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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

KIEWIT ROYALTY TRUST

CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

March 31,September 30, 2021 and

December 31, 2020

(unaudited)

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

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KIEWIT ROYALTY TRUST

CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME

For the three and nine months ended March 31,September 30, 2021 and 2020

(unaudited)

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CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS

For the three months ended March 31, 2021 and 2020

(unaudited)

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

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CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS

For the nine months ended September 30, 2021 and 2020

(unaudited)

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

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KIEWIT ROYALTY TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS

(unaudited)

Basis of Presentation

The accompanying condensed financial statements have been prepared in accordance with the instructions for Form 10-Q and do not necessarily include all of the information and footnotes required by U.S. generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of U.S. Bank National Association, as sole trustee of the Trust (the "Trustee"“Trustee”), all adjustments necessary for a fair presentation have been included. For further information, refer to the financial statements and footnotes included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2020.

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Summary of Significant Accounting Policies

(a)         Basis of Accounting:

The condensed financial statements of the Trust, as prepared on the modified cash basis, reflect the Trust'sTrust’s assets, liabilities, trust corpus, and distributable income as follows:

1.       Royalty income and interest income are recognized in the month in which amounts are received by the Trust.

2.       Trust expenses, consisting principally of routine general and administrative costs, include payments made during the accounting period.

3.       Reserves for liabilities that are contingent or uncertain in amount may also be established if considered necessary.

4.       Net royalty and overriding royalty interests that are producing properties are amortized using the unit-of-production method. This amortization is shown as a reduction of Trust corpus.

5.       Distributions to Unit Holders are recognized when declared by the Trustee.

6.       Production withholding taxes withheld from Unit Holder distributions and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from royalty income in the condensed statement of distributable income.

These condensed statements differ from financial statements prepared in accordance with GAAP and were prepared on the modified cash basis of reporting, which is considered to be the most meaningful because Distributions to Unit Holders are based on net cash receipts. This comprehensive basis of accounting, other than GAAP, corresponds to the accounting permitted for royalty trusts by the U.S. Securities and Exchange Commission as specified by Staff Accounting Bulletin Topic 12E, Financial Statements of Royalty Trusts.

The condensed financial statements of the Trust differ from financial statements prepared in conformity with United States generally accepted accounting principles (GAAP) because of the following:

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(b)         Cash and Cash Equivalents:

The Trust considers all highly liquid financial instruments with original maturities of three months or less when purchased to be cash equivalents.

(c)         Related Party:

The Trust was organized to provide an efficient, orderly and practical means of administering the income received from royalty interests and is administered by the Trustee. Pursuant to the terms of the Trust Indenture, the Trust pays the Trustee an annual fee of $100,000. The Trustee may adjust this fee annually in its sole discretion. The Trust pays a Trustee fee of $25,000 per quarter as long as the Trust has sufficient royalty income to make such payments. Going forward, Trust has suspended quarterly payments due to lack of revenue and the Trustee will not receive any of its quarterly fees unless the Trust assets are sold to the prospective buyers.

(d)         Impact of COVID-19:

On March 11, 2020 the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The Trust cannot reasonably estimate the length or severity of this pandemic, and the Trust currently cannot anticipate the impact on its financial results or results of operations for fiscal 2021. Further, the pandemic has had a significant impact on the coal industry and the Trust is heavily reliant on revenue from coal mines.

(e)         Subsequent Events:

In AprilOn October 29, 2021, the Trust receivedfiled a payment fromvoluntary petition to terminate (the “Petition”) in the County Court of Douglas County, Nebraska (the “Court”) (Case No.21-1904). The Trust filed the Petition requesting the Court to approve certain actions and then allow the Trust to liquidate all of its assets and wind up operations of the Trust pursuant to the terms of the Trust Indenture.

Specifically, the Petition requests the Court to: (i) find the value of the Trust’s property is insufficient to justify the cost of administration; (ii) find the Trust’s termination to further the Trust’s purposes and be in accordance with the trustor’s probable intention; (iii) approve the Trustee’s actions to sell the Trust properties; (iv) approve and ratify the Letter Agreement with Navajo Transitional Energy Company, LLC to sell the overriding royalty interests in certain Spring Creek Mines; (v) approve, ratify, and confirm the auction sale of overriding royalty interests in the Decker mine inMines and the amountBlack Butte Mine to Spartan Energy, LLC; (vi) approve the Trust’s termination; and (vii) approve the Trustee’s pro rata distribution of $44,874. This royalty payment was anticipated to be paidsale proceeds , net of any Trust expenses, to the Unit Holders upon completion of the sales and for the Trust to wind up its operations.

The assigned hearing date before the Court is December 29, 2021 at 10:30 a.m. Central time. If the Court approves the Trust’s Petition, the Trust anticipates that it will wind up its operations in the first quarter; however, due to the pending bankruptcyquarter of the mine’s owner, there was a delay in the payment as such payment was required to be approved by the bankruptcy court. In addition, the Trust does not anticipate receiving any additional royalty payments from the Decker mine in the near future.

2022.

(e)(f)         Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. WhileDuring the third quarter, the Trust reported 0 income for the periods presented, the Trust receives substantially all of its royalty payments fromas the Decker Mine whichis no longer producing and filed for bankruptcy in December 2020. After the bankruptcy filing, Decker Mine curtailed its mining operations, subsequent toand in the bankruptcy andfirst quarter 2021, ceased its mining operationsoperations. The Decker bankruptcy was finalized in March 2021.the third quarter of 2021; however, as an unsecured creditor, the Trust is uncertain when or if it will receive any payments from the bankruptcy trustee. Other than the royalty payments received from the mines, the Trust does not have any other established source of revenues sufficient to cover its operating costs.

Management has assessed the Trust’s ability to continue as a going concern based on the following factors: (i) the Trust’s primary source of revenue, the Decker Mine, is not operating and recently completed its bankruptcy and the Trust anticipates that the Trust will not receive any royalty payments in the future, and (ii) without the Decker Mine, the Trust does not have any additional sources of liquidity, unless it consummates the sale of the Trust assets, and the sale of the royalty interests are subject to legal approvals and market conditions. The Trust established a reserve for cash received to cover future expenses; however, the reserve is insufficient to cover expenses. As a result, the Trust projects that it will not have sufficient cash on hand to meet its obligations as they become due within one year of the date that the financial statements are issued. These conditions, among others, raise substantial doubt about the Trust’s ability to continue as a going concern.

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To alleviate the identified conditions and consistent with the terms of the Trust intendsIndenture, the Trust has executed an agreement to implementsell certain interests in royalty interests held by the Spring Creek Mine and auctioned all other royalty interests at a public auction in September 2021 and has an agreement to sell such interests to Spartan Energy, LLC, upon receipt of court or Unit Holder approval. The Trust has petitioned the Court to allow it to sell the Trust assets and liquidate in accordance with the Trust Indenture. Refer to note (e) describing the Petition. These plans, including filing a proof of claim inhowever, have not been finalized and are not within the bankruptcy court for the royalty income from Decker Mine, establishing a reserve for cash received to cover future expenses,Trust’s control, and exploring options to monetize the royalty interests. However, these plans are subject to legal approvals and market conditions, andtherefore cannot be deemed probable. As such, there is no assurance that the Trust’s plans are probable of being implemented. As a result, the

The Trust has concluded that management’s plans do not alleviate substantial doubt regarding the Trust’s ability to continue as a going concern.

The Trust’s financial statements currently do not include any adjustments that might result from the outcome of any uncertainly as to the Trust’s ability to continue as a going concern.

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

Overview.

Kiewit Royalty Trust (the "Trust"“Trust”) is a royalty trust with royalty and overriding royalty interests in certain coal leases. The Trust was formed for the purposes of administering the income received from such coal leases and distributing such income (together with interest earned thereon, if any, less payment of or provision for obligations) to the holders of the units of beneficial interest.

During the three month period ended March 31,September 30, 2021, the Trust did not receive any revenue. For the nine month period ended September 30, 2021, the Trust received a total of $97,261$142,135 of royalty and overriding royalty payments, fromnet of production expenses. The Trust does not anticipate receiving any royalty payments in the Decker Mines.foreseeable future. The following table reflects the royalty and overriding royalty payments, net of production expenses, received by the Trust at the following mines:

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Decker Mine. Royalty and overriding royalty amounts received by the Trust from the Decker Mine decreased to $0 during the first three monthsthird quarter of 2021, decreased significantly by $503,476, or 84%, to $97,261 as compared to $600,737$385,413 received during the same period in 2020. The Decker Mine includes West Decker and East Decker Mine leases.During the nine month period ended September 30, 2021, the royalty amounts decreased substantially by $894,951, or approximately 86%, as compared to the same period in 2020. Until 2021, when the Decker Mine announced cessation of mining activities, the primary producer currently was an East Decker Mine, which in recent years was the only lease in which the Trust had an interest that was actively producing. The changes this quarter, as well as during the first nine months of 2021, resulted from fewer tons of coal produced due to the cession of mine operations.

operations and the Decker Mine bankruptcy.

In December 2020, Lighthouse Resources, Inc., the owner of the Decker Mine, filed for Chapter 11 bankruptcy, in the United States Bankruptcy Court for the District of Delaware (Case No. 20-13056(JTD)). Lighthouse initially reduced operations at the Decker Mine, and in Februaryfirst quarter 2021, the Decker Mine ceased operations. The Trust is actively monitoring the bankruptcy filings, and is an unsecured creditor in the bankruptcy case. In lightcase and is entitled to receive 0.80% of the pending bankruptcy,any distributions made to its class of unsecured creditors. Total distributions to this unsecured class is a maximum aggregate amount of $750,000, and payment is subject to satisfaction of various contingencies. The projected payment to the Trust is currently uncertain whether it will receive additional$6,000 and timing of the payment is unknown.

In September 2021, the Trust commenced the auction process with EnergyNet to offer for sale the Trust’s non-producing overriding royalty payments frominterests in the Decker Mine orMines. EnergyNet developed and hosted the statusonline auction to facilitate the sale of its interestthe Trust’s overriding royalty interests. On September 29, 2021, Spartan Energy Acquisitions, LLC (“Spartan”) of Denver, Colorado was the successful bidder in the EnergyNet auction and has agreed to purchase the overriding royalty leases. At this time, no additionalinterests in the Decker Mines and Black Butte Mine. The transfer of these overriding royalty payments areinterests is subject to various closing conditions, including either court approval or Unit Holder approval of the transaction. After the satisfaction of the closing conditions, the Trust has agreed to convey to Spartan the overriding royalty interests in exchange for a total cash value of $12,510. Closing is anticipated in early 2022 after the near future.Trust obtains court approval or Unit Holder approval.

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Spring Creek Mine. No royalties were receivedThe Trust did not receive any royalty payments from the Spring Creek Mine during the first threenine months of 2021 and 2020 because historically, royaltiesreceived $10,000 in 2020. Royalties with respect to this mine are typically were paid by the mine operators on an annual basis during the second half of each calendar year but the calendar year.timing of the first payment varies, and it can be received at the end of the second quarter or beginning of the third quarter. However, it is unknown whether the Trust will receive additional royalties from this mine in the future due to various factors, including the financial struggles of the coal operator, the lack of mining activities in the applicable mines, and the general depletion of coal. In 2019, the Spring Creek Mine was sold to Navajo Transitional Energy Company (“NTEC”), which is wholly owned by the Navajo Nation, and is currently operating the mine as a contract operator. Since the transition to NTEC, the Mine shut down briefly and has continued to have operational issues which are unrelated to the COVID-19 pandemic. These operationalOperational issues, together with general economic issues impacting coal mines, are challenging and make it difficult for the Trust to predict the long-term status of the operations of this mine. The Trust intends to continue monitoring the new ownership by NTEC.

It is unknown whetherOn July 28, 2021, the Trust will receive additional royalties from this mineexecuted an agreement with NTEC pursuant to which NTEC has agreed to purchase certain overriding royalty interests owned by the Trust in the future duecertain Spring Creek Mines, specifically lease MTM-069782 and MTM-110692. The agreement is subject to various factors,closing conditions, including either court approval or Unit Holder approval of the transaction. At closing, the Trust has agreed to convey to NTEC the leases free and clear of all liens in exchange for a total cash value of $105,000, less advance minimum royalties previously received by the Trust of $20,716, for an anticipated cash payment of $84,274. Closing is anticipated in early 2022 after the Trust obtains court approval or Unit Holder approval.

Because the Trust has buyers for its assets, the Trust filed a Petition to Terminate on October 29, 2021, requesting the Court allow the Trust to liquidate all of its assets and wind up operations pursuant to the terms of the Trust Indenture. Refer to note (e) of the financial struggles of the coal operator, the lack of mining activities in the applicable mines, and the general depletion of coal.

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Other Mines. In addition to the Decker Mine and Spring Creek Mine, the Trust also owns rights in lease number 027475 in the Black Butte Mine in Sweetwater County, Wyoming. Such mine is not producing but is active andpart of any future mining plans yet the lease continues to be part of future mining plans.

active. Interests in this mine were recently sold to Spartan Energy along with the Decker Mines discussed above.

Interest Income. The Trust generally earns interest on the royalty payments held in reserve. During the threenine months ended March 31,September 30, 2021, and March 31, 2020, the Trust earned a nominal amount of interest.

interest of $2 compared to $499 of interest earned during the nine months ended September 30, 2020. The decrease in interest resulted from the substantial reduction of the royalty payments.

Trust Expenses. Trust expenses increased and were $42,446 indecreased slightly to $128,048 for the first threenine months of 2021, as compared to $25,000$133,995 for the same period in 2020. Trust expenses generally includeincluded fees of the Trustee, accountants, attorneys, and other professionals that the Trustee employs in the administration of the Trust. Trust expenses decreased to $48,271 for the three month period ending September 30, 2021, as compared to $50,812 for the same period in 2020. The increase in expenses resultedfluctuate from period to period largely because of the timing of when the Trust receives invoices were received and paid as well aspays its expenses. Further, the Trust is incurring additional legalfees and expenses relating to address the Decker Mine bankruptcy filing.

sale of its assets. The Trust currently has a limited amount of cash to pay future expenses.

Liquidity and Capital Resources.The Trust'sTrust’s primary source of liquidity is the royalty payments, and the Trust no longer expects to receive any royalty payments. In accordance with the provisions of the Trust Indenture, generally all income received by the Trust, net of Trust expenses and any amounts placed in reserves, is distributed to the Unit Holders on a biannual basis.basis as long as the Trust has sufficient income. At this time, the Trust does not expect to make any distributions in the near future due to the Trust’s liquidity issues. The Trust has suspended future distribution payments in light of the substantial reduction in royalty income.

income and is actively pursuing the liquidation of the Trust.

Trust Reserves. The Trust established trust reserves in the third quarter of 2020 in the amount of $344,604. This reserve was established to hold the funds until the next scheduled biannual payment and was paid to Unit Holders after the 4th quarter of 2020.

During the first quarter of 2021, the Trust'sTrust’s distributable income was $54,816. Historically, this amount would have been reserved to be paid at the Trust’s next distribution date within 10 days of June 30, 2021. At June 30, 2021, the Trust’s distributable income was $7,544, which iswas held in reserve, resulting in a total reserve of $62,360. At September 30, 2021, the Trust's next distribution payment date. However, such amount will be held as a reserve.Trust had no distributable income yet continued to incur professional fees reducing the trust reserve to $14,089. Because of the uncertainty of the Decker Mine,future royalty payments, the Trust intends tohas temporarily suspendsuspended all distribution payments to Unit Holders and instead reservereserved such amounts to cover future expenses. Due to the uncertainty with respect to timing or amount of future royalty payments, the Trust believes such suspension is in its best interests.

During the first quarter of 2020, the Trust's distributable income was $576,223 and was paid to Unit Holders in July 2020. The Trust currently pays biannual distributions within 10 days after June 30 and December 31further believes that the current reserved amounts will not be sufficient to pay expenses.

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In April 2021, the Trust received a payment from the Decker mine in the amount of $44,874. The Trust intends to reserve this amount as well as any additional royalty payments received to cover future expenses.

Going Concern. The Trust maydoes not have sufficient funding in order to continue to operate. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Trust’s continuation as a going concern is dependent upon continued mining activities and receipt of timely royalty payments form the mines, especially the Decker Mine. Because of the Trust’s limited source of revenues, the recent bankruptcy of the Decker Mine raisesmanagement has substantial doubt about the Trust’s ability to continue as a going concern. The Trust’s financial statements currently do not include any adjustments that might result from the outcome of any uncertainly as to the Trust’s ability to continue as a going concern.

Change in Trust Corpus. During the first three months ofthree- and nine-month period ended September 30, 2021, the trust corpus remained unchanged.

Off-Balance Sheet Arrangements. As required by the Trust Indenture, the Trust is intended to be passive in nature and the Trustee does not have any control over or any responsibility relating to the operation of the mines under which the Trust has any royalty interests and overriding royalty interests. The Trustee has powers to collect and distribute proceeds received by the Trust and pay Trust liabilities and expenses and its actions have been limited to those activities. As a result, the Trust has not engaged in any off-balance sheet arrangements.

Critical Accounting Policies and Estimates. The Trust'sTrust’s condensed financial statements are prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America, and as such there are no critical accounting policies or estimates.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this Form 10-Q, the officer of the Trustee conducted an evaluation of the Trust'sTrust’s disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934). Based upon this evaluation, the officer of the Trustee concluded that the Trust'sTrust’s disclosure controls and procedures were effective in timely alerting her of any material information relating to the Trust that is required to be disclosed by the Trust in the reports it files or submits under the Securities Exchange Act of 1934.

Changes in Internal Control Over Financial Reporting. There were no changes in the Trust'sTrust’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that occurred during the Trust'sTrust’s most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Trust'sTrust’s internal control over financial reporting.

Limitations on Controls. The Trustee does not expect that the Trust'sTrust’s disclosure controls and procedures or the Trust'sTrust’s internal control over financial reporting will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Trust have been detected.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

There are no material legal proceedings to whichOn October 29, 2021, the Trust filed a voluntary petition to terminate (the “Petition”) in the County Court of Douglas County, Nebraska (the “Court”). The Trust filed the Petition requesting the Court to approval certain actions and then allow the Trust to liquidate all of its assets and wind up operations of the Trust pursuant to the terms of the Trust Indenture. The Petition is a party.further described in note (e) to the financial statements, which note is incorporated herein by reference.

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Item 6. Exhibits.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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Dated: May 12, 2021

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(The Trust does not have a principal financial or chief accounting officer or any other officers.)

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