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UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q

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

For the quarterly period ended September 30, 2003

Commission File No. 0-10810

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 No.)


Trust DivisionU.S. Bank National Association1700 Farnam StreetOmaha, Nebraska
      
      68102(Address of Principal Executive
        Offices)
      
      (Zip Code)


(402) 348-6000
(Registrants Telephone Number, Including Area Code)

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

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act) Yes o      No x

There were 12,633,432 Units of Beneficial Interest outstanding as of
November 1, 2003.





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KIEWIT ROYALTY TRUST

FORM 10-Q

For the Quarter Ended September 30, 2003

INDEX

Part I.     Financial InformationPageItem 1.
    
    Financial Statements
    
    3Item 2.
    
    Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    6Item 3.
    
    Quantitative and Qualitative Disclosures
About Market Risk
    
    8Item 4.
    
    Controls and Procedures
    
    8Part II.     Other InformationItem 1.
    
    Legal Proceedings
    
    8Item 2.
    
    Changes in Securities and Use of Proceeds
    
    8Item 3.
    
    Defaults Upon Senior Securities
    
    8Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    8Item 5.
    
    Other Information
    
    9Item 6.
    
    Exhibits and Reports on Form 8-K
    
    9Signature
    
    10


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PART I  FINANCIAL INFORMATION

Item 1. Financial
Statements.

KIEWIT ROYALTY TRUST
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUSunaudited as of September 30, 2003 and audited as of December 31, 2002

ASSETS
    
    September 30, 2003
    
    December 31, 2002(unaudited)Cash Equivalents
    
    $
    1,604,223
    
    
    $
    189,611Trust reserves
    
    
    783,317
    
    
    
    783,317Royalty and overriding
royalty interests in coal
leases
    
    
    167,817
    
    
    
    167,817Less accumulated amortization
    
    
    (138,791
    )
    
    
    (137,500
    )Net royalty and overriding
royalty interests in coal leases
    
    
    29,026
    
    
    
    30,317Total Assets
    
    $
    2,416,566
    
    
    $
    1,003,245LIABILITIES AND TRUST CORPUSDistributions payable to unit holders
    
    $
    1,604,223
    
    
    $
    189,611Trust reserves payable
    
    
    783,317
    
    
    
    783,317Trust corpus: 12,633,432 units of
beneficial interest authorized and
outstanding
    
    
    29,026
    
    
    
    30,317Total Liabilities and Trust Corpus
    
    $
    2,416,566
    
    
    $
    1,003,245


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

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KIEWIT ROYALTY TRUST
STATEMENTS OF DISTRIBUTABLE INCOME
(unaudited)

Three Months Ended September 30
    
    Nine Months Ended September 302003
    
    2002
    
    2003
    
    2002Royalty income
    
    $
    1,614,880
    
    
    $
    2,195,813
    
    
    $
    3,168,142
    
    
    $
    4,472,388Interest income
    
    
    4,183
    
    
    
    8,499
    
    
    
    11,964
    
    
    
    22,804Trust expenses
    
    
    (14,840
    )
    
    
    (18,886
    )
    
    
    (85,722
    )
    
    
    (90,672
    )Distributable income
    
    $
    1,604,223
    
    
    $
    2,185,426
    
    
    $
    3,094,384
    
    
    $
    4,404,520Distributable
income per unit
    
    $
    0.1269824
    
    
    $
    0.1729875
    
    
    $
    0.2449361
    
    
    $
    0.3486400


STATEMENTS OF CHANGES IN TRUST CORPUS
(unaudited)

Nine Months Ended September 302003
    
    2002Trust corpus as of January 1
    
    $
    30,317
    
    
    $
    37,386Amortization of royalty interests
    
    
    (1,291
    )
    
    
    (3,568
    )Distributable income
    
    
    3,094,384
    
    
    
    4,404,520Distributions to unit holders
    
    
    (3,094,384
    )
    
    
    (4,404,520
    )Trust corpus as of September 30
    
    $
    29,026
    
    
    $
    33,818


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

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KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
as of September 30, 2003 and December 31, 2002

Basis of Presentation

The accompanying financial statements have been prepared in accordance
with the instructions for Form 10-Q and do not necessarily include all of the
information and footnotes required by accounting principles generally accepted
in the United States of America for complete financial statements. In the
Trustees opinion, all adjustments necessary for a fair presentation have been
included. For further information, refer to the financial statements and
footnotes included in the Trusts annual report on Form 10-K for the year ended
December 31, 2002.

Summary of Significant Accounting Policies

(a) Basis of Accounting:

The accompanying unaudited financial statements have been prepared on the
following basis:

(1) Royalty income is recorded on a cash receipt basis.

(2) Trust administration expenses are recorded in the month in which
they are paid.

(3) Amortization of the net royalty and overriding royalty
interests, which is calculated on a units-of-production basis, is
charged directly to            trust corpus since such amount does not affect
distributable income.

(4) Royalty reserves will be recognized upon settlement of
litigation.

The preparation of financial statements requires estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.

While these statements differ from financial statements prepared in
accordance with accounting principles generally accepted in the United States
of America, the cash basis of reporting revenues is considered to be the most
meaningful because Distributions to Unit Holders are based on net cash
receipts.

(b) Cash Equivalents:

The Trust considers all highly liquid financial instruments with
original maturities of 3 months or less when purchased to be cash
equivalents.

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Item 2. Managements Discussion
  and Analysis of Financial Condition and Results of Operations.

a. Material
  Changes in Financial Condition.

Kiewit
  Royalty Trust (the Trust) is a royalty trust with royalty and overriding
  royalty interests in certain coal leases. The Trust was formed for the purposes
  of (1) administering the income received from such coal leases and (2) distributing
  such income (together with interest earned thereon less payment of or provision
  for obligations) to the holders of the Units of Beneficial Interest.

b. Material
  Changes in Results of Operations.

During
  the three and nine months ended September 30, 2003, the Trust received
  a total of $1,614,880 and $3,168,142, respectively, of royalty and overriding
  royalty payments. The following schedule reflects the royalty and overriding
  royalty payments received by the Trust in respect of leases at the following
  mines:

Three Months Ended September 30
    
    Nine Months Ended September 30Mine
    
    2003
    
    2002
    
    2003
    
    2002Decker
    
    $
    1,003,493
    
    
    $
    1,394,848
    
    
    $
    2,506,755
    
    
    $
    3,621,423Big Horn
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Spring Creek
    
    
    611,387
    
    
    
    800,965
    
    
    
    661,387
    
    
    
    850,965Totals:
    
    $
    1,614,880
    
    
    $
    2,195,813
    
    
    $
    3,168,142
    
    
    $
    4,472,388


> i. Decker
>     Mine.

Royalty
  and overriding royalty amounts received by the Trust from the Decker Mine decreased
  to $2,506,755 during the first nine months of 2003 as compared to $3,621,423
  received during the same period in 2002. For the third quarter of 2003, the
  payments received from the Decker Mine decreased to $1,003,493 compared to $1,394,848
  received during the same period in 2002. These changes in royalty and overriding
  royalty amounts received were due to changes in the relative amounts of coal
  mined under leases bearing high and low overriding royalty rates per ton, which
  are a normal result of the execution of a mining plan encompassing several coal
  leases bearing different royalty rates.

> ii. Big
>     Horn Mine.

No
  royalties were received from the Big Horn Mine during the first nine months
  of 2003 or 2002. The Big Horn Mine has reached the end of its production cycle
  and it is foreseen that the Trust will receive no further payments deriving
  from coal production from the Big Horn Mine.

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> iii. Spring
>     Creek Mine.

Royalty
  and overriding royalty amounts received by the Trust from the Spring Creek Mine
  decreased to $661,387 during the first nine months of 2003 as compared to $850,965
  received during the same period in 2002. For the third quarter of 2003, the
  payments received by the Trust from the Spring Creek Mine decreased to $611,387
  as compared to $800,965 received during the same quarter in 2002. These changes
  in royalty and overriding royalty amounts received were due to changes in the
  relative amounts of coal mined under leases bearing high and low overriding
  royalty rates per ton, which are a normal result of the execution of a mining
  plan encompassing several coal leases bearing different royalty rates. Although
  royalties with respect to this mine are typically paid by the mine operators
  on an annual basis during the second half of a calendar year, the Spring Creek
  Mine made a $50,000 payment immediately prior to the end of the second quarter
  of 2003 and 2002.

> iv. Trust
>     Expenses.

Trust
  expenses decreased to $85,722 in the first nine months of 2003, as compared
  to $90,672 for the same period in 2002. For the third quarter of 2003, trust
  expenses were $14,840, as compared to $18,886 for the same period in 2002. The
  decrease in the first nine months of 2003 was due principally to a decrease
  in audit and legal fees paid during the period. The decrease in the third quarter
  of 2003 is due to decreases in audit, legal, and administrative fees paid during
  the period.

> v. Trust
>     Reserve.

On
  June 29, 2001, the Trustee received notification from the operator of the
  Spring Creek Mine initially alleging overpayments aggregating approximately
  $476,000 related to the Trusts overriding royalty interest that were remitted
  during the period from 1996 to 2000. Accordingly, the $783,317 royalty payment
  received from the Spring Creek Mine on July 31, 2001 is being held in reserve
  in connection with this matter. In April 2002, the Trust filed a complaint
  in federal district court seeking a declaratory judgment and accounting against
  Spring Creek Coal Company, the operator of the Spring Creek Mine, in connection
  with this matter. On October 28, 2002, the Spring Creek Coal Company filed
  an answer and a counterclaim to the Trusts complaint alleging that the
  Trust does not own an overriding royalty interest in certain portions of lands
  encompassed by Lease M-069782 at Spring Creek Mine. The Spring Creek Coal Company
  seeks the return of $351,371 in allegedly mistaken payments made by it to the
  Trust under such lease. There can be no assurance as to the outcome of this
  litigation or whether it will have a material adverse effect on the Trusts
  results of operations or financial condition. For a more detailed discussion
  of the legal action instituted by the Trust, see Legal Proceedings.

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Item 3. Quantitative and Qualitative
  Disclosures About Market Risk.

Not Applicable.

Item 4. Controls and
Procedures.

Not Applicable.

PART II  OTHER
INFORMATION.

Item 1. Legal
Proceedings.

On June 29, 2001, the Trustee received notification from the operator of
the Spring Creek Mine initially alleging overpayments aggregating approximately
$476,000 related to the Trusts overriding royalty interest that were remitted
during the period from 1996 to 2000. Accordingly, the $783,317 royalty payment
received from the Spring Creek Mine on July 31, 2001 is being held in reserve
in connection with this matter. In April 2002, the Trust filed a complaint in
Federal District Court for the District of Montana, Billings Division, seeking
a declaratory judgment and accounting against Spring Creek Coal Company, the
operator of the Spring Creek Mine. The suit seeks adjudication of a
reimbursement request to the Trust from Spring Creek Coal Company and an
accounting of all coal overriding royalties that Spring Creek Coal Company
should have paid to the Trust under certain agreements between the parties. On
October 28, 2002, the Spring Creek Coal Company filed an answer and a
counterclaim to the Trusts complaint alleging that the Trust does not own an
overriding royalty interest in certain portions of land encompassed by Lease
M-069782 at Spring Creek Mine. The Spring Creek Coal Company seeks the return
of $351,371 in allegedly mistaken payments made by it to the Trust under such
lease. This suit is in the discovery process, and a mandatory settlement
conference between the parties will be scheduled in the future. There can be
no assurance as to the outcome of the litigation or whether it will have a
material adverse effect on the Trusts results of operations or financial
condition. There are no other pending material legal proceedings to which the
Trust is a party or which any of its property is the subject.

Item 2. Changes in Securities and Use
  of Proceeds.

Not Applicable.

Item 3. Defaults Upon
Senior Securities.

Not Applicable.

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

Not Applicable.

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Item 5. Other
Information.

Not Applicable.

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



|a. |  | Exhibits
|-- |  | --------

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).31.1
      
      Certification Pursuant to
        Rule 13a-14 or 15d-14 of the Securities Exchange Act of 193432.1
      
      *Certification Pursuant to
        18 U.S.C. 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002


|   |  | *Submitted herewith.
|-- |  | --------------------
|b. |  | Reports on Form 8-K.



| |  | No reports on Form 8-K were filed during the quarter for which this report
is filed.
| |  | ------------------------------------------------------------------------------------

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



| | KIEWIT ROYALTY TRUST
          (Registrant)
| | -------------------------------------------



| | By: U. S. Bank National Association
in its capacity as Trustee and not in its individual capacity
or otherwise
| | --------------------------------------------------------------------------------------------------------------



| | /s/ Ted L. Hall
Ted L. Hall
Vice President and Trust Officer
| | ------------------------------------------------------------

Dated: November
14, 2003

10