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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
 FORM 10-K þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2004 COMMISSION FILE NUMBER: 000-10810 KIEWIT ROYALTY TRUST (Exact name of registrant as specified in its charter)
 Nebraska
(State of Organization)
    
    47-6131402
(I.R.S. Employer Identification Number)
 Trust Division
U.S Bank National Association
1700 Farnam Street
Omaha, Nebraska 68102
(Address of principal executive offices) Registrants telephone number, including area code: (402) 348-6000 Securities registered pursuant to Section 12(b) of the Act:None Securities registered pursuant to Section 12(g) of the Act: Title of each class
Units of Beneficial Interest 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 þ No o. Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation
S-K is not contained herein, and will not be contained, to the best of Registrants knowledge, in
definitive proxy or information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. þ Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange
Act Rule 12b-2) Yes o No þ . There is no active trading market for the Units of Beneficial Interest. As a result, the
aggregate market value of the Units of Beneficial Interest is not available.




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TABLE OF CONTENTS PagePART IItem 1.
    
    Business
    
    
    1Item 2.
    
    Properties
    
    
    3Item 3.
    
    Legal Proceedings
    
    
    3Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    3PART IIItem 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    4Item 6.
    
    Selected Financial Data
    
    
    5Item 7.
    
    Trustees Discussion and Analysis of Financial Condition and Results of Operations
    
    
    5Item 7A.
    
    Quantitative and Qualitative Disclosures about Market Risks
    
    
    6Item 8.
    
    Financial Statements and Supplementary Data
    
    
    7Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    12Item 9A.
    
    Controls and Procedures
    
    
    12Item 9B.
    
    Other InformationPART IIIItem 10.
    
    Directors and Executive Officers of the Registrant
    
    
    13Item 11.
    
    Executive Compensation
    
    
    13Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management
    
    
    13Item 13.
    
    Certain Relationships and Related Transactions
    
    
    13Item 14.
    
    Principal Accountant Fees and Services
    
    
    13PART IVItem 15.
    
    Exhibits and Financial Statement Schedules
    
    
    15Signatures
    
    
    16Certifications
    
    
    17Certification of Trust OfficerSection 906 Certification of Trust Officer
  ii




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PART I 
 Item 1. BUSINESS. Purpose of the TrustKiewit Royalty Trust (the Trust) was organized by Peter Kiewit Sons,
Inc. (now, known as Level 3 Communications, Inc.)(the Trustor) under the laws of the State of
Nebraska on May 17, 1982 to provide an efficient, orderly and practical means of administrating the
income received from three royalty interests and 16 overriding royalty interests in leases of four
coal mines located in Montana and Wyoming (the Coal Royalties). The Coal Royalties are the
interests retained in these four mine properties under the leases of the mineral rights to the
mining companies who have developed, mined, and sold the coal from these mines. In general, the
Coal Royalties entitle the Trust to a specified portion of the value of the total coal production
from these mines, free of the expense of development and operation. The Coal Royalties were conveyed by the Trustor to the Trust for the benefit of the holders of
record of the Trustors Class B and Class C common stock as of June 10, 1982. Ownership of
beneficial interests in the Trust is represented by 12,633,432 units of beneficial interest
(hereinafter referred to as Units). The Trust is a purely ministerial trust which distributes
the available revenues generated by the Coal Royalties, net of the Trusts expenses, to the holders
of Units. Trust expenses include but are not limited to, fees of the Trustee, and compensation
paid to geologists, engineers, accountants, attorneys, or other professionals that the Trustee may,
in its discretion, employ in the administration of the Trust. With respect to any liability that
is contingent or uncertain in amount or that otherwise is not currently due, the Trustee has the
discretion to establish cash reserves for the payment thereof. The Coal Royalties.The Coal Royalties provide for the payment of either a specified amount
per ton of coal produced, or a fixed percentage of the value or price with respect to the coal
produced under the leases relating to these interests. The terms of the individual Coal Royalties
vary considerably, as does the acreage covered by the underlying coal leases, the estimated total
tons of coal within a legal description of property as evidenced by a lease (the Tons Under
Lease) and the estimated total tons of coal under lease that can be economically extracted under
existing market conditions (Current Economic Tons). In general, the Current Economic Tons will
be less that the total Tons Under Lease because the cost of extracting a portion of the total Tons
Under Lease will outweigh the price at which the coal could be sold. In addition, Current Economic
Tons may be reduced by the refusal of a state and/or federal authority to grant a permit to mine
portions of the coal reserves within a specific property. The inability to extract the total Tons
Under Lease or the inability to sell any portion of the coal extracted will reduce the royalties
payable to the Trust The following chart sets forth the actual total amount of coal production
during the past five years from the leases in which the Trust has Coal Royalties: Tons of Coal Produced 2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    2000Decker Mine
    
    
    6,640,460
    
    
    
    5,664,008
    
    
    
    7,184,287
    
    
    
    7,038,734
    
    
    
    9,932,166Black Butte Mine
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,367,585Big Horn Mine
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,980Spring Creek Mine
    
    
    9,937,376
    
    
    
    6,613,867
    
    
    
    8,509,650
    
    
    
    9,664,969
    
    
    
    11,302,150Total
    
    
    16,577,836
    
    
    
    12,277,875
    
    
    
    15,693,937
    
    
    
    16,703,703
    
    
    
    24,622,881
 The following sets forth certain information about each of the mine properties in which the Trust
holds a Coal Royalty: 1




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DECKER MINE. Decker Coal Company (Decker) operates this mine, which is located in Big Horn
County, Montana, approximately 20 miles north of Sheridan, Wyoming. Decker is a joint venture
between KCP Inc. (a wholly-owned subsidiary of Level 3 Communications, Inc.) and
Western Minerals, Inc. (a wholly-owned subsidiary of NERCO, Inc.). Each company owns a fifty
percent (50%) interest in the joint venture. The Decker Mine in its entirety includes
approximately 23,371 acres and has an annual productive capacity of 12,000,000 tons. The Trust
owns overriding royalty interests in five productive leases at the Decker Mine. The terms of the
Trusts overriding royalty interests and the Tons Under Lease and Current Economic Tons of each
lease are set forth in the table below, of which the accompanying notes are an integral part: Terms of
    
    Tons
    
    CurrentOverriding
    
    Under
    
    EconomicLease
    
    Lessor
    
    Royalties
    
    Lease
    
    TonsM-073093
    
    United States
    
    5 cents per ton 1
    
    
    84,594,000
    
    
    
    394,000M-061685
    
    United States
    
    10 cents per ton 1
    
    
    45,802,000
    
    
    
    16,081,000M-057934
    
    United States
    
    10 cents per ton 1
    
    
    7,927,000
    
    
    
    5,541,000C-1085-93
    
    Montana
    
    10 cents per ton 1
    
    
    2,446,000
    
    
    
    1,136,000C-1087-95
    
    Montana
    
    10 cents per ton 1
    
    
    7,420,000
    
    
    
    7,420,000Total
    
    
    
    
    
    
    148,189,000
    
    
    
    30,572,000
 BLACK BUTTE MINE. Black Butte Coal Company (Black Butte) operates this mine in Sweetwater
County, Wyoming, approximately 35 miles east of Rock Springs, Wyoming. Black Butte is a joint
venture between KCP Inc. and Bitter Creek Coal Company (a wholly-owned subsidiary of Union Pacific
Resources Group Inc.). No further production is expected from this mine and, accordingly, the
Trust does not expect to receive any further royalty payments on its Coal Royalty in the Black
Butte Mine. BIG HORN MINE. Big Horn Coal Company (Big Horn) has operated this mine, which is located
approximately 5 miles north of Sheridan, Wyoming, in Sheridan County. Big Horn is a wholly-owned
subsidiary of KCP Inc. No further production is expected from this mine and, accordingly, the Trust
does not expect to receive any further royalty payments on its Coal Royalty in the Big Horn Mine. SPRING CREEK MINE. Spring Creek Coal Company (Spring Creek) operates this mine, which is
located in Big Horn County, Montana, approximately 25 miles north of Sheridan, Wyoming. Spring
Creek is a subsidiary of NERCO, Inc. The Spring Creek Mine in its entirety includes approximately
2,560 acres and has an annual productive capacity of 12,000,000 tons. The Trust owns an overriding
royalty interest in one productive lease at the Spring Creek Mine. The terms of the overriding
royalty interest and the Tons Under Lease and Current Economic Tons of the lease are set out
below: Terms of
    
    Tons
    
    CurrentOverriding
    
    Under
    
    EconomicLease
    
    Lessor
    
    Royalties
    
    Lease
    
    TonsM-069782
    
    United States
    
    10 cents per ton 2
    
    
    83,409,000
    
    
    
    66,895,000
 In addition to its interests in the foregoing leases, the Trust has overriding royalty interests in
three leases, containing approximately 27,800,000 tons of total estimated recoverable coal reserves
from which no production is currently contemplated and in four leases which are considered to be
not minable because of access, alluvial valley, or other problems.   1The Trust has an undivided one-half interest in a second overriding royalty pertaining
to this lease. By the terms of the assignment by which it was created, this second overriding
royalty, when added to all other royalties pertaining to this lease, may not exceed fifty percent
(50%) of the royalty payable to the lessor under the lease.2Under the terms of the lease, if the production royalty payable to the United States
is increased, then the overriding royalty will be recomputed to equal 10.75% of such production
royalty. 2




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Financial Information about Segments.The Trusts sole activity is the collection and
distribution of the revenues generated by the Coal Royalties. Accordingly, the Trust operates in a
single business segment. Financial Information about Geographic Areas.Substantially all of the Trusts 2004 income
was generated from royalty income received from sources located in the United States. Available Information.The Trust does not have an Internet website. However, the Trust
electronically files annual, quarterly and current reports with the SEC. The SEC maintains a web
site at www.sec.govthat contains the Trusts SEC filings. The Trustee will provide any Unit Holder
with a paper copy of the Trusts SEC filings free of charge upon request. The trustee of the Trust
is U.S. Bank National Association, Omaha, Nebraska, which is a wholly-owned subsidiary of U.S.
Bancorp, a registered bank holding company. 
 Item 2. PROPERTIES. The Trust does not own any physical or real property. 
 Item 3. LEGAL PROCEEDINGS. On June 29, 2001, Spring Creek Coal Company, the operator of the Spring Creek Mine, notified the
Trustee that the Trust had received overpayments aggregating approximately $476,000 between 1996 to
2000 on its Coal Royalty on this mine and requested a reimbursement of the alleged overpayment As
a result of the apparent dispute over these royalty payments, the Trustee decided to place $783,317
of royalty payments received from the Spring Creek Mine on July 31, 2001 in reserve pending
resolution of this matter. In April 2002, the Trust filed a complaint in Federal District Court
for the District of Montana, Billings Division, seeking a declaratory judgment and accounting
against Spring Creek Coal Company relating to its reimbursement request and an accounting of all
coal overriding royalties that Spring Creek Coal Company should have paid to the Trust. On October
28, 2002, the Spring Creek Coal Company filed an answer and a counterclaim to the Trusts complaint
alleging that the Trust did not own an overriding royalty interest in certain portions of the
Spring Creek Mine. Spring Creek Coal Company indicated that would seek the return of $790,776 in
allegedly mistaken payments made by it to the Trust under this lease. In December 2004, the
parties reached a settlement and the case was dismissed with prejudice. Under the terms of the
settlement, the Trust received approximately $207,380 of royalty payments that had been suspended
since the third quarter of 2000. The final amount is subject to adjustment based on an independent
audit of royalty payments from the subject lease which is to be completed by March 31, 2005 and
will be included in the Trusts 2005 royalty income. In addition, the Trustee will distribute the
$783,317 that held in trust reserves to the Unit Holders during 2005. 
 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. 3




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PART II 
 Item 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES. a. Market Information.There is no established public trading market for the Units. The
Units have not been registered under the Securities Act of 1933, nor have they been registered
under the securities laws of any state. Accordingly, resales of the Units are subject to certain
legal restrictions on transferability. Unit Holders should consult with their own counsel
regarding their ability to sell their Units. None of the Units are subject to outstanding options or warrants to purchase, and no
securities are convertible into Units. Under the terms of the Trust Indenture, the Trust may not
issue additional Units. b. Holders.The Units are the only class of security issued by the Trust. As of March 30,
2005, there were 832 record holders of Units. c. Dividends.All income of the Trust plus any amounts released from reserves and less
amounts used to pay Trust expenses and amounts placed in reserves, distributed pro rata on a
quarterly basis to Unit Holders. The following table shows the aggregate distributions made to
Unit holder for each quarter during 2004 and 2003: 2004Distribution AmountsQuarter Ended
    
    Date Distributed
    
    In Total
    
    
    Per UnitMarch 31, 2004
    
    April 9, 2004
    
    $
    1,508,247
    
    
    $
    0.119385June 30, 2004
    
    July 12, 2004
    
    
    156,293
    
    
    
    0.012371September 30, 2004
    
    October 12, 2004
    
    
    1,815,668
    
    
    
    0.143719December 31, 2004
    
    January 11, 2005
    
    
    403,538
    
    
    
    0.031942Total distributed
    
    
    
    $
    3,883,746
    
    
    $
    0.307418
 2003Distribution AmountsQuarter Ended
    
    Date Distributed
    
    In Total
    
    
    Per UnitMarch 31, 2003
    
    April 10, 2003
    
    $
    1,358,655
    
    
    $
    0.107544June 30, 2003
    
    July 9, 2003
    
    
    131,506
    
    
    
    0.010407September 30, 2003
    
    October 7, 2003
    
    
    1,604,223
    
    
    
    0.126982December 31, 2003
    
    January 9, 2004
    
    
    148,661
    
    
    
    0.011767Total distributed
    
    
    
    $
    3,243,045
    
    
    $
    0.256700
 d. Securities Authorized for Issuance under Equity Compensation Plans. Not Applicable e. Recent Sales of Unregistered Securities. None. f. Issuer Purchases of Equity Securities. None. 4




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Item 6. SELECTED FINANCIAL DATA. The table below sets forth selected financial data, drawn from the Trusts audited financial
statements, for each of the last five fiscal years. Years Ended December 31,2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    2000Royalty and
Interest Income
    
    $
    3,973,069
    
    
    $
    3,359,949
    
    
    $
    4,713,912
    
    
    $
    4,244,950
    
    
    $
    5,219,007Trust Expenses
    
    
    (89,323
    )
    
    
    (116,904
    )
    
    
    (119,781
    )
    
    
    (80,973
    )
    
    
    (70,773
    )Trust Reserves
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (783,317
    )
    
    
    Distributable Income
    
    $
    3,883,746
    
    
    $
    3,243,045
    
    
    $
    4,594,131
    
    
    $
    3,380,660
    
    
    $
    5,148,234Distributable
Income Per Unit
(12,633,432 units)
    
    $
    0.307418
    
    
    $
    0.256700
    
    
    $
    0.363649
    
    
    $
    0.267597
    
    
    $
    0.407509Total Assets
    
    $
    1,211,946
    
    
    $
    958,204
    
    
    $
    1,003,245
    
    
    $
    1,009,585
    
    
    $
    214,019
 
 Item 7. TRUSTEES DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Distributable income (the total amount of net royalty and overriding royalty payments received
from the various mines, increased by the amount of interest earned and any other amounts received
by the Trust and decreased by the amount of Trust Expenses and Trust Reserves) for 2004 was
$3,883,746 compared to $3,243,045 for 2003 and compared to $4,594,131 for 2002. The increase in
distributable income in 2004 from 2003 was primarily due to an overall increase in royalty and
overriding royalty payments received from income-producing mines as further discussed below. The following schedule reflects the royalty and overriding royalty payments received by the
Trust in respect of leases at the following mines: Mine
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Decker
    
    $
    3,056,604
    
    
    $
    2,684,331
    
    
    $
    3,835,811
    
    
    $
    3,375,106Spring Creek
    
    
    897,698
    
    
    
    661,387
    
    
    
    850,965
    
    
    
    833,317Big Horn
    
    
    
    
    
    
    -
    
    
    
    
    
    
    
    1,440$
    3,954,302
    
    
    $
    3,345,718
    
    
    $
    4,686,776
    
    
    $
    4,209,863
 a. Decker Mine.The amount of royalties and overriding royalties received by the Trust with
respect to the Decker Mine increased to $3,056,604 in 2004 from $2,684,331 in 2003. The amount of
royalties and overriding royalties received by the Trust with respect to the Decker Mine decreased
to $2,684,331 in 2003 from $3,835,811 in 2002. These changes were the net result of changes in the
relative amounts of coal mined under leases bearing high and low overriding royalty rates per ton,
which were a normal result of the execution of a mining plan encompassing several coal leases
bearing different royalty rates. b. Spring Creek Mine.The amount of royalties and overriding royalties received by the Trust
with respect to the Spring Creek Mine increased to $897,698 from $661,387 in 2003. Of this
increase, $207,380 relates to the release of funds held by Spring Creek Coal Company relative to
the litigation which was settled in December 2004. For a more detailed discussion, see Legal
Proceedings. The remaining increase of approximately $30,000 is due to increased coal production
under the Spring Creek Mine leases. The amount of royalties and overriding royalties received by
the Trust with respect to the Spring Creek Mine decreased to $661,387 in 2003 from $850,965 in
2002. The decrease reflected decreased coal production under the applicable lease in 2003. c. Big Horn Mine.No royalties were received from the Big Horn Mine during 2004 or 2003.
The Big Horn Mine reached the end of its production cycle and the Trust does not anticipate
receiving further payments from coal production from the Big Horn Mine. d. Black Butte Mine.No royalties were received from the Black Butte Mine during 2004 or
2003. The Black Butte Mine reached the end of its production cycle and the Trust does not
anticipate receiving further payments from coal production from the Black Butte Mine. Trust Expenses.Trust expenses decreased to $89,323 in 2004, compared to $116,904 in 2003 and
$119,781 in 2002. The decrease from 2003 to 2004 was primarily due to a decrease in legal and
accounting expenses as well as certain administrative expenses. The Trusts expenses did not
significantly change from 2002 to 2003. Trust Reserve.On June 29, 2001, Spring Creek Coal Company, the operator of the Spring Creek Mine,
notified the Trustee that the Trust had received overpayments aggregating approximately $476,000 between 1996 to 2000 on its Coal
Royalty on this mine and 5




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requested a reimbursement of the alleged overpayment As a result of the
apparent dispute over these royalty payments, the Trustee decided to place $783,317 of royalty
payments received from the Spring Creek Mine on July 31, 2001 in reserve pending resolution of this
matter. In April 2002, the Trust filed a complaint in Federal District Court for the District of
Montana, Billings Division, seeking a declaratory judgment and accounting against Spring Creek Coal
Company relating to its reimbursement request and an accounting of all coal overriding royalties
that Spring Creek Coal Company should have paid to the Trust. On October 28, 2002, the Spring
Creek Coal Company filed an answer and a counterclaim to the Trusts complaint alleging that the
Trust did not own an overriding royalty interest in certain portions of the Spring Creek Mine.
Spring Creek Coal Company indicated that would seek the return of $790,776 in allegedly mistaken
payments made by it to the Trust under this lease. In December 2004, the parties reached a
settlement and the case was dismissed with prejudice. As a result of the settlement, the Trustee
will distribute the $783,317 that held in trust reserves to the Unit Holders during 2005. Off-Balance Sheet Arrangements.As required by the Trust Indenture, the Trust is intended to be
passive in nature and the Trustee does not have any control over or any responsibility relating to
the operation of the mines under which the Trust has any royalty interests and overriding royalty
interests. The Trustee has powers to collect and distribute proceeds received by the Trust and pay
Trust liabilities and expenses and its actions have been limited to those activities. As a result,
the Trust has not engaged in any off-balance sheet arrangements. Contractual Obligations. None. Critical Accounting Policies and Estimates.The Trusts financial statements reflect the selection
and application of accounting policies that require the Trust to make significant estimates and
assumptions. The following are some of the more critical judgment areas in the application of
accounting policies that currently affect the Trusts financial condition and results of
operations:  
    Royalty income and interest income are recognized in the month in which amounts are received by the Trust.  
    Trust expenses, consisting principally of routine general and administrative costs, include payments made during the accounting period.  
    Reserves for liabilities that are contingent or uncertain in amount may also be established if considered necessary.  
    Net royalty and overriding royalty interests that are producing properties are amortized using the unit-of-production method. This
amortization is shown as a reduction of Trust corpus.  
    Distributions to Unit Holders are recognized when declared by the Trustee. The financial statements of the Trust differ from financial statements prepared in conformity
with accounting principles generally accepted in the United States of America because of the
following:  
    Royalty income is recognized in the month received rather than in the month of production.  
    Expenses are not accrued.  
    Amortization of the net royalty and overriding royalty interests is shown as a reduction
to Trust corpus and not as a charge to operating results.  
    Reserves may be established for contingencies that would not be recorded under accounting
principles generally accepted in the United States of America. Forward-Looking Statements This Form 10-K includes forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, which are intended to be covered by the safe harbor created
thereby. All statements other than statements of historical fact included in this Form 10-K are
forward-looking statements. Such statements include, without limitation, factors affecting the
price of coal contained in Item 1, Business, the Tons Under Lease and Current Economic Tons
information and other statements contained in Item 2, Properties, and certain statements
regarding the Trusts financial position, industry conditions and other matters contained in this
Item 7. Although the Trustee believes that the expectations reflected in such forward-looking
statements are reasonable, such expectations are subject to numerous risks and uncertainties and
the Trustee can give no assurance that they will prove correct. There are many factors, none of
which is within the Trustees control, that may cause such expectations not to be realized,
including, among other things, factors identified in this Form 10-K affecting coal prices
(including, without limitation, the domestic and foreign supply of coal and the price of foreign
imports, market demand, the price and availability of alternative fuels and the effect of
governmental regulations) and the recoverability of Tons Under Lease and Current Economic Tons,
general economic conditions, and other changes in the domestic and international coal markets. 
 Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS. Not applicable. 6




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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. a. Financial Statements.The following documents are filed as part of the Trusts financial
statements for the period from January 1, 2004 to December 31, 2004:  (1)
    Report of Independent Registered Public Accounting Firm  KPMG LLP(2)
    Statements of Assets, Liabilities and Trust Corpus(3)
    Statements of Distributable Income(4)
    Statements of Changes in Trust Corpus(5)
    Notes to Financial Statements 7




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Report of Independent Registered Public Accounting Firm The Trustee and Unit Holders
Kiewit Royalty Trust: We have audited the accompanying statements of assets, liabilities and trust corpus of Kiewit
Royalty Trust as of December 31, 2004 and 2003, and the related statements of distributable income
and changes in trust corpus for each of the years in the three-year period ended December 31, 2004.
These financial statements are the responsibility of the Trustee. Our responsibility is to
express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by the Trustee, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion. As described in note 1 to the financial statements, the financial statements have been prepared on
the basis of cash receipts and disbursements as prescribed by the Securities and Exchange
Commission, which is a comprehensive basis of accounting other than accounting principles generally
accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material
respects, the assets, liabilities and trust corpus of Kiewit Royalty Trust as of December 31, 2004
and 2003, and the distributable income and changes in trust corpus for each of the years in the
three-year period ended December 31, 2004, in conformity with the basis of accounting described in
note 1 to the financial statements. (KPMG LOGO)
Omaha, Nebraska
March 8, 2005 8




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KIEWIT ROYALTY TRUST
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
December 31, 2004 and 2003 2004
    
    
    2003ASSETSCash equivalents
    
    $
    403,538
    
    
    $
    148,662Trust reserves
    
    
    783,317
    
    
    
    783,317Royalty and overriding royalty interests in coal lease
    
    
    167,817
    
    
    
    167,817Less accumulated amortization
    
    
    (142,726
    )
    
    
    (141,592
    )Net royalty and overriding royalty interests in coal leases
    
    
    25,091
    
    
    
    26,225Total Assets
    
    $
    1,211,946
    
    
    $
    958,204LIABILITIES AND TRUST CORPUSDistributions payable to Unit Holders
    
    $
    403,538
    
    
    $
    148,662Trust reserves payable
    
    
    783,317
    
    
    
    783,317Trust corpus: 12,633,432 units of beneficial interest
authorized and outstanding
    
    
    25,091
    
    
    
    26,225Total Liabilities and Trust Corpus
    
    $
    1,211,946
    
    
    $
    958,204
 The accompanying notes are an integral part
of the financial statements. KIEWIT ROYALTY TRUST
STATEMENTS OF DISTRIBUTABLE INCOME
for the three years ended December 31, 2004 2004
    
    
    2003
    
    
    2002Royalty income
    
    $
    3,954,302
    
    
    $
    3,345,718
    
    
    $
    4,686,776Interest income
    
    
    18,767
    
    
    
    14,231
    
    
    
    27,136Trust expenses
    
    
    (89,323
    )
    
    
    (116,904
    )
    
    
    (119,781
    )Distributable income
    
    $
    3,883,746
    
    
    $
    3,243,045
    
    
    $
    4,594,131Distributable income per unit
    
    $
    0.307418
    
    
    $
    0.256700
    
    
    $
    0.363649
 STATEMENTS OF CHANGES IN TRUST CORPUS
for the three years ended December 31, 2004 2004
    
    
    2003
    
    
    2002Trust corpus, beginning of year
    
    $
    26,225
    
    
    $
    30,317
    
    
    $
    37,386Amortization of royalty interests
    
    
    (1,134
    )
    
    
    (4,092
    )
    
    
    (7,069
    )Distributable income
    
    
    3,883,746
    
    
    
    3,243,045
    
    
    
    4,594,131Distributions to Unit Holders
    
    
    (3,883,746
    )
    
    
    (3,243,045
    )
    
    
    (4,594,131
    )Trust corpus, end of year
    
    $
    25,091
    
    
    $
    26,225
    
    
    $
    30,317
 The accompanying notes are an integral part
of the financial statements. 9




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KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS 1.
    
    Summary of Significant Accounting Policies and Basis of Accounting:(a)
    
    Basis of Accounting:The financial statements of Kiewit Royalty Trust (the Trust) are prepared on the following basis:(1)
    
    Royalty income is recorded on a cash receipt basis.(2)
    
    Trust administration expenses are recorded in the month in which they are paid.(3)
    
    Amortization of the net royalty and overriding royalty interests, which is calculated on a units-of-production
basis, is charged directly to trust corpus since such amount does not affect distributable income.(4)
    
    Distributions to Unit Holders are recognized when declared by the Trust.The preparation of financial statements requires estimates and assumptions that affect the 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. Actual results could differ from those
estimates.While these statements differ from financial statements prepared in accordance with accounting principles generally accepted in the United States of America, the cash basis
of reporting revenues is considered to be the most meaningful because Quarterly Distributions to Unit Holders are based on net cash receipts.(b)
    
    Cash Equivalents:The Trust considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents.2.
    
    Trust Organization and Provisions:The Trust was established on May 17, 1982. Units of beneficial interest (Units) in the Trust were distributed on June 23, 1982 to Class B and Class C shareholders of record of Peter Kiewit Sons,
Inc. (now known as Level 3 Communications, Inc.)(the Trustor), as of June 10, 1982. Such shareholders were citizens of the United States of America. These shareholders received one Unit in the Trust
for each share of the Trustors stock held. On June 28, 1982, the Trustor conveyed to the Trust royalty and overriding royalty interests owned by the Trustors subsidiaries in certain coal properties
in Montana and Wyoming.U.S. Bank National Association is the Trustee for the Trust. The terms of the trust indenture provide, among other things, that:(a)
    
    the Trust shall not engage in any business or investment activity of any kind or acquire any assets other than those
initially conveyed to the Trust;(b)
    
    the Trustee may not sell all or any part of the royalty interests unless approved by a majority of Units
outstanding, in which case the sale must be for cash and the proceeds promptly distributed;(c)
    
    the Trustee may establish a cash reserve for the payment of any liability which is contingent or uncertain in amount;(d)
    
    the Trustee will make cash distributions to the Unit Holders in January, April, July and October of each year as
discussed in Note 4; and(e)
    
    in September 1994, the Trust Indenture was amended to authorize the Trustee to invest funds in government
obligations, government-secured obligations and funds registered pursuant to the Investment Company Act of 1940.3.
    
    Royalty and Overriding Royalty Interests:The cash received by the Trustee from the royalty interest will consist of a specified amount per ton or a specified fraction of the value of the total production of the property, free of the expense
of development and operation.The initial carrying value of the royalty and overriding royalty interests in coal leases of $167,817 represents the Trustors historical net book value at the date of the transfer to the Trust.4.
    
    Distributions to Unit Holders:The amounts to be distributed to Unit Holders (Quarterly Distribution Amount) are determined on a quarterly basis. The Quarterly Distribution Amount is the excess of (i) the cash received during the
quarter which is attributable to royalties, plus any decrease in cash reserves, plus any other cash receipts of the Trust during the quarter over (ii) the liabilities of the Trust paid during the
quarter, plus any increase in cash reserves. The Quarterly Distribution Amount is payable to Unit Holders of record as of the last business day of each calendar quarter. The cash distributions are made
quarterly within the first 10 business days of January, April, July and October.5.
    
    Income Taxes:Provision for federal and state income taxes has not been made in the financial statements since the Trust should be treated as a grantor trust which is not a taxable entity.6.
    
    Contingencies:On June 29, 2001, Spring Creek Coal Company, the operator of the Spring Creek Mine, notified the Trustee that the Trust had received overpayments aggregating approximately $476,000 between 1996 to 2000
on its Coal Royalty on this mine and requested a reimbursement of the alleged overpayment As a result of the apparent dispute over these royalty payments, the Trustee decided to place $783,317 of
royalty payments received from the Spring Creek Mine on July 31, 2001 in reserve pending resolution of this matter. In April 2002, the Trust filed a complaint in Federal District Court for the
District of Montana, Billings Division, seeking a declaratory judgment and accounting against Spring Creek Coal Company relating to its reimbursement request and an accounting of all coal overriding
royalties that Spring Creek Coal Company should have
 10




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paid to the Trust. On October 28, 2002, the Spring Creek Coal Company filed an answer and a counterclaim to the Trusts complaint alleging that the
Trust did not own an overriding royalty interest in certain portions of the Spring Creek Mine. Spring Creek Coal Company indicated that would seek the return of $790,776 in allegedly mistaken payments
made by it to the Trust under this lease. In December 2004, the parties reached a settlement and the case was dismissed with prejudice. Under the terms of the settlement, the Trust received
approximately $207,380 of royalty payments that had been suspended since the third quarter of 2000. The final amount is subject to adjustment based on an independent audit of royalty payments from the
subject lease which is to be completed by March 31, 2005 and will be included in the Trusts 2005 royalty income. In addition, the Trustee will distribute the $783,317 that held in trust reserves to
the Unit Holders during 2005.
 11




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KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS 6.
    
    Summary of Quarterly Financial Data (Unaudited):The following is a summary of the unaudited quarterly financial information:
 DistributableRoyalty
    
    
    Distributable
    
    
    IncomeIncome
    
    
    Income
    
    
    Per UnitFor the year ended December 31, 2004:March 31, 2004
    
    $
    1,521,771
    
    
    $
    1,508,247
    
    
    $
    0.119385June 30, 2004
    
    
    199,242
    
    
    
    156,293
    
    
    
    0.012371September 30, 2004
    
    
    1,822,339
    
    
    
    1,815,668
    
    
    
    0.143719December 31, 2004
    
    
    410,950
    
    
    
    403,538
    
    
    
    0.031942$
    3,954,302
    
    
    $
    3,883,746
    
    
    $
    0.307418For the year ended December 31, 2003:March 31, 2003
    
    $
    1,381,149
    
    
    $
    1,358,655
    
    
    $
    0.107544June 30, 2003
    
    
    172,113
    
    
    
    131,506
    
    
    
    0.010407September 30, 2003
    
    
    1,614,880
    
    
    
    1,604,223
    
    
    
    0.126982December 31, 2003
    
    
    177,576
    
    
    
    148,661
    
    
    
    0.011767$
    3,345,718
    
    
    $
    3,243,045
    
    
    $
    0.256700
  b.
    Supplementary Data.Not applicable. 
 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. None. 
 Item 9A. CONTROLS AND PROCEDURES.  a.
    As of the end of the period covered by this Form 10-K, officers of the
Trustee conducted an evaluation of the Trusts disclosure controls and
procedures (as defined in Rules 13a-15(e) of the Securities Exchange
Act of 1934). Based upon this evaluation, the officers of the Trustee
concluded that the Trusts disclosure controls and procedures are
effective in timely alerting them of any material information relating
to the Trust that is required to be disclosed by the Trust in the
reports it files or submits under the Securities Exchange Act of 1934.b.
    There was no significant change in the Trusts internal control over
financial reporting (as defined in Rule 13a-15(f) of the Securities
Exchange Act of 1934) that occurred during the Trusts most recently
completed fiscal quarter that has materially affected, or are
reasonably likely to materially affect, the Trusts internal control
over financial reporting. 
 Item 9B. OTHER INFORMATION. None. 12




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PART III 
 Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT. Executive Officers and Director. The Trust is administered by officers and employees of the
Trustee. While, there are no specific persons employed by the Trustee having the full-time duty of
administering the Trust, the following officer of the Trustee acts as the chief executive officer
and chief financial officer of the Trust: Ted L. Hall, age 49, Vice President and Trust Officer with US Bank, NA since September 2002. Mr.
Hall has been the Trust Officer responsible for administration of the Kiewit Royalty Trust since
June 2003. Mr. Hall has been a Vice President with US Bank, NA since December 2000 in the Private
Client Group. From 1996 through 2000, he served as Vice President of Wells Fargo Bank Nebraska,
NA, formerly Norwest Bank Nebraska, NA. Compliance withSection 16(a)of the Exchange Act.The Trust believes that there was full
compliance for the year ended December 31, 2004 with all filing requirements under Section 16(a) of
the Exchange Act applicable to any person who would be considered as an officer or director of the
Trust and to all persons who were beneficial owners of more than ten percent of the outstanding
Units. Code of Ethics. The Trust does not maintain its own Code of Ethical Conduct for its senior
executive and financial officers as required by Section 406 of the Sarbanes-Oxley Act of 2002
because it does not have officers or employees of its own. The Trustee maintains a Code of Conduct
for all of its employees, including those who perform duties for the Trust. A copy of the
Trustees Code of Conduct will be made available to Unit Holders without charge upon request. 
 Item 11. EXECUTIVE COMPENSATION. The Trust does not have its own officers. Certain services are provided to the Trust by
officers of the Trustee. However, none of employees of the Trustee that perform the functions of
the Trusts officers receive any compensation from the Trust and the Trustee does not receive
reimbursement from the Trust for any portion of the compensation paid to such employees. 
 Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT. The Trustee believes the only holder of more than 5% of the outstanding Units as of March 30,
2005, Walter Scott, Jr., who beneficially owned 800,000 Units representing 6.33% of the class
outstanding. These Units are held in trust by the Trustee for the benefit of Mr. Scott. No
employee of the Trustee who performed the functions as an officer of the Trust owned any Units as
of March 30, 2005. The Trust had no knowledge of any arrangements, the operation of which could,
at a subsequent date, result in a change of control of the Trust. The Trust does not maintain any
equity contribution plans as defined in Item 201(d) of Rule S-K. 
 Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. During 2004, there were no transactions of any nature between the Trust and any employee of the
Trustee who performed the functions of an officer of the Trust or any persons known to the Trustee
to be the beneficial owners of more than five percent of the Units. 
 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Fees Paid to KPMG LLP for 2004 and 2003 The following are aggregate fees billed to the Trust by KPMG LLP during 2004 and 2003. Fiscal Year Ended
    
    
    Fiscal Year EndedDecember 31, 2004
    
    
    December 31, 2003Audit fees
    
    $
    23,575
    
    
    $
    11,900Audit-related fees
    
    
    
    
    
    
    Tax fees
    
    
    
    
    
    
    All other fees
    
    
    
    
    
    
    Total fees
    
    $
    23,575
    
    
    $
    11,900
 Audit fees.Audit fees consist of fees billed for professional services rendered for the audit
of the Trusts financial statements and 13




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review of the interim financial statements included in quarterly reports and services that are
normally provided by KPMG LLP in connection with statutory and regulatory filings. Audit-related fees. Audit-related fees consist of fees billed for assurance and related
services that are reasonably related to the performance of the audit or review of the Trusts
financial statements and are not reported under Audit fees. These services include attest
services that are not required by statute or regulation, and consultations concerning financial
accounting and reporting standards. Tax fees. Tax fees consist of fees billed for professional services for tax compliance, tax
advice and tax planning. These services include assistance regarding federal and state tax
compliance and tax audit defense. All other fees. All other fees consist of fees for products and services other than the
services reported above. As referenced in Item 10 above, the Trust has no audit committee and, as a result, has no
audit committee pre-approval policy with respect to fees paid to KPMG LLP. 14




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PART IV 
 Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K. a.
    
    
    Documents Filed as Part of this Report.1.
    
    
    
    The following financial statements are filed herewith:Independent Auditors Report  KPMG LLPStatements of Assets, Liabilities and Trust CorpusStatements of Distributable IncomeStatements of Changes in Trust CorpusNotes to Financial Statements2.
    
    
    
    Financial statement schedulesNo financial statement schedules are filed herewith because (1) such schedules are not required or (2) the information has been
presented in the aforementioned financial statements.3.
    
    
    
    ExhibitsThe following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the
SEC:4.1
    
    
    Kiewit Royalty Trust Indenture dated May 17, 1982, as amended June 9, 1982 and June 23, 1982
(filed as Exhibit 4.1 to the Trusts Form 10-K filed with the Securities and Exchange
Commission on March 28, 2002, and incorporated herein by reference).4.2
    
    
    Order dated September 23, 1994, of the County Court of Douglas County, Nebraska (filed as
Exhibit 4.2 to the Trusts Form 10-K filed with the Securities and Exchange Commission on
March 28, 2002, and incorporated herein by reference).31*
    
    
    Certification of Trust Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934.32*
    
    
    Certification of Trust Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.99.1
    
    
    Location Map of Coal Properties (incorporated herein by reference to Exhibit 2 to the Trusts
Form 10-K filed with the Securities and Exchange Commission on March 31, 1985, and
incorporated herein by reference).
 * Filed herewith. 15




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SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. KIEWIT ROYALTY TRUSTBy
    
    U.S. Bank National Associationin its capacity as Trustee andnot in its individual capacity orotherwiseDate: March 30, 2005
    
    
    
    By:
    
    /s/ Ted L. HallBy: Ted L. HallTrust Officer
 (The Registrant has no directors or executive officers.) 16