##### 



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 September 30, 2002

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

There were 12,633,432 Units of Beneficial Interest outstanding as of
November 13, 2002.





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##### 



KIEWIT ROYALTY TRUST

FORM 10-Q

For the Quarter Ended September 30, 2002

INDEX

|                              |                                                             |                                     |    |   |   | 
|----------------------------- | ----------------------------------------------------------- | ----------------------------------- | -- | - | - | 
|Part I. Financial Information |                                                             | Page                               
|                              |                                                             |                                    
|                              | Item 1. Financial Statements                                |                                     |    | 3 |  
|                             
|                              | Item 2. Managements Discussion and Analysis of Financial   |                                     |    |   |  
|                              |                                                             | Condition and Results of Operations |    |   | 6 | 
|                             
|                              | Item 3. Quantitative and Qualitative Disclosures            |                                     |    |   |  
|                              |                                                             | About Market Risk                   |    |   | 8 | 
|                             
|                              | Item 4. Controls and Procedures                             |                                     |    | 8 |  
|                             
|Part II. Other Information    |                                                             |                                     |    |  
|                             
|                              | Item 1. Legal Proceedings                                   |                                     |    | 9 |  
|                             
|                              | Item 2. Changes in Securities and Use of Proceeds           |                                     |    | 9 |  
|                             
|                              | Item 3. Defaults upon Senior Securities                     |                                     |    | 9 |  
|                             
|                              | Item 4. Submission of Matters to a Vote of Security Holders |                                     |    | 9 |  
|                             
|                              | Item 5. Other Information                                   |                                     |    | 9 |  
|                             
|                              | Item 6. Exhibits and Reports on Form 8-K                    |                                     |    | 9 |  
|                             
|Signature                     |                                                             |                                     | 11 |  
|                             
|Certification                 |                                                             |                                     | 12 |  

2



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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 September 30, 2002 and audited as of December 31, 2001

|                                   |  |                    |           |                   |  |   |           |  
|---------------------------------- |  | ------------------ | --------- | ----------------- |  | - | --------- | -
|ASSETS                             |  | September 30, 2002 |           | December 31, 2001
|                                   |  |                    |           |                  
|                                   |  | (unaudited)        |           |                   |  |  
|Cash equivalents                   |  | $                  | 2,185,426 |                   |  | $ | 188,882   |  
|Trust reserves                     |  |                    | 783,317   |                   |  |   | 783,317   |  
|Royalty and overriding             |  |                    |           |                   |  |   |           |  
|royalty interests in coal          |  |                    |           |                   |  |   |           |  
|leases                             |  |                    | 167,817   |                   |  |   | 167,817   |  
|Less accumulated amortization      |  |                    | (133,999  | )                 |  |   | (130,431  | )
|                                   |  |                    |           |                   |  |   |           |  
|Net royalty and overriding         |  |                    |           |                   |  |   |           |  
|royalty interests in coal leases   |  |                    | 33,818    |                   |  |   | 37,386    |  
|                                   |  |                    |           |                   |  |   |           |  
|Total Assets                       |  | $                  | 3,002,561 |                   |  | $ | 1,009,585 |  
|                                   |  |                    |           |                   |  |   |           |  
|LIABILITIES AND TRUST CORPUS       |  |                    |           |                   |  |   |           |  
|Distributions payable to unit      |  |                    |           |                   |  |   |           |  
|holders                            |  | $                  | 2,185,426 |                   |  | $ | 188,882   |  
|Trust reserves payable             |  |                    | 783,317   |                   |  |   | 783,317   |  
|Trust corpus: 12,633,432 units of  |  |                    |           |                   |  |   |           |  
|beneficial interest authorized     |  |                    |           |                   |  |   |           |  
|and outstanding                    |  |                    | 33,818    |                   |  |   | 37,386    |  
|                                   |  |                    |           |                   |  |   |           |  
|Total Liabilities and Trust Corpus |  | $                  | 3,002,561 |                   |  | $ | 1,009,585 |  
|                                   |  |                    |           |                   |  |   |           |  

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 September 30 |           | Nine Months Ended September 30
|                     |  |                                 |           |                               
|                     |  | 2002                            |           | 2001                           |  | 2002 |           | 2001
|                     |  |                                 |           |                                |  |      |           |     
|Royalty income       |  | $                               | 2,195,813 |                                |  | $    | 2,012,101 |      |  | $ | 4,472,388 |   |  | $ | 4,004,834 |  
|Interest income      |  |                                 | 8,499     |                                |  |      | 10,762    |      |  |   | 22,804    |   |  |   | 29,284    |  
|Trust expenses       |  |                                 | (18,886   | )                              |  |      | (25,169   | )    |  |   | (90,672   | ) |  |   | (59,023   | )
|Trust reserves       |  |                                 |          |                                |  |      | (783,317  | )    |  |   |          |   |  |   | (783,317  | )
|                     |  |                                 |           |                                |  |      |           |      |  |   |           |   |  |   |           |  
|Distributable income |  | $                               | 2,185,426 |                                |  | $    | 1,214,377 |      |  | $ | 4,404,520 |   |  | $ | 3,191,778 |  
|                     |  |                                 |           |                                |  |      |           |      |  |   |           |   |  |   |           |  
|Distributable        |  |                                 |           |                                |  |      |           |      |  |   |           |   |  |   |           |  
|income per unit      |  | $                               | 0.1729875 |                                |  | $    | 0.0961241 |      |  | $ | 0.3486400 |   |  | $ | 0.2526454 |  
|                     |  |                                 |           |                                |  |      |           |      |  |   |           |   |  |   |           |  

STATEMENTS OF CHANGES IN TRUST CORPUS
(unaudited )

|                                  |  |                                |            |      |  |   |            |  
|--------------------------------- |  | ------------------------------ | ---------- | ---- |  | - | ---------- | -
|                                  |  | Nine Months Ended September 30
|                                  |  |                               
|                                  |  | 2002                           |            | 2001
|                                  |  |                                |            |     
|Trust corpus as of January 1      |  | $                              | 37,386     |      |  | $ | 43,453     |  
|Amortization of royalty interests |  |                                | (3,568     | )    |  |   | (5,021     | )
|Distributable income              |  |                                | 4,404,520  |      |  |   | 3,191,778  |  
|Distributions to unit holders     |  |                                | (4,404,520 | )    |  |   | (3,191,778 | )
|                                  |  |                                |            |      |  |   |            |  
|Trust corpus as of September 30   |  | $                              | 33,818     |      |  | $ | 38,432     |  
|                                  |  |                                |            |      |  |   |            |  

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

4



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##### 



KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
as of September 30, 2002 and December 31, 2001

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, 2001.

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.

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 Quarterly Distributions to Unit Holders are based on net
cash receipts.

(b)    Cash Equivalents:

Cash equivalents consist of money market funds, which are recorded at
cost plus interest.

5



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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 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, 2002, the Trust received a
total of $4,472,388 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 September 30 |           | Nine Months Ended September 30
|             |  |                                 |           |                               
|Mine         |  | 2002                            |           | 2001                           |  | 2002 |           | 2001
|             |  |                                 |           |                                |  |      |           |     
|Decker       |  | $                               | 1,394,848 |                                |  | $    | 1,228,784 |      |  | $ | 3,621,423 |  |  | $ | 3,170,117 | 
|Big Horn     |  |                                 |          |                                |  |      |          |      |  |   |          |  |  |   | 1,400     | 
|Spring Creek |  |                                 | 800,965   |                                |  |      | 783,317   |      |  |   | 850,965   |  |  |   | 833,317   | 
|             |  |                                 |           |                                |  |      |           |      |  |   |           |  |  |   |           | 
|Totals:      |  | $                               | 2,195,813 |                                |  | $    | 2,012,101 |      |  | $ | 4,472,388 |  |  | $ | 4,004,834 | 
|             |  |                                 |           |                                |  |      |           |      |  |   |           |  |  |   |           | 

i.Decker
Mine.

Royalty
and overriding royalty amounts received by the Trust from the
Decker mine increased to $3,621,423 during the first nine-months of 2002 as
compared to $3,170,117 received during the same period in 2001. For the third
quarter of 2002, the payments received by the Trust from the Decker mine
increased to $1,394,848 as compared to $1,228,784 received during the same
quarter in 2001. 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.

6



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##### 



ii.Big
Horn Mine.

No
royalties were received from the Big Horn Mine during the first nine
months of 2002 or 2001. 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 2002,
the Big Horn Mine received no such rental payments. During the first nine
months and during the third quarter of 2001, the Big Horn Mine received rental
payments of $1400 and $0, respectively.

iii.Spring
Creek Mine.

Royalty
and overriding royalty amounts received by the Trust from the
Spring Creek mine increased to $850,965 during the first nine-months of 2002 as
compared to $833,317 received during the same period in 2001. For the third
quarter of 2002, the payments received by the Trust from the Spring Creek Mine
increased to $800,965 as compared to $783,317 received during the same quarter
in 2001. 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 2002 and 2001.

iv.Trust
Expenses.

Trust
expenses increased to $90,672 in the first nine months of 2002, as
compared to $59,023 for the same period in 2001. This increase was due
principally to increased legal fees related to trust operations, trust
ownership transfers and the Trust Reserve discussed below. Trust expenses for
the third quarter of 2002 decreased to $18,886 as compared to $25,169 for the
same period in 2001 primarily due to a decrease in legal fees paid during the third quarter of 2002.

7



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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 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.

Item 4.    Controls and Procedures.

a.Evaluation
of Disclosure Controls and Procedures.

Within
the 90-day period prior to the filing date of this quarterly report, the Trust conducted an evaluation,
under the supervision and with the participation of the trust
officer of the Trustee of the effectiveness of the design and operation of the
Trusts disclosure controls and procedures (as defined in Rule 13a-14 and 15d-14 of the
Securities Exchange Act of 1934). Based upon this evaluation, the trust
officer of the Trustee concluded that the Trusts disclosure controls
and procedures are effective in timely alerting the trust officer of the
Trustee to any material information relating to the Trust required to be disclosed by the Trust in the
reports that it files or submits under the Securities Exchange Act of 1934.

b.Changes
in Internal Controls.

There

have not been any significant changes in the Trusts internal
controls or in other factors that could significantly affect these controls
subsequent to the date the Trust carried out its evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

8



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##### 



PART II  OTHER INFORMATION.

Item 1.    Legal Proceedings.

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 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.. 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.

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).             

9



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##### 





| | 99.1 |  | 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.

10



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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 13, 2002

11



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##### 



CERTIFICATION

I, Susan K. Rosburg, the trust officer of U.S. Bank National Association, the
trustee of Kiewit Royalty Trust, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kiewit Royalty Trust;

2.Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

3.Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.I am responsible for establishing and maintaining disclosure controls
and procedures and internal controls and procedures for financial reporting (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

(a)  Designed such disclosure controls and procedures to ensure that
material information relating to the registrant is made known to me by others
within the registrant, particularly during the period in which this quarterly
report is being prepared;

(b)  Evaluated the effectiveness of the registrants disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and

(c)  Presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on my evaluation
as of the Evaluation Date; and

5.I have disclosed, based on my most recent evaluation, to the
registrants auditors:

(a)  All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and

(b)  Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal controls;
and

6.I have indicated in this quarterly report whether or not there were any
significant changes in the internal controls or in other factors that could
significantly affect internal controls subsequent to the date of my most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

Date: November 13, 2002

|                                                                                         
|-----------------------------------------------------------------------------------------
|/s/ Susan K. RosburgSusan K. Rosburg
Trust Officer
U.S. Bank National Association
Trustee

12