##### 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, 2006
 OR
 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
  o o þ
 o þ




---



##### 



PagePart I. Financial InformationItem 1. Financial Statements
    
    
    1Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations
    
    
    3Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    5Item 4. Controls and Procedures
    
    
    5Part II. Other InformationItem 1. Legal Proceedings
    
    
    6Item 1A. Risk Factors
    
    
    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 and Reports on Form 8-K
    
    
    6Signature
    
    
    7Certification of Trust OfficerCertification of Trust OfficerSection 302 CertificationSection 906 CertificationCertificationCertification
  Forward-Looking Statements




---



##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 KIEWIT ROYALTY TRUST
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
unaudited as of June 30, 2006 and audited as of December 31, 2005
 June 30,
    
    
    December 31,2006
    
    
    2005(unaudited)ASSETSCash and cash equivalents
    
    $
    202,770
    
    
    $
    168,310Royalty and overriding royalty interests in coal leases
    
    
    167,817
    
    
    
    167,817Less accumulated amortization
    
    
    (144,927
    )
    
    
    (144,927
    )Net royalty and overriding royalty interests in coal leases
    
    
    22,890
    
    
    
    22,890Total Assets
    
    $
    225,660
    
    
    $
    191,200LIABILITIES AND TRUST CORPUSDistributions payable to unit holders
    
    $
    202,770
    
    
    $
    168,310Trust corpus: 12,633,432 units of beneficial interest authorized and outstanding
    
    
    22,890
    
    
    
    22,890Total Liabilities and Trust Corpus
    
    $
    225,660
    
    
    $
    191,200
  1




---



##### Table of Contents



KIEWIT ROYALTY TRUST
STATEMENTS OF DISTRIBUTABLE INCOME
(unaudited)
 Three Months Ended June 30
    
    Six Months Ended June 302006
    
    2005
    
    2006
    
    2005Royalty income
    
    $
    244,498
    
    
    $
    207,409
    
    
    $
    1,252,800
    
    
    $
    1,918,519Royalty income recognized on settlement of litigation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    783,317Interest income
    
    
    2,690
    
    
    
    1,968
    
    
    
    10,040
    
    
    
    13,544Trust expenses
    
    
    (44,418
    )
    
    
    (39,124
    )
    
    
    (55,375
    )
    
    
    (76,077
    )Distributable income
    
    $
    202,770
    
    
    $
    170,253
    
    
    $
    1,207,465
    
    
    $
    2,639,303Distributable income per unit
    
    $
    0.0160503
    
    
    $
    0.0134764
    
    
    $
    0.0955770
    
    
    $
    0.2089142
 STATEMENTS OF CHANGES IN TRUST CORPUS
(unaudited)
 Six Months Ended June 302006
    
    
    2005Trust corpus as of January 1
    
    $
    22,890
    
    
    $
    25,091Amortization of royalty interests
    
    
    
    
    
    
    (2,164
    )Distributable income
    
    
    1,207,465
    
    
    
    2,639,303Distributions to unit holders
    
    
    (1,207,465
    )
    
    
    (2,639,303
    )Trust corpus as of June 30
    
    $
    22,890
    
    
    $
    22,927
  2




---



##### Table of Contents



KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
as of June 30, 2006 and December 31, 2005
 Basis of Presentation
  Summary of Significant Accounting Policies
 (a) Basis of Accounting:
  (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)
    
    Distributions to Unit Holders are recognized when declared by the Trustee.
   (b) Cash and Cash Equivalents:
  
 Item 2. Trustees Discussion and Analysis of Financial Condition and Results of Operations.
 Material Changes in Financial Condition.
  3




---



##### Table of Contents



Material Changes in Results of Operations.
  Three Months Ended June 30
    
    Six Months Ended June 302006
    
    2005
    
    2006
    
    2005Decker
    
    $
    194,498
    
    
    $
    157,409
    
    
    $
    1,202,800
    
    
    $
    1,868,519Spring Creek
    
    
    50,000
    
    
    
    50,000
    
    
    
    50,000
    
    
    
    50,000Distributable income
    
    $
    244,498
    
    
    $
    207,409
    
    
    $
    1,252,800
    
    
    $
    1,918,519
 Decker Mine.
  Spring Creek Mine.
  Trust Expenses.
  Trust Reserve.
  4




---



##### Table of Contents



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 which 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.
    
    Distributions to Unit Holders are recognized when declared by the Trustee.
  
    
    Royalty income is 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 accounting
principles generally accepted in the United States of America.
 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  
 Item 4. Controls and Procedures.
   5




---



##### Table of Contents



PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  
 Item 1A. Risk Factors.
  
 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




---



##### Table of Contents



SIGNATURE
  KIEWIT ROYALTY TRUSTBy: U.S. Bank National Association in its
capacity as Trustee and not in its 
individual
capacity or otherwise/s/ Ted L. HallTed L. HallVice President and Trust Officer
  7