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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 September 30, 2008
 OR
 o
    
    o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Commission File No. 000-10810
 KIEWIT ROYALTY TRUST
  Nebraska
    
    47-6131402(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)
 
 
 þ o
  Large accelerated filer: o
    
    Accelerated filer: o
    
    Non-accelerated filer: o
    
    Smaller reporting company: þ(Do not check if a smaller reporting company)
 o þ




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PagePart I. Financial Information
    
    
    1Item 1. Financial Statements
    
    
    1Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations
    
    
    4Item 4T. Controls and Procedures
    
    
    5Part II. Other Information
    
    
    6Item 1. Legal Proceedings
    
    
    6Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    6Item 3. Defaults Upon Senior Securities
    
    
    6Item 4. Submission of Matters to a Vote of Security Holders
    
    
    6Item 5. Other Information
    
    
    6Item 6. Exhibits
    
    
    6Signature
    
    
    7Certification of Trust Officer Pursuant to Rule 13a-14Certification of Trust Officer Pursuant to 18 U.S.C. Section 1350Certification of Trust OfficerSection 906 Certification of Trust Officer
  Forward-Looking Statements




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PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 KIEWIT ROYALTY TRUST
 STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
 September 30,
    
    December 31,2008
    
    2007AssetsCash and cash equivalents
    
    $
    2,475,985
    
    
    $
    106,185Royalty and overriding royalty interests in coal leases
    
    
    167,817
    
    
    
    167,817Less accumulated amortization
    
    
    (144,927
    )
    
    
    (144,927
    )Net royalty and overriding royalty interest in coal leases
    
    
    22,890
    
    
    
    22,890Total assets
    
    $
    2,498,875
    
    
    $
    129,075Liabilities and Trust CorpusDistributions payable to unit holders
    
    $
    2,475,985
    
    
    $
    106,185Trust corpus: 12,633,432 units of beneficial interest authorized and outstanding
    
    
    22,890
    
    
    
    22,890Total liabilities and trust corpus
    
    $
    2,498,875
    
    
    $
    129,075
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KIEWIT ROYALTY TRUST
 STATEMENTS OF DISTRIBUTABLE INCOME
(unaudited)
 Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2008
    
    2007
    
    2008
    
    2007Royalty income
    
    $
    2,485,993
    
    
    $
    2,306,235
    
    
    $
    3,365,637
    
    
    $
    3,450,119Interest income
    
    
    7,887
    
    
    
    19,568
    
    
    
    12,455
    
    
    
    30,821Trust expense
    
    
    (17,895
    )
    
    
    (30,736
    )
    
    
    (93,367
    )
    
    
    (86,460
    )Distributable income
    
    $
    2,475,985
    
    
    $
    2,295,067
    
    
    $
    3,284,725
    
    
    $
    3,394,480Distributable income per unit
    
    $
    0.1959867
    
    
    $
    0.1816662
    
    
    $
    0.2600026
    
    
    $
    0.2686902
 STATEMENTS OF CHANGES IN TRUST CORPUS
(unaudited)
 Nine Months EndedSeptember 30,2008
    
    2007Trust corpus as of January 1
    
    $
    22,890
    
    
    $
    22,890Distributable income
    
    
    3,284,725
    
    
    
    3,394,480Distributions to unit holders
    
    
    (3,284,725
    )
    
    
    (3,394,480
    )Trust corpus as of September 30
    
    $
    22,890
    
    
    $
    22,890
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KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
as of September 30, 2008 and December 31, 2007
 Basis of Presentation
  Summary of Significant Accounting Policies
 a) Basis of Accounting:
  (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.
  
    
    Royalty income and interest income are recognized in the month received rather than in the month of production.
    
    Expenses 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.
  b) Cash and Cash Equivalents:
  c) Use of Estimates:
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Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations.
 a. Material Changes in Financial Condition.
  b. Material Changes in Results of Operations.
  Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2008
    
    2007
    
    2008
    
    2007Decker
    
    $
    725,254
    
    
    $
    867,214
    
    
    $
    1,604,898
    
    
    $
    1,961,098Spring Creek
    
    
    1,760,739
    
    
    
    1,439,021
    
    
    
    1,760,739
    
    
    
    1,489,021Royalty income
    
    $
    2,485,993
    
    
    $
    2,306,235
    
    
    $
    3,365,637
    
    
    $
    3,450,119
 i. Decker Mine.
  ii. Spring Creek Mine.
  iii. Trust Expenses.
  c. Critical Accounting Policies and Estimates.
  
    
    Royalty income and interest income are recognized in the month in which amounts are received by the Trust.
    
    Trust expenses, consisting principally of routine general and administrative costs, include payments made during
the accounting period.
    
    Reserves for liabilities that are contingent or uncertain in amount may also be established if considered necessary.
    
    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.
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
    
    Distributions to Unit Holders are recognized when declared by the Trustee.
    
    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.
  
    
    Royalty income and interest income are recognized in the month received rather than in the month of production.
    
    Expenses 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.
 
 Item 4T. Controls and Procedures.
   5




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PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities.
  
 Item 4. Submission of Matters to a Vote of Security Holders.
  
 Item 5. Other Information.
  
 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 6




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SIGNATURE
  KIEWIT ROYALTY TRUSTBy:
    
    U.S. Bank National Association in itscapacity as Trustee and not in itsindividual capacity or otherwise/s/ Luke H. PaladinoLuke H. PaladinoTrust Officer
  7