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FORM 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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

For the quarter ended September 30, 2001

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 Division
U.S. Bank National Association
1700 Farnam Street
Omaha, Nebraska 68102

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(402) 348-6000

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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

APPLICABLE ONLY TO CORPORATE REGISTRANTS

Indicate the number of shares outstanding of each of the registrants
classes of common stock, as of the latest practicable date.

As of
November 14, 2001, there were 12,633,432 Units of Beneficial
Interest of the registrant outstanding.





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PART I  FINANCIAL INFORMATION

|        |  |                      
|------- |  | ---------------------
|Item 1. |  | Financial Statements.

KIEWIT ROYALTY TRUST
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

|                                               |  |                    |           |                   |  |   |          |  
|---------------------------------------------- |  | ------------------ | --------- | ----------------- |  | - | -------- | -
|ASSETS                                         |  | September 30, 2001 |           | December 31, 2000
|                                               |  | (unaudited)        |           |                   |  |  
|                                               |  |                    |           |                   |  |  
|Cash equivalents                               |  | $                  | 1,214,377 |                   |  | $ | 170,566  |  
|                                               |  |                    |           |                   |  |   |          |  
|                                              
|Trust
reserves                                 |  |                    | 783,317   |                   |  |   |         |  
|                                              
|Royalty and overriding                         |  |                    |           |                   |  |   |          |  
|royalty interests in coal                      |  |                    |           |                   |  |   |          |  
|leases                                         |  |                    | 167,817   |                   |  |   | 167,817  |  
|                                              
|Less accumulated amortization                  |  |                    | (129,385  | )                 |  |   | (124,364 | )
|                                               |  |                    |           |                   |  |   |          |  
|Net royalty and overriding                     |  |                    |           |                   |  |   |          |  
|royalty interests in coal leases               |  |                    | 38,432    |                   |  |   | 43,453   |  
|                                               |  |                    |           |                   |  |   |          |  
|Total Assets                                   |  | $                  | 2,036,126 |                   |  | $ | 214,019  |  
|                                               |  |                    |           |                   |  |   |          |  
|LIABILITIES AND TRUST CORPUS                   |  |                    |           |                   |  |   |          |  
|                                               |  |                    |           |                   |  |   |          |  
|Distributions payable to unit holders          |  | $                  | 1,214,377 |                   |  | $ | 170,566  |  
|                                              
|Trust
reserves                                 |  |                    | 783,317   |                   |  |   |         |  
|                                              
|Trust corpus: 12,633,432 units of              |  |                    |           |                   |  |   |          |  
|beneficial interest authorized and outstanding |  |                    | 38,432    |                   |  |   | 43,453   |  
|                                               |  |                    |           |                   |  |   |          |  
|Total Liabilities and Trust Corpus             |  | $                  | 2,036,126 |                   |  | $ | 214,019  |  
|                                               |  |                    |           |                   |  |   |          |  

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 30
|                              |  |                                 |           |                               
|                              |  | 2001                            |           | 2000                           |  | 2001 |           | 2000
|                              |  |                                 |           |                                |  |      |           |     
|Royalty income                |  | $                               | 2,012,101 |                                |  | $    | 2,621,668 |      |  | $ | 4,004,834 |   |  | $ | 4,984,252 |  
|Interest income               |  |                                 | 10,762    |                                |  |      | 27,921    |      |  |   | 29,284    |   |  |   | 52,234    |  
|Trust expenses                |  |                                 | (25,169   | )                              |  |      | (16,805   | )    |  |   | (59,023   | ) |  |   | (58,818   | )
|Trust reserves                |  |                                 | (783,317  | )                              |  |      |          |      |  |   | (783,317  | ) |  |   |          |  
|                              |  |                                 |           |                                |  |      |           |      |  |   |           |   |  |   |           |  
|Distributable income          |  | $                               | 1,214,377 |                                |  | $    | 2,632,784 |      |  | $ | 3,191,778 |   |  | $ | 4,977,668 |  
|                              |  |                                 |           |                                |  |      |           |      |  |   |           |   |  |   |           |  
|Distributable income per unit |  | $                               | .096124   |                                |  | $    | .208398   |      |  | $ | .252645   |   |  | $ | .394008   |  
|                              |  |                                 |           |                                |  |      |           |      |  |   |           |   |  |   |           |  

STATEMENTS OF CHANGES IN TRUST CORPUS
(unaudited)

|                                  |  |                                |            |      |  |   |            |  
|--------------------------------- |  | ------------------------------ | ---------- | ---- |  | - | ---------- | -
|                                  |  | Nine Months Ended September 30
|                                  |  |                               
|                                  |  | 2001                           |            | 2000
|                                  |  |                                |            |     
|Trust corpus as of January 1      |  | $                              | 43,453     |      |  | $ | 56,642     |  
|Amortization of royalty interests |  |                                | (5,021     | )    |  |   | (9,440     | )
|Distributable income              |  |                                | 3,191,778  |      |  |   | 4,977,668  |  
|Distributions to unit holders     |  |                                | (3,191,778 | )    |  |   | (4,977,668 | )
|                                  |  |                                |            |      |  |   |            |  
|Trust corpus as of September 30   |  | $                              | 38,432     |      |  | $ | 47,202     |  
|                                  |  |                                |            |      |  |   |            |  

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, 2001 and December 31, 2000

Basis of Presentation

The accompanying unaudited 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, 2000.

Summary of Significant Accounting Policies

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



| |  |  | (a) |  | The royalty income recorded for a month is the amount received
from the lease holder for such month.
| |  |  | --- |  | ----------------------------------------------------------------------------------------------------
|
| |  |  | (b) |  | Trust administration expenses are recorded in the month they
accrue.                                

This basis for reporting royalty income is thought to be the most meaningful
because distributions to unit holders for a month are based on net cash
receipts for such month. However, these statements differ from financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America because, under such principles, royalty income
for a month would be based on production for such month, without regard to when
royalty payments are received. In addition, amortization of the net royalty
and overriding royalty interests, which is calculated on a units-of-production
basis on a lease, is charged directly to trust corpus since such amount does
not affect distributable income.

Recent Development

On June 29, 2001, the Trustee received notification from the operator of
the Spring Creek Mine of alleged overpayments aggregating approximately
$476,000 related to the Trusts overriding royalty interest that were remitted
during the period from 1996 to 2000. The Trustee is currently reviewing and
evaluating various agreements, leases and other documentation to determine the
legitimacy of these alleged overpayments and impact to the Trust, if any, as
related to these alleged overpayments. In addition, 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. The ultimate outcome of this issue is
uncertain at this time.

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

a.     Material Changes in Financial Condition.

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 nine months ended September 30, 2001 the Trust received a total
of $4,004,834 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 30
|            
|Mine         |  | 2001                            |           | 2000                           |  | 2001 |           | 2000
|            
|Decker       |  | $                               | 1,228,784 |                                |  |      | 1,488,665 |      |  | $ | 3,170,117 |  |  | $ | 3,742,883 | 
|Big Horn     |  |                                 |          |                                |  |      | 12,399    |      |  |   | 1,400     |  |  |   | 120,765   | 
|Spring Creek |  |                                 | 783,317   |                                |  |      | 1,120,604 |      |  |   | 833,317   |  |  |   | 1,120,604 | 
|             |  |                                 |           |                                |  |      |           |      |  |   |           |  |  |   |           | 
|             |  | $                               | 2,012,101 |                                |  | $    | 2,621,668 |      |  | $ | 4,004,834 |  |  | $ | 4,984,252 | 
|             |  |                                 |           |                                |  |      |           |      |  |   |           |  |  |   |           | 

i.     Decker Mine.

Royalty and overriding royalty amounts received by the Trust from the
Decker Mine decreased to $3,170,117 during the first nine months of 2001
compared to $3,742,883 during the same period in 2000. For the third quarter
of 2001, the payments received by the Trust from the Decker Mine decreased to
$1,228,784 compared to $1,488,665 received during the same period in 2000.
These changes in royalty and overriding royalty amounts received were due to
(i) 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; and (ii) a reduction in sales tonnage of approximately 21%
during the period from which payment received during the first nine months of
2001 is derived compared to the same period in 2000.

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ii.     Big Horn Mine.

No royalties were received from the Big Horn Mine during the first nine
months of 2001 compared to $120,765 received during the same period in 2000 and
compared to $12,399 received for the third quarter of 2000. 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. However, the Big Horn Mine will continue to receive minor rental
payments until reclamation of the mine is achieved. In the past, the amount of
such rental payments was included in the figure representing receipt of royalty
and overriding royalty payments. During the first nine months and during the
third quarter of 2001, the Big Horn Mine received rental payments of $1,400 and
$0, respectively.

iii.      Spring Creek Mine.

Royalty and overriding royalty amounts received by the Trust from the
Spring Creek Mine decreased to $833,317 during the first nine months of 2001
compared to $1,120,604 received during the same period in 2000. For the third
quarter of 2001, the payments received by the Trust from the Spring Creek Mine
decreased to $783,317 compared to $1,120,604 received during the same period in
2000. 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 2001.

c.Recent Development

On June 29, 2001, the Trustee received notification from the operator of
the Spring Creek Mine of possible overpayments aggregating approximately
$476,000 related to the Trusts overriding royalty interest that were remitted
during the period from 1996 to 2000. The Trustee is currently
reviewing and evaluating various agreements, leases and other
documentation to determine the legitimacy of these alleged
overpayments and impact to the Trust, if any, as related to these
alleged overpayments. In addition, 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. See Recent Development under Notes to Financial
Statements set forth above.

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PART II  OTHER INFORMATION.

|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings

There are no material pending 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.                                    
|       
|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 1 to the Trusts
Form 10 filed with the Securities and Exchange Commission on December
23, 1982, and incorporated herein by reference).
|   
|4.2 | Order dated September 23, 1994, of the County Court of Douglas
County, Nebraska (filed as Exhibit 2 to the Trusts Form 10-Q filed
with the Securities and Exchange Commission on November 14, 1994, and
incorporated herein by reference).           
|   
|(b) | 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. ROSBURGSusan K. Rosburg
Trust Officer                                                        
|                         
|Dated: 
November 14, 2001 |  |  |                                       |                                                                                                           

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