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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





Form 10-K







|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2008



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

For the transition period from             to

COMMISSION FILE NUMBER: 000-10810





KIEWIT ROYALTY TRUST

(Exact name of registrant as specified in its charter)







|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Nebraska                                                       |  | 47-6131402                             
|(State or other jurisdiction of incorporation or organization) |  | (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 if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes   ̈    No  x

Indicate by check mark if the registrant is not required to file reports pursuant
to Section 13 or Section 15(d) of the Act.    Yes   ̈    No  x

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

Indicate by check mark 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.  x

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 the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

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

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



|            |  |                                                                                                              |  |     
|----------- |  | ------------------------------------------------------------------------------------------------------------ |  | ----
|            |  |                                                                                                              |  | Page
|PART I      |  |                                                                                                             
|Item 1.     |  | Business                                                                                                     |  | 1   
|Item 1A.    |  | Risk Factors                                                                                                 |  | 3   
|Item 1B.    |  | Unresolved Staff Comments                                                                                    |  | 3   
|Item 2.     |  | Properties                                                                                                   |  | 3   
|Item 3.     |  | Legal Proceedings                                                                                            |  | 3   
|Item 4.     |  | Submission of Matters to a Vote of Security Holders                                                          |  | 3   
|PART II     |  |                                                                                                             
|Item 5.     |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  | 3   
|Item 7.     |  | Trustees Discussion and Analysis of Financial Condition and Results of Operations                           |  | 4   
|Item 8.     |  | Financial Statements and Supplementary Data                                                                  |  | 5   
|Item 9.     |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |  | 12  
|Item 9A(T). |  | Controls and Procedures                                                                                      |  | 13  
|Item 9B.    |  | Other Information                                                                                            |  | 14  
|PART III    |  |                                                                                                             
|Item 10.    |  | Directors, Executive Officers and Corporate Governance                                                       |  | 14  
|Item 11.    |  | Executive Compensation                                                                                       |  | 14  
|Item 12.    |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters              |  | 14  
|Item 13.    |  | Certain Relationships and Related Transactions, and Director Independence                                    |  | 15  
|Item 14.    |  | Principal Accountant Fees and Services                                                                       |  | 15  
|PART IV     |  |                                                                                                             
|Item 15.    |  | Exhibits and Financial Statement Schedules                                                                   |  | 15  

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 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 to be correct. There are many factors, none of which are 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.



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##### Table of Contents

PART I



|Item 1. | BUSINESS.
|------- | ---------

Purpose of the Trust.Kiewit
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 trustee of the Trust is U.S.
Bank National Association, Omaha, Nebraska (the Trustee), which is a wholly-owned subsidiary of U.S. Bancorp, a registered bank holding company. 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 remaining 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 than 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 two years from the leases in which the Trust has Coal Royalties:

Tons of Coal Produced



|                  |  |            |  |           
|----------------- |  | ---------- |  | ----------
|                  |  | 2008       |  | 2007      
|Decker Mine       |  | 5,202,665  |  | 5,546,316 
|Spring Creek Mine |  | 12,596,011 |  | 11,842,177
|                  |  |            |  |           
|Total             |  | 17,798,676 |  | 17,388,493
|                  |  |            |  |           



1



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##### Table of Contents

The following sets forth certain information about each of the mine properties in which the Trust
continues to hold a Coal Royalty:

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 as of December 31, 2008, are set forth in the table below, of which the
accompanying notes are an integral part:



|          |  |               |  |                                  |  |                 |  |                     
|--------- |  | ------------- |  | -------------------------------- |  | --------------- |  | --------------------
|          |  | Lessor        |  | Terms of Overriding Royalties(1) |  | Tons UnderLease |  | Current EconomicTons
|M-073093  |  | United States |  | 5 cents per ton                  |  | 84,594,000      |  | 58,505              
|M-061685  |  | United States |  | 10 cents per ton                 |  | 45,802,000      |  | 7,436,826           
|M-057934  |  | United States |  | 10 cents per ton                 |  | 7,927,000       |  |                    
|C-1085-93 |  | Montana       |  | 10 cents per ton                 |  | 2,446,000       |  | 917,347             
|C-1087-95 |  | Montana       |  | 10 cents per ton                 |  | 7,420,000       |  | 7,420,000           
|          |  |               |  |                                  |  |                 |  |                     
|          |  |               |  |                                  |  | 148,189,000     |  | 15,832,678          
|          |  |               |  |                                  |  |                 |  |                     



|1 | The Trust has an undivided one-half interest in a second overriding royalty pertaining to each of these leases. By the
terms of the assignment by which it was created, this second overriding royalty, when added to all other royalties pertaining to each of these leases, may not exceed fifty percent (50%) of the royalty paid to the lessor under each of these
leases.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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:



|         |  |               |  |                                  |  |                 |  |                     
|-------- |  | ------------- |  | -------------------------------- |  | --------------- |  | --------------------
|         |  | Lessor        |  | Terms of Overriding Royalties(2) |  | Tons UnderLease |  | Current EconomicTons
|M-069782 |  | United States |  | 10 cents per ton                 |  | 83,409,000      |  | 35,779,498          



|2 | Under 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.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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 mineable because of access, alluvial valley, or other problems.

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 2008 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.



2



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|Item 1A. | RISK FACTORS.
|-------- | -------------

A Substantial or Extended Decline in Coal
Prices Would Have a Material Adverse Effect on the Trusts Revenues

The royalty payments received by the Trust are dependent
on the realized price of the coal produced under the Coal Royalties. The price of coal is affected by numerous factors beyond the control of the Trust and the operators of the mines in which it holds coal royalties. Any drop in the realized price of
coal will adversely affect the Trust royalty income and distributable income.

Estimates of Economic Tons of Coal Are Uncertain

Estimates of the economic tons of coal under the Coal Royalties are subject to considerable uncertainty. Such estimates are based on the estimated
amount of coal actually in the ground, estimates of the selling price of such coal and estimates of the cost to extract the coal. Estimates of coal in the ground are based on interpretations of geologic data and are subject to considerable
uncertainty. Estimates of capital and operating costs associated with extracting coal are based on many factors such as anticipated tonnage and grades of coal to be mined, the predicted configuration of the coal deposits, the costs of operating and
processing equipment and other factors. The selling price of coal is subject to significant uncertainty. As a result the amount of coal that may be extracted from a particular mine in an economic manner may be considerably less than the amount of
coal actually in place. As coal prices decline or extraction costs increase, the economic tons of coal will decline and this will affect the amount of coal that is actually produced from the mine. Any drop in the economic tons of coal subject to the
Coal Royalties will adversely affect the Trust royalty income and distributable income.

There has not been, and there is not expected to be, a
trading market for the units of the Trust, and there are restrictions on resale.

There has been no trading market for the units of
the Trust, and the Trust has no expectation that any market will develop for its securities. Resale of the units is further limited because such securities have not been registered under federal or state securities laws.



|Item 1B. | UNRESOLVED STAFF COMMENTS.
|-------- | --------------------------

N/A.



|Item 2. | PROPERTIES.
|------- | -----------

The Trust does not own any real
property. Information on each of the mine properties in which the Trust continues to hold a Coal Royalty is set forth in the section titled, BUSINESS.



|Item 3. | LEGAL PROCEEDINGS.
|------- | ------------------

There are no pending material
legal proceedings to which the Trust is a party.



|Item 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
|------- | ----------------------------------------------------

None.

PART II



|Item 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
|------- | -------------------------------------------------------------------------------------------------------------

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.



3



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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.

Holders.The Units are the only class of security issued by the Trust. As of January 12, 2009, there were 832 record holders of Units.

Distributions to Unit Holders.All income of the Trust plus any amounts released from reserves, less amounts used to pay Trust expenses and amounts placed in reserves, is distributed pro rata on a quarterly
basis to Unit Holders. The following table shows the aggregate distributions made to Unit Holders for each quarter during 2008 and 2007:



|                   |  |                  |  |                      |           |          |   |         
|------------------ |  | ---------------- |  | -------------------- | --------- | -------- | - | --------
|2008              
|                   |  |                  |  | Distribution Amounts
|Quarter Ended      |  | Date Distributed |  | In Total             |           | Per Unit
|March 31, 2008     |  | April 8, 2008    |  | $                    | 719,128   |          | $ | 0.056923
|June 30, 2008      |  | July 10, 2008    |  |                      | 139,612   |          |   | 0.011051
|September 30, 2008 |  | October 9, 2008  |  |                      | 2,475,985 |          |   | 0.195987
|December 31, 2008  |  | January 12, 2009 |  |                      | 96,761    |          |   | 0.007659
|                   |  |                  |  |                      |           |          |   |         
|                   |  |                  |  | $                    | 3,431,486 |          | $ | 0.271620
|                   |  |                  |  |                      |           |          |   |         



|                   |  |                  |  |                      |           |          |   |         
|------------------ |  | ---------------- |  | -------------------- | --------- | -------- | - | --------
|2007              
|                   |  |                  |  | Distribution Amounts
|Quarter Ended      |  | Date Distributed |  | In Total             |           | Per Unit
|March 31, 2007     |  | April 10, 2007   |  | $                    | 955,633   |          | $ | 0.075643
|June 30, 2007      |  | July 10, 2007    |  |                      | 143,780   |          |   | 0.011381
|September 30, 2007 |  | October 11, 2007 |  |                      | 2,295,067 |          |   | 0.181666
|December 31, 2007  |  | January 10, 2008 |  |                      | 106,185   |          |   | 0.008405
|                   |  |                  |  |                      |           |          |   |         
|                   |  |                  |  | $                    | 3,500,665 |          | $ | 0.277095
|                   |  |                  |  |                      |           |          |   |         

Securities Authorized for Issuance under Equity Compensation Plans.

Not applicable.

Recent Sales of
Unregistered Securities.

None.

Issuer Purchases of Equity Securities.

None.



|Item 7. | TRUSTEES DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|------- | -----------------------------------------------------------------------------------

Distributable income is 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. During 2008, distributable income decreased by $69,000 from $3,500,665 in 2007 to $3,431,486. The slight decrease was attributable to less
coal production at the Decker Mine and a $21,000 decrease in interest income. However, the decrease at the Decker Mine was almost entirely offset by an increase in coal production at the Spring Creek Mine.



4



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The following schedule reflects the royalty and overriding royalty payments received by the Trust in
respect of leases at the following mines:



|                  |  |      |           |      |   |          
|----------------- |  | ---- | --------- | ---- | - | ---------
|                  |  | 2008 |           | 2007
|Decker Mine       |  | $    | 1,710,687 |      | $ | 2,080,254
|Spring Creek Mine |  |      | 1,810,739 |      |   | 1,489,021
|                  |  |      |           |      |   |          
|Total             |  | $    | 3,521,426 |      | $ | 3,569,275
|                  |  |      |           |      |   |          

Decker Mine.The amount of royalties and overriding royalties received by the Trust with
respect to the Decker Mine decreased to $1,710,687 in 2008 from $2,080,254 in 2007. This change resulted from approximately 300,000 fewer tons of coal produced and the implementation of a new state withholding statute.

Spring Creek Mine.The amount of royalties and overriding royalties received by the Trust with respect to the Spring Creek Mine increased to
$1,810,739 in 2008 from $1,489,021 in 2007. The increase is due to additional tons of coal produced under the Spring Creek Mine leases.

Trust Expenses.Trust expenses were static from 2008 to 2007 at $103,517 and $103,670, respectively. Trust expenses included fees of the Trustee, accountants, attorneys, and other professionals that the Trustee employs in the
administration of the Trust.

Liquidity and Capital Resources.The Trusts sole source of capital is the royalty payments. In
accordance with the provisions of the Trust Indenture, generally all income received by the Trust, net of Trust expenses and any amounts placed in reserves, are distributed to the Unit Holders on a quarterly basis. During 2008, the Trust did not
establish any reserves.

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.

Critical Accounting Policies and Estimates.The Trusts financial statements are prepared on a modified cash basis of accounting and as such
there are no critical accounting policies or estimates.



|Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
|------- | --------------------------------------------

Financial Statements.The following documents are filed as part of the Trusts financial statements for the years ended December 31, 2008 and 2007:



| | (1) | Report of Independent Registered Public Accounting Firm  Deloitte & Touche LLP
| | --- | -------------------------------------------------------------------------------



| | (2) | Report of Independent Registered Public Accounting Firm  KPMG LLP
| | --- | ------------------------------------------------------------------



| | (3) | Statements of Assets, Liabilities and Trust Corpus as of December 31, 2008 and 2007
| | --- | -----------------------------------------------------------------------------------



| | (4) | Statements of Distributable Income for the years ended December 31, 2008 and 2007
| | --- | ---------------------------------------------------------------------------------



| | (5) | Statements of Changes in Trust Corpus for the years ended December 31, 2008 and 2007
| | --- | ------------------------------------------------------------------------------------



| | (6) | Notes to Financial Statements
| | --- | -----------------------------



5



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustee and Unit Holders of

Kiewit Royalty Trust

Omaha, Nebraska

We have audited the accompanying statement of assets,
liabilities and trust corpus of Kiewit Royalty Trust (the Trust) as of December 31, 2008 and the related statements of distributable income and changes in trust corpus for the year then ended. These financial statements are the
responsibility of the Trustee. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit 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. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As described in Note 1, the financial statements were
prepared on a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

In our opinion, such
2008 financial statements present fairly, in all material respects, the assets, liabilities and trust corpus of Kiewit Royalty Trust as of December 31, 2008 and the distributable income and changes in trust corpus for the year then ended, on
the basis of accounting described in Note 1.



|                         
|-------------------------
|/s/ DELOITTE & TOUCHE LLP
|                         
|Omaha, Nebraska          
|                         
|March 30, 2009           



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Report of Independent Registered Public Accounting Firm

The Trustee and Unit Holders

Kiewit Royalty Trust:

We have audited the accompanying statement of assets, liabilities and trust corpus of Kiewit Royalty Trust as of December 31, 2007, and the
related statements of distributable income and changes in trust corpus for the year then ended. These financial statements are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audit 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.

As described in note 1, the financial statements were 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 U.S. generally accepted accounting principles.

In our opinion, the 2007 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, 2007, and the
distributable income and changes in trust corpus for the year then ended, on the basis of accounting described in note 1.



|              
|--------------
|/s/ KPMG LLP  
|              
|March 27, 2008



7



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KIEWIT ROYALTY TRUST

STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

December 31, 2008 and 2007



|                                                                                         |  |      |          |   |      |   |          |  
|---------------------------------------------------------------------------------------- |  | ---- | -------- | - | ---- | - | -------- | -
|                                                                                         |  | 2008 |          |   | 2007 |  
|Assets                                                                                   |  |      |          |   |      |   |          |  
|Cash and cash equivalents                                                                |  | $    | 96,761   |   |      | $ | 106,185  |  
|Royalty and overriding royalty interests in coal leases                                  |  |      | 167,817  |   |      |   | 167,817  |  
|Less accumulated amortization                                                            |  |      | (144,927 | ) |      |   | (144,927 | )
|                                                                                         |  |      |          |   |      |   |          |  
|                                                                                         |  |     
|Net royalty and overriding royalty interests in coal leases                              |  |      | 22,890   |   |      |   | 22,890   |  
|                                                                                         |  |      |          |   |      |   |          |  
|                                                                                         |  |     
|Total Assets                                                                             |  | $    | 119,651  |   |      | $ | 129,075  |  
|                                                                                         |  |      |          |   |      |   |          |  
|                                                                                         |  |     
|Liabilities                                                                              |  |      |          |   |      |   |          |  
|Distributions to unit holders                                                            |  | $    | 96,761   |   |      | $ | 106,185  |  
|                                                                                         |  |     
|Trust corpus: 12,633,432 units of beneficial interest authorized, issued and outstanding |  |      | 22,890   |   |      |   | 22,890   |  
|                                                                                         |  |      |          |   |      |   |          |  
|                                                                                         |  |     
|Total liabilities and trust corpus                                                       |  | $    | 119,651  |   |      | $ | 129,075  |  
|                                                                                         |  |      |          |   |      |   |          |  

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



8



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KIEWIT ROYALTY TRUST

STATEMENTS OF DISTRIBUTABLE INCOME

for the years ended December 31, 2008 and 2007



|                              |  |      |           |   |      |   |           |  
|----------------------------- |  | ---- | --------- | - | ---- | - | --------- | -
|                              |  | 2008 |           |   | 2007 |  
|Royalty income                |  | $    | 3,521,426 |   |      | $ | 3,569,275 |  
|Interest income               |  |      | 13,577    |   |      |   | 35,060    |  
|Trust expenses                |  |      | (103,517  | ) |      |   | (103,670  | )
|                              |  |      |           |   |      |   |           |  
|                              |  |     
|Distributable income          |  | $    | 3,431,486 |   |      | $ | 3,500,665 |  
|                              |  |      |           |   |      |   |           |  
|                              |  |     
|Distributable income per unit |  | $    | 0.271620  |   |      | $ | 0.277095  |  
|                              |  |      |           |   |      |   |           |  

KIEWIT ROYALTY TRUST

STATEMENTS OF CHANGES IN TRUST CORPUS

for the years ended December 31,
2008 and 2007



|                                |  |      |            |   |      |   |            |  
|------------------------------- |  | ---- | ---------- | - | ---- | - | ---------- | -
|                                |  | 2008 |            |   | 2007 |  
|Trust corpus, beginning of year |  | $    | 22,890     |   |      | $ | 22,890     |  
|Distributable income            |  |      | 3,431,486  |   |      |   | 3,500,665  |  
|Distributions to Unit Holders   |  |      | (3,431,486 | ) |      |   | (3,500,665 | )
|                                |  |      |            |   |      |   |            |  
|                                |  |     
|Trust corpus, end of year       |  | $    | 22,890     |   |      | $ | 22,890     |  
|                                |  |      |            |   |      |   |            |  

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



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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 the Trust, as
prepared on the modified cash basis, reflect the Trusts assets, liabilities, trust corpus, and distributable income as follows:



|1. | Royalty income and interest income are recognized in the month in which amounts are received by the Trust.
|-- | ----------------------------------------------------------------------------------------------------------



|2. | Trust expenses, consisting principally of routine general and administrative costs, include payments made during the accounting period.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------



|3. | Reserves for liabilities that are contingent or uncertain in amount may also be established if considered necessary.
|-- | --------------------------------------------------------------------------------------------------------------------



|4. | 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.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. | Distributions to Unit Holders are recognized when declared by the Trustee.
|-- | --------------------------------------------------------------------------



|6. | Production withholding taxes withheld from Unit Holder distributions and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from
royalty income in the statement of distributable income.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The financial statements of the Trust differ from financial
statements prepared in conformity with U.S. generally accepted accounting principles because of the following:



| |  |  | Royalty income and interest income are 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 U.S. generally accepted accounting principles.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------

These statements differ from financial statements prepared in accordance with accounting principles generally accepted in the United States of America
(GAAP), the modified cash basis of reporting is considered to be the most meaningful because Distributions to Unit Holders are based on net cash receipts. This comprehensive basis of accounting, other than GAAP, corresponds to the accounting
permitted for royalty trusts by the U.S. Securities and Exchange Commission as specified by Staff Accounting Bulletin Topic 12E, Financial Statements of Royalty Trusts.



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|(b) | Cash and Cash Equivalents:
|--- | --------------------------

The Trust considers all
highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents.



|(c) | Related Party
|--- | -------------

The Trust was organized to provide
an efficient, orderly and practical means of administrating the income received from royalty interests and is administered by U.S. Bank National Association, as the sole trustee (the Trustee). Pursuant to the terms of the Trust
Indenture, the Trust pays the Trustee $40,000 per year. The Trustee may adjust this fee annually in its sole discretion.



|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.

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 Unit Holders 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 interests 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. 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. There was no amortization taken during 2008 or 2007 because there were no units of
production during these years.

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 (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



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##### Table of Contents

the quarter over (ii) the liabilities of the Trust paid during the quarter, plus any increase in cash reserves. The 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 has been recognized by the IRS as a grantor trust which is not a taxable entity.



|6. | Selected Quarterly Financial Data (Unaudited):
|-- | ----------------------------------------------

The
following is a summary of the unaudited quarterly financial information:



|                                      |  |               |           |                     |   |                              |  |   |         
|------------------------------------- |  | ------------- | --------- | ------------------- | - | ---------------------------- |  | - | --------
|                                      |  | RoyaltyIncome |           | DistributableIncome |   | DistributableIncome Per Unit
|For the year ended December 31, 2008: |  |               |           |                     |   |                              |  |   |         
|March 31, 2008                        |  | $             | 741,416   |                     | $ | 719,128                      |  | $ | 0.056923
|June 30, 2008                         |  |               | 179,934   |                     |   | 139,612                      |  |   | 0.011051
|September 30, 2008                    |  |               | 2,485,993 |                     |   | 2,475,985                    |  |   | 0.195987
|December 31, 2008                     |  |               | 114,083   |                     |   | 96,761                       |  |   | 0.007659
|                                      |  |               |           |                     |   |                              |  |   |         
|                                      |  | $             | 3,521,426 |                     | $ | 3,431,486                    |  | $ | 0.271620
|                                      |  |               |           |                     |   |                              |  |   |         



|                                      |  |               |           |                     |   |                              |  |   |         
|------------------------------------- |  | ------------- | --------- | ------------------- | - | ---------------------------- |  | - | --------
|                                      |  | RoyaltyIncome |           | DistributableIncome |   | DistributableIncome Per Unit
|For the year ended December 31, 2007: |  |               |           |                     |   |                              |  |   |         
|March 31, 2007                        |  | $             | 959,842   |                     | $ | 955,633                      |  | $ | 0.075643
|June 30, 2007                         |  |               | 184,042   |                     |   | 143,780                      |  |   | 0.011381
|September 30, 2007                    |  |               | 2,306,235 |                     |   | 2,295,067                    |  |   | 0.181666
|December 31, 2007                     |  |               | 119,156   |                     |   | 106,185                      |  |   | 0.008405
|                                      |  |               |           |                     |   |                              |  |   |         
|                                      |  | $             | 3,569,275 |                     | $ | 3,500,665                    |  | $ | 0.277095
|                                      |  |               |           |                     |   |                              |  |   |         



|Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
|------- | -------------------------------------------------------------------------------------

Dismissal of KPMG

On December 3, 2008, in accordance with the Trust Indenture, the
Trustee dismissed KPMG, LLP (KPMG), as the Trusts independent accountant. The audit reports of KPMG on the financial statements of the Trust as of and for the years ended December 31, 2007 and 2006 did not contain any adverse
opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles, except as follows:

KPMGs reports on the statements of the Trust as of and for the years ended December 31, 2007 and 2006, contained a separate paragraph stating that: As described in note 1, these financial statements were 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 U.S. generally accepted accounting principles.

During the two fiscal years ended December 31, 2007 and 2006 and the subsequent interim period through December 3, 2008 (the termination date),
there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of KPMG, would have caused KPMG to
make reference to the subject matter of the disagreement in connection with its report, and there were no reportable events as described in Item 304(a)(1)(v) of



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Regulation S-K, except that KPMG advised the officers of the Trustee of the existence of a material weakness in the Trusts internal control over
financial reporting related to cash receipt cutoff, which was identified in the subsequent interim period, and described in the Trusts Forms 10-Q for the periods ended June 30, 2008 and September 30, 2008. KPMG discussed this
weakness with the officers of the Trustee.

The Trust disclosed KPMGs dismissal on a Form 8-K dated December 3, 2008, and filed
with the SEC on December 9, 2008.

Engagement of Deloitte & Touche LLP

On December 18, 2008, in accordance with the Trust Indenture, the Trustee engaged Deloitte & Touche LLP (Deloitte) as the
Trusts independent accountant to audit its financial statements for the year ending December 31, 2008. The Trust disclosed the engagement of Deloitte on a Form 8-K dated December 18, 2008 and filed with the SEC on December 22,
2008.



|Item 9A(T). | CONTROLS AND PROCEDURES.
|----------- | ------------------------

Evaluation of
Disclosure Controls and Procedures.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 not 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 because a material weakness in internal control over financial report was identified as further described below.

Trustees Report on Internal Control over Financial Reporting.The Trustee is responsible for establishing and maintaining adequate
internal control over financial reporting, as defined in Rule 13a-15(f) of the 1934 Act. The Trustee has assessed the effectiveness of the Trusts internal control over financial reporting as of December 31, 2008, based on criteria
established in Internal Control  Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this assessment, the Trustee concluded that, as of December 31, 2008, the Trusts
internal control over financial reporting was not effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes on the basis of cash receipts and
disbursements, which is a comprehensive basis of accounting other than generally accepted accounting principles. During the second and third fiscal quarters of 2008, the Trustee identified certain internal control weaknesses relating to cash receipt
cutoff for the Trust, and determined that such controls were not effective. This annual report does not include an attestation report of the Trusts registered public accounting firm regarding internal control over financial public reporting.
The Trusts internal control over financial reporting is not subject to attestation by the Trusts registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Trust to provide
only the Trustees report in this annual report.

Changes in Internal Control Over Financial Reporting.There were no changes
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. During the second and third fiscal quarters of 2008, the Trustee identified certain internal control weaknesses relating to cash receipt cutoff
for the Trust, and determined that such controls were not effective. The Trust is currently working on a remediation plan to address the material weakness relating to cash receipt cutoffs. The Trust expects that the material weakness will be
remediated prior to the Trusts filing of the Form 10-Q for the quarter ended March 31, 2009.

Limitations on Controls.The Trustee does not expect that the Trusts disclosure controls and procedures or the Trusts internal control over financial reporting will prevent or detect all error and fraud. Any control system, no matter how well designed and
operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not
occur or that all control issues and instances of fraud, if any, within the Trust have been detected.



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##### Table of Contents

|Item 9B. | OTHER INFORMATION.
|-------- | ------------------

None

PART III



|Item 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
|-------- | -------------------------------------------------------

Executive Officers and Board of Directors.The Trust is administered by officers and employees of the Trustee and has no Board of Directors or any committees. 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:

Luke H. Paladino, age 31, Trust Officer with US Bank NA since September 2007. Mr. Paladino has been the Trust Officer responsible for the Trust since January 2008. Mr. Paladino has been a Trust
Officer with US Bank NA since September 2007 in the Private Client Group. From 2005 through 2007, he served as Principal of Paladino Legal Group P.C., a law firm located in Omaha, Nebraska. Mr. Paladino received his J.D. from Creighton
University School of Law and his B.A. from Rockhurst University.

Section 16(a) Beneficial Ownership Reporting Compliance.The
Trust does not have any officers, directors or any beneficial owners holding more than 10% of the outstanding Units. Accordingly, the Trust believes that it was in full compliance for the year ended December 31, 2008 with all filing
requirements under Section 16(a) of the Exchange Act.

Code of Ethics. The Trust does not maintain its own Code of Ethics 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. 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
any officers or employees. Certain services are provided to the Trust by officers and employees 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. The Trust pays the Trustee an administrative fee of $40,000 per year.



|Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
|-------- | -----------------------------------------------------------------------------------------------

The Trustee believes the only holder of more than 5% of the outstanding Units as of March 27, 2009, is Walter Scott, Jr., who beneficially owns
800,000 Units representing 6.33% of the class outstanding. Mr. Scotts address is One Thousand Kiewit Plaza, Omaha, Nebraska 68131. 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 27, 2009. 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 Regulation S-K.



14



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##### Table of Contents

|Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
|-------- | --------------------------------------------------------------------------

During 2008, 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.
|-------- | ---------------------------------------

The
principal independent registered public accounting firm utilized by the Trust during fiscal year 2007 and during fiscal year 2008 was KPMG. The Trust dismissed KPMG on December 3, 2008 and engaged Deloitte on December 18, 2008.

Principal Accounting Fees and Services

The aggregate fees billed by KPMG and Deloitte & Touche LLP for the fiscal years ended December 31, 2008 and 2007 are as follows:



|                   |  |                                  |        |                 |   |                 |  |   |       
|------------------ |  | -------------------------------- | ------ | --------------- | - | --------------- |  | - | ------
|                   |  | Deloitte & Touche LLPFiscal
2008 |        | KPMGFiscal 2008 |   | KPMGFiscal 2007
|Audit fees         |  | $                                | 28,600 |                 | $ | 18,500          |  | $ | 41,688
|Audit-related fees |  |                                  | 2,790  |                 |   | 8,300           |  |   |      
|Tax fees           |  |                                  |       |                 |   |                |  |   |      
|All other fees     |  |                                  |       |                 |   |                |  |   |      
|                   |  |                                  |        |                 |   |                 |  |   |       
|Total:             |  | $                                | 31,390 |                 | $ | 26,800          |  | $ | 41,688
|                   |  |                                  |        |                 |   |                 |  |   |       

Audit fees.Audit fees consist of fees billed for professional services rendered for the
audit of the Trusts annual financial statements and review of the interim financial statements included in quarterly reports and services that are normally provided by the accountant 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. In 2008, Deloitte & Touche LLPs fees included $2,790 for services rendered in connection with the Trusts reply to an SEC comment letter. In 2008, KPMGs fees included $8,300 for
services relating to the change in auditors, related Form 8-K and the Trusts reply to an SEC comment letter.

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 or Deloitte.

PART IV



|Item 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
|-------- | -------------------------------------------

1. The following
statements are filed herewith:

Report of Independent Registered Public Accounting Firm  Deloitte & Touche
LLP



15



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##### Table of Contents

Report of Independent Registered Public Accounting Firm  KPMG LLP

Statements of Assets, Liabilities and Trust Corpus as of December 31, 2008 and 2007

Statements of Distributable Income for the years ended December 31, 2008 and 2007

Statements of Changes in Trust Corpus for the years ended December 31, 2008 and 2007

Notes to Financial Statements

2. Financial
Statement Schedules - No financial statement schedules are filed herewith because either such schedules are not required or the information has been presented in the aforementioned financial statements.

3. Exhibits

The 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
|- | --------------

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.



|               |  |                      |  |                                                                                                           |  |                                
|-------------- |  | -------------------- |  | --------------------------------------------------------------------------------------------------------- |  | -------------------------------
|March 30, 2009 |  | KIEWIT ROYALTY TRUST
|               |  |                     
|               |  | By:                  |  | U.S. Bank National Association in its capacity as Trustee and not in its individual capacity or otherwise
|               |  |                      | 
|               |  |                      |  | By:                                                                                                       |  | /s/ Luke H. Paladino           
|               |  |                      |  |                                                                                                           |  | Luke H. Paladino, Trust Officer

(The Registrant has no directors or executive officers.)



16