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UNITED STATES
SECURITIES 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 June 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
    
    (I.R.S. Employer Identification No.)incorporation or organization)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
  Noo

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the
Exchange Act) Yeso
  Nox

There were 12,633,432 Units of Beneficial Interest outstanding as of
August 11, 2003.





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KIEWIT ROYALTY TRUST

FORM 10-Q

For the Quarter Ended June 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
    
    
    7Item 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 CORPUS
unaudited as of June 30, 2003 and audited as of December 31, 2002

ASSETS
    
    June 30, 2003
    
    December 31, 2002(unaudited)Cash Equivalents
    
    $
    131,506
    
    
    $
    189,611Trust reserves
    
    
    783,317
    
    
    
    783,317Royalty and overriding
royalty interests in coal
leases
    
    
    167,817
    
    
    
    167,817Less accumulated amortization
    
    
    (138,393
    )
    
    
    (137,500
    )Net royalty and overriding
royalty interests in coal leases
    
    
    29,424
    
    
    
    30,317Total Assets
    
    $
    944,247
    
    
    $
    1,003,245LIABILITIES AND TRUST CORPUSDistributions payable to unit holders
    
    $
    131,506
    
    
    $
    189,611Trust reserves payable
    
    
    783,317
    
    
    
    783,317Trust corpus: 12,633,432 units of
beneficial interest authorized and
outstanding
    
    
    29,424
    
    
    
    30,317Total Liabilities and Trust Corpus
    
    $
    944,247
    
    
    $
    1,003,245


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

3



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KIEWIT ROYALTY TRUST
STATEMENTS OF DISTRIBUTABLE INCOME
(unaudited )

Three Months Ended June 30
    
    Six Months Ended June 302003
    
    2002
    
    2003
    
    2002Royalty income
    
    $
    172,113
    
    
    $
    178,528
    
    
    $
    1,553,262
    
    
    $
    2,276,575Interest income
    
    
    2,788
    
    
    
    4,798
    
    
    
    7,781
    
    
    
    14,305Trust expenses
    
    
    (43,395
    )
    
    
    (41,459
    )
    
    
    (70,882
    )
    
    
    (71,786
    )Distributable income
    
    $
    131,506
    
    
    $
    141,867
    
    
    $
    1,490,161
    
    
    $
    2,219,094Distributable
income per unit
    
    $
    0.0104093
    
    
    $
    0.0112295
    
    
    $
    0.1179538
    
    
    $
    0.1756525


STATEMENTS OF CHANGES IN TRUST CORPUS
(unaudited)

Six Months Ended June 302003
    
    2002Trust corpus as of January 1
    
    $
    30,317
    
    
    $
    37,386Amortization of royalty interests
    
    
    (893
    )
    
    
    (3,526
    )Distributable income
    
    
    1,490,161
    
    
    
    2,219,094Distributions to unit holders
    
    
    (1,490,161
    )
    
    
    (2,219,094
    )Trust corpus as of March 31
    
    $
    29,424
    
    
    $
    33,860


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

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KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
as of June 30, 2003 (unaudited) 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. |  | 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 six months ended June 30, 2003, the Trust received a
total of $172,113 and $1,553,262, respectively, of royalty and overriding
royalty payments. The following schedule reflects the gross royalty and
overriding royalty payments received by the Trust in respect of leases at the
following mines:

Three Months Ended June 30
    
    Six Months Ended June 30Mine
    
    2003
    
    2002
    
    2003
    
    2002Decker
    
    $
    122,113
    
    
    $
    128,528
    
    
    $
    1,503,262
    
    
    $
    2,226,575Big Horn
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Spring Creek
    
    
    50,000
    
    
    
    50,000
    
    
    
    50,000
    
    
    
    50,000Totals:
    
    $
    172,113
    
    
    $
    178,528
    
    
    $
    1,553,262
    
    
    $
    2,276,575




|i. |  | Decker Mine.
|-- |  | ------------

Royalty and overriding royalty amounts received by the Trust from the
Decker Mine decreased to $1,503,262 during the first six months of 2003 as
compared to $2,276,575 received during the same period in 2002. For the second
quarter of 2003, the payments received from the Decker Mine decreased to
$122,113 compared to $128,528 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 six
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.

6



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|iii. |  | Spring Creek Mine.
|---- |  | ------------------

The Trust received $50,000 from the Spring Creek Mine during the first six
months of 2003 as well as the first six months of 2002. Royalties with respect
to this mine are typically paid by the mine operators on an annual basis during
the second half of the calendar year; however, the Spring Creek Mine made a
$50,000 payment immediately prior to the end of the second quarter in 2003 and
2002.



|iv. |  | Trust Expenses.
|--- |  | ---------------

Trust expenses decreased to $70,882 in the first six months of 2003, as
compared to $71,786 for the same period in 2002. For the second quarter of
2003, trust expenses were $43,395, as compared to $41,459 for the same period
in 2002. The decrease in the first six months of 2003 was due principally to a
decrease in audit and legal fees paid during the period. The increase in the
second quarter of 2003 is due to increases 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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not Applicable.

7



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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. A previously scheduled mandatory settlement conference has
been postponed. 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.

8



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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 1934.
|---- |  | ---------------------------------------------------------------------------------------



|32.1 |  | Certification Pursuant to 18 U.S.C.
1350, As Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|---- |  | ---------------------------------------------------------------------------------------------------------------



|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/ Susan K. Rosburg
Susan K. Rosburg
Trust Officer
| | ---------------------------------------------------

Dated: August 11, 2003

10