WTU Williams Coal Seam Gas Royalty Trust

DALLAS, Nov. 4 /PRNewswire-FirstCall/ -- U.S. Trust, as trustee of Williams Coal Seam Gas Royalty Trust (NYSE:WTU), today announced a quarterly cash distribution to the holders of its units of beneficial interest of $0.755888 per unit, payable November 28, 2008 to unitholders of record on November 14, 2008. The Trust owns net profits interests in certain proved coal seam gas properties owned by Williams Production Company (WPC) and located in the San Juan Basin of northwestern New Mexico (the "Working Interest Properties") and southwestern Colorado, including WPC's 35 percent net profits interest in 5,348 gross acres in La Plata County, Colorado (the "Farmout Properties"). The distribution per unit increased from $0.349784 to $0.755888 per unit due to the inclusion of $.357338 per unit relating to a true-up adjustment of $3,466,138 to the Federal unit expansion previously estimated in the August 3, 2007 distribution. A thorough review and clarification of the treatment of capital expenditures relating to this unit expansion was completed, resulting in this additional revenue to the Trust. WPC reported that production attributable to its gross interests in the properties burdened by the Trust's net profits interests was 15.7 trillion British thermal units (TBtu) during the period associated with this quarterly cash distribution compared to 2.8 TBtu during the preceding period. Approximately 10.7 TBtu was associated with the above-mentioned unit expansion which dated from December 1994 through December 2006. When prior period adjustments are excluded, production in the current quarter for the original wells was 2.9 TBtu compared to 2.9 TBtu in the preceding quarter. The net contract price per MMBtu for this quarter was $2.60 per MMBtu as compared to $3.96 per MMBtu for previous quarter. WPC also reported approximately 446 infill wells have been drilled and of those, 430 wells are producing as of 9/30/2008, and are now in "pay" status to the Trust as of early June 2008. Production attributable to the infill wells was 2.1 TBtu (includes June after payout sales). In accordance with the original conveyance, the Trust is entitled to only 20% of the net-profit interests from these wells as opposed to the 60% of the original producing wells. These wells contributed approximately $.059289 per unit to this quarter's distribution. The Trust is a grantor trust formed by The Williams Companies, Inc., parent company of WPC, and was designed to provide unitholders with quarterly cash distributions and tax credits under Section 29 of the Internal Revenue Code, which has expired as of 12/31/2002, from certain coal seam gas properties. The units are listed on The New York Stock Exchange under the symbol "WTU". For additional information, including the latest financial reports on Williams Coal Seam Gas Royalty Trust, please visit our website at http://www.wtu-williamscoalseamgastrust.com/. DATASOURCE: U.S. Trust CONTACT: Ron E. Hooper, Senior Vice President of U.S. Trust, Bank of America Private Wealth Managment, Trustee, 1-800-365-6544 Web site: http://www.wtu-williamscoalseamgastrust.com/

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