##### Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



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

For the quarterly period ended June 30, 2011

OR



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

Commission File No. 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 No.)

Trust Division

U.S. Bank National Association

1700 Farnam Street

Omaha, Nebraska 68102

(Address of principal executive offices and 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  
þ  No   ̈

Indicate by
check mark whether the registrant has submitted electronically and posted on its Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).  Yes   ̈  No   ̈

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 þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the

Exchange Act)  Yes   ̈  No  þ



---

##### Table of Contents

KIEWIT ROYALTY TRUST

FORM 10-Q

For
the Quarter Ended June 30, 2011

INDEX



|                                                                                           |  |     
|------------------------------------------------------------------------------------------ |  | ----
|                                                                                           |  | Page
|                                                                                           | 
|Part I. FINANCIAL INFORMATION                                                              |  | 1   
|                                                                                           | 
|Item 1. Financial Statements                                                               |  | 1   
|                                                                                           | 
|Item 2. Trustees Discussion and Analysis of Financial Condition and Results of
Operations |  | 5   
|                                                                                           | 
|Item 4. Controls and Procedures                                                            |  | 6   
|                                                                                           | 
|Part II. OTHER INFORMATION                                                                 |  | 7   
|                                                                                           | 
|Item 1. Legal Proceedings                                                                  |  | 7   
|                                                                                           | 
|Item 6. Exhibits                                                                           |  | 7   

Forward-Looking Statements

This Form 10-Q, including specifically the section entitled Trustees Discussion and Analysis of Financial Condition and Results of Operations, includes forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, 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-Q are forward-looking statements. Such statements include, without limitation, certain statements regarding the Trusts financial position, industry conditions and other matters contained in this Form 10-Q. Although the Trustee believes
that the expectations reflected in such forward-looking statements are reasonable, such expectations are subject to numerous risks and uncertainties, and the Trustee can give no assurance that they will prove correct. There are many factors, none of
which is within the Trustees control, that may cause such expectations not to be realized, including, among other things, factors identified in the Trusts Form 10-K for the year ended December 31, 2010.



---

##### Table of Contents

PART I  FINANCIAL INFORMATION

Item 1. Financial Statements.

KIEWIT ROYALTY TRUST

STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

June 30, 2011 and

December 31, 2010

(unaudited)



|                                                                                        |  |              |           |  |                  |   |           | 
|--------------------------------------------------------------------------------------- |  | ------------ | --------- |  | ---------------- | - | --------- | 
|                                                                                        |  | June 30,2011 |           |  | December 31,2010 |  
|                                                                                        |  |             
|Assets                                                                                  |  |              |           |  |                  |   |           | 
|Cash and cash equivalents                                                               |  | $            | 12,166    |  |                  | $ | 6,445     | 
|Royalty and overriding royalty interests in coal leases                                 |  |              | 167,817   |  |                  |   | 167,817   | 
|Less accumulated amortization                                                           |  |              | (167,817) |  |                  |   | (167,817) | 
|                                                                                        |  |              |           |  |                  |   |           | 
|                                                                                        |  |             
|Net royalty and overriding royalty interests in coal leases                             |  |              | -         |  |                  |   | -         | 
|                                                                                        |  |              |           |  |                  |   |           | 
|                                                                                        |  |             
|Total assets                                                                            |  | $            | 12,166    |  |                  | $ | 6,445     | 
|                                                                                        |  |              |           |  |                  |   |           | 
|                                                                                        |  |             
|Liabilities                                                                             |  |              |           |  |                  |   |           | 
|Distributions payable to unit holders                                                   |  | $            | 12,166    |  |                  | $ | 6,445     | 
|                                                                                        |  |             
|Trust Corpus:12,633,432 units of beneficial interest authorized, issued and outstanding |  |              | -         |  |                  |   | -         | 
|                                                                                        |  |              |           |  |                  |   |           | 
|                                                                                        |  |             
|Total liabilities and trust corpus                                                      |  | $            | 12,166    |  |                  | $ | 6,445     | 
|                                                                                        |  |              |           |  |                  |   |           | 

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



1



---

##### Table of Contents

KIEWIT ROYALTY TRUST

STATEMENTS OF DISTRIBUTABLE INCOME

For the three and six months ended June 30, 2011 and 2010

(unaudited)



|                                                                                                  |  |                             |           |  |      |   |           | 
|------------------------------------------------------------------------------------------------- |  | --------------------------- | --------- |  | ---- | - | --------- | 
|                                                                                                  |  | Three Months Ended June 30, |          
|                                                                                                  |  | 2011                        |           |  | 2010 |  
|                                                                                                  |  |                            
|Royalty income                                                                                    |  | $                           | 23,241    |  |      | $ | 71,529    | 
|Trust expenses                                                                                    |  |                             | (11,075)  |  |      |   | (31,257)  | 
|                                                                                                  |  |                             |           |  |      |   |           | 
|                                                                                                  |  |                            
|Distributable income                                                                              |  | $                           | 12,166    |  |      | $ | 40,272    | 
|                                                                                                  |  |                             |           |  |      |   |           | 
|                                                                                                  |  |                            
|Distributable income per unit                                                                     |  | $                           | 0.0009630 |  |      | $ | 0.0031877 | 
|                                                                                                  |  |                             |           |  |      |   |           | 
|                                                                                                  | 
|                                                                                                  |  | Six Months Ended June 30,   |          
|                                                                                                  |  | 2011                        |           |  | 2010 |  
|                                                                                                  |  |                            
|Royalty income                                                                                    |  | $                           | 477,185   |  |      | $ | 671,204   | 
|Trust expenses                                                                                    |  |                             | (59,917)  |  |      |   | (55,456)  | 
|                                                                                                  |  |                             |           |  |      |   |           | 
|                                                                                                  |  |                            
|Distributable income                                                                              |  | $                           | 417,268   |  |      | $ | 615,748   | 
|                                                                                                  |  |                             |           |  |      |   |           | 
|                                                                                                  |  |                            
|Distributable income per unit                                                                     |  | $                           | 0.0330289 |  |      | $ | 0.0487396 | 
|                                                                                                  |  |                             |           |  |      |   |           | 
|                                                                                                 
|STATEMENTS OF CHANGES IN TRUST CORPUS
For the six months ended June 30, 2011 and 2010 (unaudited) | 
|                                                                                                  | 
|                                                                                                  |  | Six Months Ended June 30,   |          
|                                                                                                  |  | 2011                        |           |  | 2010 |  
|                                                                                                  |  |                            
|Trust corpus, beginning of year                                                                   |  | $                           | -         |  |      | $ | 9,603     | 
|Amortization of royalty interest                                                                  |  |                             | -         |  |      |   | (6,682)   | 
|Distributable income                                                                              |  |                             | 417,268   |  |      |   | 615,748   | 
|Distributions payable to unit holders                                                             |  |                             | (417,268) |  |      |   | (606,816) | 
|Accounts payable                                                                                  |  |                             | -         |  |      |   | (8,932)   | 
|                                                                                                  |  |                             |           |  |      |   |           | 
|                                                                                                  |  |                            
|Trust corpus                                                                                      |  | $                           | -         |  |      | $ | 2,921     | 
|                                                                                                  |  |                             |           |  |      |   |           | 

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



2



---

##### Table of Contents

KIEWIT ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)

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 U.S. generally accepted accounting principles for complete financial statements. In the opinion of U.S. Bank National Association, as sole trustee of the Trust (the Trustee), 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, 2010.

Summary of Significant Accounting Policies



|(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 are recognized in the month received rather than in the month of production.
| | - |  | --------------------------------------------------------------------------------------------------------



| |  |  | Expenses generally 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.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------



3



---

##### Table of Contents

These statements differ from financial statements prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP) and were prepared on the modified cash basis of reporting, which 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.



|(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 administering the income received from royalty
interests and is administered by the Trustee. Pursuant to the terms of the Trust Indenture, the Trust pays the Trustee $80,000 per year. The Trustee may readjust this fee annually in its sole discretion. The Trust did not pay the Trustees fee
of $20,000 for the second quarter of 2011 due to insufficient royalty income. The Trust intends to pay the Trustees fee when the Trust has sufficient royalty income.



|(d) | Subsequent Events:
|--- | ------------------

In accordance with the provisions of Financial Accounting Standards Board (FASB) Statement on Subsequent Events, we have
evaluated the Trust activity and have concluded that there are no material subsequent events requiring additional disclosure or recognition in these financial statements.



4



---

##### Table of Contents

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

Overview.

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 administering the income
received from such coal leases and distributing such income (together with interest earned thereon, if any, less payment of or provision for obligations) to the holders of the units of beneficial interest.

During the three-month and six-month periods ended June 30, 2011, the Trust received a total of $23,241 and $477,185, respectively, of royalty and
overriding royalty payments. The following schedule reflects the royalty and overriding royalty payments, net of production withholding taxes, received by the Trust in respect of leases at the following mines:



|                     |  |                             |         |  |      |   |         | 
|-------------------- |  | --------------------------- | ------- |  | ---- | - | ------- | 
|                     |  | Three Months Ended June 30, |        
|                     |  | 2011                        |         |  | 2010 |  
|                     |  |                             |         | 
|                     |  |                            
|Decker Mine          |  | $                           | 23,241  |  |      | $ | 21,529  | 
|Spring Creek Mine    |  |                             | -       |  |      |   | 50,000  | 
|                     |  |                             |         | 
|Total Royalty Income |  | $                           | 23,241  |  |      | $ | 71,529  | 
|                     |  |                             |         | 
|                     | 
|                     |  | Six Months Ended June 30,   |        
|                     |  | 2011                        |         |  | 2010 |  
|                     |  |                             |         | 
|                     |  |                            
|Decker Mine          |  | $                           | 477,185 |  |      | $ | 621,204 | 
|Spring Creek Mine    |  |                             | -       |  |      |   | 50,000  | 
|                     |  |                             |         | 
|Total Royalty Income |  | $                           | 477,185 |  |      | $ | 671,204 | 
|                     |  |                             |         | 

Decker Mine.Royalty and overriding royalty amounts received by the Trust from the Decker Mine slightly increased
to $23,241 during the second quarter of 2011, as compared to $21,529 received during the same period in 2010. This change was the net result of changes in the relative amounts of coal mined, which was a normal result of the execution of a mining
plan encompassing several coal leases. Seasonal fluctuations occur in the relative amounts of coal mined under the leases with a majority of the royalty payments being received during the first and third calendar quarters of the year.

Spring Creek Mine.No royalties were received from the Spring Creek Mine during the first six months of 2011 or during the first three months of
2010 because royalties with respect to this mine generally are paid by the mine operators on an annual basis during the second half of the calendar year. The Trust received a payment of $50,000 at end of the second quarter of 2010.

Interest Income. Historically, the Trust earned interest on the royalty payments prior to the distribution to the Unit Holders. However, the Trust
did not earn any interest during the six months ended June 30, 2011, and June 30, 2010, because of the significant cuts in interest rates by the Federal Reserve in recent years.

Trust Expenses.Trust expenses increased to $59,917 for the first six months of 2011, as compared to $55,456 for the same period in 2010. Trust expenses included fees of the Trustee, accountants,
attorneys,



5



---

##### Table of Contents

and other professionals that the Trustee employs in the administration of the Trust. During the first quarter, the trust expenses included the Trustees fees for the fourth quarter of 2010
of $20,000 and first quarter of 2011 of $20,000. The fourth quarter fee generally is paid in the fourth quarter; however, the Trustee had insufficient royalty income, and the fee was not paid until the first quarter of 2011 when the Trust had
sufficient royalty income. During the three month period ended June 30, 2011, trust expenses decreased to $11,075 from $31,257 during the same three month period in 2010. However, the trust expenses for the three months ending June 30,
2011 did not include the Trustees fee of $20,000 for the second quarter. The Trust did not pay the Trustees fee due to insufficient royalty income. The payment of the second quarter fee would have increased total expenses for the second
quarter of 2011 compared to 2010. The second quarter fee will be paid when the Trust has sufficient royalty income.

Liquidity and Capital
Resources. The Trusts sole source of liquidity 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, is
distributed to the Unit Holders on a quarterly basis. During the quarter ended June 30, 2011, the Trust did not establish any reserves.

Change in Trust Corpus.During the first six months of 2011, the trust corpus remained unchanged. In 2010, the trust corpus decreased to $0,
resulting from amortization of royalty interest from one of the Decker Mine leases. At September 30, 2010, the Decker Mine had been fully amortized, and no other royalty interests are amortized.

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 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures.As of the end of the period covered by this Form 10-Q, 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 were 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.

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 have materially affected, or are reasonably likely to materially affect, the Trusts internal control over financial reporting.

Limitations on Controls.The Trustee does not expect that the Trusts disclosure controls and procedures of 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.



6



---

##### Table of Contents

PART II  OTHER INFORMATION

Item 1. Legal Proceedings.

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

Item 6. 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, 2003, 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, 2003, 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 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                               







|* | Filed herewith
|- | --------------



|** | Furnished herewith.
|-- | -------------------



7



---

##### Table of Contents

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
|                       |  |                     
|                       |  | By:                  |  | U.S. Bank National Association in its
|                       |  |                      |  | capacity as Trustee and not in its   
|                       |  |                      |  | individual capacity or otherwise     
|                       |  |                      | 
|Dated: August 12, 2011 |  |                      |  |                                       |  |                                
|                       |  |                      | 
|                       |  |                      |  | By:                                   |  | /s/ Luke H. Paladino           
|                       |  |                      |  |                                       |  | Luke H. Paladino, Trust Officer

(The Trust does not have a principal financial or chief accounting officer or any other
officers.)



8