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~~March 3031, ~~2009~~ 2010


o		Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ~~_____~~ to ~~_____~~

Commission File Number: 1-11608

WILLIAMS COAL SEAM GAS ROYALTY TRUST

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization) 75-6437433 (I.R.S. Employer Identification No.)


Delaware		75-6437433
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)

Trust Division
U.S. Trust, Bank of America Private Wealth Management
901 Main Street
17th Floor
Dallas, Texas 75202
(Address of principal executive offices)
(Zip code)

(214) 209-2400
(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 þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No ~~o (not~~ ~~yet~~o ~~applicable to registrant)~~

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer þo Non-accelerated filer þ Smaller reporting company o (Do not check if a smaller reporting company) ~~Smaller reporting company o~~

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Number of units of beneficial interest outstanding at ~~November~~May 61, ~~2009~~2010: 9,700,000

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
	Item 1. Financial Statements.
	Item 1. Financial Statements
	Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.
	Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations
	Item 3. Quantitative and Qualitative Disclosures About Market Risk.
	Item 3. Quantitative and Qualitative Disclosures About Market Risk
	Item 4. Controls and Procedures.
	Item 4. Controls and Procedures
PART II — OTHER INFORMATION
	Item 1. Legal Proceedings.
	Item 1. Legal Proceedings
	Item 1A. Risk Factors.
	Items 1A through 5
	Items 2 through 5.
	Item 6. Exhibits
	Item 6. Exhibits.
SIGNATURES
INDEX TO EXHIBITS
EX-15.1
EX-31.1
EX-32.1

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

The financial statements included herein have been prepared by Bank of America, N.A., as Trustee (the “Trustee”) of Williams Coal Seam Gas Royalty Trust (the “Trust”), pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to such rules and regulations, although the Trustee believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements and notes thereto be read in conjunction with the financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the year ended December 31, ~~2008~~2009 (the “~~2008~~2009 Annual Report”). The December 31, ~~2008~~2009 balance sheet is derived from the audited balance sheet of that date. In the opinion of the Trustee, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the assets, liabilities and trust corpus of the Trust as of ~~September~~March 3031, ~~2009~~2010, and the distributable income ~~(expenses in excess of income) for the three-month~~ and ~~nine-month periods ended September 30, 2009 and 2008, and~~ the changes in trust corpus for the ~~nine~~three-month periods ended ~~September~~March 3031, ~~2009~~2010 and ~~2008~~2009, have been included. The ~~distributable~~ distributable income for such interim periods is not necessarily indicative of the distributable income for the full year.

The financial statements as of ~~September~~March 3031, ~~2009~~2010, and for the three-month ~~and nine-month~~ periods ended ~~September~~March 3031, 2010 ~~2009~~ and ~~2008~~2009 included herein have been reviewed by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report appearing herein.

Report of Independent Registered Public Accounting Firm

The Trustee
Williams Coal Seam Gas Royalty Trust

We have reviewed the condensed statement of assets, liabilities and trust corpus of the Williams Coal Seam Gas Royalty Trust as of ~~September~~March 3031, ~~2009~~2010, and the related condensed statements of distributable income ~~(expenses in excess of income) for the three-month~~ and ~~nine-month periods ended September 30, 2009 and 2008, and the condensed statements of~~ changes in trust corpus for the ~~nine~~ three-month periods ended ~~September~~March 3031, ~~2009~~ 2010 and ~~2008~~2009. These financial statements are the responsibility of the Trustee’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

As described in Note 2 to the financial statements, these financial statements have been prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than U.S. generally accepted accounting principles.

Based on our review, we are not aware of any material modifications that should be made to the condensed financial statements referred to above for them to be in conformity with the basis of accounting described in Note 2.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the statement of assets, liabilities and trust corpus of the Williams Coal Seam Gas Royalty Trust as of December 31, ~~2008~~2009, and the related statements of distributable income and changes in trust corpus for the year then ended not presented herein, and in our report dated March 1231, ~~2009~~2010, we expressed an unqualified opinion on those financial statements and included an explanatory ~~paragraph~~paragraphs regarding the Williams Coal Seam Gas Royalty Trust’s ability to continue as a going concern and regarding the Trust’s change in its reserve estimates and related disclosures as a result of adopting new oil and gas reserve estimation and disclosure requirements. In our opinion, the information set forth in the accompanying condensed statement of assets, liabilities and trust corpus as of December 31, ~~2008~~2009, is fairly stated, in all material respects, in relation to the statement of assets, liabilities and trust corpus from which it has been derived.

/s/ Ernst & Young LLP

Tulsa, Oklahoma ~~November~~May 613, ~~2009~~2010

WILLIAMS COAL SEAM GAS ROYALTY TRUST

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS (UNAUDITED)

	September 30,		December 31,
	March 31,		December 31,
	2009		2008
	2010		2009
	(Unaudited)
ASSETS
Current Assets — cash and cash equivalents	$	5263,~~542~~598	$	4552,~~419~~195
Royalty interests in oil and gas properties (less accumulated amortization of $133,725,319 at September 30, 2009 and $132,988,670 at December 31, 2008) (Note 2)		4,841,345		5,577,994
Royalty interests in oil and gas properties (less accumulated amortization of $134,516,989 at March 31, 2010 and $134,091,719 at December 31, 2009) (Note 2)		4,049,675		4,474,945
TOTAL ASSETS	$	4,~~893~~113,~~887~~273	$	54,~~623~~527,~~413~~140
LIABILITIES AND TRUST CORPUS
Current Liabilities:
Current Liabilities — other accounts payable:	$	53,596	$	116,341
Accounts payable	$	191,436	$	31,193
Contingencies (Note 7)
Trust corpus — 9,700,000 units of beneficial interest authorized and outstanding (Note 2)		4,~~702~~059,~~451~~677		54,~~592~~410,~~220~~799
TOTAL LIABILITIES AND TRUST CORPUS	$	4,~~893~~113,~~887~~273	$	54,~~623~~527,~~413~~140

The accompanying notes are an integral part of these financial statements. See accountants’ review report.

WILLIAMS COAL SEAM GAS ROYALTY TRUST

CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (EXPENSES IN EXCESS OF INCOME) (UNAUDITED)

	THREE MONTHS			THREE MONTHS
	ENDED			ENDED
	September 30, 2009			September 30, 2008
Royalty income (Notes 2 and 7)	$	77,767		$	3,629,317
Interest income		42			6,058
Total		77,809			3,635,375
General and administrative expenses (Note 4)		(182,005	)		(155,777	)
Distributable income (expenses in excess of income)	$	(104,196	)	$	3,479,598
Distributable income (expenses in excess of income) per unit (9,700,000 units) (Note 2)	$	(.01	)	$	.36

The accompanying notes are an integral part of these financial statements. See accountants’ review report.

WILLIAMS COAL SEAM GAS ROYALTY TRUST

CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)

	NINE MONTHS			NINE MONTHS
	THREE MONTHS			THREE MONTHS
	ENDED			ENDED
	September 30, 2009			September 30, 2008
	March 31, 2010			March 31, 2009
Royalty income (Notes 2 and 7)	$	2,403,029		$	7,775,852
Royalty income (Notes 2, 4 and 7)	$	764,578		$	1,393,653
Interest income		~~841~~67			~~13,952~~619
Total		2764,~~403,870~~645			71,~~789~~394,~~804~~272
General and administrative expenses (Note 4)		(~~820~~525,~~886~~869	)		(~~704~~372,~~677~~288	)
Distributable income	$	1238,~~582,984~~776		$	71,~~085~~021,~~127~~984
Distributable income per unit (9,700,000 units) (Note 2)	$	0.1602		$	0.7311

The accompanying notes are an integral part of these financial statements. See accountants’ review report.

WILLIAMS COAL SEAM GAS ROYALTY TRUST

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)

	NINE MONTHS			NINE MONTHS
	THREE MONTHS			THREE MONTHS
	ENDED			ENDED
	September 30, 2009			September 30, 2008
	March 31, 2010			March 31, 2009
Trust corpus, beginning of period	$	54,~~592~~410,~~220~~799		$	65,~~877~~592,~~977~~220
Amortization of royalty interests (Note 2)		(~~736~~425,~~649~~270	)		(~~868~~387,~~661~~003	)
Distributable income		1238,~~582,984~~776			71,~~085~~021,~~127~~984
Distributions to Unitholders (Note 5)		(1164,~~736,104~~628	)		(61,~~951~~103,~~298~~966	)
Trust corpus, end of period	$	4,~~702~~059,~~451~~677		$	65,~~143~~123,~~145~~235
Distributions per unit (9,700,000 units) (Note 5)	$	0.1802		$	0.7211

The accompanying notes are an integral part of these financial statements. See accountants’ review report.

WILLIAMS COAL SEAM GAS ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. TRUST ORGANIZATION AND PROVISIONS

Williams Coal Seam Gas Royalty Trust (the “Trust”) was formed as a Delaware business trust pursuant to the terms of the Trust Agreement of Williams Coal Seam Gas Royalty Trust (as amended, the “Trust Agreement”) entered into effective as of December 1, 1992, by and among Williams Production Company, a Delaware corporation (“WPC”), as trustor; The Williams Companies, Inc., a Delaware corporation (“Williams”), as sponsor; Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), a national banking association (the “Trustee”); and ~~Chase~~The Bank of New York Mellon Trust Company, N.A. (as successor to Chemical Bank Delaware), a Delaware banking corporation (the “Delaware Trustee”) (the “Trustee” and the “Delaware Trustee” are sometimes referred to collectively as the “Trustees”). The Trustees are independent financial institutions. In 2007 the Bank of America private wealth management group officially became known as “U.S. Trust, Bank of America Private Wealth Management.” The legal entity that serves as Trustee of the Trust did not change, and references in this report on Form 10-Q to U.S. Trust, Bank of America Private Wealth Management shall describe the legal entity Bank of America, N.A.

The Trust was formed to acquire and hold certain net profits interests (the “Royalty Interests”) in proved natural gas properties located in the San Juan Basin of New Mexico and Colorado (the “Underlying Properties”) owned by WPC. The Trust was initially created effective as of December 1, 1992, with a $100 contribution by WPC. On January 21, 1993, the Royalty Interests were conveyed to the Trust by WPC pursuant to the Net Profits Conveyance (the “Conveyance”) entered into effective as of October 1, 1992, by and among WPC, Williams, the Trustee and the Delaware Trustee, in consideration for all the 9,700,000 authorized units of beneficial interest in the Trust (“Units”). WPC transferred its Units by dividend to its parent, Williams, which sold an aggregate of 5,980,000 Units to the public through various underwriters in January and February 1993 (the “Public Offering”). Subsequently, Williams sold to the public an additional 151,209 Units. During the second quarter of 1995, Williams transferred its remaining Units to Williams Holdings of Delaware, Inc. (“WHD”), a separate holding company for Williams’ non-regulated businesses. Effective July 31, 1999, WHD was merged into Williams, and by operation of the merger, Williams assumed all assets, liabilities and obligations of WHD, including without limitation, ownership of WHD’s Units. Effective August 11, 2000, Williams sold its Units to Quatro Finale IV LLC, a Delaware limited liability company (“QFIV”), in a privately negotiated transaction. Williams retained the voting rights and retained a “call” option on the transferred Units, and QFIV was granted a “put” option on the Units. Through a series of exercises of its call option, Williams reacquired an aggregate of 3,568,791 Units from December 2001 through June 2003. Williams has informed the Trustee that it has subsequently sold 2,779,500 of these Units through ~~November~~ May 1, ~~2009~~ 2010 and owned a remaining 789,291 Units as of such date.

Effective May 1, 1997, WPC sold the Underlying Properties subject to and burdened by the Royalty Interests to Quatro Finale LLC, an unaffiliated Delaware limited liability company.

Effective May 1, 1997, WPC sold the Underlying Properties subject to and burdened by the Royalty Interests to Quatro Finale LLC, an unaffiliated Delaware limited liability company. Ownership of the Underlying Properties reverted back to WPC effective February 1, 2001, pursuant to the terms of the May 1, 1997 transaction. Pursuant to a Purchase and Sale ~~Agreement~~ Agreement dated March 14, 2001 (the “2001 Transaction Agreement”), and effective March 1, 2001, WPC sold the Underlying Properties subject to and burdened by the Royalty Interests to Quatro Finale V LLC, an unaffiliated Delaware limited liability company. The sale of the Underlying Properties is expressly permitted under the Trust Agreement. Effective January 1, 2003, ownership of the Underlying Properties once again reverted back to WPC after it exercised its right to repurchase interests in the Underlying Properties from Quatro Finale V LLC pursuant to the 2001 Transaction Agreement. Unless otherwise dictated by context, references herein to WPC with respect to the ownership of the Underlying Properties for any period from May 1, 1997 through February 1, 2001, and for the period from March 1, 2001 through December 31, 2002, shall be deemed to refer to Quatro Finale.

The Trustee has the power to collect and distribute the proceeds received by the Trust and to pay Trust liabilities and expenses. The Delaware Trustee has only such powers as are set forth in the Trust Agreement and is not empowered to otherwise manage or take part in the business of the Trust. The Royalty Interests are passive in nature, and neither the Delaware Trustee nor the Trustee has any control over or any responsibility relating to the operation of the Underlying Properties.

The only assets of the Trust, other than cash and cash equivalents being held for the payment of expenses and liabilities and for distribution to Unitholders, are the Royalty Interests. The Royalty Interests consist primarily of a net profits interest (the “NPI”) in the Underlying Properties. The NPI generally entitles the Trust to receive 60 percent of the NPI Net Proceeds, as defined below, attributable to (i) gas produced and sold from WPC’s net revenue interests (working interests less lease burdens) in the properties in which WPC has a working interest (the “WI Properties”) and (ii) the revenue stream received by WPC attributable to its 35 percent net profits interest in 5,348 gross acres in La Plata County, Colorado (the “Farmout Properties”). “NPI Net Proceeds” consists generally of the aggregate proceeds attributable to WPC’s net revenue interest, based on the sale at the wellhead of gas produced from the WI Properties and the revenue stream received by WPC from its 35 percent net profits interest in the Farmout Properties, less certain taxes and costs.

The Royalty Interests also include a 20 percent interest in WPC’s Infill Net Proceeds from the sale of production since well spacing rules have been effectively modified and additional wells are drilled on producing drilling blocks on the WI Properties (the “Infill Wells”) during the term of the Trust. “Infill Net Proceeds” consists generally of the aggregate proceeds after payout, based on the price at the wellhead, of gas produced from WPC’s net revenue interest in any Infill Wells less certain taxes and costs.

On October 15, 2002, the New Mexico Oil and Gas Commission (NMOCD) revised the field rules for the Basin Fruitland Coal (Gas) Pool to allow optional second (infill) wells on the standard 320 acre spacing unit in certain designated areas of the pool (the non -fairway wells). On July 17, 2003, the NMOCD further modified the field rules for the Basin Fruitland Coal (Gas) Pool to allow these infill wells on the standard 320 acre spacing unit in all areas of the ~~pool. The WI~~ ~~Properties contain 484 infill locations designated as proved locations according to~~

pool. The WI Properties contain 442 infill locations designated as proved locations according to U.S. Securities and Exchange Commission (“SEC”) guidelines. As of ~~September~~December 3031, 2009, ~~437~~ all of these infill locations ~~are~~represent proved developed producing ~~and~~reserves, 47while ~~locations~~there are no proved undeveloped locations.

~~The~~WPC has informed the Trustee that the Infill Wells reached payout in the aggregate in during 2008,. ~~resulting~~The ~~in the~~ Trust ~~receiving~~has received its 20 percent interest in WPC’s Infill Net Proceeds ~~through~~for the ~~second~~periods after ~~quarter of 2009~~payout. However, ~~as of~~during ~~September 30,~~ 2009, WPC ~~has~~ informed the Trustee that due to the net deficit realized by the Infill Wells during the third ~~quarter~~and fourth quarters, the Infill Net Profit Costs ~~now~~exceeded ~~exceed~~ the Infill Net Profit Gross Proceeds by approximately $~~335~~32,~~000~~500. The Trust ~~will~~was not be liable for such excess costs, and such excess costs ~~will~~constituted ~~hereafter constitute~~ Excess Infill Net Profit Costs until recovered by WPC. ~~The~~ ~~Trust~~WPC ~~will~~has ~~not~~informed ~~receive~~the ~~its~~Trustee ~~20 percent~~that ~~interest~~the inexcess ~~WPC’s~~costs ~~Infill~~were ~~Net~~fully ~~Proceeds~~recovered ~~until~~by ~~such~~WPC ~~time~~and asthe distribution received during the ~~Infill~~first ~~Net~~quarter ~~Profits~~of ~~Gross~~2010 ~~Proceeds~~included ~~exceeds~~an amount for the Infill Net ~~Profit~~Proceeds reduced ~~Costs~~for onthe anexcess ~~aggregate~~costs ~~basis~~recovered. The complete definitions of Infill Net Proceeds, Infill Net Profit Costs, Excess Infill Net Profit Costs, and Infill Net Profit Gross Proceeds are set forth in the Conveyance.

The decrease in royalty income for the quarter ended September 30, 2009 compared to the same quarter in 2008 is primarily due to lower production and significantly lower natural gas prices, impacting the net profits interest due to the Trust. Production volumes are affected by changes in sales prices for natural gas produced and costs that are deducted in calculating the NPI Net Proceeds. Royalty income for the nine month period ended September 30, 2009 would have been $1,637,213 if the Trust had not received an overpayment from WPC of $765,816 in the second quarter of 2009. Williams has informed the Trust that it waives any right to seek repayment of such amount.

2. BASIS OF ACCOUNTING

The Trust ~~will~~terminated ~~terminate~~effective noMarch 1, ~~later~~2010 ~~than~~(the ~~December 31,~~“Termination ~~2012~~Date”), ~~subject~~pursuant to ~~earlier~~the ~~termination under~~terms ~~certain~~of ~~circumstances~~the ~~described~~Trust inAgreement. Accordingly, there exists substantial doubt about the Trust’s ~~Agreement~~ability ~~(the~~to continue ~~“Termination~~as ~~Date”)~~a going concern. Cancellation of the Trust will occur ~~on or~~ following the Termination Date when all Trust assets have been sold and the net proceeds therefrom distributed to holders of Units in the Trust (“Unitholders”).

~~One~~The ofTrust ~~the~~Agreement ~~circumstances~~required ~~for~~termination ~~which~~of the Trust ~~is subject to termination prior to December 31, 2012 is~~ in the event that when a computation is performed as of each December 31, the net present value (discounted at 10 percent) of the estimated future net revenues (calculated in accordance with criteria established by the SEC) for proved reserves attributable to the Royalty Interests but using the average monthly Blanco Hub Spot Price for the past calendar year less certain gathering costs, is equal to or less than $30 million. The net present value of the estimated future net revenues computed as described above by the independent petroleum engineers as of December 31, ~~2008~~ 2009 was approximately $658.4 million. ~~While the~~ The results of this computation ~~did~~triggered ~~not trigger~~ an early termination of the Trust. Because the Trust’s computed net present value fell below the $30 million stipulated threshold as of December 31, ~~2008~~2009, the ~~future~~Trust ~~computations~~terminated ~~are~~effective ~~subject~~March 1, to2010. ~~numerous~~The accompanying financial statements have been ~~uncertainties~~prepared inon ~~estimating~~a ~~the~~going ~~future~~concern ~~net~~basis ~~revenues~~and do not include any adjustments, ~~including~~costs ~~changes~~and inexpenses ~~pricing~~or other matters that might result from the outcome of this termination. All of these adjustments, costs, and expenses resulting from the outcome of this termination are not presently known; ~~production~~however, ~~volumes~~they could be significant.

~~The~~Following ~~current~~termination ~~outlook~~of ~~for~~the ~~2009~~Trust, ~~commodity prices is significantly lower than~~ the ~~prices~~Trustee ~~realized during~~will ~~2008,~~continue ~~resulting~~to inact ~~uncertainty~~as ~~regarding~~Trustee of the Trust’s until ~~ability~~all toTrust ~~avoid~~assets aare ~~termination triggering~~sold ~~event~~and inthe ~~accordance~~net ~~with~~proceeds ~~the~~from ~~provisions~~such ofsales ~~the~~distributed ~~Trust~~to ~~Agreement~~Unitholders. The ~~when~~Trustee ~~the~~will ~~test~~use isbest ~~next performed~~efforts asto ofsell ~~December 31,~~the ~~2009.~~Trust’s ~~The~~assets ~~simple~~in ~~average~~accordance ~~monthly~~with ~~Blanco~~the ~~Hub~~procedures ~~Spot~~set forth ~~Price~~in ~~for~~ the Trust Agreement.

The Trust has retained Albrecht & Associates, Inc., an investment banking firm (the “Advisor”), on behalf of the Trust who will assist the Trustee in selling the remaining Royalty Interests owned by the Trust (the “Remaining Royalty Interests”). WPC has the right, but not the

~~first nine months of 2009 was $3.00 compared to the average price of $7.21 that was used by the independent petroleum engineers as of December 31~~obligation, ~~2008 who calculated the net present value of the estimated future net revenues as of such date~~ to bemake ~~approximately $65 million. Additionally, the computed value could be negatively impacted by future revisions to the underlying reserve estimates. As~~ a ~~result,~~cash ~~there~~offer ~~is substantial doubt regarding the Trust’s ability~~ to ~~continue~~purchase asall ~~a going~~Remaining ~~concern.~~Royalty ~~Should~~Interests ~~the~~following ~~Trust’s computed net present value fall below the $30 million stipulated~~termination ~~threshold as~~ of ~~December 31, 2009, which appears increasingly likely as~~ the ~~average price for the first nine months of 2009 is significantly lower than the average price for 2008, the~~ Trust ~~will terminate~~as ~~effective~~described ~~March 1,~~in ~~2010. The accompanying financial statements do not include any adjustments that might result from~~ the ~~outcome~~following ~~of this uncertainty, including the ultimate liquidation of the Trust and its assets~~paragraph.

~~The~~WPC ~~termination~~had of the ~~Trust~~right, ~~and~~within ~~the~~60 days ~~subsequent~~following ~~sale~~the ofTermination ~~the~~Date, ~~Royalty~~to ~~Interests~~make ~~would~~a becash ~~taxable events~~offer to purchase all of the ~~Unitholders~~Remaining ~~for~~Royalty ~~Federal~~Interests ~~income~~then ~~tax~~held ~~purposes~~by the Trust. ~~Generally,~~An aoffer ~~Unitholder~~was ~~will~~not ~~realize~~made by ~~gain~~WPC orduring ~~loss~~this ~~equal~~60 day toperiod. Under the ~~difference~~terms ~~between~~of the ~~amount~~Trust ~~realized~~Agreement, on the ~~sale~~Trustee ofis ~~the~~now ~~Royalty~~required ~~Interests~~to ~~upon~~use ~~the~~Best ~~termination~~Efforts of(as defined in the Trust ~~and~~Agreement), ~~such~~assisted ~~Unitholder’s~~by ~~adjusted~~the ~~basis~~Advisor into ~~his~~obtain ~~Units.~~offers ~~Gain~~for orthe ~~loss~~Remaining ~~realized~~Royalty byInterests. aAt ~~Unitholder~~the ~~who~~end isof ~~not~~ a ~~dealer~~120-day ~~with~~period ~~respect~~following tothe ~~such~~Termination Date, ~~Units~~the ~~and~~Trustee ~~who~~is ~~has~~required ~~a holding~~to ~~period~~notify ~~for~~WPC of the ~~Units~~highest of ~~more~~any ~~than~~offers ~~one~~(net ~~year~~of ~~will~~any becommissions ~~treated~~or other asfees ~~long-term~~payable ~~capital~~by ~~gain~~the ~~or loss~~Trust), ~~except~~acceptable to the ~~extent~~Trustee of(which ~~any~~must ~~depletion~~be ~~recapture~~an ~~amount~~all-cash offer), received ~~which~~during ~~must~~such beperiod ~~treated~~(the as“Highest ~~ordinary income~~Acceptable Offer”). ~~State~~WPC ~~tax~~then ~~consequences~~has ~~may~~the ~~also~~exclusive ~~result~~right, but not the obligation, to ~~Unitholders~~purchase ~~upon~~all ~~the~~Remaining ~~termination~~Royalty ofInterests ~~the~~for ~~Trust and~~a ~~the~~cash ~~sale~~purchase price equal to 105 percent of the ~~Royalty~~Highest ~~Interests~~Acceptable Offer. ~~Each~~If ~~Unitholder~~no ~~should~~acceptable ~~consult~~offers ~~such~~are ~~Unitholder’s~~received ~~own~~for ~~tax~~all ~~advisor~~Remaining ~~regarding~~Royalty ~~Trust~~Interests, ~~tax~~the ~~compliance~~Trustee ~~matters,~~may ~~including~~request WPC to submit an offer for consideration by the ~~Federal~~Trustee and ~~state~~may ~~tax~~accept ~~implications concerning~~or areject ~~termination~~such offer. Acceptance of an offer by the ~~Trust~~Trustee ~~and~~shall be conditioned upon the ~~sale~~opinion of the ~~Royalty~~Advisor ~~Interests~~of the fairness of the offer.

The ~~financial~~Trustee ~~statements~~may accept any offer for all or any part (not more than six parts) of the ~~Trust~~Remaining ~~are~~Royalty ~~prepared~~Interests as onit adeems ~~modified~~to ~~cash~~be ~~basis~~in the best interests of the Trust and ~~are~~Unitholders ~~not~~and may continue, for up to ~~intended~~one calendar year after the Termination Date, to ~~present~~attempt ~~financial~~to ~~position~~locate ~~and~~a ~~results~~buyer or buyers of ~~operations~~the Remaining Royalty Interests in ~~conformity~~order ~~with~~to ~~United~~sell ~~States Generally~~such ~~Accepted~~interests ~~Accounting~~in ~~Principles~~an ~~(“GAAP”)~~orderly fashion not involving a public auction. ~~Preparation~~If any Remaining Royalty Interests have not been sold or a definitive agreement for sale has not been entered into by the end of such calendar year, the ~~Trust’s~~Trustee ~~financial~~is ~~statements~~required to onsell the Remaining Royalty Interests at public auction to the highest cash bidder, which sale may be to WPC or any of its affiliates. Notice of such ~~basis~~sale ~~includes~~by auction shall be mailed at least 30 days prior to such sale to each Unitholder at his address as it appears on the ~~following:~~ownership ledger of the Trustee.

• If ~~Revenues~~a ~~are~~sale ~~recognized~~of in the ~~period~~Remaining inRoyalty ~~which~~Interests ~~amounts~~is ~~are~~made ~~received~~or bya ~~the~~definitive ~~Trust.~~contract ~~Routine~~for ~~general~~sale ~~and~~of ~~administrative~~the Remaining ~~expenses~~Royalty ~~are~~Interests ~~recognized~~is onentered aninto ~~accrual~~prior ~~basis.~~to Nothe ~~amounts~~150th ~~have~~day ~~been~~following ~~accrued~~the Termination ~~for~~Date, ~~services~~the ~~which~~buyer ~~may~~of bethe ~~required~~Remaining inRoyalty ~~the~~Interests, ~~future~~and ~~related~~not to the ~~possible~~Trust ~~termination~~or ofUnitholders, will ~~the~~be ~~Trust.~~entitled •to ~~Amortization~~all proceeds of production attributable to the Remaining Royalty Interests following isthe ~~calculated~~Termination onDate. aAll ~~unit-~~proceeds of- production ~~basis~~following ~~and~~the ~~charged~~Termination ~~directly~~Date attributable to ~~trust~~the ~~corpus.~~Remaining •Royalty ~~Distributions~~Interests towill ~~Unitholders~~be ~~are~~deposited ~~recorded~~into ~~when~~a ~~declared~~non-interest bybearing account ~~the~~until ~~Trustee~~they ~~(See Note 5). • Loss contingencies~~ are ~~recognized~~paid into the ~~period~~buyer inor ~~which~~otherwise ~~amounts~~distributed ~~are~~in ~~paid~~accordance bywith the Trust Agreement.

~~The~~After receipt ~~financial statements~~ of ~~the Trust differ from financial statements prepared in accordance with GAAP. For example,~~ royalty income ~~is not accrued~~ in ~~the period of production~~May 2010, ~~amortization of~~ the ~~Royalty~~Trust ~~Interests~~ is ~~not~~withholding in ~~charged~~cash ~~against~~and ~~operating~~cash ~~results,~~equivalents ~~and~~an ~~loss~~additional ~~contingencies~~$300,000 ~~are~~for ~~not~~anticipated ~~charged~~expenses relating to ~~operating~~this ~~results~~termination ~~until paid~~process. ~~This comprehensive basis of accounting other than GAAP~~ ~~corresponds to the accounting permitted for royalty trusts by the~~

The financial statements of the Trust are prepared on a modified cash basis and are not intended to present financial position and results of operations in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The financial statements do not include any adjustments that might result from execution of the plan for termination or liquidation of the Trust’s assets. Preparation of the Trust’s financial statements on the modified cash basis on a going concern basis includes the following:

~~SEC,~~• asRevenues ~~specified~~are recognized in the period in which amounts are received by ~~Staff~~the ~~Accounting~~Trust. ~~Bulletin~~Routine ~~Topic~~general ~~12:E,~~and ~~Financial~~administrative ~~Statements~~expenses are recognized on an accrual basis. • Amortization of the Royalty ~~Trusts~~ Interests is calculated on a unit-of-production basis and charged directly to trust corpus. • Distributions to Unitholders are recorded when declared by the Trustee (See Note 5). • Loss contingencies are recognized in the period in which amounts are paid by the Trust.

InThe ~~December 2008,~~financial ~~the~~statements ~~SEC released Final Rule, Modernization~~ of ~~Oil and Gas Reporting. The new disclosure requirements include provisions that permit~~ the ~~use~~Trust ofdiffer ~~new~~from ~~technologies~~financial tostatements ~~determine proved~~prepared ~~reserves~~in ~~if those technologies have been demonstrated empirically to lead to reliable~~accordance ~~conclusions~~with ~~about reserves volumes~~GAAP. ~~The~~For ~~new requirements also will allow companies to disclose their probable and possible reserves to investors. In addition~~example, ~~the~~royalty ~~new~~income ~~disclosure~~is ~~requirements require~~not ~~companies~~accrued ~~to:~~in ~~(a) report~~ the ~~independence~~period ~~and qualifications~~ of ~~its~~production, ~~reserves~~amortization ~~preparer or~~of ~~auditor;~~the ~~(b) file~~Royalty ~~reports~~Interests ~~when a third party~~ is ~~relied~~not ~~upon~~charged toagainst ~~prepare~~operating ~~reserves~~results, ~~estimates or conducts a reserves audit;~~ and ~~(c) report~~loss ~~oil~~contingencies ~~and~~are ~~gas reserves using an average price based upon~~not ~~the~~charged ~~prior~~to ~~12-month~~operating ~~period~~results ~~rather~~until ~~than year-end prices~~paid. InThis ~~September 2009,~~comprehensive ~~the~~basis ~~Financial~~of ~~Accounting Standards Board (“FASB”) announced a proposed~~ accounting ~~standards~~other ~~update~~than GAAP corresponds to ~~align~~ the ~~oil~~accounting ~~and~~permitted ~~gas reserve~~for ~~estimation~~royalty ~~and~~trusts ~~disclosure~~by ~~requirements of Extractive Industries — Oil and Gas (Topic 932) with~~ the ~~requirements in the~~ SEC, ~~Final~~as ~~Rule.~~specified ~~The~~by ~~new disclosure requirements are effective for~~Staff ~~financial~~Accounting ~~statements~~Bulletin ~~for~~Topic ~~fiscal years ending on or after December 31~~12:E, ~~2009.~~Financial ~~The~~Statements ~~effect~~ of ~~the~~Royalty ~~SEC rule and the proposed FASB update has not been determined~~Trusts.

3. FEDERAL AND STATE INCOME TAXES

The Trust is a grantor trust for Federal income tax purposes. As a grantor trust, the Trust is not required to pay Federal income taxes. Accordingly, no provision for income taxes has been made in these financial statements.

Because the Trust is treated as a grantor trust, and because a Unitholder is treated as directly owning an interest in the Royalty Interests, each Unitholder is taxed directly on his per Unit pro rata share of income attributable to the Royalty Interests consistent with the Unitholder’s method of accounting and without regard to the taxable year or accounting method employed by the Trust.

Some Trust Units are held by middlemen, as such term is broadly defined in U.S. Treasury Regulations (and includes custodians, nominees, certain joint owners, and brokers holding an interest for a custodian in a street name, referred to herein collectively as “middlemen”). Therefore, the Trustee considers the Trust to be a widely held fixed investment trust (“WHFIT”) for U.S. Federal income tax purposes. U.S. Trust, Bank of America Private Wealth Management, EIN 56-0906609, 901 Main Street, 17th Floor, Dallas, Texas 75202, telephone number (214) 209-2400, is ~~the~~ the representative of the Trust that will provide tax information in accordance with applicable U.S. Treasury Regulations governing the information reporting requirements of the Trust as a WHFIT. Notwithstanding the foregoing, the middlemen holding Trust Units on behalf of the Unitholders, and not the Trustee of the Trust, are solely responsible for complying with the information reporting requirements under the U.S. Treasury Regulations with respect to such Trust Units, including the issuance of IRS Form 1099 and certain written tax statements. Unitholders whose Trust Units are held by middlemen should consult with such middlemen regarding the information that will be reported to them by the middlemen with respect to the Trust Units.

Each Unitholder should consult his tax advisor regarding Trust tax compliance matters.

4 In connection with the termination of the Trust and the resulting cancellation of the Trust pursuant to the provisions of the Trust Agreement, the Trust will not incur any Federal income tax liability at the Trust level as a result of the sale of the Remaining Royalty Interests or payment to Unitholders of the net proceeds from such sale. ~~RELATED~~However, ~~PARTY~~for ~~TRANSACTIONS~~Federal income tax purposes, the sale of the Remaining Royalty Interests will be taxable to the Unitholders. Each Unitholder will recognize gain or loss on such sale measured by the difference between the Unitholder’s share of the amount realized from the sale of the Remaining Royalty Interests and such Unitholder’s adjusted basis in his or her Units. The amount realized from the sale of the Remaining Royalty Interests will be allocated to Unitholders in the same manner as the Trustee allocates the income received by the Trust.

~~Williams~~Prior ~~provides~~to ~~accounting,~~determining ~~bookkeeping~~the ~~and~~gain ~~informational~~or ~~services~~loss toresulting from the ~~Trust~~sale ~~in accordance~~of ~~with~~the anRemaining ~~Administrative~~Royalty Interests ~~Services~~following ~~Agreement~~the ~~effective~~cancellation ~~December 1,~~of ~~1992.~~the ~~The fee is $50~~Trust,~~000~~ ~~per~~each ~~quarter,~~Unitholder ~~escalating~~should ~~3 percent~~reduce ~~each~~his ~~October~~tax 1basis ~~commencing~~(but not ~~October 1,~~below ~~1993.~~zero) ~~For~~in the ~~three and~~Remaining ~~nine~~Royalty ~~month~~Interests ~~periods ended September 30~~(and, ~~2009~~correspondingly, ~~the~~his ~~Trust~~Units) ~~expensed~~by ~~$80,235 and~~(1) the ~~$240,706,~~amount ~~respectively,~~of asdepletion ~~compared~~allowable with respect to ~~$77,898~~the ~~and~~Remaining ~~$233,695~~Royalty ~~for~~Interests through the ~~comparable~~date ~~period in~~of ~~2008.~~the ~~At September 30~~cancellation, ~~2009,~~and ~~accounts~~(2) by ~~payable~~the ~~includes~~amount ~~$160,470~~of ~~due~~any ~~Williams~~return ~~(none~~of ~~at December 31~~capital, ~~2008).~~including ~~Substantially~~returns ~~all~~of ~~production~~capital resulting from ~~the~~a WIreduction ~~Properties is sold~~ to athe ~~Williams’ subsidiary.~~cash ~~Additionally,~~reserve ~~all~~maintained ~~royalty~~by ~~income~~the isTrust ~~received~~during ~~from~~a ~~Williams~~quarterly period.

~~The~~Assuming ~~interests~~a ofUnitholder ~~Williams~~holds ~~and~~his ~~its~~or ~~affiliates~~her ~~and~~Units ~~the~~as ~~interests of the Trust and the Unitholders with respect to the Underlying Properties could at times be different. As~~ a ~~working interest~~capital ~~owner in the WI Properties~~asset, ~~WPC~~gain ~~could~~or ~~have~~loss ~~interests~~from ~~that conflict with~~ the ~~interests~~sale of the ~~Trust~~Remaining ~~and~~Royalty ~~Unitholders.~~Interests ~~For~~will ~~example, such conflicts could~~ be ~~due~~treated toas a ~~number~~capital ofgain ~~factors including,~~or ~~but~~loss. ~~not~~If ~~limited to, future budgetary considerations and~~ the ~~absence~~Units ofhave ~~any contractual~~been ~~obligation~~held ~~on the part of WPC to spend~~ for ~~development~~more ofthan ~~the~~one ~~WI Properties~~year, ~~except~~the asgain ~~noted herein.~~or ~~Such~~loss ~~decisions~~will ~~may~~constitute ~~have~~a ~~the~~long-term ~~effect~~capital ofgain ~~changing the amount~~ or ~~timing of future~~loss; ~~distributions~~otherwise, tothe ~~Unitholders.~~gain ~~WPC’s~~or ~~interests~~loss ~~may~~will ~~also~~constitute ~~conflict~~a ~~with~~short-term ~~those~~capital ofgain ~~the Trust and Unitholders in situations involving the sale~~ or ~~abandonment of Underlying Properties~~loss. ~~WPC~~Notwithstanding ~~has~~ the ~~right~~foregoing, ata ~~any~~Unitholder ~~time~~must, toupon ~~sell~~the ~~any~~sale of the ~~Underlying~~Remaining ~~Properties subject to the~~ Royalty Interests ~~and~~, ~~under~~ ~~certain~~treat ~~circumstances,~~as ~~may~~ordinary income ~~abandon~~his ~~any of the WI Properties. Such sales~~ or ~~abandonment~~her ~~may not~~depletion berecapture ~~in the best interests of the Trust. In addition~~amount, ~~WPX~~which ~~Gas~~is ~~Resources~~an ~~(hereinafter~~amount ~~defined) has~~equal ~~the right, exercisable in its sole discretion,~~ to ~~terminate its Minimum Purchase Price (hereinafter defined) commitment under~~ the ~~Gas~~lesser ~~Purchase~~of ~~Contract~~ (~~hereinafter defined~~i)~~, Williams’~~ the ~~interest~~gain ~~could~~on ~~conflict with those of~~ the ~~Trust~~sale ~~and Unitholders to the extent the interests~~ of ~~WPX Gas Resources, under~~ the ~~Gas~~Remaining ~~Purchase~~Royalty ~~Contract,~~Interests or ~~Williams Field Services Company and WPX Gas Resources, under~~ (ii) the ~~Gas~~sum ~~Gathering Contract, differ from the interests~~ of the ~~Trust~~prior ~~and the~~depletion ~~Unitholders.~~deductions ~~Except~~taken ~~for~~with ~~amendments~~respect to the ~~Gas~~Remaining ~~Gathering~~Royalty ~~Contract~~Interests or(but ~~Gas~~not ~~Purchase~~in ~~Contract~~excess ~~that must be approved by the vote~~ of ~~a majority of~~ the ~~Unitholders present at a meeting at which a~~initial ~~quorum~~basis isof ~~present if~~ such ~~amendment~~Units ~~would~~allocated ~~materially adversely affect Trust revenues, no mechanism or procedure has been included~~ to ~~resolve potential conflicts of interest between~~ the ~~Trust, Williams,~~Remaining ~~WPC~~Royalty ~~or their affiliates~~Interests).

5 Following the termination of the Trust, the Trust Agreement provides that any purchaser of the Remaining Royalty Interests, regardless of the date of closing of the purchase, shall be entitled to all proceeds of production attributable to the Remaining Royalty Interests after the Termination Date and neither the Trust nor the Unitholders shall be entitled to any such proceeds (the “Purchaser Allocation Proceeds”). ~~DISTRIBUTIONS~~However, TOin ~~UNITHOLDERS~~the event that all the Remaining Royalty Interests are not, for any reason, sold or a definitive agreement for sale thereof is not entered into prior to the 150th day following the Termination Date, the Purchaser Allocation Proceeds, and all amounts thereafter payable to the Trust, shall be distributed instead to the Unitholders in accordance with the provisions of the Trust Agreement.

The ~~Trustee~~proceeds ~~determines~~from ~~for~~the ~~each~~sale ~~quarter~~of the ~~amount~~Remaining ofRoyalty ~~cash~~Interests, ~~available~~less ~~for~~liabilities ~~distribution~~and toexpenses ~~Unitholders.~~of ~~Such amount (~~the ~~“Quarterly~~Trust ~~Distribution~~and ~~Amount”)~~amounts isused anfor ~~amount~~cash ~~equal~~reserves, towill ~~the~~be ~~excess~~distributed, if ~~any,~~together ofwith ~~the~~any ~~cash~~interest expected ~~received~~to bybe ~~the~~earned ~~Trust~~thereon, onto orUnitholders ~~prior~~of torecord on the ~~last~~record ~~day~~date ofestablished ~~the~~for ~~month~~such distribution. ~~following~~No ~~the end~~assurances ofcan ~~each~~be ~~calendar~~given ~~quarter~~as ~~from~~to the ~~Royalty Interests~~amount, ~~plus~~or timing, ~~with~~or ~~certain exceptions~~distributions, if any, ~~other~~to ~~cash~~Unitholders ~~receipts~~ of the Trust, ~~during~~as such ~~quarter,~~amount ~~over~~and ~~the~~timing ~~liabilities~~would ofdepend ~~the~~in ~~Trust~~part ~~paid~~on orthe ~~accrued~~amount of expenses ~~during~~ultimately ~~such~~payable ~~quarter,~~by ~~subject~~the toTrust ~~adjustments~~and ~~for~~when ~~changes~~such ~~made~~expenses bybecome ~~the~~payable ~~Trustee~~and ~~during~~the ~~such~~net ~~quarter~~sales inprice of ~~any~~the ~~cash~~Remaining ~~reserves~~Royalty ~~established~~Interests ~~for~~and when the ~~payment~~sale of ~~contingent~~the orRemaining ~~future~~Royalty ~~obligations~~Interests ~~of the Trust~~occurs.

The ~~Trustee~~sale ~~distributes~~of the ~~Quarterly~~Remaining ~~Distribution~~Royalty ~~Amount~~Interests ~~within~~following ~~60 days after~~ the ~~end~~termination of ~~each calendar quarter to each person who was a Unitholder of record on~~ the ~~associated~~Trust ~~record~~may ~~date (i.e.,~~be ~~the~~taxable ~~45th~~events ~~day~~to ~~following~~ the ~~end~~Unitholders offor ~~each~~state ~~calendar~~tax ~~quarter~~purposes. orUnitholders ifshould ~~such~~consult ~~day~~their isown ~~not~~tax aadvisors ~~business~~regarding ~~day,~~ the ~~next~~ ~~business~~state ~~day~~tax ~~thereafter),~~consequences ~~together~~of ~~with~~the ~~interest~~sale ~~estimated~~of tothe beRemaining ~~earned~~Royalty Interests onfollowing ~~such amount from~~ the ~~date~~termination of ~~receipt thereof by~~ the ~~Trustee to the payment date~~Trust.

InEach ~~addition~~Unitholder toshould ~~the~~consult ~~regular~~his ~~quarterly~~tax ~~distributions,~~advisor ~~under~~regarding ~~certain circumstances specified in the~~ Trust ~~Agreement~~tax ~~(such~~compliance ~~as upon a purchase price adjustment~~matters, ~~if any, or pursuant to the sale of a~~ ~~Royalty~~including ~~Interest),~~tax ~~the~~consequences ~~Trust~~resulting ~~would~~from ~~make a special distribution (a “Special Distribution Amount”). A Special Distribution Amount would be made when amounts received by~~ the ~~Trust~~termination ~~under such circumstances aggregated in excess~~ of ~~$9,000,000. The record date for a Special Distribution Amount will be~~ the ~~15th day following receipt of amounts aggregating a Special Distribution Amount by the~~ Trust ~~(unless~~on ~~such day is not a business day in which case~~ the ~~record~~Termination date will be the next business day thereafter or unless such day is within 10 days of the record date for a Quarterly Distribution Amount in which case the record date will be the date as is established for the next Quarterly Distribution Amount)Date. ~~Distribution to Unitholders of a Special Distribution Amount will~~ ~~be made no later than 15 days after the Special Distribution Amount record date.~~

64. ~~SUBSEQUENT~~RELATED ~~EVENTS~~PARTY TRANSACTIONS

~~The Trustee~~Williams ~~has~~provides ~~evaluated~~accounting, ~~events~~bookkeeping ~~occurring~~and ~~subsequent~~informational services to the ~~quarter~~Trust ~~ended~~in ~~September~~accordance 30with an Administrative Services Agreement effective December 1, ~~2009~~1992. ~~through~~The ~~November~~fee 6is $50,000 ~~2009~~per quarter, escalating 3 percent each October 1 commencing October 1, 1993. ~~Subsequent~~For tothe ~~September~~three month periods ended March 3031, 2010 and 2009, the ~~Trust~~first ~~declared~~quarter administration fee included in general and administrative expenses was $82,642 and $80,235, respectively. Substantially all production from the ~~following~~WI ~~distribution:~~Properties is sold to a Williams’ subsidiary. Additionally, all royalty income is received from Williams.

Quarterly
Record	Payment	Distribution
Date	Date	per Unit
November 16, 2009	November 27, 2009	$.022074

The interests of Williams and its affiliates and the interests of the Trust and the Unitholders with respect to the Underlying Properties could at times be different. As a working interest owner in the WI Properties, WPC could have interests that conflict with the interests of the Trust and Unitholders. For example, such conflicts could be due to a number of factors including, but not limited to, future budgetary considerations and the absence of any contractual obligation on the part of WPC to spend for development of the WI Properties, except as noted herein. Such decisions may have the effect of changing the amount or timing of future distributions to Unitholders. WPC’s interests may also conflict with those of the Trust and Unitholders in situations involving the sale or abandonment of Underlying Properties or the purchase or sale of the Remaining Royalty Interests. WPC has the right at any time to sell any of the Underlying Properties subject to the Royalty Interests and, under certain circumstances, may abandon any of the WI Properties. Such sales or abandonment may not be in the best interests of the Trust. In addition, WPX Gas Resources (hereinafter defined) has the right, exercisable in its sole discretion, to terminate its Minimum Purchase Price (hereinafter defined) commitment under the Gas Purchase Contract (hereinafter defined) prior to the expiration of the Gas Purchase Contract upon the earlier of August 1, 2010 or the closing date of the sale of the Royalty Interests by the Trust. Williams’ interest could conflict with those of the Trust and Unitholders to the extent the interests of WPX Gas Resources, under the Gas Purchase Contract, or Williams Field Services Company and WPX Gas Resources, under the Gas Gathering Contract, differ from the interests of the Trust and the Unitholders. Except for amendments to the Gas Gathering Contract or Gas Purchase Contract that must be approved by the vote of a majority of the Unitholders present at a meeting at which a quorum is present if such amendment would materially adversely affect Trust revenues, no mechanism or procedure has been included to resolve potential conflicts of interest between the Trust, Williams, WPC or their affiliates.

The distribution per unit was $.022074 attributable to the third quarter of 2009 (payable in the fourth quarter of 2009) as compared to no distribution attributable to the second quarter of 2009. The increase in distributions is mainly the result of higher natural gas prices.

7. CONTINGENCIES

WPX Gas Resources Company (“WPX Gas Resources,” as successor in interest to Williams Gas Marketing Company), purchases natural gas produced from the WI Properties (except for certain small volumes) at the wellhead under the terms of a gas purchase contract dated October 1, 1992, as amended (the “Gas Purchase Contract”). The Gas Purchase Contract provides for a pricing mechanism during an initial 5-year period, which expired on December 31, 1997, and continuing for one or more consecutive additional 1-year terms unless and until WPX Gas Resources exercises its annual option, exercisable 15 days prior to the end of each contract year, to discontinue purchasing gas under the pricing mechanism of the Gas Purchase Contract and instead purchase gas at a monthly market-based price. WPX Gas Resources has not exercised this option and therefore the pricing mechanism will continue to remain in effect through at least December 31, 2009.

~~Under the pricing mechanism of the Gas Purchase Contract, when the market price is less than $1~~5.70 ~~per~~DISTRIBUTIONS ~~MMBtu~~TO ~~(the “Minimum Purchase Price”), the Trust will be paid the Minimum Purchase Price~~UNITHOLDERS for the gas and an account (the “Price Credit Account”) will be maintained to identify the accrued and unrecouped amount of payments made to the Trust in excess of the market price. Any amounts in the Price Credit Account are subject to future recoupment when the market price exceeds the Minimum Purchase Price. As of September 30, 2009, there were no remaining unrecouped price credits in the Price Credit Account. To the extent there may in the future be a balance in the Price Credit Account, the entitlement to recoup price credits means that if and when the index price is above the Minimum Purchase Price, future royalty income paid to the Trust would be reduced until such time as such Price Credit Account is once again reduced to zero. Corresponding cash distributions to Unitholders would also be reduced.

~~While~~For production through the ~~terms~~March 1, of2010 Termination Date, the ~~Gas~~Trustee ~~Purchase~~determines ~~Agreement~~for ~~pricing~~each quarter ~~mechanism~~the ~~remain~~amount inof ~~place~~cash ~~and~~available nofor ~~balance exists~~distribution into Unitholders. Such amount (the ~~Price~~“Quarterly Distribution ~~Credit~~Amount”) ~~Account,~~is ~~when~~an amount equal to the ~~market~~excess, ~~price~~if ~~for~~any, ~~natural~~of ~~gas~~the ~~exceeds~~cash ~~$1.94~~received ~~per~~by ~~MMBtu~~the Trust, ~~(as~~on ~~was~~or prior to the ~~case~~last ~~during~~day of the ~~first~~month ~~nine~~following ~~months~~the end of ~~2009),~~each calendar quarter from the ~~Trust~~Royalty ~~receives~~Interests, ~~only~~plus, ~~50 percent~~with certain exceptions, any other cash receipts of the ~~excess~~Trust during such quarter, over the liabilities of the ~~market~~Trust ~~price~~paid ~~over~~or accrued during such quarter, subject to adjustments for changes made by the ~~$1.94~~Trustee ~~price~~during ~~per~~such ~~MMBtu~~quarter ~~before~~in ~~reduction~~any ~~for~~cash ~~gathering,~~reserves ~~processing~~established ~~and~~for ~~certain~~the ~~other~~payment ~~costs~~of contingent or future obligations of the Trust.

~~WPC~~The ~~has~~Trustee ~~notified~~distributes the ~~Trust~~Quarterly ~~that~~Distribution ~~certain~~Amount ~~royalty~~within ~~matters~~60 days ~~are~~after ~~currently~~the ~~being~~end ~~litigated~~of byeach calendar quarter to each person who was a ~~federal~~ ~~regulatory~~Unitholder ~~agency~~of ~~and~~record ~~another~~on ~~producer.~~the ~~Although~~associated ~~neither~~record ~~WPC~~date ~~nor~~(i.e., the 45th day following the ~~Trust~~end of each calendar quarter or if such day is not a ~~party~~business ~~to the litigation~~day, the next ~~final~~business ~~outcome~~day ofthereafter), ~~that~~together ~~case~~with ~~might~~interest ~~lead~~estimated to abe ~~future~~earned ~~unfavorable~~on ~~impact~~such onamount ~~the~~from ~~Trust’s~~the ~~royalty~~date ~~income~~of ~~and~~receipt ~~distributions~~thereof by the Trustee to the payment date.

~~The majority of the production attributable to the Trust is within Federal Units~~6. ~~Unit participating~~SUBSEQUENT ~~areas are formed by pooling production from the participating area. Entitlement to~~EVENTS the pooled production is based on each party’s acreage in the participating area divided by the total participating acreage. Wells drilled outside the participating area may create an enlargement to the participating area and a revision of the Unit ownership entitlement. The Bureau of Land Management (“BLM”) must approve Unit participating area expansions. The effective date for Unit expansions is retroactive to the date the well creating the expansion was tested. WPC notified the Trust that the third quarter 2009 royalty distribution to the Trust was positively impacted by approximately $28,500 for minor corrections.

The ~~royalty~~Trustee ~~income~~has ~~presented~~evaluated inevents ~~the~~occurring ~~accompanying~~subsequent ~~statements~~to ofthe ~~distributable~~quarter ~~income~~ended isMarch 31, ~~on an~~2010 ~~entitlement~~through ~~basis~~May ~~and~~13, ~~reflects~~2010. ~~WPC’s~~Subsequent ~~estimated~~to ~~impact~~March 31, of2010, the ~~most~~Trust ~~recent~~declared ~~BLM~~the ~~participating area~~following ~~approvals through September 30, 2009.~~distribution:

Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.


Quarterly
Record	Payment	Distribution
Date	Date	per Unit
May 17, 2010	May 28, 2010	$.0111

~~When~~The distribution ~~excess~~per ~~cash~~unit iswas ~~available,~~$.0111 attributable to natural gas production for the ~~Trust~~months ~~makes~~of ~~quarterly~~January ~~cash~~and ~~distributions~~February, 2010, prior to ~~Unitholders.~~the ~~The~~Termination ~~only~~Date ~~assets~~(payable ofin the ~~Trust,~~second ~~other~~quarter ~~than~~of ~~cash~~2010) ~~and~~as ~~cash~~compared ~~equivalents~~to ~~being~~a ~~held~~distribution ~~for~~of $.016972 paid in the ~~payment~~fourth quarter of ~~expenses~~ ~~and~~2009. ~~liabilities~~The ~~and~~decrease ~~for~~in ~~distribution~~distributions tois ~~Unitholders,~~mainly ~~are~~the result of only the ~~Royalty~~two ~~Interests.~~months ~~The~~of production preceding the termination being ~~Royalty~~included ~~Interests~~in ~~owned~~royalty byincome received during the ~~Trust~~second ~~burden~~quarter of 2010. Also contributing to the ~~Underlying~~reduced ~~Properties~~distribution, ~~which~~the ~~are~~Trust ~~owned~~is withholding byin ~~WPC~~cash and cash equivalents an additional $300,000 for ~~not~~anticipated expenses relating to the ~~Trust~~termination process.

If a sale of the Remaining Royalty Interests is made or a definitive contract for the sale of the Remaining Royalty Interests is entered into prior to the 150^th day following the Termination Date, the buyer of the Remaining Royalty Interests, and not the Trust or the Unitholders, will be entitled to all proceeds of production attributable to the Remaining Royalty Interests following the Termination Date (Note 2).

The proceeds from the sale of the Remaining Royalty Interests, less liabilities and expenses of the Trust and amounts used for cash reserves, will be distributed, together with any interest expected to be earned thereon, to Unitholders of record on the record date established for such distribution. No assurances can be given as to the amount, or timing, or distributions, if any, to Unitholders of the Trust, as such amount and timing would depend in part on the amount of expenses ultimately payable by the Trust and when such expenses become payable and the net sales price of the Remaining Royalty Interests and when the sale of the Remaining Royalty Interests occurs.

~~Distributable~~The ~~income of the~~ Trust ~~generally consists of the excess of royalty income plus interest income over the general and administrative expenses of the Trust. Upon receipt by the Trust, royalty income~~ is ~~invested~~withholding in ~~short-term~~cash investments in accordance with the Trust Agreement until its subsequent distribution to Unitholders. Currently, funds are invested in Bank of America money market accounts which are backed by the good faith of Bank of America, N.A., but are not insured by the Federal Deposit Insurance Corporation (“FDIC”). The Trust does not lend money and ~~has~~ ~~limited~~cash ~~ability~~equivalents toan ~~borrow~~additional ~~money~~$100,000 ~~which~~for ~~the Trustee believes limits the Trust’s risk from the~~anticipated ~~current~~expenses ~~tightening of credit markets. The Trust’s future royalty income, however, may be subject to risks~~ relating to the ~~creditworthiness~~termination of the operators of the Underlying Properties and WPX Gas Resources and other purchasers of the natural gas produced from the Underlying Properties, as well as risks associated with fluctuations in the price of natural gasprocess. ~~Additional risks are described~~ ~~in “Item 1A — Risk Factors” of the 2008 Annual Report.~~

The amount of distributable income of the Trust for any quarter may differ from the amount of cash available for distribution to Unitholders in such quarter due to differences in the treatment of the expenses of the Trust in the determination of those amounts7. ~~The financial statements of~~CONTINGENCIES the Trust are prepared on a modified cash basis pursuant to which general and administrative expenses of the Trust are recognized when incurred whereas royalty income is recognized when received. Consequently, the reported distributable income of the Trust for any quarter is determined by deducting from the income received by the Trust the amount of expenses incurred by the Trust during such quarter. The amount of cash available for distribution to Unitholders, however, is determined in accordance with the provisions of the Trust Agreement and reflects the deduction from the income actually received by the Trust of the amount of expenses actually paid or accrued by the Trust and adjustments for changes in reserves for unpaid liabilities. See Note 5 to the financial statements of the Trust appearing elsewhere in this report on Form 10-Q for additional information regarding the determination of the amount of cash available for distribution to Unitholders.

~~The~~WPX ~~Trustee~~Gas ~~had~~Resources ~~previously~~Company ~~announced~~(“WPX ~~that~~Gas ~~the~~Resources,” ~~Trust~~as ~~would~~successor ~~not~~in ~~make~~interest ato ~~distribution~~Williams ~~for~~Gas Marketing Company), purchases natural gas produced from the WI Properties (except for certain small ~~third~~volumes) ~~quarter~~at the wellhead under the terms of ~~2009~~a ~~because~~gas ~~Trust~~purchase ~~expenses~~contract ~~exceeded~~dated ~~royalty~~October 1, ~~income~~1992, ~~for~~as amended (the ~~quarter~~“Gas Purchase Contract”). ~~While~~The ~~the~~Gas Purchase Contract provides for a pricing mechanism ~~Trustee~~during ~~has~~an ~~announced~~initial ~~that~~5-year ~~the~~period, ~~Trust~~which ~~will~~expired ~~make~~on aDecember 31, ~~distribution~~1997, and continuing for ~~the~~one ~~fourth~~or ~~quarter~~more consecutive ofadditional ~~2009~~1-year terms unless and until WPX Gas Resources exercises its annual option, ~~(attributable~~exercisable 15 days prior to the ~~third~~end ~~quarter~~ of ~~2009)~~each contract year, ifto ~~natural~~discontinue purchasing gas ~~prices~~under ~~remain~~the pricing mechanism of the Gas Purchase Contract and instead purchase gas at ~~current~~a ~~levels~~monthly ormarket-based ~~decrease,~~price. ~~royalty~~WPX ~~income~~Gas ~~may~~Resources has not ~~exceed~~exercised ~~Trust~~this ~~expenses~~option, inand ~~future quarters~~therefore, the pricing mechanism will continue to remain in ~~which~~effect ~~case~~through nothe expiration of the Gas Purchase Contract upon the earlier ~~distributions~~of ~~will~~August 1, be2010 ~~made~~or the closing date of the sale of the Royalty Interests by the Trust.

~~There~~Under isthe ~~substantial~~pricing ~~doubt~~mechanism asof to the ~~Trust’s~~Gas ~~ability~~Purchase toContract, ~~continue~~when asthe amarket ~~going~~price ~~concern. Commodity~~was ~~prices~~less ~~have~~than $1.70 ~~decreased~~per ~~over~~MMBtu (the ~~past~~“Minimum ~~year~~Purchase Price”), ~~and underlying reserves are depleting. If~~ the Trust’s ~~computed~~was ~~net~~paid ~~present value of~~ the ~~estimated~~Minimum ~~future~~Purchase ~~net~~Price ~~revenues~~ for ~~proved reserves~~ ~~attributable to~~ the ~~Royalty~~gas ~~Interests~~and ~~falls~~an ~~below~~account (the ~~$30 million~~“Price ~~stipulated~~Credit ~~threshold~~Account”) aswas ~~of December 31,~~maintained ~~2009, we will be forced~~ to ~~terminate~~identify the ~~Trust~~accrued ~~pursuant to the termination~~ and ~~liquidation~~unrecouped ~~provisions~~amount ~~in the Trust Agreement. As~~ of ~~December 31,~~payments ~~2008,~~made ~~the net present value of the estimated future net revenues for proved reserves attributable~~ to the ~~Royalty~~Trust ~~Interests computed~~ in ~~accordance~~excess ~~with~~of the ~~Trust~~market ~~Agreement, using an average 2008 index~~ price. ofAny ~~$7.21,~~amounts byin the ~~independent~~Price ~~petroleum~~Credit ~~engineers,~~Account ~~was~~were ~~$65 million.~~subject ~~While~~to ~~the~~future ~~results~~recoupment ofwhen ~~this~~the ~~computation~~market ~~did~~price ~~not trigger~~exceeded ~~an early termination of~~ the ~~Trust~~Minimum Purchase asPrice. As of ~~December~~March 31, ~~2008~~2010, ~~future~~there ~~computations~~were ~~are~~no ~~subject to~~remaining ~~the~~unrecouped ~~numerous~~price ~~uncertainties~~credits in ~~estimating~~ the Price ~~future~~Credit ~~net revenues as described in~~Account.

While the terms of the Gas Purchase Agreement pricing mechanism remained in place and no balance existed in the Price Credit Account, when the market price for natural gas exceeded $1.94 per MMBtu (as was the case during the first three months of 2010), the Trust received only 50 percent of the excess of the market price over the $1.94 price per MMBtu before reduction for gathering, processing and certain other costs.

In 2008, WPC notified the Trust that certain royalty matters were currently being litigated by a federal regulatory agency and another producer. WPC learned that this case was decided unfavorably to the producer in October 2009. Neither WPC nor the Trust was a party to this litigation; however, given the similarities to the Trust’s Underlying Properties, WPC and the Royalty Interests will more than likely be impacted as well. WPC is currently evaluating the negative impact to the Trust’s NPI. In addition, there are other cases pending against other producers on related issues that could potentially have a significant negative impact to future royalty income with respect to the Royalty Interests, natural gas reserves and reserve value.

The majority of the production attributable to the Trust is within Federal Units. Unit participating areas are formed by pooling production from the participating area. Entitlement to the pooled production is based on each party’s acreage in the participating area divided by the total participating acreage. Wells drilled outside the participating area may create an enlargement to the participating area and a revision of the Unit ownership entitlement. The

~~“Item 1A—Risk~~Bureau ~~Factors” in the 2008 Annual Report. The negative commodity price environment throughout 2009 and the outlook for the remainder~~ of ~~2009~~Land ~~have~~Management to(“BLM”) ~~date~~must ~~negatively~~approve ~~impacted~~Unit ~~actual index~~participating ~~prices~~area used in the Trust’s termination calculation, and it appears increasingly likely that it will impact the December 31, 2009 termination evaluation and trigger termination of the Trust in accordance with the provisions of the Trust Agreementexpansions. The ~~simple~~effective ~~average~~date ~~monthly Blanco Hub Spot Price~~ for ~~the first nine months of 2009 was $3.00 compared to the average price of $7.21 that was~~ ~~used~~Unit byexpansions the independent petroleum engineers as of December 31, 2008 who calculated the net present value of the estimated future net revenues as of such date to be approximately $65 million. Trust reserve estimates depend on many assumptions that may prove to be inaccurate, which could cause both estimated reserves and estimated future net revenues to be too high, leading to write-downs of estimated reserves, including changes in pricing, costs and production volumes. As a result, the ability of the reserves to exceed the threshold in the future is ~~uncertain,~~retroactive ~~and there is substantial doubt regarding the Trust’s ability~~ to ~~continue as a going concern. See “Termination and Liquidation of~~ the ~~Trust”~~date ~~below for a further description of~~ the ~~termination~~well ~~provisions~~creating of the ~~Trust~~ ~~Agreement.~~expansion ~~There~~was ~~can be no assurance that future distributions, including any distributions upon an liquidation and termination of the Trust will equal or exceed the purchase price paid by Unitholders for Units~~tested. ~~See “Part II, Item 1A — Risk Factors.”~~

~~Three~~ The ~~Months~~royalty ~~and~~income ~~Nine~~presented ~~Months~~in ~~Ended~~the ~~September 30,~~accompanying ~~2009~~statements ~~Compared~~of todistributable ~~Three~~income ~~Months~~is on an entitlement basis and ~~Nine~~reflects ~~Months~~WPC’s estimated impact of the most recent BLM participating area ~~Ended~~approvals ~~September~~through March 3031, ~~2008~~2010.

~~For the quarter ended September~~Item ~~30, 2009, royalty income received by the Trust amounted to $77,767 as compared to $3,629,317 received for the same quarter in 2008~~2. ~~The~~Trustee’s ~~decrease~~Discussion ~~in royalty income is primarily due to lower production~~ and ~~significantly~~Analysis ~~lower~~of ~~natural~~Financial ~~gas~~Condition ~~prices, impacting the net profits interest due to the Trust. Production volumes are affected by changes in sales prices for natural gas produced~~ and ~~costs~~Results ~~that are deducted in calculating the NPI Net Proceeds. Production related to the royalty income received by the Trust in the third quarter~~ of ~~2009 was 153,226 MMBtu as compared to 911,187 MMBtu for the same quarter in 2008~~Operations.

~~Royalty~~Termination ~~income~~and ~~for~~Liquidation the nine months ended September 30, 2009 was $2,403,029 as compared to $7,775,852 for the same period in 2008. Royalty income for the nine month period ended September 30, 2009 would have been $1,637,213 if the Trust had not received an overpayment from WPC of ~~$765,816.~~ ~~Williams has informed~~ the Trust ~~that it waives any right to seek repayment of such~~ amount. Production related to the royalty income received by the Trust for the nine months ended September 30, 2009 was 1,282,103 MMBtu as compared to 2,444,287 MMBtu for the nine months ended September 30, 2008. The decrease in royalty income is attributed to lower prices compared to the previous year.

~~Interest~~With ~~income~~respect ~~for~~to the ~~three~~Trust ~~month~~termination ~~period~~provisions ~~ended~~as ~~September 30,~~outlined ~~2009~~in ~~was~~the ~~lower~~Trust ~~due~~Agreement, tothe ~~lower~~net ~~interest~~present ~~rates~~value ~~and~~of ~~less~~the ~~funds~~estimated ~~available~~future ~~for~~net ~~investment~~revenues ~~compared~~computed toin ~~the~~accordance ~~same~~with ~~period~~the inTrust ~~2008.~~Agreement, ~~Interest~~using ~~income~~an ~~for~~average ~~the~~2009 ~~nine~~index ~~month~~price ~~period~~of ~~was~~$3.25, ~~lower~~by ~~than~~ the ~~same~~independent ~~period~~petroleum ~~for~~engineers ~~2008~~as ~~due~~of ~~to lower~~December ~~interest~~31, ~~rates~~2009 ~~and~~was ~~less~~approximately ~~funds available for investment~~$8.4 million ~~General~~(which ~~and~~assumed ~~administrative~~continuation ~~expenses~~of ~~for~~ the ~~three~~Gas ~~month~~Purchase ~~period~~Contract ~~ended~~with ~~September 30,~~WPX ~~2009~~through ~~increased~~2012). byThe ~~$26,228~~results ~~compared~~of tothis ~~the~~computation ~~same~~have ~~period~~triggered inan early ~~2008~~termination ~~due~~of tothe ~~increased~~Trust. ~~professional~~Because ~~fees.~~the ~~General~~Trust’s ~~and~~computed ~~administrative~~net ~~expenses~~present ~~for~~value fell below the $30 ~~nine~~million ~~month~~stipulated ~~period~~threshold ~~ended~~as ~~September~~of December 3031, 2009, ~~increased~~the byTrust ~~$116~~terminated effective March 1,~~209~~ ~~compared~~2010 (“Termination toDate”).

Following termination, the Trustee and the Delaware Trustee will continue to act as trustees of the Trust until all remaining Trust assets have been sold and the net proceeds from such sales, if any, are distributed to Unitholders.

Upon the termination of the Trust, the Trustee will use Best Efforts (as defined in the Trust Agreement) to sell any remaining Royalty Interests for cash pursuant to the procedures described in the Trust Agreement. The Trustee has retained Albrecht & Associates, Inc., an investment banking firm (the “Advisor”), on behalf of the Trust who will assist the Trustee in selling the remaining Royalty Interests then owned by the Trust (the “Remaining Royalty Interests”). WPC has the right, but not the obligation, to make a cash offer to purchase all Remaining Royalty Interests following termination of the Trust as described in the following paragraph.

WPC had the right, within 60 days following the Termination Date, to make a cash offer to purchase all of the Remaining Royalty Interests then held by the Trust. An offer was not made by WPC during this 60 day period. Under the terms of the Trust Agreement, the Trustee is now required to use Best Efforts (as defined in the Trust Agreement), assisted by the Advisor to obtain offers for the Remaining Royalty Interests. At the end of a 120-day period following the Termination Date, the Trustee is required to notify WPC of the highest of any offers (net of any commissions or other fees payable by the Trust), acceptable to the Trustee (which must be an all-cash offer), received during such period (the “Highest Acceptable Offer”). WPC then has the exclusive right, but not the obligation, to purchase all Remaining Royalty Interests for a cash purchase price equal to 105 percent of the Highest Acceptable Offer. If no acceptable offers are received for all Remaining Royalty Interests, the Trustee may request WPC to submit an offer for consideration by the Trustee and may accept or reject such offer. Acceptance of an offer by the Trustee shall be conditioned upon the opinion of the Advisor of the fairness of the offer.

The Trustee may accept any offer for all or any part (not more than six parts) of the ~~same~~Remaining ~~period~~Royalty Interests as it deems to be in ~~2008~~the ~~due~~best interests of the Trust and Unitholders and may continue, for up to one ~~increased~~calendar ~~professional~~year ~~fees~~after the Termination Date, to attempt to locate a buyer or buyers of the Remaining Royalty Interests in order to sell such interests in an orderly fashion not involving a public auction. If any Remaining Royalty Interests have not been sold or a definitive agreement for sale has not been entered into by the end of such calendar year, the Trustee is required to sell the Remaining Royalty Interests at public auction to the highest cash bidder, which sale may be to WPC or any of its affiliates. Notice of such sale by auction shall be mailed at least 30 days prior to such sale to each Unitholder at his address as it appears on the ownership ledger of the Trustee.

~~Expenses~~If ina ~~excess~~sale of ~~distributable income for~~ the ~~quarter~~Remaining ~~ended~~Royalty ~~September 30,~~Interests ~~2009~~is ~~were $104,196~~made or ~~$(0.01)~~a ~~per~~definitive ~~Unit~~contract ~~compared~~for tosale ~~distributable income~~ of ~~$3,479,598 or $.36 per Unit for~~ the ~~same~~Remaining ~~quarter~~Royalty inInterests ~~2008.~~is ~~This~~entered ~~decrease~~into inprior ~~income~~to ~~was~~ the ~~result~~150th ofday ~~lower~~following ~~royalty income as previously~~the ~~described.~~Termination NoDate, ~~distribution~~the ~~was~~buyer ~~made~~of in the ~~third~~Remaining ~~quarter~~Royalty ofInterests, ~~2009~~and ~~because~~not the Trust ~~expenses~~or ~~exceeded~~Unitholders, ~~royalty~~will ~~income~~be ~~for~~entitled ~~the~~to ~~period.~~all ~~Distributable~~proceeds ~~income~~of ~~for~~production ~~the~~attributable ~~nine~~to ~~months~~the ~~ended~~Remaining ~~September 30,~~Royalty ~~2009~~Interests ~~was~~following ~~$1,582,984~~the orTermination ~~$0.16~~Date ~~per~~(Note ~~Unit~~2). asIf ~~compared~~no tosale $7is made,~~085,127~~ orand ~~$0.73~~no ~~per~~definitive ~~Unit~~contract for the ~~same~~sale ~~period~~of ~~in 2008. This decrease was~~ the ~~result~~Remaining ofRoyalty ~~lower~~Interests ~~production~~is ~~volumes~~entered ~~and lower prices and~~into, asprior ~~described above,~~to the ~~2009~~150th ~~distributions~~day ~~were~~following ~~benefited by~~ the ~~overpayment~~Termination ~~amount~~Date, ~~from~~ WPC~~. If natural gas~~ ~~prices~~will ~~remain~~distribute atto ~~current~~the ~~levels or decrease, royalty income may not exceed~~ Trust ~~expenses~~the inproceeds ~~future quarters~~from ~~(as~~production ~~was~~attributable ~~the~~to ~~case in~~ the ~~prior~~Remaining ~~quarter),~~Royalty inInterests ~~which~~for ~~case~~this ~~no distributions will be made~~period.

~~Because~~WPC’s ~~the~~purchase ~~Trust~~rights, ~~incurs~~as ~~administrative expenses throughout a quarter but receives its royalty income only once in a quarter~~described, ~~the~~may ~~Trustee~~be ~~established~~exercised inby ~~the~~WPC ~~first~~and ~~quarter~~each of ~~1993~~its successors-in-interest aand ~~cash~~assigns. ~~reserve for~~WPC’s ~~the~~purchase ~~payment~~rights ofare ~~expenses~~fully ~~and~~assignable ~~liabilities~~by ofWPC ~~the~~to ~~Trust~~any person. The ~~Trustee~~costs ~~thereafter~~of ~~has~~liquidation, ~~adjusted~~including the ~~amount~~ offees ~~such~~and ~~reserve~~expenses ~~in certain quarters as required for the payment~~ of the ~~Trust’s~~Advisor, ~~expenses~~ and ~~liabilities,~~ ~~in accordance with~~ the ~~provisions of the Trust Agreement. The~~ Trustee ~~has maintained~~’s aliquidation ~~cash~~fee ~~reserve that~~ will be ~~reduced~~paid by ~~Trust~~the ~~expenses in excess of royalty income~~Trust.

~~Royalty~~The ~~income~~sale toof the ~~Trust~~Remaining isRoyalty ~~attributable~~Interests tofollowing the ~~sale~~termination of ~~depleting~~the ~~assets.~~Trust ~~All~~will ~~of the~~be ~~Underlying~~taxable ~~Properties~~events ~~burdened~~to by the ~~Royalty~~Unitholders ~~Interests~~for ~~consist~~Federal ofincome ~~producing~~tax ~~properties~~purposes. ~~Accordingly~~ Generally, ~~the~~a ~~proved~~Unitholder ~~reserves~~will realize ~~attributable~~gain toor ~~WPC’s~~loss ~~interest~~equal into the ~~Underlying~~difference ~~Properties~~between ~~are expected~~the toamount ~~decline~~realized ~~substantially~~on ~~during~~the sale of the Remaining ~~term~~Royalty Interests upon termination of the Trust and ahis ~~portion~~adjusted ofbasis ~~each~~in ~~cash~~such Units. ~~distribution~~Gain ~~made~~or loss realized by ~~the~~a ~~Trust~~Unitholder ~~will,~~who ~~therefore,~~is benot ~~analogous~~a dealer with respect to asuch ~~return~~Units ofand ~~capital.~~who ~~Accordingly,~~has a ~~cash~~holding ~~yields~~period ~~attributable~~for to the Units ~~are~~of ~~expected~~more tothan ~~decline~~one ~~over~~year ~~the~~will ~~term~~be oftreated ~~the~~as ~~Trust.~~long-term ~~Cash~~capital gain or ~~yields~~loss ~~will~~except ~~cease~~to ~~when~~the ~~Trust~~extent ~~expenses~~of ~~exceed~~any ~~royalty~~depletion ~~income~~recapture amount, which must be treated as ~~was~~ordinary income. ~~the~~State ~~case~~tax inconsequences may also result to Unitholders upon the ~~third~~termination ~~quarter~~of the Trust and the sale of ~~2009~~the Remaining Royalty Interests. IfEach ~~natural~~Unitholder ~~gas~~should ~~prices~~consult ~~remain~~his atown ~~current~~tax advisor ~~levels~~regarding orTrust ~~decrease~~tax compliance matters, ~~cash~~including ~~yields~~Federal ~~may~~and ~~cease~~state ~~for~~tax ~~the~~implications ~~foreseeable~~concerning ~~future,~~the ~~including,~~sale ~~potentially,~~of ~~through~~the Remaining Royalty Interests following the termination of the Trust.

~~Royalty~~Distributable ~~income received by the Trust in a given calendar quarter will generally reflect the~~Income sum of (i) net proceeds from the sale of gas produced from the WI Properties during the preceding calendar quarter, plus (ii) cash received by WPC with respect to the Farmout Properties either (a) during the preceding calendar quarter or (b) if received in sufficient time to be paid to the Trust, in the month immediately following such calendar quarter. Accordingly, the royalty income for the quarter ended September 30, 2009, was based on production volumes and natural gas prices for the period April 2009 through June 2009, as shown in the table below. Due to delays associated with the receipt of income related to the Farmout Properties, the Trust’s royalty income for the third quarter of 2009 reflects estimated production volumes from the Farmout Properties for the months of March 2009 through May 2009, as shown in the table below. The net production volumes included in the table below are for production attributable to net profits of the Underlying Properties, and not for production attributable to the Trust’s Royalty Interests. Prices since June 30, 2009 have remained at relatively low levels and will reduce or eliminate the future distributions of the Trust. In turn, lower prices will affect the

Prior to the termination of the Trust, when excess cash was available, the Trust made quarterly cash distributions to Unitholders. The only assets of the Trust, other than cash and cash equivalents being held for the payment of expenses and liabilities and for distribution to Unitholders, are the Royalty Interests. The Royalty Interests owned by the Trust burden the Underlying Properties, which are owned by WPC and not the Trust.

Distributable income of the Trust generally consists of the excess of royalty income plus interest income over the general and administrative expenses of the Trust. Upon receipt by the Trust, royalty income is invested in short-term investments in accordance with the Trust Agreement until its subsequent distribution to Unitholders. Currently, funds are invested in Bank of America money market accounts which are backed by the good faith of Bank of America, N.A., but are not insured by the Federal Deposit Insurance Corporation (“FDIC”). The

~~future~~Trust ~~reserve~~does ~~quantities~~not oflend money and has limited ability to borrow money, which the ~~Trust~~Trustee ~~and~~believes limits ~~will~~the ~~impact~~Trust’s risk from the ~~value~~current ~~determined~~tightening inof credit markets. The Trust’s future royalty income, however, may be subject to risks relating to the ~~annual~~creditworthiness of the operators of the ~~termination~~Underlying ~~calculation~~Properties and ~~the~~WPX ~~fair~~Gas ~~value~~Resources and other purchasers of the ~~interests~~natural ~~upon~~gas ~~subsequent~~produced ~~sale~~from the Underlying Properties, ifas ~~applicable~~well as risks associated with fluctuations in the price of natural gas. Additional risks are described in “Item 1A — Risk Factors” of the 2009 Annual Report.

	Three Months			Three Months
	Ended			Ended
	June 30, 2009			June 30, 2008
Production (MMBtu) (1)
WI Properties		13,813	(2)		1,248,685	(3)
Farmout Properties		238,672			269,960
Infill Properties (5)(6)		8,676	(5)		0	(6)
Blanco Hub Spot Price ($/MMBtu) (4)	$	2.59		$	9.19
Net Wellhead Price WI Properties ($/MMBtu) (4)	$	.76		$	4.08

The amount of distributable income of the Trust for any quarter may differ from the amount of cash available for distribution to Unitholders in such quarter due to differences in the treatment of the expenses of the Trust in the determination of those amounts. The financial statements of the Trust are prepared on a modified cash basis pursuant to which general and administrative expenses of the Trust are recognized when incurred whereas royalty income is recognized when received. Consequently, the reported distributable income of the Trust for any quarter is determined by deducting from the income received by the Trust the amount of expenses incurred by the Trust during such quarter. The amount of cash available for distribution to Unitholders, however, is determined in accordance with the provisions of the Trust Agreement and reflects the deduction from the income actually received by the Trust of the amount of expenses actually paid or accrued by the Trust and adjustments for changes in reserves for unpaid liabilities. See Notes 5 and 6 to the financial statements of the Trust appearing elsewhere in this report on Form 10-Q for additional information regarding the determination of the amount of cash available for distribution to Unitholders.

(1)		Million British Thermal Units.
(2)		The WI Properties realized a net deficit from the Net Profits Interest for the three month period ended September 30, 2009; therefore, no production quantities related to that period are presented. The production quantity above is comprised entirely of favorable retroactive adjustments of 13,813 MMBtu.
(3)		Includes unfavorable retroactive adjustments of 48,788 MMBtu.
(4)		Simple average of estimates for the months included in the period presented.
(5)		There was no distribution from the Infill Properties for the three month period ended September 30, 2009 as described in Note 1 to the financial statements of the Trust. The production quantity above reflects favorable retroactive adjustments of 8,676 MMBtu.
(6)		No distribution was made for Infill Properties.

Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009

~~Production~~For ~~from~~ the WIquarter ~~Properties~~ended isMarch 31, ~~generally~~2010, ~~sold~~royalty byincome ~~WPC~~received toby ~~WPX~~the ~~Gas~~Trust ~~Resources~~amounted ~~pursuant~~ to ~~the~~$764,578 ~~Gas~~as ~~Purchase~~compared ~~Contract~~to ~~that~~$1,393,653 ~~provides~~received ~~certain protections~~ for ~~WPC~~the ~~and~~same ~~Unitholders~~quarter byin ~~providing that~~2009. ~~WPX~~The ~~Gas~~decrease ~~Resources~~in ~~will~~royalty income ~~purchase~~is ~~gas~~primarily ~~from~~due ~~WPC~~to atlower aproduction ~~minimum~~volumes. ~~purchase~~Also ~~price~~impacting offirst ~~$1.70~~quarter ~~even~~2009 ~~when~~production ~~the~~revenues ~~applicable~~were ~~index~~lower ~~price~~infill ~~(which~~revenues isdue ~~equal~~ to ~~97%~~deficits ofin the ~~Blanco~~previous ~~Hub~~two ~~Spot Price) falls below $1~~quarters.70 Production ~~per~~volumes ~~MMBtu,~~are ~~provided~~affected ~~that~~by ~~WPX~~changes ~~Gas~~in ~~Resources~~sales isprices ~~entitled~~for tonatural ~~accrue~~gas ~~price~~produced ~~credits~~and incosts ~~the~~that ~~amount of any~~are ~~excess~~deducted ofin ~~the~~calculating ~~minimum price so paid over~~ the ~~applicable~~NPI ~~index~~Net ~~price~~Proceeds. ~~When~~Production ~~the~~related ~~applicable index price exceeds $1.70 per MMBtu, WPX Gas Resources is entitled~~ to ~~recoup~~the ~~any~~royalty ~~price~~income ~~credits~~received ~~previously~~by ~~accrued. When~~ the ~~applicable~~Trust ~~index~~in ~~price~~the isfirst ~~greater~~quarter ~~than~~of ~~$1.94~~2010 ~~per~~was ~~MMBtu~~540,208 ~~the~~MMBtu ~~Gas~~as ~~Purchase~~compared ~~Contract protects and benefits WPX Gas Resources by allowing it~~ to ~~purchase~~655,321 ~~gas from WPC at a contract price equal to $1.94 per~~ MMBtu ~~plus~~for ~~only 50 percent of~~ the ~~difference between the applicable index price~~same ~~and~~quarter ~~$1.94~~in ~~per MMBtu~~2009. ~~The~~General ~~Gas~~and ~~Purchase~~administrative ~~Contract~~expenses ~~also provides that the price paid~~ for ~~gas by WPX Gas Resources is reduced by~~ the ~~amount~~quarter ofended ~~gathering~~March 31, ~~processing~~2010 ~~and certain other costs paid by WPX~~were ~~Gas~~higher ~~Resources.~~compared ~~See~~to ~~“Item 2~~the ~~Properties~~same —quarter ~~The~~in ~~Royalty~~2009 ~~Interests~~due —to ~~Gas Purchase Contract” in~~ the ~~2008~~ ~~Annual~~preparation ~~Report~~ for ~~detailed information about~~ the ~~Gas~~termination ~~Purchase~~of ~~Contract and its impact on Trust~~the ~~income~~Trust.

Distributable income for the quarter ended March 31, 2010 was $238,776 or $.02 per Unit compared to $1,021,984 or $.11 per Unit for the same quarter in 2009. This decrease was the result of lower royalty income as previously described and due to higher general and administrative expenses. A distribution of $0.016972 per Unit was made on March 1, 2010 to Unitholders of record on February 16, 2010.

Because the Trust incurs administrative expenses throughout a quarter but receives its royalty income only once in a quarter, the Trustee established in the first quarter of 1993 a cash reserve for the payment of expenses and liabilities of the Trust. The Trustee thereafter has adjusted the amount of such reserve in certain quarters as required for the payment of the Trust’s expenses and liabilities, in accordance with the provisions of the Trust Agreement. The Trustee

~~The~~has ~~initial~~maintained ~~five-year~~for ~~term of~~ the ~~pricing~~foreseeable ~~provision~~future ~~(“Primary~~a ~~Term”)~~cash ofreserve ~~the~~that ~~Gas~~will ~~Purchase Contract~~be ~~expired~~reduced onby ~~December 31,~~Trust expenses ~~1997.~~in ~~Following~~excess ~~the expiration~~ of ~~the~~royalty ~~Primary~~income. ~~Term,~~After ~~the~~receipt ~~pricing provision~~of ~~will~~royalty ~~continue~~income in ~~effect~~May ~~for~~2010, ~~one~~Trust oris ~~more~~withholding ~~consecutive~~in ~~additional~~cash ~~one-year~~and ~~terms~~cash ~~(each~~equivalents ~~such term~~an aadditional ~~“Contract~~$300,000 ~~Year”)~~for ~~unless~~anticipated ~~and~~expenses ~~until~~relating to ~~WPX~~the ~~Gas~~termination ~~Resources~~process. ~~exercises~~As ~~its~~discussed ~~annual~~in ~~option~~Note 2, ~~exercisable 15 days~~if ~~prior~~a tosale ~~the end~~ of ~~each~~the ~~Contract~~Remaining ~~Year,~~Royalty toInterests ~~discontinue~~is ~~purchasing~~made ~~gas~~or ~~from~~a ~~WPC~~definitive ~~under~~contract ~~the pricing~~for ~~provision~~sale of the ~~Gas~~Remaining Royalty ~~Purchase~~Interests ~~Contract~~is ~~and~~entered ~~instead~~into ~~purchase~~prior ~~gas~~to atthe a150th ~~monthly~~day ~~price~~following ~~equal~~the toTermination Date, the ~~index~~buyers ~~price~~ of ~~97% of~~ the ~~Blanco~~Remaining ~~Hub~~Royalty ~~Spot~~Interests, ~~Price.~~and ~~WPX has~~ not ~~yet~~the ~~exercised~~Trust ~~this~~or ~~option and~~ the ~~pricing~~ ~~mechanism~~Unitholders, ofwill ~~the~~be ~~Primary~~entitled ~~Term~~to ~~therefore~~all ~~has~~proceeds ~~been~~of ~~and~~production ~~will~~attributable ~~continue~~ to ~~remain~~the Remaining inRoyalty ~~effect through~~Interests atfollowing ~~least~~the ~~December 31,~~Termination ~~2009~~Date.

~~For~~Royalty ~~the~~income ~~nine~~received ~~months~~by ~~ended~~the ~~September 30,~~Trust ~~2009,~~in ~~which~~a isgiven ~~based~~calendar onquarter ~~production~~will ~~volumes~~generally ~~and~~reflect ~~natural~~the ~~gas~~sum ~~prices~~of ~~for the nine months ended June~~(i) ~~30,~~net ~~2009,~~proceeds from the ~~Blanco~~sale ~~Hub~~of ~~Spot~~gas ~~Price~~produced ~~was~~from ~~above~~the ~~$2.00~~WI ~~per MMBtu,~~Properties ~~and~~during ~~therefore~~ the ~~applicable~~preceding calendar ~~index~~quarter, ~~price~~plus ~~under~~(ii) cash ~~the~~received ~~Gas~~by ~~Purchase~~WPC ~~Contract,~~with ~~which~~respect ~~is equal~~ to ~~97%~~ of the ~~Blanco~~Farmout ~~Hub~~Properties ~~Spot~~either ~~Price,~~(a) during ~~was~~the ~~above~~preceding ~~$1.94~~calendar ~~per~~quarter ~~MMBtu~~or ~~through~~(b) if ~~such~~received ~~period.~~in Insufficient ~~general,~~time ~~under the~~to ~~Gas~~be ~~Purchase~~paid ~~Contract,~~to the Trust, ~~only~~in ~~receives~~ the ~~benefit~~month ofimmediately ~~50 percent~~following ofsuch ~~any~~calendar ~~amount~~quarter. byAccordingly, ~~which~~ the ~~applicable~~royalty ~~index~~income included ~~price~~in ~~exceeds~~distributable ~~$1.94~~income ~~per~~for ~~MMBtu. Consequently, pursuant to~~ the ~~terms~~quarter ofended ~~the~~March 31, ~~Gas Purchase Contract~~2010, ~~WPX~~was ~~Gas~~based ~~Resources~~on ~~paid~~production volumes ~~WPC~~and annatural ~~amount for~~ gas ~~purchased~~prices ~~equal~~for tothe ~~$1.94~~period ~~per~~October 2009 ~~MMBtu~~through December 2009, ~~less~~ ~~the~~as ~~costs~~shown ~~paid~~in bythe table ~~WPX~~below. ~~Gas~~The ~~Resources~~production tovolumes ~~gather~~included ~~and~~in ~~process~~the ~~such~~table ~~gas~~below ~~and~~are ~~deliver~~for itproduction toattributable ~~specified~~to ~~delivery~~net ~~points~~profits ~~plus 50 percent~~ of the ~~excess~~Underlying ofProperties, ~~the~~and ~~applicable~~not ~~index~~for ~~price~~production ~~over~~attributable ~~$1.94~~to ~~per~~the ~~MMBtu.~~Trust’s ~~The~~Royalty ~~Blanco Hub Spot Price remained above $2~~Interests.~~00 per MMBtu in October 2009.~~

The information in this report on Form 10-Q concerning production and prices relating to the Underlying Properties is based on information prepared and furnished by WPC to the Trustee. The Trustee has no control over and no responsibility relating to the operation of the Underlying Properties.


	Three Months			Three Months
	Ended			Ended
	December 31, 2009			December 31, 2008
Production (MMBtu) (1)
WI Properties		533,288	(2)		743,506	(3)
Farmout Properties		216,340			240,682
Infill Properties		452,153	(6)		324,040	(5)

Blanco Hub Spot Price ($/MMBtu) (4)	$	3.99		$	3.91

Net Wellhead Price WI Properties ($/MMBtu)	$	1.54		$	1.69

Termination and Liquidation of the Trust


(1)		Million British Thermal Units.

(2)		Includes retroactive adjustments of (47,526) MMBtu.

(3)		Includes retroactive adjustments of (42,364) MMBtu.

(4)		Weighted average of estimates for the months included in the period presented.

(5)		Includes 127,022 MMBtu Retroactive Adjustment.

(6)		Includes (11,188) MMBtu Retroactive Adjustment.

~~With~~Production ~~respect~~from to the ~~Trust~~WI ~~termination~~Properties ~~provisions~~is asgenerally ~~outlined~~sold inby ~~the~~WPC ~~Trust~~to ~~Agreement,~~WPX ~~the~~Gas ~~net present~~Resources ~~value~~pursuant of to the ~~estimated~~Gas ~~future~~Purchase ~~net~~Contract ~~revenues~~that ~~computed~~provides incertain ~~accordance~~protections ~~with~~for ~~the~~WPC ~~Trust~~and ~~Agreement,~~Unitholders by providing ~~using~~that anWPX ~~average~~Gas ~~2008~~Resources ~~index~~will ~~price~~purchase ofgas ~~$7.21,~~from byWPC ~~the~~at ~~independent~~a ~~petroleum~~minimum ~~engineers~~purchase asprice of ~~December 31, 2008 was approximately~~ $~~65 million~~1.70 ~~While~~even ~~the results of this computation did not trigger an~~when ~~early termination of~~ the ~~Trust~~applicable asindex ofprice ~~December 31,~~(which ~~2008,~~is ~~future~~equal ~~computations are subject~~ to ~~the numerous~~97% ~~uncertainties~~of ~~in estimating~~ the ~~future~~Blanco ~~net~~Hub ~~revenues.~~Spot AsPrice) ~~indicated~~falls inbelow ~~Note 2 to the financial statements in Item~~ $1~~, commodity prices realized in 2009 are significantly lower than the~~.70 ~~prices~~per ~~realized during 2008~~MMBtu, ~~resulting~~provided inthat ~~uncertainty~~WPX ~~regarding~~Gas ~~the~~Resources ~~Trust’s~~is ~~ability~~entitled to ~~avoid~~accrue ~~a termination~~price ~~triggering~~credits ~~event~~ in ~~accordance with~~ the ~~provisions~~amount of ~~the Trust Agreement when the test~~any isexcess ~~next performed as~~ of ~~December 31,~~the ~~2009.~~minimum ~~The~~price ~~simple~~so ~~average~~paid ~~monthly~~over ~~Blanco Hub Spot Price for~~ the ~~first~~applicable ~~nine~~index ~~months of 2009 was $3~~price.00 ~~compared~~When to the ~~average~~applicable index price ofexceeds $71.2170 ~~that~~per ~~was used by the independent petroleum engineers as of December 31~~MMBtu, ~~2008~~WPX ~~who~~Gas ~~calculated~~Resources ~~the~~is ~~net~~entitled ~~present value of the estimated future net revenues as of such date~~ to berecoup ~~approximately~~any ~~$65 million.~~price ~~Additionally,~~credits ~~the~~previously ~~computed~~accrued. ~~value~~When ~~could be negatively impacted by future revisions to~~ the ~~underlying~~applicable ~~reserve estimates.~~index Asprice ~~a result, there~~ is ~~substantial~~greater ~~doubt~~than ~~regarding the Trust’s ability to continue as a going concern~~$1.94 ~~Should~~per ~~the Trust’s computed net present value fall below the $30 million stipulated threshold as of December 31~~MMBtu, ~~2009,~~ the ~~Trust~~Gas ~~will~~Purchase ~~terminate effective March 1, 2010.~~Contract ~~The~~protects ~~accompanying~~and ~~financial~~benefits ~~statements~~WPX doGas ~~not~~Resources ~~include~~by ~~any~~allowing ~~adjustments~~it ~~that~~to ~~might~~purchase ~~result~~gas from ~~the~~WPC ~~outcome~~at ofa ~~this~~contract ~~uncertainty,~~price equal ~~including~~to ~~the ultimate liquidation of the Trust and its assets~~$1.94 per

~~Pursuant~~MMBtu toplus ~~the~~only ~~terms~~50 percent of the ~~Trust~~difference ~~Agreement,~~between the ~~Trust~~applicable ~~will~~index ~~terminate~~price noand ~~later~~$1.94 ~~than December~~per ~~31,~~MMBtu. ~~2012~~The orGas ~~upon~~Purchase ~~the~~Contract ~~first~~also toprovides ~~occur~~that ~~of certain events, including (i)~~ the ~~disposition~~price bypaid ~~the~~for ~~Trust of~~gas ~~all Royalty Interests; (ii) following an affirmative vote in favor of termination of the Trust~~ by ~~the~~WPX ~~holders~~Gas ofResources ~~record of more than 50% of the then outstanding Units; (iii) such time as the~~is ~~ratio~~reduced ~~of cash received~~ by the ~~Trust~~amount ~~with respect to the Royalty Interests (excluding the effect on cash distributions received by the Trust in respect~~ of ~~the~~gathering, ~~Royalty~~processing ~~Interests~~and ofcertain ~~excess~~other ~~capital~~ costs) topaid ~~administrative~~by ~~costs~~WPX ofGas ~~the Trust is less than 1~~Resources.~~2 to 1.0 for three (3) consecutive~~ ~~calendar~~See ~~quarters, and (iv)~~“Item ~~March~~2 1Properties of— ~~any~~The calendar year if, based on a reserve report as of December 31 of the prior year, it is determined that, as of such date, the net present value (discounted at 10 percent) of the estimated future net revenues (calculated in accordance with criteria established by the SEC) for proved reserves attributable to the Royalty Interests ~~but using~~— ~~the~~Gas ~~average~~Purchase monthly Blanco Hub Spot Price for the past calendar year less certain gathering costs is equal to or less than $30 million (the date of the first of such occurrences is referred to herein as the “Termination DateContract”). ~~As indicated~~ in ~~Note 2,~~ the 2009 ~~commodity~~Annual ~~price environment~~Report ~~has~~for ~~resulted~~detailed ininformation ~~uncertainty~~about ~~regarding~~ the ~~Trust’s~~Gas ~~ability~~Purchase toContract ~~avoid~~and aits ~~termination~~impact ~~event~~on ~~pursuant to the terms of the~~ Trust ~~Agreement~~income.

The ~~Blanco~~initial ~~Hub~~five-year ~~Spot~~term ~~Price~~of ~~means~~ the ~~posted~~pricing ~~index~~provision ~~price~~(“Primary Term”) of ~~spot~~the ~~gas~~Gas ~~delivered~~Purchase Contract toexpired ~~pipelines~~on ~~per MMBtu~~December 31, ~~(dry~~1997. ~~basis)~~Following asthe ~~published~~expiration inof the ~~first~~Primary ~~issue~~Term, of the ~~month~~pricing provision ~~during~~will ~~which~~continue ~~gas~~in iseffect ~~delivered~~for one or more consecutive additional one-year terms (each such term ~~determination~~a is“Contract ~~made~~Year”) unless and until WPX Gas Resources exercises its annual option, asexercisable 15 days prior to the ~~case~~end ~~may~~of ~~be,~~each inContract ~~Inside~~Year, ~~FERC’s~~to ~~Gas~~discontinue ~~Market~~purchasing ~~Report~~gas ~~for~~from ~~“El~~WPC ~~Paso~~under the ~~Natural~~pricing provision of the Gas ~~Company,~~Purchase ~~San~~Contract ~~Juan,”~~and orinstead inpurchase ~~the~~gas ~~event~~at a ~~Blanco~~monthly ~~Hub~~price ~~posted~~equal to the index price isof at97% ~~some~~of ~~time in~~ the ~~future~~Blanco ~~reported~~Hub bySpot ~~Inside~~Price. ~~FERC’s~~WPX ~~Gas~~has ~~Market~~not ~~Report,~~yet ~~then~~exercised this option and the pricing ~~Blanco~~mechanism ~~Hub~~of ~~posted~~the ~~index~~Primary ~~price~~Term therefore has been and will be ~~substituted~~continue to remain in ~~place~~effect until the earlier of August 1, 2010 or the ~~“El~~closing ~~Paso~~of ~~Natural~~the ~~Gas~~sale ~~Company,~~of ~~San~~the ~~Juan”~~Royalty ~~posted~~Interests ~~index~~by ~~price~~the Trust.

~~Following~~For ~~termination~~the three months ended March 31, 2010, which is based on production volumes and natural gas prices for the ~~Trustee~~three months ended December 31, 2009, the Blanco Hub Spot Price was above $2.00 per MMBtu, and therefore the ~~Delaware~~applicable ~~Trustee~~index ~~will~~price ~~continue~~under tothe ~~act~~Gas asPurchase ~~trustees~~Contract, which is equal to 97% of the ~~Trust~~Blanco ~~until~~Hub ~~all~~Spot ~~remaining~~Price, was above $1.94 per MMBtu through such period. In general, under the Gas Purchase Contract, the Trust ~~assets~~only ~~have~~receives ~~been~~the ~~sold~~benefit ~~and~~of 50 percent of any amount by which the ~~net~~applicable ~~proceeds~~index ~~from~~price ~~such~~exceeds ~~sales~~$1.94 per MMBtu. Consequently, pursuant to the terms of ifthe ~~any~~Gas Purchase Contract, ~~are~~WPX ~~distributed~~Gas Resources paid WPC an amount for gas purchased equal to ~~Unitholders~~$1.94 per MMBtu, less the costs paid by WPX Gas Resources to gather and process such gas and deliver it to specified delivery points plus 50 percent of the excess of the applicable index price over $1.94 per MMBtu. The Blanco Hub Spot Price remained above $2.00 per MMBtu in April 2010.

~~Upon~~The ~~the~~information ~~termination of the Trust, the Trustee will use best efforts (as defined~~ in ~~the~~this ~~Trust Agreement)~~report toon ~~sell~~Form ~~any~~10-Q ~~remaining~~concerning ~~Royalty~~production ~~Interests~~and ~~for~~prices ~~cash~~relating ~~pursuant~~ to the ~~procedures described in~~ ~~the~~Underlying ~~Trust~~Properties ~~Agreement.~~is ~~The~~based ~~Trustee will retain an investment banking firm (the “Advisor”)~~ on ~~behalf of~~information ~~the~~prepared ~~Trust~~and ~~who~~furnished ~~will assist the Trustee in selling the remaining Royalty Interests then owned~~ by ~~the~~ ~~Trust (the “Remaining Royalty Interests”).~~ WPC ~~has the right, but not the obligation~~ to ~~make a cash offer, to purchase all Remaining Royalty Interests following termination of~~ the ~~Trust as described in the following paragraph~~Trustee. The ~~ultimate sales price to be received for the Remaining~~ ~~Royalty~~Trustee ~~Interests~~has ~~may~~no becontrol ~~more~~over orand ~~less~~no ~~than~~responsibility ~~the~~relating ~~“net present value”~~ to ~~be determined at December 31, 2008 for~~ the ~~early~~operation ~~termination computation, as this “net present value” is not intended to be an estimate~~ of ~~fair~~the ~~value~~Underlying Properties.

~~WPC~~Forward-Looking ~~may, within 60 days following the Termination Date, make a cash offer to purchase all of~~Statements the Remaining Royalty Interests then held by the Trust. In the event such an offer is made by WPC, the Trustee will decide, based on the recommendation of the Advisor, to either (i) accept such offer (in which case no sale to WPC will be made unless a fairness opinion is given by the Advisor that the purchase price is fair to the Trust and Unitholders) or (ii) defer action on such offer. If the Trustee defers action on WPC’s offer, the offer will be deemed withdrawn and the Trustee will then use Best Efforts (as defined in the Trust Agreement), assisted by the

This report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created thereby. All statements other than statements of historical fact included in this report on Form 10-Q, including, without limitation, statements contained in this “Trustee’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Trust’s financial position and industry conditions and any sale of the Remaining Royalty Interests upon termination of the Trust, are forward-looking statements. Although the Trustee believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.

Advisor to obtain alternative offers for the Remaining Royalty Interests. At the end of a 120-day period following the Termination Date, the Trustee is required to notify WPC of the highest of any other offers (net of any commissions or other fees payable by the Trust), acceptable to the Trustee (which must be an all-cash offer), received during such period (the “Highest Acceptable Offer”). WPC then has the exclusive right (whether or not it made an initial offer), but not the obligation, to purchase all Remaining Royalty Interests for a cash purchase price computed as follows: (i) if the Highest Acceptable Offer is more than 105 percent of WPC’s initial offer (or if WPC did not make an initial offer), the purchase price will be 105 percent of the Highest Acceptable Offer, or (ii) if the Highest Acceptable Offer is equal to or less than 105 percent of WPC’s initial offer, the purchase price will be equal to the Highest Acceptable Offer. If no other acceptable offers are received for all Remaining Royalty Interests, the Trustee may request WPC to submit another offer for consideration by the Trustee and may accept or reject such offer. Acceptance of an offer by the Trustee shall be conditioned upon the opinion of the Advisor of the fairness of the offer.

If a sale of the Remaining Royalty Interests is made or a definitive contract for sale of the Remaining Royalty Interests is entered into within a 150-day period following the Termination Date, the buyer of the Remaining Royalty Interests, and not the Trust or Unitholders, will be entitled to all proceeds of production attributable to the Remaining Royalty Interests following the Termination Date.

In the event that WPC does not purchase the Remaining Royalty Interests, the Trustee may accept any offer for all or any part (not more than six parts) of the Remaining Royalty Interests as it deems to be in the best interests of the Trust and Unitholders and may continue, for up to one calendar year after the Termination Date, to attempt to locate a buyer or buyers of the Remaining Royalty Interests in order to sell such interests in an orderly fashion not involving a public auction. If any Remaining Royalty Interests have not been sold or a definitive agreement for sale has not been entered into by the end of such calendar year, the Trustee is required to sell the Remaining Royalty Interests at public auction to the highest cash bidder, which sale may be to WPC or any of its affiliates. Notice of such sale by auction shall be mailed at least 30 days prior to such sale to each Unitholder at his address as it appears on the ownership ledger of the Trustee.

WPC’s purchase rights, as described, may be exercised by WPC and each of its successors-in-interest and assigns. WPC’s purchase rights are fully assignable by WPC to any person. The costs of liquidation, including the fees and expenses of the Advisor, and the Trustee’s liquidation fee will be paid by the Trust.

The sale of the Remaining Royalty Interests and the termination of the Trust will be taxable events to the Unitholders for Federal income tax purposes. Generally, a Unitholder will realize gain or loss equal to the difference between the amount realized on the sale of the Remaining Royalty Interests upon termination of the Trust and his adjusted basis in such Units. Gain or loss realized by a Unitholder who is not a dealer with respect to such Units and who has a holding period for the Units of more than one year will be treated as long-term capital gain or loss except to the extent of any depletion recapture amount, which must be treated as ordinary income. State tax consequences may also result to Unitholders upon the termination of the Trust and the sale of the Remaining Royalty Interests. Each Unitholder should consult his own tax

advisor regarding Trust tax compliance matters, including Federal and state tax implications concerning the sale of the Remaining Royalty Interests and the termination of the Trust.

There can be no assurance that future distributions, including any distributions upon a liquidation and termination of the Trust will equal or exceed the purchase price paid by Unitholders for Units. See “Part II, Item 1A — Risk Factors.”

Pending SEC Rule and FASB Standards

In December 2008, the SEC released Final Rule, Modernization of Oil and Gas Reporting. The new disclosure requirements include provisions that permit the use of new technologies to determine proved reserves if those technologies have been demonstrated empirically to lead to reliable conclusions about reserves volumes. The new requirements also will allow companies to disclose their probable and possible reserves to investors. In addition, the new disclosure requirements require companies to: (a) report the independence and qualifications of its reserves preparer or auditor; (b) file reports when a third party is relied upon to prepare reserves estimates or conducts a reserves audit; and (c) report oil and gas reserves using an average price based upon the prior 12-month period rather than year-end prices. In September 2009, the Financial Accounting Standards Board (“FASB”) announced a proposed accounting standards update to align the oil and gas reserve estimation and disclosure requirements of Extractive Industries — Oil and Gas (Topic 932) with the requirements in the SEC Final Rule. The new disclosure requirements are effective for financial statements for fiscal years ending on or after December 31, 2009. The effect of the SEC rule and the proposed FASB update has not been determined.

Forward-Looking Statements

This report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created thereby. All statements other than statements of historical fact included in this report on Form 10-Q, including, without limitation, statements contained in this “Trustee’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Trust’s financial position and industry conditions and potential termination of the Trust, are forward-looking statements. Although the Trustee believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The only assets of and sources of income to the Trust are the Royalty Interests, which, prior to the termination of the Trust, generally ~~entitle~~entitled the Trust to receive a share of the net profits from natural gas production from the Underlying Properties. Consequently, the Trust’s financial results ~~can~~are be significantly affected by fluctuations in natural gas prices and the Trust has commodity price risk exposure associated with the natural gas markets in the United States. The Trust does not engage in any hedging activities to manage its price risk associated with natural gas production from the Underlying Properties. The Royalty Interests do not entitle the Trust to control or influence the operation of the Underlying Properties or the sale of gas produced therefrom. Natural gas produced from the WI Properties, which comprises the majority of production attributable to the Royalty Interests, is currently sold by WPC pursuant to the terms of the Gas Purchase Contract. Although the Trust is not a party to the Gas Purchase Contract, the Gas Purchase Contract significantly impacted revenues to the Trust. Although the Gas Purchase Contract mitigates the risk to the Trust of low gas prices, it also limits the ability of the Trust to benefit from the effects of higher gas prices, particularly to the extent a balance exists in the Price Credit Account. See “Item 2 Properties — The Royalty Interests — Gas Purchase Contract” in the 2009 Annual Report for detailed information about the Gas Purchase Contract and its impact on the Trust and Unitholders.

22 Upon receipt by the Trust, royalty income is invested in short term investments in accordance with the Trust Agreement until its subsequent distribution to Unitholders. Currently, funds are invested in Bank of America money market accounts which are backed by the good faith and credit of Bank of America, N.A., but are not insured by the FDIC. Each Unitholder should independently assess the creditworthiness of Bank of America, N.A. For more information about the credit rating of Bank of America, N.A., please refer to its periodic filings with the SEC. The Trust does not lend money and has limited ability to borrow money, which the Trustee believes limits the Trust’s risk from the current tightening of credit markets. The Trust’s future royalty income, however, may be subject to risks relating to the creditworthiness of the operators of the Underlying Properties and WPX Gas Resources and other purchasers of the natural gas produced from the Underlying Properties, as well as risks associated with fluctuations in the price of natural gas.

produced from the WI Properties, which comprises the majority of production attributable to the Royalty Interests, is currently sold by WPC pursuant to the terms of the Gas Purchase Contract. Although the Trust is not a party to the Gas Purchase Contract, the Gas Purchase Contract may significantly impact revenues to the Trust. Although the Gas Purchase Contract mitigates the risk to the Trust of low gas prices, it also limits the ability of the Trust to benefit from the effects of higher gas prices, particularly to the extent a balance exists in the Price Credit Account. See “Item 2 Properties — The Royalty Interests — Gas Purchase Contract” in the 2008 Annual Report for detailed information about the Gas Purchase Contract and its impact on the Trust and Unitholders.

Upon receipt by the Trust, royalty income is invested in short term investments in accordance with the Trust Agreement until its subsequent distribution to Unitholders. Currently, funds are invested in Bank of America money market accounts which are backed by the good faith and credit of Bank of America, N.A., but are not insured by the FDIC. Each Unitholder should independently assess the creditworthiness of Bank of America, N.A. For more information about the credit rating of Bank of America, N.A., please refer to its periodic filings with the SEC. The Trust does not lend money and has limited ability to borrow money, which the Trustee believes limits the Trust’s risk from the current tightening of credit markets. The Trust’s future royalty income, however, may be subject to risks relating to the creditworthiness of the operators of the Underlying Properties and WPX Gas Resources and other purchasers of the natural gas produced from the Underlying Properties, as well as risks associated with fluctuations in the price of natural gas. See “Part II, Item 1A — Risk Factors — Funds held by the Trustee are not insured by the Federal Deposit Insurance Corporation, and future royalty income may be subject to risks relating to the creditworthiness of third parties.” Information contained in Bank of America, N.A’s periodic filings with the SEC is not incorporated by reference into this quarterly report on Form 10-Q and should not be considered part of this report or any other filing that the Trust makes with the SEC.

The market prices of the Units are determined by the buyers and sellers on the New York Stock Exchange. The Trust does not make market on any Units and is not in any position to advise any Unitholder on any market position. Unitholders should be aware that any position of the market concerning the Units is beyond the Trust’s control and on any given day, various market conditions will affect the market of the Units.

The assets of the Trust are passive in nature, and other than the Trust’s ability to periodically borrow money as necessary to pay expenses, liabilities and obligations of the Trust that cannot be paid out of cash held by the Trust, the Trust is prohibited from engaging in borrowing transactions. The amount of any such borrowings is unlikely to be material to the Trust. The Trust periodically holds short-term investments acquired with funds held by the Trust pending distribution to Unitholders and funds held in reserve for the payment of Trust expenses and liabilities. Because of the short-term nature of these borrowings and investments and certain limitations upon the types of such investments that may be held by the Trust, the Trustee ~~believes~~ that the Trust is not subject to any material interest rate risk. The Trust does not engage in transactions in foreign currencies that could expose the Trust or Unitholders to any foreign currency related market risk.

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believes that the Trust is not subject to any material interest rate risk. The Trust does not engage in transactions in foreign currencies that could expose the Trust or Unitholders to any foreign currency related market risk.

Item 4. Controls and Procedures.

The Trust maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed by the Trust in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms. In addition, the disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Trust is accumulated and communicated to the Trustee to allow timely decisions regarding required disclosure. As of the end of the period covered by this report on Form 10-Q, the Trustee carried out an evaluation of the effectiveness of the design and operation of the Trust’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15 and 15d-15. Based upon that evaluation, the Trustee concluded that the Trust’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information ~~required to be~~ disclosed by the Trust in the reports that it files or submits under the Securities Exchange Act of 1934 and are effective in ~~ensuring~~ ensuring that information required to be disclosed by the Trust in the reports that it files or ~~submits~~ submits under the Securities Exchange Act of 1934 is accumulated and communicated to the Trustee to ~~allow~~ allow timely decisions regarding required disclosure. In its evaluation of disclosure controls and procedures, the Trustee has relied, to the extent considered reasonable, on information provided by WPC. There has not been any change in the Trust’s internal control over financial reporting during the period covered by this report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

Not Applicable.

Items 1A through 5.

Not applicable.

~~Item 1A. Risk Factors.~~22

Except as set forth below, there has been no material changes in the risk factors disclosed in Part I, Item 1A of the Trust’s 2008 Report for the year ended December 31, 2008.

Current commodity prices may result in minimal or no future distributions, and distributions, including any distributions upon a termination and liquidation of the Trust may not equal or exceed the purchase price paid by a Unitholder for Units.

If commodity prices remain at current levels or decrease, Trust expenses may exceed royalty income (as was the case during the prior quarter), in which case, distributions may cease for the foreseeable future, including, potentially, through termination of the Trust. The market price for Trust Units is based on a variety of factors outside the control of the Trustee. There is no guarantee that future distributions, including any distributions upon a termination and liquidation of the Trust will equal or exceed the purchase price paid by the Unitholder.

There is substantial doubt about our ability to continue as a going concern.

There is substantial doubt as to our ability to continue as a going concern. The factors contributing to this concern include commodity prices that have decreased over the past year and depleting underlying reserves. Please read Note 2 to “Item 8 — Financial Statement and Supplementary Data — Notes to Financial Data” in our Annual Report on Form 10-K for the year ended December 31, 2008, which included our independent registered public accounting firm’s report accompanying the financial statements included therein containing a statement expressing substantial doubt as to the Trust’s ability to continue as a going concern. If the Trust’s computed net present value of the estimated future net revenues for proved reserves attributable to the Royalty Interests falls below the $30 million stipulated threshold as of December 31, 2009, we will be forced to terminate the Trust pursuant to the termination and liquidation provisions in the Trust Agreement. As of December 31, 2008, the net present value of the estimated future net revenues for proved reserves attributable to the Royalty Interests computed in accordance with the Trust Agreement, using an average 2008 index price of $7.21, by the independent petroleum engineers, was approximately $65 million. While the results of this computation did not trigger an early termination of the Trust as of December 31, 2008, future computations are subject to the numerous uncertainties in estimating the future net revenues as described in “Item 1A—Risk Factors” to our annual report on Form 10-K for the year ended December 31, 2008. The negative commodity price environment throughout 2009 and the outlook for the remainder of 2009 have to date negatively impacted actual index prices used in the Trust’s termination calculation, and it appears increasingly likely that it will impact the December 31, 2009 termination evaluation and trigger termination of the Trust in accordance with the provisions of the Trust Agreement. The simple average monthly Blanco Hub Spot Price for the first nine months of 2009 was $3.30 compared to the average price of $7.21 that was used by our independent petroleum engineers as of December 31, 2008 who calculated the net present value of the estimated future net reserves as of such date to be approximately $65 million. Trust reserve estimates depend on many assumptions that may prove to be inaccurate, which could cause both estimated reserves and estimated future net revenues to be too high, leading to write-downs of estimated reserves, including changes in pricing, costs and production volumes. As a result, the ability of the reserves to exceed the threshold in the future is uncertain, and there is substantial doubt regarding the Trust’s ability to continue as a going concern.

Funds held by the Trustee are not insured by the Federal Deposit Insurance Corporation, and future royalty income may be subject to risks relating to the creditworthiness of third parties.

Currently, funds are invested in Bank of America money market accounts which are backed by the good faith and credit of Bank of America, N.A., but are not insured by the Federal Deposit Insurance Corporation (“FDIC”). Each Unitholder should independently assess the creditworthiness of Bank of America, N.A. For more information about the credit rating of Bank of America, N.A., please refer to its periodic filings with the SEC. The Trust does not lend money and has limited ability to borrow money, which the Trustee believes limits the Trust’s risk from the current tightening of credit markets. The Trust’s future royalty income, however, may be subject to risks relating to the creditworthiness of the operators of the Underlying Properties and WPX Gas Resources and other purchases of the natural gas produced from the Underlying Properties, as well as risks associated with fluctuations in the price of natural gas.

Items 2 through 5.

Not applicable.

Item 6. Exhibits.

The exhibits listed below are filed as part of this report on Form 10-Q:

EXHIBIT
NUMBER		EXHIBIT
4.1 —		Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 1, 1992, by and among Williams Production Company, The Williams Companies, Inc. and Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), as trustees (filed as Exhibit 4.1 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.1—		Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 1, 1992, by and among Williams Production Company, The Williams Companies, Inc. and Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), as trustees (filed as Exhibit 4.1 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.2 —		First Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 15, 1992, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.2 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.2—		First Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 15, 1992, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.2 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.3 —		Second Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of January 12, 1993, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.3 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.3—		Second Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of January 12, 1993, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.3 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.4 —		Net Profits Conveyance effective as of October 1, 1992, by and among Williams Production Company, The Williams Companies, Inc., and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), and Chemical Bank Delaware (filed as Exhibit 4.4 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.4—		Net Profits Conveyance effective as of October 1, 1992, by and among Williams Production Company, The Williams Companies, Inc., and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), and Chemical Bank Delaware (filed as Exhibit 4.4 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
15.1 —		Letter regarding unaudited interim financial information dated ~~November~~May 613, ~~2009~~2010, from the independent Registered Public Accounting Firm which acknowledges awareness of the use in registration statement of a report on unaudited interim financial information.
31.1 —		Certification by Ron E. Hooper, Senior Vice President and Administrator of Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated May 13, 2010, and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 —		Certificate by Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated May 13, 2010, and submitted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).

2623

EXHIBIT
NUMBER		EXHIBIT
		Accounting Firm which acknowledges awareness of the use in registration statement of a report on unaudited interim financial information.
31.1 —		Certification by Ron E. Hooper, Senior Vice President and Administrator of Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated November 6, 2009, and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 —		Certificate by Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated November 6, 2009, and submitted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).

SIGNATURES

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.


	WILLIAMS COAL SEAM GAS ROYALTY TRUST

	By: BANK OF AMERICA, N.A., Trustee
	By:	/s/ RON E. HOOPER
		Ron E. Hooper
		Senior Vice President and Administrator

(The Trust has no directors or executive officers.)

Date: ~~November 6~~May 13, ~~2009~~2010

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INDEX TO EXHIBITS

EXHIBIT NUMBER		EXHIBIT
EXHIBIT
4.1 —		Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 1, 1992, by and among Williams Production Company, The Williams Companies, Inc. and Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), as trustees (filed as Exhibit 4.1 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
NUMBER		EXHIBIT
4.2 —		First Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 15, 1992, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.2 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.1—		Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 1, 1992, by and among Williams Production Company, The Williams Companies, Inc. and Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), as trustees (filed as Exhibit 4.1 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.3 —		Second Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of January 12, 1993, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.3 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.2—		First Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of December 15, 1992, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.2 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.4 —		Net Profits Conveyance effective as of October 1, 1992, by and among Williams Production Company, The Williams Companies, Inc., and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), and Chemical Bank Delaware (filed as Exhibit 4.4 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
4.3—		Second Amendment to the Trust Agreement of Williams Coal Seam Gas Royalty Trust effective as of January 12, 1993, by and among Williams Production Company, The Williams Companies, Inc., Chemical Bank Delaware and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 4.3 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
15.1 —		Letter regarding unaudited interim financial information dated November 6, 2009, from the independent Registered Public Accounting Firm which acknowledges awareness of the
4.4—		Net Profits Conveyance effective as of October 1, 1992, by and among Williams Production Company, The Williams Companies, Inc., and Bank of America, N.A. (as successor to NationsBank of Texas, N.A.), and Chemical Bank Delaware (filed as Exhibit 4.4 to the Registrant’s Form 10-K for the year ended December 31, 1992 and incorporated herein by reference).
15.1 —		Letter regarding unaudited interim financial information dated May 13, 2010, from the independent Registered Public Accounting Firm which acknowledges awareness of the use in registration statement of a report on unaudited interim financial information.
31.1 —		Certification by Ron E. Hooper, Senior Vice President and Administrator of Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated May 13, 2010, and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

2925

EXHIBIT NUMBER		EXHIBIT
EXHIBIT
		use in registration statement of a report on unaudited interim financial information.
NUMBER		EXHIBIT
31.1 —		Certification by Ron E. Hooper, Senior Vice President and Administrator of Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated November 6, 2009, and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 —		Certificate by Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated May 13, 2010, and submitted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).
32.1 —		Certificate by Bank of America, Trustee of Williams Coal Seam Gas Royalty Trust, dated November 6, 2009, and submitted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).

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