
Distributable Income, but 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 reserves to derive an amortization rate per reserve unit.
Such amortization does not reduce distributable income, but does reduce Trust
Corpus.

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.

                                        6
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

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 to Unitholders
cash 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 which 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 1997 was based annual on a rate of $454,860 and
for 1998 the annual rate is $476,764. In subsequent years, the Operating Cost
Charge will escalate, based on increases in the index of average weekly earnings
of Crude Petroleum and Gas Production Workers (published by the United States
Department of Labor, Bureau of Labor Statistics), but not more than 5% per year.
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" means
Eastern American's working interest share of capital costs for operations on the
Underlying Properties, but only for items having a useful life of at least three
years, and not including any capital costs incurred in drilling the Development
Wells. "Taxes" means ad valorem taxes, production and severance taxes, and other
taxes imposed on the Trust's interest in the Underlying Properties, or
production therefrom.

    Pursuant to the Gas Purchase Contract, Eastern Marketing Corporation will be
obligated to purchase such gas production, on a quarterly basis, at a purchase
price per Mcf, subject to certain adjustments, equal to the greater of the Index
Price and the Floor Price for gas produced during the seven-year period ending
December 31, 1999 (the "Primary Term") and at a purchase price per Mcf equal to
the Index Price thereafter. The Floor Price was $2.57 per Mcf for 1997 and shall
be $2.84 per Mcf for 1998 and $3.09 per Mcf for 1999, in each case subject to
adjustment under certain circumstances. The Index Price for any quarter during
the Primary Term will be a weighted average

                                        7
<PAGE>
price determined by reference to the fixed price ("Fixed Price") component,
which will be given a 66 2/3% weight, and a variable price ("Variable Price")
component, which will be given a 33 1/3% weight. Following the Primary Term, the
Index Price will be determined solely by reference to the Variable Price. The
Fixed Price was equal to $3.23 per Mcf for the 1997 calendar year, and escalates
at 5% for each year thereafter during the primary term. The fixed price for the
1998 calendar year is $3.39 per Mcf. The Variable Price is equal to the Henry
Hub Average Spot Price (as defined) plus $.30 per MMBtu, multiplied by 110% to
effect a fixed adjustment for Btu content. The Henry Hub Average Spot Price for
any quarter is a price per MMBtu based on a 12-month average settlement price of
the gas futures contracts for gas delivered to the Henry Hub (Henry, Louisiana).

    Pursuant to the Conveyances Eastern American was obligated to drill the 65
Development Wells. As of December 31, 1997, Eastern American had fulfilled its
obligation with respect to the drilling of the Development Wells. (See the
Trust's Form 10-K for the fiscal year ended December 31, 1997 for a more
complete description of the Development Wells.)

    A total of seven (7) wells in which the Trust owns a Net Profits Interest
have been or will be required to be plugged and abandoned by the coal lessee of
the property upon which the wells were drilled since the wells interfere with
existing and proposed mining operations. The coal lessee has the contractual
authority to cause these wells to be plugged and abandoned pursuant to an
agreement entered into prior to the formation of the Trust. This prior Agreement
is a Permitted Encumbrance under the Conveyances and the Trust accepted its Net
Profits Interest subject to this prior agreement. Pursuant to this prior
agreement, the coal lessee is required to pay for the wells it causes to be
plugged and abandoned. Eastern American recently resolved a dispute with the
coal lessee over the valuation of these wells and the total amount to be
received by Eastern American as consideration for the plugging and abandonedment
of these wells is $931,637.36. Ninety percent (90%) of this amount or
$838,473.62 will be paid to the Trust. The coal lessee is to pay this
consideration in installments and during this period the sum of $442,164 is
included on the March 31, 1998 Statements of Distributable Income under Cash
Proceeds on sale of Net Profits Interests. The balance of the amount due will be
included in the distributable income for the quarter ending June 30, 1998.

    Since the wells drilled by the third parties were within 1,000 feet of the
Development Wells, Eastern American had a disagreement with the Trust over
Eastern American's obligation to drill these closely offset Development Wells.
The Trust has agreed that in lieu of drilling these closely offset Development
Wells that Eastern American can provide the Trust, on an 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 this quarter an additional volume of 10,565 Mcf was
delivered to the Trust to fulfill Eastern American's obligation to provide
volumes for Development Wells that had been closely offset by third parties.

                                        8
<PAGE>
COMPARISON OF RESULTS OF OPERATIONS FOR THREE MONTHS ENDED MARCH 31, 1998 AND
THREE MONTHS ENDED MARCH 31, 1997

        The Trust's distributable income was $2,744,464 for the three months
ended March 31, 1998 as compared to $2,449,837 for the three months ended March
31, 1997. This increase was due, in part, to an increase in the price payable to
the Trust under the Gas Purchase Contract ($3.267 per Mcf for the three months
ended March 31, 1998; $3.206 per Mcf for the three months ended March 31, 1997)
and was partially offset by a decrease in production of gas attributable to the
Net Profits Interests for the three months ended March 31, 1998 (842 MMcf) as
compared to the three months ended March 31, 1997 (913 Mmcf), due in part to
natural declines in production and the plugging and abandonment of certain wells
as disclosed herein. The distributable income includes Cash Proceeds on Sale of
Net Profits Interest of $442,164 for the quarter ending March 31, 1998, while no
such sales were recognized in the corresponding prior quarter.

        The price payable to the Trust for gas production attributable to the
Net Profits Interests was $3.267 per Mcf for the three months ended March 31,
1998 and $3.206 per Mcf for the three months ended March 31, 1997. The price per
Mcf was higher for the three months ended March 31, 1998 than for the
corresponding three month period ending March 31, 1997 due to a higher Fixed
Price component ($3.39 per MCF for the three months ended March 31, 1998; $3.23
per MCF for the three months ended March 31, 1997) offset by a lower Variable
Price component of the Index Price under the Gas Purchase Contract ($3.021 per
Mcf for the three months ended March 31, 1998; $3.153 per Mcf for the three
months ended March 31, 1997). Such lower Variable Price is directly attributable
to a decrease in the average futures spot market prices for gas delivered at the
Henry Hub near Henry, Louisiana for the three months ended March 31, 1998
($2.446 per Dth) as compared to the prior period ($2.566 per Dth).

                                        9
<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1.    Legal Proceedings.

                    EASTERN AMERICAN HAS PREVIOUSLY ADVISED THE TRUST THAT IT
                    HAD BEEN SERVED WITH A COMPLAINT FROM COLUMBIA GAS
                    TRANSMISSION CORPORATION ("COLUMBIA") THAT ALLEGES THAT SOME
                    OF EASTERN AMERICAN'S WELLS INCLUDED WITHIN THE COMPLAINT
                    ARE PRODUCING STORAGE GAS FROM A COLUMBIA STORAGE FIELD IN
                    WEST VIRGINIA. A PORTION OF THE WELLS ARE ONES IN WHICH THE
                    TRUST OWNS A NET PROFIT INTEREST. THE TRUST WAS NOT NAMED AS
                    A PARTY TO THIS ACTION. EASTERN AMERICAN AND COLUMBIA
                    ENTERED INTO A SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF
                    ALL CLAIMS DATED AS OF JULY 16, 1997. THIS AGREEMENT SETTLES
                    ALL MATTERS IN CONTROVERSY BETWEEN THE PARTIES AND REQUIRES
                    THE SUIT TO BE DISMISSED WITH PREJUDICE. EASTERN AMERICAN
                    AND THE TRUST ARE EVALUATING HOW, IF ANY WAY, THE SETTLEMENT
                    MAY EFFECT THE TRUST.

ITEM 2.    Changes in Securities.

                    NONE.

ITEM 3.    Defaults Upon Senior Securities.

                    NONE.

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

                    NONE.

ITEM 5.    Other Information.

        FOR THE CALENDAR QUARTER ENDED MARCH 31, 1998, 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 $431.88 AND $395.43 RESPECTIVELY. ON MARCH 31, 1998 THE CLOSING PRICE OF
THE TREASURY OBLIGATIONS, AS QUOTED ON SUCH MARKET, WAS $405.00.

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

                   (a)      Exhibits

                            NONE

                   (b)      Reports on Form 8-K

                            NONE

                                       10
<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.

                                    EASTERN AMERICAN NATURAL GAS TRUST

                                    By:  Bank of Montreal Trust Company, Trustee

                                    /s/ E. KAY LIEDERMAN
                                    ------------------------    
                                    Name:  E. Kay Liederman
                                    Title: Vice President

Date: May 12, 1998

        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.

                                       11