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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-K
 (Mark One)
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
 Commission file number: 001-11335
 Dominion Resources Black Warrior Trust
  Delaware
    
    75-6461716(State or other jurisdiction of
    
    (I.R.S. employerincorporation or organization)
    
    identification number)
 Trust Division
Royalty Trust Group
Bank of America, N.A.
901 Main Street
17th Floor
Dallas, Texas 75202
 
 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
 Name of Each Exchange onTitle of Each Class
    
    Which RegisteredUnits of Beneficial Interest
    
    New York Stock Exchange, Inc.
 SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None
 o þ
 o þ
 þ o
 þ
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o
 o þ
   DOCUMENTS INCORPORATED BY REFERENCE




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##### 



TABLE OF CONTENTS
  
 PART I
    
    
    3Item 1. Business
    
    
    3GLOSSARY
    
    
    3DESCRIPTION OF THE TRUST
    
    
    6DESCRIPTION OF UNITS
    
    
    12FEDERAL INCOME TAX CONSIDERATIONS
    
    
    17ERISA CONSIDERATIONS
    
    
    22STATE TAX CONSIDERATIONS
    
    
    22REGULATION AND PRICES
    
    
    24Item 1A. Risk Factors
    
    
    28Item 1B. Unresolved Staff Comments. None
    
    
    32Item 2. Properties
    
    
    33THE ROYALTY INTERESTS
    
    
    33Item 3. Legal Proceedings
    
    
    41Item 4. Submission of Matters to a Vote of Security Holders
    
    
    42PART II
    
    
    43Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    43Item 6. Selected Financial Data
    
    
    43Item 7. Trustees Discussion and Analysis of Financial Condition and Results of Operations
    
    
    44Item 8. Financial Statements and Supplementary Data
    
    
    52REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    
    52Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    63Item 9A. Controls and Procedures
    
    
    63PART III
    
    
    66Item 10. Directors and Executive Officers of the Registrant
    
    
    66Item 11. Executive Compensation
    
    
    66Item 12. Security Ownership of Certain Beneficial Owners and Management
    
    
    67Item 13. Certain Relationships and Related Transactions
    
    
    67Item 14. Principal Accounting Fees and Services
    
    
    69PART IV
    
    
    69Item 15. Exhibits, Financial Statement Schedules
    
    
    69Consent of Ralph E. Davis AssociatesCertification required by Rule 13a-14(a)/15d-14(a)Certification required by Rule 13a-14(b)/15d-14(b)Summary of Reserve Report
  2




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PART I.
 
 Item 1. Business.
 
 GLOSSARY
               3




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Inside FERC Gas Market Report
      4




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DESCRIPTION OF THE TRUST
  Creation and Organization of the Trust
   Assets of the Trust
  Duties and Limited Powers of the Trustee and the Delaware Trustee
  6




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Resignation of Trustees
  Transfer of Royalty Interests
  Liabilities of the Trust
  Liabilities of the Trustee and the Delaware Trustee
  8




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Termination and Liquidation of the Trust
   9




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Arbitration and Actions by Unitholders
  10




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DESCRIPTION OF UNITS
  Distributions and Income Computations
   12




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Conditional Right of Repurchase
    13




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Possible Divestiture of Units
  14




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Periodic Reports
     Voting Rights of Unitholders
   15




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16




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Liability of Unitholders
  Transfer Agent
  Website/SEC Filings
  
 FEDERAL INCOME TAX CONSIDERATIONS
 THE TAX CONSEQUENCES TO A UNITHOLDER OF THE OWNERSHIP AND SALE OF UNITS WILL DEPEND IN PART ON
THE UNITHOLDERS TAX CIRCUMSTANCES. EACH UNITHOLDER SHOULD THEREFORE CONSULT THE UNITHOLDERS TAX
ADVISOR ABOUT THE FEDERAL, STATE AND LOCAL TAX CONSEQUENCES TO THE UNITHOLDER OF THE OWNERSHIP OF
UNITS.
   17




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Summary of Certain Federal Income Tax Consequences
  Classification and Taxation of the
Trust
    
    The Trust is a Grantor Trust for
federal tax purposes and not an
association taxable as a
corporation. As a Grantor Trust,
the Trust is not subject to
federal income tax. There can be
no assurance that the IRS will not
challenge this treatment. The tax
treatment of the Trust and
Unitholders would be materially
different if the IRS were to
successfully challenge this
treatment.Taxation of Unitholders
    
    Each Unitholder is taxed directly
on his proportionate share of
income, deductions and credits of
the Trust attributable to the
Royalty Interests consistent with
each such Unitholders taxable
year and method of accounting and
without regard to the taxable year
or method of accounting employed
by the Trust.
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Income and Deductions
    
    The income of the Trust consists
primarily of a specified share of
the proceeds from the sale of coal
seam gas produced from the
Underlying Properties. During
2007, the Trust earned interest
income on funds held for
distribution and made adjustments
to the cash reserve maintained for
the payment of contingent and
future obligations of the Trust.
The deductions of the Trust
consist of severance taxes and
administrative expenses. In
addition, each Unitholder is
entitled to depletion deductions.
See Unitholders Depletion
Allowance below.Individuals may deduct
miscellaneous itemized
deductions (including, in
general, investment expenses) only
to the extent that such expenses
exceed 2 percent of the
individuals adjusted gross
income. Although there are
exceptions to the 2 percent
limitation, authority suggests
that no exceptions apply to
expenses passed through from a
Grantor Trust, like the Trust.Treatment of the Royalty Interests
    
    Each Royalty Interest is a
nonoperating economic interest in
an Underlying Property because it
is a right to a fixed percentage
of the gross proceeds from the
sale of gas as, if and when
produced from such properties, the
right endures for the economic
life of the burdened reserves and
the right is not required to bear
any cost of developing or
producing such gas.Unitholders Depletion Allowance
    
    Each Unitholder is entitled to
amortize the cost of the Units
through cost depletion over the
life of the Royalty Interests (or,
if greater, through percentage
depletion equal to 15 percent of
gross income). If any portion of
the Royalty Interests is treated
as a production payment or is not
treated as an economic interest,
however, a Unitholder will not be
entitled to depletion in respect
of such portion.
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Depletion Recapture
    
    If a taxpayer disposes of any
section 1254 property (certain
oil, gas, geothermal or other
mineral property), and if the
adjusted basis of such property
includes adjustments for
deductions for depletion under
Section 611 of the Code, the
taxpayer generally must recapture
the amount deducted for depletion
in ordinary income (to the extent
of gain realized on the
disposition of the property).
This depletion recapture rule
applies to any disposition of
property that was placed in
service by the taxpayer after
December 31, 1986. Detailed rules
set forth in Sections 1.1254-1
through 1.1254-6 of the United
States Treasury Regulations govern
dispositions of property after
March 13, 1995. The IRS will
likely take the position that a
Unitholder who purchases a Unit
subsequent to December 31, 1986,
must recapture depletion upon the
disposition of that Unit.Non-Passive Activity Income, Credits
and Loss
    
    The income, credits and expenses
of the Trust are not taken into
account in computing the passive
activity losses and income under
Section 469 of the Code for a
Unitholder who acquires and holds
Units as an investment and did not
acquire them in the ordinary
course of a trade or business.Tax Shelter Registration
    
    The Trust is registered as a tax
shelter, and its tax shelter
registration number is
94-277000355. Issuance of a tax
shelter registration number does
not indicate that the investment
in Units or the claimed tax
benefits have been reviewed,
examined or approved by the IRS.Unitholder Reporting Information
    
    The Trustee furnishes to
Unitholders tax information
concerning royalty income and
depletion and other relevant tax
matters on an annual basis.
Year-end tax information is
furnished to Unitholders no later
than March 15 of the following
year. See third paragraph under
Description of UnitsPeriodic
Reports.
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WHFIT Reporting Requirements
    
    The Trustee assumes that some
Trust Units are held by a
middleman, as such term is broadly
defined in U.S. Treasury
Regulations (and includes
custodians, nominees, certain
joint owners, and brokers holding
an interest for a custodian in
street name). Therefore, the
Trustee considers the Trust to be
a non-mortgage widely held fixed
investment trust (WHFIT) for
U.S. federal income tax purposes.
Bank of America, N.A., 901 Main
Street, 17th Floor, Dallas, Texas
75202, telephone number (214)
209-2400, is the representative of
the Trust that will provide tax
information beginning with the
2008 tax year in accordance with
applicable U.S. Treasury
Regulations governing the
information reporting requirements
of the Trust as a WHFIT.
 21




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ERISA CONSIDERATIONS
   
 STATE TAX CONSIDERATIONS
 THE FOLLOWING IS INTENDED AS A BRIEF SUMMARY OF CERTAIN INFORMATION REGARDING STATE INCOME
TAXES AND OTHER STATE TAX MATTERS AFFECTING THE TRUST AND UNITHOLDERS. UNITHOLDERS SHOULD
THEREFORE CONSULT THE UNITHOLDERS TAX ADVISOR REGARDING STATE INCOME TAX FILING AND COMPLIANCE
MATTERS.
 Alabama Income Tax
    22




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Alabama Business Privilege Tax
   Alabama Severance Taxes
  23




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Other Alabama Taxes
  
 REGULATION AND PRICES
 Regulation of Natural Gas
      24




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Environmental Regulation
    25




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Competition, Markets and Prices
     26




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Item 1A. Risk Factors
 Risks Related to the Oil and Gas Industry
 Crude oil and natural gas prices are volatile and fluctuate in response to a number of factors.
Lower prices could reduce the net proceeds payable to the Trust and Trust distributions.
  
    
    political conditions in major oil producing regions, especially the Middle East;
    
    worldwide economic conditions;
    
    weather conditions;
    
    the supply and price of domestic and foreign crude oil or natural gas;
    
    the level of consumer demand;
    
    the price and availability of alternative fuels;
    
    the proximity to, and capacity of, transportation facilities;
    
    the effect of worldwide energy conservation measures; and
    
    the nature and extent of governmental regulation and taxation.
  Reserve estimates depend on many assumptions that may prove to be inaccurate, which could cause
both estimated reserves and estimated future net revenues to be too high, leading to write-downs
of estimated reserves.
   
    
    historical production from the area compared with production rates from similar
producing areas;
 28




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
    
    the effects of governmental regulation;
    
    assumptions about future commodity prices, production and development costs, taxes, and
capital expenditures;
    
    the availability of enhanced recovery techniques; and
    
    relationships with landowners, working interest partners, pipeline companies and others.
  Terrorism and continued hostilities in the Middle East could decrease Trust distributions or the
market price of the Units.
  Risks Related to the Trust and Ownership of the Units
 The assets of the Trust are depleting assets and, if the operators developing the Underlying
Properties do not perform additional development projects, the assets may deplete faster than
expected. Eventually, the assets of the Trust will cease to produce in commercial quantities and
the Trust will cease to receive proceeds from such assets. In addition, a reduction in depletion
tax benefits may reduce the market value of the Units.
   29




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Unitholders and the Trustee have no influence over the operations on, or future development of,
the Underlying Properties.
  The market price for the Units may not reflect the value of the Royalty Interests held by the
Trust.
  The Company may transfer its interest in any Underlying Property without the consent of the
Trust or the Unitholders.
  The obligations of HighMount Alabama to pay certain amounts if they are not paid by the Company
may terminate upon a sale by the Company of its interests in the Underlying Properties or a sale
by HighMount Alabama of its equity ownership interest in the Company.
 30




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The Company may abandon the Underlying Properties, thereby terminating the related Royalty
Interest payable to the Trust.
  The Royalty Interests can be sold and the Trust would be terminated.
  Unitholders have limited voting rights.
  Financial information of the Trust is not prepared in accordance with GAAP.
  31




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Unitholders May Lack Limited Liability.
  
 Item 1B. Unresolved Staff Comments
 32




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Item 2. Properties
 
 THE ROYALTY INTERESTS
   The Underlying Properties
 Black Warrior Basin
    33




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Well Count and Acreage Summary.
 Number of Wells
    
    AcresGross
    
    Net
    
    Gross
    
    NetCompany Interests
    
    
    532
    
    
    
    519
    
    
    
    34,212
    
    
    
    33,363
 Royalty Interests, Company Interests and Retained Interests.
  Water Removal and Disposal.
 34




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Curtailments.
 Federal Lands.
  Additional Wells.
   35




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The Royalty Interests
 Summary of Conveyance.
 Expenses Borne by Royalty Interests.
 Operating Standard.
 Infill Drilling.
 Pratt Recompletions.
 Right to Take In-Kind.
 Pooling and Unitization.
 Right to Assign Company Interests.
 Sale or Assignment of Royalty Interests.
 Books and Records.
 Computation and Payment.
 36




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Reserve Estimate
 Reserve Estimate.
 As ofRoyalty Interests
    
    January 1, 2008Net Proved Natural Gas Reserves (MMcf)(a):Developed Producing
    
    
    22,597,416Estimated Future Net Revenues (in thousands) (a)(b):2008
    
    
    17,739,6462009
    
    
    16,052,3742010
    
    
    14,073,9692011
    
    
    12,352,2882012
    
    
    10,843,028Thereafter
    
    
    70,107,429Total
    
    $
    141,168,734Total Discounted at 10 Percent
    
    $
    84,848,680
 
 (a)
    
    The estimates of reserves and future net revenues summarized in this table are based upon a
price of $7.224 per Mcf, which represented the market price for gas in their fields as of
December 31, 2007. This price may not be the most representative price for estimating
reserves or related future net revenues data.(b)
    
    Estimated future net revenues are defined as the total revenues attributable to the Royalty
Interests for gas production less the relevant share of production, property and related taxes
(including severance taxes). Overhead costs have not been included, nor have the 37




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effects of depreciation, depletion and federal income tax. Estimated future net revenues
and discounted estimated future net revenues are not intended and should not be interpreted
as representing the fair market value for the estimated reserves.       Miscellaneous.
 38




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Natural Gas Sales Prices and Production
  Year ended December 31,2007
    
    2006
    
    2005Production attributable to the Royalty Interests (Bcf)
    
    
    3.3
    
    
    
    3.7
    
    
    
    4.6Weighted average property, production and related taxes (per Mcf)
    
    
    .42
    
    
    $
    0.44
    
    
    $
    0.42Average Contract Price (per Mcf)
    
    $
    6.97
    
    
    $
    9.12
    
    
    $
    6.99
 Gas Purchase Agreement
   39




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Operation of Properties
 No Control by Trust.
  Operating Agreement.
 Sale and Abandonment of Underlying Properties
   HighMount Alabamas Assurances
  40




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Title to Properties
   
 Item 3. Legal Proceedings.
 Southwest Royalties, Inc. v. Dominion Black Warrior Basin, Inc.,
 41




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et al
 
 Item 4. Submission of Matters to a Vote of Security Holders.
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PART II.
 
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities.
 Price
    
    DistributionHigh
    
    Low
    
    per Unit2007First Quarter
    
    $
    28.00
    
    
    $
    22.50
    
    
    $
    0.690690Second Quarter
    
    $
    27.70
    
    
    $
    24.00
    
    
    
    .646984Third Quarter
    
    $
    26.19
    
    
    $
    19.27
    
    
    
    .735980Fourth Quarter
    
    $
    24.00
    
    
    $
    17.20
    
    
    
    .6033372006First Quarter
    
    $
    51.10
    
    
    $
    38.00
    
    
    $
    1.510931Second Quarter
    
    $
    46.00
    
    
    $
    36.20
    
    
    
    .971014Third Quarter
    
    $
    39.40
    
    
    $
    27.12
    
    
    
    .703514Fourth Quarter
    
    $
    31.50
    
    
    $
    26.00
    
    
    
    .693086
   
 Item 6. Selected Financial Data.
 Year Ended December 31,2007
    
    2006
    
    2005
    
    2004
    
    2003Royalty Income
    
    $
    21,962,082
    
    
    $
    31,403,042
    
    
    $
    31,918,416
    
    
    $
    24,340,315
    
    
    $
    20,746,843Distributable Income
    
    $
    20,912,169
    
    
    $
    30,467,067
    
    
    $
    31,029,034
    
    
    $
    23,449,768
    
    
    $
    19,835,642Distributable Income per Unit
    
    $
    2.66
    
    
    $
    3.88
    
    
    $
    3.95
    
    
    $
    2.99
    
    
    $
    2.53Distributions per Unit
    
    $
    2.68
    
    
    $
    3.88
    
    
    $
    3.95
    
    
    $
    2.99
    
    
    $
    2.53Total Assets, December 31
    
    $
    26,676,808
    
    
    $
    30,692,809
    
    
    $
    34,838,807
    
    
    $
    39,946,530
    
    
    $
    44,820,393Total Corpus, December 31
    
    $
    26,353,024
    
    
    $
    30,444,631
    
    
    $
    34,582,715
    
    
    $
    39,819,581
    
    
    $
    44,689,580
 43




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Item 7. Trustees Discussion and Analysis of Financial Condition and Results of Operations.
     44




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For 12 Months EndedSeptember 30,2007
    
    2006
    
    2005Production (Bcf)(1)
    
    
    3.402
    
    
    
    3.665
    
    
    
    4.820Production (MMBtu)(2)
    
    
    3.415
    
    
    
    3.692
    
    
    
    4.860Average Contract Price Received ($/MMBtu)
    
    $
    6.84
    
    
    $
    8.98
    
    
    $
    6.99Average Index Price ($/MMBtu)
    
    $
    7.07
    
    
    $
    9.22
    
    
    $
    7.13
 
 (1)
    
    Billion cubic feet of natural gas.(2)
    
    Trillion British Thermal Units.   45




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Critical Accounting Policies and Estimates
  1. New Accounting Pronouncements
 Accounting for Certain Hybrid Financial
Instruments  an amendment of FASB Statements No. 133 Accounting for Derivative Instruments and No.
140 Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities
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Accounting for Servicing of Financial Assets  an
amendment of FASB Statements No. 140 Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities
 Accounting for
Uncertainty in Income Taxes Accounting for Income
Taxes
 Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities-Including an amendment of FASB Statement No. 115
 Business Combinations
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Noncontrolling Interests in Consolidated
Financial Statementsan amendment of Accounting Research Bulletin No. 51
 2. Basis of Accounting
  
    
    Royalty income and interest income are recorded in the period in which amounts are received
by the Trust rather than in the period of production and accrual, respectively.
    
    General and administrative expenses are recorded based on liabilities paid and cash
reserves established out of cash received.
    
    Amortization of the Royalty Interests is calculated on a unit-of-production basis and
charged directly to Trust corpus based upon when revenues are received.
    
    Distributions to Unitholders are recorded when declared by the Trustee (see Financial
Statements and Supplementary Data  Notes to Financial Statements  Note 5).
  48




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3. Impairment
  4. Revenue Recognition
  5. Reserve Disclosure
 Disclosures About Oil and Gas Producing Activities
  6. Contingencies
  Southwest Royalties, Inc. v. Dominion Black Warrior Basin, Inc., et al
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Liquidity and Capital Resources
  Off-Balance Sheet Arrangements
  50




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Tabular Disclosure of Contractual Obligations.
 Payments Due by PeriodLess than 1
    
    1 - 3
    
    3-5
    
    More thanContractual Obligations
    
    Total
    
    Year
    
    Years
    
    Years
    
    5 YearsDistribution declared
subsequent to year end
    
    $
    5,114,275
    
    
    $
    5,114,275
    
    
    
    0
    
    
    
    0
    
    
    
    0Total
    
    $
    5,114,275
    
    
    $
    5,114,275
    
    
    
    0
    
    
    
    0
    
    
    
    0
  Forward-Looking Statements
  Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
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Item 8. Financial Statements and Supplementary Data.
 
  
     Internal ControlIntegrated Framework
 DELOITTE & TOUCHE LLP
 
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DOMINION RESOURCES BLACK WARRIOR TRUST
 FINANCIAL STATEMENTS
 Statements of Assets, Liabilities and Trust Corpus
 December 31,2007
    
    
    2006ASSETSCash and cash equivalents
    
    $
    176,204
    
    
    $
    202,808Royalty interests in gas properties (less accumulated
amortization of $129,316,896 and
$125,327,500, respectively)
    
    
    26,500,604
    
    
    
    30,490,001Total Assets
    
    $
    26,676,808
    
    
    $
    30,692,809LIABILITIES AND TRUST CORPUSTrust expenses payable
    
    $
    323,784
    
    
    $
    248,178Trust corpus (7,850,000 units of beneficial interest
authorized, issued and outstanding)
    
    
    26,353,024
    
    
    
    30,444,631Total Liabilities and Trust Corpus
    
    $
    26,676,808
    
    
    $
    30,692,809
 Statements of Distributable Income
 Year Ended December 31,2007
    
    
    2006
    
    
    2005Royalty income
    
    $
    21,962,082
    
    
    $
    31,403,042
    
    
    $
    31,918,416Interest income
    
    
    70,118
    
    
    
    92,771
    
    
    
    64,12822,032,200
    
    
    
    31,495,813
    
    
    
    31,982,544General and administrative expenses
    
    
    (1,120,031
    )
    
    
    (1,028,746
    )
    
    
    (953,510
    )Distributable income
    
    $
    20,912,169
    
    
    $
    30,467,067
    
    
    $
    31,029,034Distributable income per unit
(7,850,000 units)
    
    $
    2.66
    
    
    $
    3.88
    
    
    $
    3.95Distributions per unit
    
    $
    2.68
    
    
    $
    3.88
    
    
    $
    3.95
 Statements of Changes in Trust Corpus
 Year Ended December 31,2007
    
    
    2006
    
    
    2005Trust corpus, beginning of period
    
    $
    30,444,631
    
    
    $
    34,582,715
    
    
    $
    39,819,581Amortization of Royalty Interests
    
    
    (3,989,396
    )
    
    
    (4,158,573
    )
    
    
    (5,171,366
    )Distributable income
    
    
    20,912,169
    
    
    
    30,467,067
    
    
    
    31,029,034Distributions to Unitholders
    
    
    (21,014,380
    )
    
    
    (30,446,578
    )
    
    
    (31,094,534
    )Trust corpus, end of period
    
    $
    26,353,024
    
    
    $
    30,444,631
    
    
    $
    34,582,715
  53




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Notes to Financial Statements
Years Ended December 31, 2007, 2006 and 2005
 1. Trust Organization and Provisions
      54




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2. Basis of Accounting
  
    
    Royalty income and interest income are recorded in the period in which amounts are received
by the Trust rather than in the period of production and accrual, respectively.
    
    General and administrative expenses are recorded based on liabilities paid and cash
reserves established out of cash received.
    
    Amortization of the Royalty Interests is calculated on a unit-of-production basis and
charged directly to Trust corpus based upon when revenues are received.
    
    Distributions to Unitholders are recorded when declared by the Trustee (see Note 5).
  55




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##### Table of Contents



Use of Estimates
  Impairment
  Distributable Income Per Unit
  New Accounting Pronouncements
 Accounting for Certain Hybrid Financial
Instruments  an amendment of FASB Statements No. 133 Accounting for Derivative Instruments and No.
140 Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities
 Accounting for Servicing of Financial Assets  an
amendment of FASB Statements No. 140 Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities
 Accounting for
Uncertainty in Income Taxes Accounting for Income
 56




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##### Table of Contents



Taxes
 Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities-Including an amendment of FASB Statement No. 115
 Business Combinations
 Noncontrolling Interests in Consolidated
Financial Statementsan amendment of Accounting Research Bulletin No. 51
 57




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##### Table of Contents



3. Federal Income Taxes
    4. Related Party Transactions
   5. Distributions to Unitholders
  58




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##### Table of Contents



6. Subsequent Events
  Quarterly
    
    
    
    
    
    DistributionRecord Date
    
    Payment Date
    
    per UnitFebruary 29, 2008
    
    March 10, 2008
    
    $
    0.651500
 7. Quarterly Financial Data (Unaudited)
  Royalty
    
    
    Distributable
    
    
    DistributableCalendar Quarter
    
    Income
    
    
    Income
    
    
    Income per Unit2007First
    
    $
    5,706
    
    
    $
    5,414
    
    
    $
    0.69Second
    
    
    5,408
    
    
    
    5,109
    
    
    
    0.65Third
    
    
    6,003
    
    
    
    5,814
    
    
    
    0.74Fourth
    
    
    4,845
    
    
    
    4,575
    
    
    
    0.58$
    21,962
    
    
    $
    20,912
    
    
    $
    2.66
 59




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##### Table of Contents



Royalty
    
    
    Distributable
    
    
    DistributableCalendar Quarter
    
    Income
    
    
    Income
    
    
    Income per Unit2006First
    
    $
    12,115
    
    
    $
    11,848
    
    
    $
    1.51Second
    
    
    7,929
    
    
    
    7,651
    
    
    
    0.98Third
    
    
    5,722
    
    
    
    5,545
    
    
    
    0.71Fourth
    
    
    5,637
    
    
    
    5,423
    
    
    
    0.68$
    31,403
    
    
    $
    30,467
    
    
    $
    3.88
  Royalty income
    
    
    4,845Interest income
    
    
    16General and administrative expenses
    
    
    (286
    )Distributable income
    
    
    4,575Distributable income per Unit
    
    $
    .58Distributions per Unit
    
    $
    .60
  8. Supplemental Gas Disclosure (Unaudited)
    60




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##### Table of Contents



Proved developed reserves at January 1, 2005
    
    
    39,101Revisions of previous estimates
    
    
    (1,990
    )Production (MMcf)
    
    
    (4,820
    )Proved developed reserves at December 31, 2005
    
    
    32,291Revisions of previous estimates
    
    
    (1,751
    )Production (MMcf)
    
    
    (3,665
    )Proved developed reserves at December 31, 2006
    
    
    26,875Revisions of previous estimates
    
    
    (966
    )Production (MMcf)
    
    
    (3,312
    )Proved developed reserves at December 31, 2007
    
    
    22,597
    2007
    
    
    2006
    
    
    2005Future cash inflows
    
    $
    150,179
    
    
    $
    147,119
    
    
    $
    293,769Future severance taxes
    
    
    (9,010
    )
    
    
    (8,827
    )
    
    
    (17,626
    )Future net cash flows
    
    
    141,169
    
    
    
    138,292
    
    
    
    276,14310% annual discount for
estimated timing of cash
flow
    
    
    (56,320
    )
    
    
    (53,606
    )
    
    
    (119,146
    )Standardized measure of
discounted future net cash
flows
    
    $
    84,849
    
    
    $
    84,686
    
    
    $
    156,997
 61




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##### Table of Contents



2007
    
    
    2006
    
    
    2005Balance at beginning of period
    
    $
    84,686
    
    
    $
    156,997
    
    
    $
    113,440Increase (decrease) due to:Royalty income, net of taxes
    
    
    (21,962
    )
    
    
    (31,403
    )
    
    
    (31,918
    )Changes in prices
    
    
    22,619
    
    
    
    (77,654
    )
    
    
    88,521Changes in estimated volumes
    
    
    (8,962
    )
    
    
    21,047
    
    
    
    (24,390
    )Accretion of discount
    
    
    8,469
    
    
    
    15,700
    
    
    
    11,344Balance at December 31
    
    $
    84,849
    
    
    $
    84,686
    
    
    $
    156,997
 9. Gas Purchase Agreement
   62




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##### Table of Contents



Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
 
 Item 9A. Controls and Procedures.
 Disclosure Controls and Procedures
  Changes in Internal Control Over Financial Reporting
  Trustees Report on Internal Control Over Financial Reporting
 Internal Control-Integrated Framework Internal Control-Integrated Framework
  
 Internal Control 
Integrated Framework
    63




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##### Table of Contents



Internal Control
 Integrated Framework
  DELOITTE & TOUCHE LLP
 
 64




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##### Table of Contents



Item 9B. Other Information.
 65




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##### Table of Contents



PART III.
 
 Item 10. Directors and Executive Officers of the Registrant. Directors and Executive Officers
 Audit Committee and Nominating Committee.
 Compliance with Section 16(a) of the Exchange Act
 Code of Ethics.
 
 Item 11. Executive Compensation.
 Compensation Committee.
  Ongoing Administrative Expenses.
 Compensation of the Trustee.
 66




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##### Table of Contents



Compensation of the Transfer Agent.
 Fees to HighMount Alabama.
 
 Item 12. Security Ownership of Certain Beneficial Owners and Management.
 Security Ownership of Certain Beneficial Owners.
 Security Ownership of Management.
 Changes in Control.
 Securities Authorized for Issuance Under Equity Compensation Plans
 
 Item 13. Certain Relationships and Related Transactions.
 Administrative Services Agreement
   67




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##### Table of Contents



HighMount Alabamas Conditional Right of Repurchase
  Potential Conflicts of Interest
  Obligations of Company Interests Owner may exceed its share of distributions and tax credits.
 Sale or abandonment of Underlying Properties may terminate assurances.
 HighMount Alabama may profit from contracts with the Trust.
 68




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##### Table of Contents



Item 14. Principal Accounting Fees and Services.
  2007
    
    2006Audit Fees
    
    $
    147,500
    
    
    $
    125,375Audit-related fees
    
    
    
    
    
    
    Tax fees
    
    
    
    
    
    
    All other fees
    
    
    
    
    
    
    $
    147,500
    
    
    $
    125,375
  
 PART IV.
 
 Item 15. Exhibits, Financial Statement Schedules.
 Financial Statements (included in Item 8 of this report)
      Financial Statement Schedules
  69




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##### Table of Contents



Exhibits
 No.
    
    
    
    Exhibit3.1
    
    
    
    Trust Agreement of Dominion Resources Black Warrior Trust dated as of May
31, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion
Resources, Inc., Mellon Bank (DE) National Association and NationsBank,
N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 3.1 to
Dominion Resources, Inc.s Registration Statement* on Form S-3 (No.
33-53513), and incorporated herein by reference).3.2
    
    
    
    First Amendment of Trust Agreement of Dominion Resources Black Warrior
Trust dated as of June 27, 1994, by and among Dominion Black Warrior Basin,
Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and
NationsBank, N.A. (as successor to NationsBank of Texas, N.A.) (filed as
Exhibit 3.2 to the Registrants Form 10-Q for the quarter ended June 30,
1994 and incorporated herein by reference).10.1
    
    
    
    Overriding Royalty Conveyance dated as of June 28, 1994, from Dominion
Black Warrior Basin, Inc. to Dominion Resources Black Warrior Trust (filed
as Exhibit 10.1 to the Registrants Form 10-Q for the quarter ended June
30, 1994 and incorporated herein by reference).10.2
    
    
    
    Administrative Services Agreement dated as of June 1, 1994, by and between
Dominion Resources, Inc. and Dominion Resources Black Warrior Trust (filed
as Exhibit 10.2 to the Registrants Form 10-Q for the quarter ended June
30, 1994 and incorporated herein by reference).10.3
    
    
    
    Amendment to and Ratification of Overriding Royalty Conveyance dated as of
November 20, 1994, among Dominion Black Warrior Basin, Inc., NationsBank,
N.A. (as successor to NationsBank of Texas, N.A.), and Mellon Bank (DE)
National Association (filed as Exhibit 10.3 to the Registrants Form 10-K
for the year ended December 31, 1994 and incorporated herein by reference).10.4
    
    
    
    Gas Purchase Agreement, dated as of May 3, 1994, between Sonat Marketing
and the Company (filed as Exhibit 10.2 to Dominion Resources, Inc.s
Registration Statement* on Form S-3 (No. 33-53513), and incorporated herein
by reference).10.5
    
    
    
    Amendment to Gas Purchase Agreement dated May 16, 1996, between Sonat
Marketing and the Company (filed as Exhibit 10.1 to the Registrants Form
10-Q for the quarter ended June 30, 1996 and incorporated herein by
reference).10.6
    
    
    
    Amendment to Gas Purchase Agreement dated April 9, 1998, between Sonat
Marketing and the Company (filed as Exhibit 10.6 to the Registrants Form
10-K for the year ended December 31, 1998 and incorporated herein by
reference).
 70




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##### Table of Contents



No.
    
    
    
    Exhibit10.7
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 1999, between Sonat
Marketing and the Company (filed as Exhibit 10.7 to the Registrants Form
10-K for the year ended December 31, 1999 and incorporated herein by
reference).10.8
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 2000, between El Paso
Merchant Energy-Gas, L.P., as successor to Sonat Marketing Company, and the
Company (filed as an exhibit to the Registrants Form 10-Q for the quarter
ended September 30, 2000 and incorporated herein by reference).10.9
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 2001, between El Paso
Merchant Energy-Gas, L.P., as successor to Sonat Marketing Company, and the
Company (filed as an exhibit to the Registrants Form 10-Q for the quarter
ended September 30, 2001 and incorporated herein by reference).10.10
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 2002 between El Paso
Merchant Energy-Gas, L.P., as successor to Sonat Marketing Company, and the
Company (filed as an exhibit to the Registrants Form 10-Q for the quarter
ended September 30, 2002 and incorporated herein by reference).10.11
    
    
    
    Assignment and Assumption Agreement, dated as of July 31, 2007, between
Dominion Resources and HighMount Exploration & Production Alabama LLC
(filed as an exhibit to the Registrants Form 10-Q for the quarter ended
June 30, 2007 and incorporated herein by reference).23.1
    
    
    
    Consent of Ralph E. Davis Associates, Inc., independent petroleum engineers.31.1
    
    
    
    Certification required by Rule 13a-14(a)/15d-14(a).32.1
    
    
    
    Certification required by Rule 13a-14(b)/15d-14(b) and Section 906 of the
Sarbanes Oxley Act of 2002.99.1
    
    
    
    The information under the sections captioned Federal Income Tax
Consequences and ERISA Considerations of the Prospectus dated June 21,
1994, which constitutes a part of the Registration Statement on Form S-3 of
Dominion Resources, Inc.* (Registration No. 33-53513) and is incorporated
herein by reference.99.2
    
    
    
    Summary of Reserve Report, dated February 27, 2007, on the estimated
reserves, estimated future net revenues and the discounted estimated future
net revenues attributable to the Royalty Interests as of January 1, 2007,
prepared by Ralph E. Davis & Associates Petroleum Engineers, independent
petroleum engineers.
 
 *
    
    On its own behalf and as sponsor of the Dominion Resources Black Warrior Trust 71




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##### Table of Contents



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.
 Dominion Resources Black Warrior TrustBy:
    Bank of America, N.A., TrusteeBy:
    /s/ Ron E. HooperRon E. HooperSenior Vice President and Administrator  (The Registrant has no directors or executive officers.)
 72




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##### Table of Contents



No.
    
    
    
    Exhibit3.1
    
    
    
    Trust Agreement of Dominion Resources Black Warrior Trust dated as of May
31, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion
Resources, Inc., Mellon Bank (DE) National Association and NationsBank,
N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 3.1 to
Dominion Resources, Inc.s Registration Statement* on Form S-3 (No.
33-53513), and incorporated herein by reference).3.2
    
    
    
    First Amendment of Trust Agreement of Dominion Resources Black Warrior
Trust dated as of June 27, 1994, by and among Dominion Black Warrior Basin,
Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and
NationsBank, N.A. (as successor to NationsBank of Texas, N.A.) (filed as
Exhibit 3.2 to the Registrants Form 10-Q for the quarter ended June 30,
1994 and incorporated herein by reference).10.1
    
    
    
    Overriding Royalty Conveyance dated as of June 28, 1994, from Dominion
Black Warrior Basin, Inc. to Dominion Resources Black Warrior Trust (filed
as Exhibit 10.1 to the Registrants Form 10-Q for the quarter ended June
30, 1994 and incorporated herein by reference).10.2
    
    
    
    Administrative Services Agreement dated as of June 1, 1994, by and between
Dominion Resources, Inc. and Dominion Resources Black Warrior Trust (filed
as Exhibit 10.2 to the Registrants Form 10-Q for the quarter ended June
30, 1994 and incorporated herein by reference).10.3
    
    
    
    Amendment to and Ratification of Overriding Royalty Conveyance dated as of
November 20, 1994, among Dominion Black Warrior Basin, Inc., NationsBank,
N.A. (as successor to NationsBank of Texas, N.A.), and Mellon Bank (DE)
National Association (filed as Exhibit 10.3 to the Registrants Form 10-K
for the year ended December 31, 1994 and incorporated herein by reference).10.4
    
    
    
    Gas Purchase Agreement, dated as of May 3, 1994, between Sonat Marketing
and the Company (filed as Exhibit 10.2 to Dominion Resources, Inc.s
Registration Statement* on Form S-3 (No. 33-53513), and incorporated herein
by reference).10.5
    
    
    
    Amendment to Gas Purchase Agreement dated May 16, 1996, between Sonat
Marketing and the Company (filed as Exhibit 10.1 to the Registrants Form
10-Q for the quarter ended June 30, 1996 and incorporated herein by
reference).10.6
    
    
    
    Amendment to Gas Purchase Agreement dated April 9, 1998, between Sonat
Marketing and the Company (filed as Exhibit 10.6 to the Registrants Form
10-K for the year ended December 31, 1998 and incorporated herein by
reference).




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##### Table of Contents



No.
    
    
    
    Exhibit10.7
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 1999, between Sonat
Marketing and the Company (filed as Exhibit 10.7 to the Registrants Form
10-K for the year ended December 31, 1999 and incorporated herein by
reference).10.8
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 2000, between El Paso
Merchant Energy-Gas, L.P., as successor to Sonat Marketing Company, and the
Company (filed as an exhibit to the Registrants Form 10-Q for the quarter
ended September 30, 2000 and incorporated herein by reference).10.9
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 2001, between El Paso
Merchant Energy-Gas, L.P., as successor to Sonat Marketing Company, and the
Company (filed as an exhibit to the Registrants Form 10-Q for the quarter
ended September 30, 2001 and incorporated herein by reference).10.10
    
    
    
    Amendment to Gas Purchase Agreement dated July 1, 2002 between El Paso
Merchant Energy-Gas, L.P., as successor to Sonat Marketing Company, and the
Company (filed as an exhibit to the Registrants Form 10-Q for the quarter
ended September 30, 2002 and incorporated herein by reference).10.11
    
    
    
    Assignment and Assumption Agreement, dated as of July 31, 2007, between
Dominion Resources and HighMount Exploration & Production Alabama LLC
(filed as an exhibit to the Registrants Form 10-Q for the quarter ended
June 30, 2007 and incorporated herein by reference).23.1
    
    
    
    Consent of Ralph E. Davis Associates, Inc., independent petroleum engineers.31.1
    
    
    
    Certification required by Rule 13a-14(a)/15d-14(a).32.1
    
    
    
    Certification required by Rule 13a-14(b)/15d-14(b) and Section 906 of the
Sarbanes Oxley Act of 2002.99.1
    
    
    
    The information under the sections captioned Federal Income Tax
Consequences and ERISA Considerations of the Prospectus dated June 21,
1994, which constitutes a part of the Registration Statement on Form S-3 of
Dominion Resources, Inc.* (Registration No. 33-53513) and is incorporated
herein by reference.99.2
    
    
    
    Summary of Reserve Report, dated February 27, 2007, on the estimated
reserves, estimated future net revenues and the discounted estimated future
net revenues attributable to the Royalty Interests as of January 1, 2007,
prepared by Ralph E. Davis & Associates Petroleum Engineers, independent
petroleum engineers.
 
 *
    
    On its own behalf and as sponsor of the Dominion Resources Black Warrior Trust