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.

KIEWIT ROYALTY TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS

Decker Mine. Royalty and overriding royalty amounts received by the Trust from the Decker Mine decreased by $72,498 to $385,413 during the third quarterfirst three months of 2020,2021, decreased significantly by $503,476, or 84%, to $97,261 as compared to $457,911$600,737 received during the same period in 2019. For the nine months ended September 30, 2020 royalty and overriding royalty amounts decreased by $105,837 or 9% to $1,037,086.2020. The Decker Mine includes West Decker and East Decker Mine leases. OfUntil 2021, when the Decker Mines,Mine announced cessation of mining activities, the primary producer currently iswas an East Decker Mine. ForMine, which in recent years was the first nine months of 2020, the Trust received revenue payments for the 2,406,534only lease actively producing. The changes this quarter resulted from fewer tons of coal as comparedproduced due to 2,498,238 tonsthe cession of coal for the first nine months of 2019. The changes during the nine month period were the net result of changes in the relative amounts of coal mined, which was a normal result of the execution of a mining plan encompassing several coal leases, and decreasing demand in electricity and lower coal prices resulting from the COVID-19 pandemic.mine operations.

Seasonal fluctuations also occur inIn December 2020, Lighthouse Resources, Inc., the relative amountsowner of coal mined under the leases with a majority of the royalty payments being received during the first and third calendar quarters of the year. Earlier this year, the Decker Mine, indicated thatfiled 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 February 2021, the Decker Mine ceased operations. The Trust is actively monitoring the bankruptcy filings, and is an unsecured creditor in the bankruptcy case. In light of the pending bankruptcy, the Trust is currently uncertain whether it continues to expect to shipwill receive additional royalty payments from the Decker Mine or the status of its budgeted tons of coal of 3.8 million for 2020.interest in the royalty leases. At this time, no additional royalty payments are anticipated in the near future.

Spring Creek Mine. The TrustNo royalties were received royalty payments infrom the amount of $10,000 overSpring Creek Mine during the first ninethree months of 2021 and 2020 compared to no royalty payments having been received by the Trust over the same period in 2019. The recent payment represents the Trust’s advance minimum royalty from this Mine for the period of July 1, 2020 – June 30, 2021, which payments are offset by existing credits. Royaltiesbecause historically, royalties with respect to this mine are typically were paid by the mine operators on an annual basis during the second half of eachthe calendar year but the timing of the first payment varies, and it can be received at the end of the second quarter or beginning of the third quarter.year. 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. Further, the Spring Creek Mine temporarily laid-off workers in Spring 2020 due to the lack of coal demand, resulting from the COVID-19 pandemic, and only recently rehired the workers.

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. The mineSince the transition to NTEC, the Mine shut down briefly in October 2019 afterand has continued to have operational issues which are unrelated to the Navajo Nation declined to waive sovereign immunityCOVID-19 pandemic. These operational issues, together with general economic issues impacting coal mines, are challenging and make it difficult for the benefit of Montana's Department of Environmental Quality ("MDEQ"). WhileTrust to predict the MDEQ and NTEC have resolved certain issues, the Spring Creek Mine currently is operating although NTEC has yet to secure mining permits and needs to obtain substantial financial assistance for reclamation. The Navajo Nation announced that it will not issue reclamation bonds for the benefit of this project. The long-term status of the mine operations is unknown, and theof this mine. The Trust intends to continue monitoring the new ownership by NTEC and related matters. At this time,NTEC.

It is unknown whether the Trust does not expect that such restructuring will materially impactreceive additional royalties from this mine in the results of operations orfuture due to various factors, including the financial conditionstruggles of the Trust.coal operator, the lack of mining activities in the applicable mines, and the general depletion of coal.

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 and continues to be part of future mining plans.

Interest Income. The Trust generally earns interest on the royalty payments prior to the distribution to the Unit Holders. During the ninethree months ended September 30,March 31, 2021 and March 31, 2020, the Trust earned $499a nominal amount of interest compared to $5,999 of interest earned during the nine months ended September 30, 2019. The decrease in interest resulted from the decreasing interest rates.interest.

Trust Expenses. Trust expenses increased to $133,995 forand were $42,446 in the first ninethree months of 2020,2021 as compared to $126,866$25,000 for the same period in 2019.2020. Trust expenses includedgenerally include fees of the Trustee, accountants, attorneys, and other professionals that the Trustee employs in the administration of the Trust. TrustThe increase in expenses increased to $50,812 for the three month period ending September 30, 2020, as compared to $43,747 for the same period in 2019. The expenses fluctuateresulted from period to period largely because of the timing of when invoices were received and paid as well as additional legal expenses to address the Trust receives invoices and pays its expenses.Decker Mine bankruptcy filing.

Liquidity and Capital Resources. The Trust's primary source of liquidity is the receipt of 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 as long as the Trust has sufficient income.basis. At this time, the Trust does not expect thatto make any distributions in the COVID-19 pandemic will materially impactnear future due to the Trust’s liquidity or capital resourcesissues. The Trust has suspended future distribution payments in light of the Trust.substantial reduction in royalty income.

Trust Reserves. During the first quarter ended Septemberof 2021, the Trust's distributable income was $54,816. Historically, this amount would have been reserved to be paid within 10 days of June 30, 2020which is the Trust's next distribution payment date. However, such amount will be held as a reserve. Because of the uncertainty of the Decker Mine, the Trust established aintends to temporarily suspend all distribution payments and instead reserve insuch amounts to cover future expenses. Due to the uncertainty with respect to timing or amount of $344,604. Accordingly,future royalty payments, the Trust did not pay a distribution forbelieves such suspension is in its best interests.

During the thirdfirst quarter of 2020, the Trust's distributable income was $576,223 and instead reserved the amount for distribution at the time of the next distribution, which the Trust anticipates will bewas paid to Unit Holders in January 2021. During the quarter ended September 30, 2019, the Trust established a reserve in the amount of $415,666, and the Trust did not pay a distribution for the third quarter of 2019 and instead reserved the amount for distribution in JanuaryJuly 2020. The Trust currently pays biannual distributions within 10 days after June 30 and December 31 of each year to the extent funds are available.

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 may 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 raises 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 three- and nine-month period ended September 30, 2020,first three months of 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'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'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'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'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's most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Trust's internal control over financial reporting.

Limitations on Controls. The Trustee does not expect that the Trust's disclosure controls and procedures or the Trust'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 which the Trust is a party.

Item 6. Exhibits.

*            Filed herewith______________________

**         Furnished herewith

***       Furnished herewith. Pursuant to applicable federal securities rules and regulations, the Trust has complied with the reporting obligation relating to the submission of interactive data files in such exhibits. Therefore, the Trust is not subject to liability under any anti-fraud provisions of the federal securities laws if the Trust (i) makes a good faith attempt to comply with the interactive data file submission requirements and (ii) upon becoming aware that any such data file fails to comply with such requirements, promptly amends any noncompliant data file. The Trust is also not subject to the liability and anti-fraud provisions of the federal securities laws if an error or omission in an electronic filing results solely from electronic transmission errors beyond the filer’s control and, upon becoming aware of such error or omission, the filer corrects the error or omission by filing an electronic amendment as soon as reasonably practicable. Users of this data are advised that the interactive data files are furnished and not filed, are not part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Exchange Act, as amended, and otherwise are not subject to liability under those sections.

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.

Dated: May 12, 2021

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