UNITEDTable STATESof Contents

~~SECURITIES~~UNITED ~~AND~~STATES ~~EXCHANGE COMMISSION~~

~~Washington,~~SECURITIES ~~D.C.~~AND ~~20549~~EXCHANGE COMMISSION

~~Form~~Washington, ~~10-Q~~ D.C. 20549

xForm ~~Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934~~10-Q

~~For~~(Mark ~~the~~One) ~~quarterly period ended June 30, 2015~~

orx QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

¨For ~~Transition Report Pursuant to Section 13 or 15(d) of~~ the ~~Securities~~quarterly ~~Exchange~~period ~~Act~~ended ofSeptember 30, ~~1934~~2015

~~For~~OR ~~the transition period from to~~

~~Commission~~¨ ~~File~~TRANSITION ~~Number:~~REPORT ~~001-11335~~PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

~~DOMINION RESOURCES~~For ~~BLACK~~the ~~WARRIOR~~transition ~~TRUST~~period from to

~~(Exact~~Commission ~~name~~file ofnumber ~~registrant~~001-11335 ~~as specified in its charter)~~

Delaware		75-6461716
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Dominion Resources Black Warrior Trust

~~Royalty~~(Exact ~~Trust~~name ~~Management~~of registrant as specified in its charter)

Southwest Bank

Delaware

75-6461716

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)

~~2911 Turtle~~Royalty ~~Creek~~Trust ~~Boulevard~~Management

~~Suite~~Southwest ~~850~~Bank

~~Dallas~~2911 Turtle Creek Blvd., ~~Texas~~Suite ~~75219~~850

~~(Address~~Dallas, ofTexas ~~principal~~75219 ~~executive offices)~~

(~~Zip~~Address ~~code~~of principal executive offices)

(~~855~~Zip Code) ~~588-7839~~

(~~Registrant’s telephone number, including area code~~855) 588-7839

~~Indicate by check mark whether the registrant~~ (~~1) has~~Registrant’s ~~filed~~telephone ~~all~~number, ~~reports~~including ~~required~~area ~~to be filed by Section 13 or 15(d~~code) 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 x No ¨

~~Indicate~~None 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 Regulation 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 ¨ No ¨

~~Indicate~~(Former ~~by check mark whether the registrant is a large accelerated filer~~name, ~~an accelerated filer, a non-accelerated filer, or a smaller~~ ~~reporting~~former ~~company.~~address ~~See~~and ~~the~~former ~~definitions~~fiscal ~~of “large accelerated filer~~year,” ~~“accelerated~~if ~~filer,”~~changed ~~and~~since ~~“smaller~~last ~~reporting company” in Rule 12b-2 of the Exchange Act. (Check one~~report):

~~Large~~Indicate ~~accelerated~~by check ~~filer~~mark ¨whether ~~Accelerated~~the ~~filer~~registrant ¨(1) has ~~Non-accelerated~~filed ~~filer~~all xreports required to be filed by Section 13 or 15(Dod) ~~not~~of ~~check~~the ifSecurities aExchange ~~smaller~~Act ~~reporting~~of ~~company~~1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), ~~Smaller~~and ~~reporting~~(2) has ~~company~~been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant ishas asubmitted ~~shell~~electronically ~~company~~and ~~(as~~posted ~~defined~~on inits corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule ~~12b~~405 of Regulation S-2T (§232.405 of this chapter) during the ~~Exchange~~preceding 12 months (or for such shorter period that the registrant was ~~Act~~required to submit and post such files). Yes ¨ No x¨

~~Number~~Indicate ofby ~~units~~check ofmark ~~beneficial~~whether ~~interest~~the ~~outstanding~~registrant atis ~~August 14~~a large accelerated filer, ~~2015:~~an 7accelerated filer,~~850~~ a non-accelerated filer,~~000~~ 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. (Check one):

~~PART~~Large Iaccelerated filer ¨ Accelerated filer ¨ Non-accelerated ~~FINANCIAL~~filer ~~INFORMATION~~x (Do not check if a smaller reporting company) Smaller reporting company ¨

~~Item 1.~~Indicate ~~Financial~~by ~~Statements.~~check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

~~The condensed~~Indicate ~~financial statements included herein have been prepared by Southwest Bank, as Trustee of Dominion Resources Black Warrior Trust (~~the ~~“Trust”)~~number ~~without audit, pursuant to the rules and regulations~~ of ~~the~~units ~~Securities and Exchange Commission (the “SEC”). Effective August 29, 2014, Southwest Bank became the new Trustee for the Trust. The defined term “Trustee” as used herein shall refer to Bank~~ of ~~America,~~beneficial ~~N.A.~~interest ~~for~~outstanding ~~periods~~at ~~prior to August~~November 2919, ~~2014,~~ and shall refer to Southwest Bank for periods on or after August 29, 2014. 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. The condensed financial statements of the Trust presented herein are unaudited except for the balances as of December 31, 2014, and, therefore, are subject to year-end adjustments. It is suggested that these condensed financial statements and notes thereto be read in conjunction with the financial statements and notes thereto in the Trust’s Report on Form 10-K for the year ended December 31, 2014. The December 31, 2014 condensed statement of assets, liabilities, and trust corpus is derived from the audited statement of assets, liabilities, and trust corpus as of that date. In the opinion of the Trustee, all adjustments consisting of normal recurring adjustments necessary to present fairly the assets, liabilities and trust corpus of the Trust as of June 30, 2015,: ~~the distributable income for the three-month and the six-month periods ended June 30~~7, ~~2015 and 2014 and the changes in trust corpus for the six-month periods ended June 30~~850,000 ~~2015 and 2014, have been included. The distributable income for such interim periods is not necessarily indicative of the distributable income for the full year.~~

TheTable condensed financial statements as of June 30, 2015, and for the three-month and six-month periods ended June 30, 2015 and 2014 included herein have been reviewed by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein. Contents

1DOMINION RESOURCES BLACK WARRIOR TRUST

~~REPORT~~INDEX ~~OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM~~

To the Unit Holders of Dominion Resources Black Warrior Trust and


		Page Number
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements		1

	Condensed Statements of Assets, Liabilities and Trust Corpus as of September 30, 2015 (Unaudited) and December 31, 2014		3

	Condensed Statements of Distributable (Loss) Income for the Three Months Ended September 30, 2015 and 2014 (Unaudited)		4

	Condensed Statements of Distributable Income for the Nine Months Ended September 30, 2015 and 2014 (Unaudited)		5

	Condensed Statements of Changes in Trust Corpus for the Nine Months Ended September 30, 2015 and 2014 (Unaudited)		6

	Notes to Condensed Financial Statements (Unaudited)		7

Item 2.	Trustee’s Discussion and Analysis of Financial Condition and Results of Operations		13

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		18

Item 4.	Controls and Procedures		18

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings		19

Item 1A.	Risk Factors		19

Item 6.	Exhibits		20

SouthwestTable Bank,of Trustee Contents

~~Dallas,~~PART ~~Texas~~I - FINANCIAL INFORMATION

WeItem have reviewed the accompanying condensed statement of assets, liabilities and trust corpus of Dominion Resources Black Warrior Trust (the “Trust”) as of June 30, 2015, and the related condensed statements of distributable income for the three-month and six-month periods ended June 30, 2015 and 2014 and changes in trust corpus for the six-month periods ended June 30, 2015 and 20141. ~~These~~Financial ~~interim financial statements are the responsibility of the Trustee.~~ Statements

WeThe ~~conducted~~condensed ~~our~~financial ~~reviews~~statements inincluded ~~accordance~~herein ~~with~~have ~~the standards~~been prepared by Southwest Bank, as Trustee of Dominion Resources Black Warrior Trust (the ~~Public~~“Trust”) ~~Company~~without ~~Accounting~~audit, ~~Oversight~~pursuant ~~Board~~to the rules and regulations of the Securities and Exchange Commission (~~United~~the ~~States~~“SEC”). Effective August A29, ~~review~~2014, ofSouthwest ~~interim~~Bank ~~financial~~became ~~information~~the ~~consists~~new ~~principally~~Trustee for the Trust. The defined term “Trustee” as used herein shall refer to Bank of ~~applying~~America, ~~analytical~~N.A. ~~procedures~~for periods prior to August 29, 2014, and ~~making~~shall ~~inquiries~~refer ofto ~~persons~~Southwest ~~responsible~~Bank for ~~financial~~periods on or after August 29, 2014. Certain information and footnote disclosures normally ~~accounting~~included ~~matters~~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. The condensed financial statements of the Trust presented herein are unaudited except for the balances as of December 31, 2014, and, therefore, are subject to year-end adjustments. It is ~~substantially~~suggested ~~less~~that inthese ~~scope~~condensed ~~than~~financial anstatements ~~audit~~and ~~conducted~~notes inthereto ~~accordance~~be read in conjunction with the ~~standards~~financial ofstatements and notes thereto in the ~~Public~~Trust’s ~~Company~~Report ~~Accounting~~on ~~Oversight~~Form ~~Board~~10-K ~~(United~~for ~~States)~~the year ended December 31, ~~the~~2014. ~~objective~~The December 31, 2014 condensed statement of ~~which~~assets, liabilities, and trust corpus is derived from the ~~expression~~audited statement of anassets, liabilities, and trust corpus as of that date. In the opinion ~~regarding~~ of the ~~financial~~Trustee, ~~statements~~all ~~taken~~adjustments consisting of normal recurring adjustments necessary to present fairly the assets, liabilities and trust corpus of the Trust as aof ~~whole.~~September ~~Accordingly~~30, we2015, dothe ~~not~~distributable ~~express~~(loss) income for the three-month and the nine-month periods ended September 30, 2015 and 2014 and the changes in trust corpus for the nine-month periods ended September 30, 2015 and 2014, have been included. The distributable income for such aninterim ~~opinion~~periods is not necessarily indicative of the distributable income for the full year.

AsThe ~~described~~condensed infinancial ~~Note~~statements 2as toof ~~the~~September 30, ~~condensed interim financial statements~~2015, ~~these~~and ~~condensed~~for ~~interim~~the ~~financial~~three-month ~~statements~~and ~~have~~nine-month ~~been~~periods ~~prepared~~ended onSeptember 30, a2015 and ~~modified~~2014 ~~cash~~included ~~basis~~herein ofhave ~~accounting,~~been ~~which~~reviewed isby aDeloitte & ~~comprehensive~~Touche ~~basis~~LLP, ofan ~~accounting~~independent ~~other~~registered ~~than~~public accounting ~~principles~~firm, ~~generally~~as ~~accepted~~stated in ~~the~~their ~~United~~report ~~States~~appearing ~~of America~~herein.

~~Based~~1 on our reviews, we are not aware of any material modifications that should be made to such condensed interim financial statements for them to be in conformity with the basis of accounting described in Note 2.

TheTable accompanying condensed financial statements have been prepared assuming that the Trust will continue as a going concern. Financial statements prepared on the going concern basis assume the realization of assets and the settlement of liabilities in the normal course of business. As discussed in Note 2 to the financial statements, certain conditions raise substantial doubt about the Trust’s ability to continue as a going concern. The Trustee’s plans concerning this matter are also discussed in Note 6 to the financial statements. Contents

AsREPORT ~~described~~OF inINDEPENDENT ~~Note~~REGISTERED 6PUBLIC toACCOUNTING ~~the~~FIRM condensed interim financial statements, in March 2012, Walter Black Warrior Basin LLC notified the Trustee, that it is undertaking a study of the underlying properties on a well-by-well basis to determine the economic viability of continuing to produce each individual well. If Walter Black Warrior Basin LLC decides to suspend production or abandon any such wells, such decision could adversely affect the Trust’s future revenue stream, and if a significant number of wells are abandoned, it could cause a termination of the Trust.

WeTo ~~have previously audited, in accordance with~~ the ~~standards~~Unit ofHolders ~~the Public Company Accounting Oversight Board (United States), the statements~~ of ~~assets, liabilities, and trust corpus of~~ Dominion Resources Black Warrior Trust ~~as of December 31, 2014,~~ 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 23, 2015, we expressed an unqualified opinion on those financial statements and included an explanatory paragraph concerning the study of the underlying properties on a well-to-well basis to determine the economic viability of continuing to produce each individual well. In our opinion, the information set forth in the accompanying condensed statement of assets, liabilities and trust corpus as of December 31, 2014 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/~~Southwest ~~DELOITTE &~~Bank, ~~TOUCHE~~N.A., ~~LLP~~Trustee

Dallas, Texas

~~August~~We 14have reviewed the accompanying condensed statement of assets, liabilities and trust corpus of Dominion Resources Black Warrior Trust (the “Trust”) as of September 30, 2015, and the related condensed statements of distributable income (loss) for the three-month and nine-month periods ended September 30, 2015 and 2014 and changes in trust corpus for the nine-month periods ended September 30, 2015 and 2014. These interim financial statements are the responsibility of the Trustee.

2We conducted our reviews 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 (United States), 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.

~~DOMINION~~As ~~RESOURCES~~described ~~BLACK~~in ~~WARRIOR~~Note ~~TRUST~~2 to the condensed interim financial statements, these condensed interim financial statements have been 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.

~~CONDENSED~~Based ~~STATEMENTS~~on OFour ~~ASSETS~~reviews, we are not aware of any material modifications that should be made to such condensed interim financial statements for them to be in conformity with the basis of accounting described in Note 2.

~~LIABILITIES~~The ~~AND~~accompanying ~~TRUST~~condensed ~~CORPUS~~financial statements have been prepared assuming that ~~(UNAUDITED)~~the Trust will continue as a going concern. Financial statements prepared on the going concern basis assume the realization of assets and the settlement of liabilities in the normal course of business. As discussed in Note 2 to the financial statements, certain conditions raise substantial doubt about the Trust’s ability to continue as a going concern. The Trustee’s plans concerning this matter are also discussed in Note 6 to the financial statements.

	Note	June 30,2015		December 31,2014
ASSETS
Cash and cash equivalents		$	84,329	$	176,847
Royalty interests in gas properties (less accumulated amortization of $148,634,658 and $148,067,406, respectively)			7,182,842		7,750,094
TOTAL ASSETS		$	7,267,171	$	7,926,941
LIABILITIES AND TRUST CORPUS
Trust administration expenses payable		$	134,139	$	160,570
Contingencies	6		—		—
Trust corpus - 7,850,000 units of beneficial interest authorized, issued and outstanding			7,133,032		7,766,371
TOTAL LIABILITIES AND TRUST CORPUS		$	7,267,171	$	7,926,941

As described in Note 6 to the condensed interim financial statements, in March 2012, Walter Black Warrior Basin LLC notified the Trustee, that it is undertaking a study of the underlying properties on a well-by-well basis to determine the economic viability of continuing to produce each individual well. If Walter Black Warrior Basin LLC decides to suspend production or abandon any such wells, such decision could adversely affect the Trust’s future revenue stream, and if a significant number of wells are abandoned, it could cause a termination of the Trust.

~~The~~We ~~accompanying~~have ~~notes~~previously ~~are~~audited, anin ~~integral~~accordance ~~part~~with the standards of ~~these~~the ~~condensed~~Public Company Accounting Oversight Board (United States), the statements of assets, liabilities, and trust corpus of Dominion Resources Black Warrior Trust as of December 31, 2014, 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 23, 2015, we expressed an unqualified opinion on those financial statements and included an explanatory paragraph concerning the study of the underlying properties on a well-by-well basis to determine the economic viability of continuing to produce each individual well. In our opinion, the information set forth in the accompanying condensed statement of assets, liabilities and trust corpus as of December 31, 2014 is fairly stated, in all material respects, in relation to the statement of assets, liabilities, and trust corpus from which it has been derived.

3/s/ DELOITTE & TOUCHE LLP

~~DOMINION~~Dallas, ~~RESOURCES~~TX ~~BLACK WARRIOR TRUST~~

~~CONDENSED~~November 23, ~~STATEMENTS~~2015 ~~OF DISTRIBUTABLE INCOME (UNAUDITED)~~

	Note	Forthe ThreeMonths EndedJune 30, 2015			Forthe ThreeMonths EndedJune 30, 2014
Royalty income		$	1,126,707		$	1,957,613
Interest income			12			88
			1,126,719			1,957,701
General and administrative expenses			(409,794	)		(327,161	)
Distributable income	1, 5	$	716,925		$	1,630,540
Distributable income per unit (7,850,000 units)		$	.09		$	.21

TheTable accompanying notes are an integral part of these condensed financial statements. Contents

4DOMINION RESOURCES BLACK WARRIOR TRUST

~~DOMINION~~CONDENSED ~~RESOURCES~~STATEMENTS ~~BLACK~~OF ~~WARRIOR~~ASSETS, ~~TRUST~~

~~CONDENSED~~LIABILITIES ~~STATEMENTS~~AND OFTRUST ~~DISTRIBUTABLE~~CORPUS ~~INCOME~~ (UNAUDITED)

	Note		Forthe SixMonths EndedJune 30, 2015				Forthe SixMonths EndedJune 30, 2014
ASSETS
Royalty income			$	2,747,134			$	3,547,692
	Note				September 30,2015				December 31,2014
Interest income				26				150
					(Unaudited)
				2,747,160				3,547,692
Current assets:
General and administrative expenses				(667,850	)			(682,044	)
Cash and cash equivalents					$	9,293			$	176,847
Distributable income	1, 5		$	2,079,310			$	2,865,798
Royalty interests in gas properties (less accumulated amortization and impairment of $151,899,099 and $148,067,406, respectively						3,918,401				7,750,094
Distributable income per unit (7,850,000 units)			$	.26			$	.37
Total assets					$	3,927,694			$	7,926,941
LIABILITIES AND TRUST CORPUS
Current liabilities:
Trust administration expenses payable					$	699,152			$	160,570
Contingencies		6				—				—
Trust corpus – 7,850,000 units of beneficial interest authorized, issued and outstanding						3,228,542				7,766,371
					$	3,927,794			$	7,926,941

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

DOMINIONTable RESOURCESof BLACK WARRIOR TRUST Contents

~~CONDENSED~~DOMINION ~~STATEMENTS~~RESOURCES OFBLACK ~~CHANGES~~WARRIOR IN TRUST ~~CORPUS (UNAUDITED)~~

	Note	For the SixMonths EndedJune 30, 2015			For the SixMonths EndedJune 30, 2014
Trust corpus, beginning of period		$	7,766,371		$	8,920,146
Amortization of royalty interests			(567,252	)		(1,002,045	)
Distributable income			2,079,310			2,865,798
Distributions to unitholders	5		(2,145,397	)		(2,856,671	)
Trust corpus, end of period		$	7,133,032		$	7,927,228
Distributions per unit (7,850,000 units)	5	$	.27		$	.36

CONDENSED STATEMENTS OF DISTRIBUTABLE (LOSS) INCOME (UNAUDITED)

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


			Three Months Ended September 30,
	Note		2015			2014
Income:
Royalty income			$	—		$	1,848,299
Interest income				4			26

Total income				4			1,848,325
Expenses:
General and administrative				(640,054	)		(273,993	)

Distributable (loss) income		1, 5	$	(640,050	)	$	1,574,332

Distributable (loss) income per unit (7,850,000 units)			$	(0.08	)	$	0.20

6The accompanying notes are an integral part of these condensed financial statements.

~~DOMINION~~4 ~~RESOURCES BLACK WARRIOR TRUST~~

NOTESTable TOof CONDENSED FINANCIAL STATEMENTS (UNAUDITED) Contents

1.DOMINION ~~TRUST~~RESOURCES ~~ORGANIZATION~~BLACK ~~AND~~WARRIOR ~~PROVISIONS~~TRUST

~~Dominion~~CONDENSED ~~Resources~~STATEMENTS ~~Black~~OF ~~Warrior~~DISTRIBUTABLE ~~Trust~~INCOME (~~the “Trust”~~UNAUDITED) was formed as a Delaware business trust pursuant to the terms of the Trust Agreement of Dominion Resources Black Warrior Trust (as amended, the “Trust Agreement”), entered into effective as of May 31, 1994, among Dominion Black Warrior Basin, Inc., an Alabama corporation, as trustor; Dominion Resources, Inc., a Virginia corporation (“Dominion Resources”); and NationsBank of Texas, N.A., a national banking association, as the initial trustee; and BNY Mellon Trust of Delaware, a national banking association (the “Delaware Trustee”), as trustees. Southwest Bank, a state bank chartered under the laws of the State of Texas (“Southwest Bank”) now serves as the trustee (the “Trustee”). The trustees are independent financial institutions.

On January 9, 2014, Bank of America, N.A. (as successor to NationsBank of Texas, N.A.) gave notice to holders of units of beneficial interest in the Trust (“Unitholders”) and the Delaware Trustee that it would be resigning as trustee subject to certain conditions that included the appointment of Southwest Bank or another successor trustee as trustee of the Trust by a vote of the Unitholders or a court order. Effective as of August 29, 2014, a court appointed Southwest Bank as successor trustee of the Trust and Bank of America’s resignation as trustee became effective.


			Nine Months Ended September 30,
	Note		2015			2014
Income:
Royalty income			$	2,747,134		$	5,395,991
Interest income				31			176

Total income				2,747,165			5,396,167
Expenses:
General and administrative				(1,307,904	)		(956,037	)

Distributable income		1, 5	$	1,439,261		$	4,440,130

Distributable income per unit (7,850,000 units)			$	0.18		$	0.57

The ~~Trust~~accompanying isnotes aare grantor trust formed to acquire and hold certain overriding royalty interests (the “Royalty Interests”) burdening proved natural gas properties located in the Pottsville coal formation of the Black Warrior Basin, Tuscaloosa County, Alabama (the “Underlying Properties”) owned by Walter Black Warrior Basin LLC, a Delaware limited liability company, as successor to Dominion Black Warrior Basin, Inc. (the “Company”). The Trust was initially created by the filing of its Certificate of Trust with the Delaware Secretary of State on May 31, 1994. In accordance with the Trust Agreement, the Company contributed $1,000 as the initial corpus of the Trust. On June 28, 1994, the Royalty Interests were conveyed to the Trust by the Company pursuant to the Overriding Royalty Conveyance (the “Conveyance”), effective as of June 1, 1994, from the Company to the Trust, in consideration for all the 7,850,000 authorized units of beneficial interest (“Units”) in the Trust. The Company transferred all the Units to its parent, Dominion Energy, Inc., a Virginia corporation, which in turn transferred all the Units to its parent, Dominion Resources, Inc., a Virginia corporation (“Dominion Resources”), which sold an ~~aggregate~~integral ofpart ~~6,904,000 Units to the public through various underwriters (the “Underwriters”) in June and August 1994 and the remaining 946,000 Units through certain~~ of ~~the~~these ~~Underwriters~~condensed infinancial ~~June 1995~~statements. All of the Underlying Properties consist of producing properties. Accordingly, the proved reserves attributable to the Underlying Properties are expected to decline substantially during the term of the Trust and a portion of each cash distribution made by the Trust will, therefore, be analogous to a return of capital. Accordingly, cash yields attributable to the Units are expected to decline over the term of the Trust.

~~The~~5 Trustee has all powers to collect and distribute 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 or are required by law and is not empowered to otherwise manage or take part in the management 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 or the Company’s interest therein.

7Table of Contents

~~The~~DOMINION ~~Trust~~RESOURCES isBLACK ~~subject~~WARRIOR toTRUST termination under certain circumstances described in the Trust Agreement. Upon the termination of the Trust, all Trust assets will be sold and the net proceeds therefrom distributed to Unitholders. The amount realized by the Trust upon termination will be allocated to Unitholders in the same manner as the Trustee allocates the income received by the Trust.

~~The~~CONDENSED ~~only~~STATEMENTS ~~assets~~OF ofCHANGES ~~the~~IN ~~Trust,~~TRUST ~~other~~CORPUS than cash and temporary investments being held for the payment of expenses and liabilities and for distribution to Unitholders, are the Royalty Interests. The Royalty Interests consist of overriding royalty interests burdening the Company’s interest in the Underlying Properties. The Royalty Interests generally entitle the Trust to receive 65 percent of the Company’s Gross Proceeds (~~as defined below~~UNAUDITED). The Royalty Interests are non-operating interests and bear only expenses related to property, production and related taxes (including severance taxes). “Gross Proceeds” consist generally of the aggregate amounts received by the Company attributable to the interests of the Company in the Underlying Properties from the sale of coal seam gas at the central delivery points in the gathering system for the Underlying Properties. The definitions, formulas and accounting procedures and other terms governing the computation of the Royalty Interests are set forth in the Conveyance.

Because of the passive nature of the Trust and the restrictions and limitations on the powers and activities of the Trustee contained in the Trust Agreement, the Trustee does not consider any of the officers and employees of the Trustee to be “officers” or “executive officers” of the Trust as such terms are defined under applicable rules and regulations adopted under the Securities Exchange Act of 1934, as amended.


			Nine Months Ended September 30,
	Note		2015			2014
Trust corpus, beginning of period			$	7,766,371		$	8,920,146
Amortization of royalty interests				(567,252	)		(1,459,902	)
Impairment of royalty interests		2		(3,264,441	)		—
Distributable income				1,439,261			4,440,130
Distributions to unitholders		5		(2,145,397	)		(4,379,649	)

Trust corpus, end of period			$	3,228,542		$	7,520,725

Distributions per unit (7,850,000 units)		5	$	0.27		$	0.56

OnThe ~~July 31,~~accompanying ~~2007,~~notes subsidiaries of HighMount Exploration & Production LLC (“HighMount”) purchased certain assets from subsidiaries of Dominion Resources, including all of the equity interests in the Company which owns the interests in the Underlying Properties that are ~~burdened~~an byintegral ~~the~~part Trust’s Royalty Interests. The Trust continued to have ownership in the Royalty Interests burdening the Underlying Properties and such sale did not affect that ownership. In connection with the sale, Dominion Resources assigned its rights and obligations under the Trust Agreement governing the Trust and the Administrative Services Agreement, dated as of ~~June 28,~~these ~~1994,~~condensed ~~between~~financial ~~Dominion Resources and the Trust, to HighMount Exploration & Production Alabama LLC (“HighMount Alabama”), a Delaware limited liability company, which was a subsidiary of HighMount~~statements.

On6 May 28, 2010, Walter Natural Gas, LLC, a wholly owned subsidiary of Walter Energy, LLC, acquired the Alabama natural gas interests of HighMount, effective March 1, 2010. The acquisition included the Company’s Alabama coal bed methane operations, including the 532 existing conventional gas wells in which the Trust has a net profits interest. The transaction was structured as an acquisition of the membership interests in HighMount Alabama, following which, HighMount Alabama’s name was changed to “Walter Exploration & Production LLC.” Walter Exploration & Production will continue to be party to the Administrative Services Agreement and Trust Agreement. Walter Exploration & Production will continue to own all the interests in the Company, and the Company, which has changed its name to “Walter Black Warrior Basin LLC,” will continue to own the Underlying Properties. The Trust continues to have ownership in the Royalty Interests burdening the Underlying Properties and such sale did not affect that ownership.

8Table of Contents

2.DOMINION ~~BASIS~~RESOURCES OFBLACK ~~ACCOUNTING~~WARRIOR ~~AND~~TRUST ~~GOING CONCERN~~

~~The~~NOTES ~~financial~~TO ~~statements~~CONDENSED ofFINANCIAL ~~the~~STATEMENTS ~~Trust~~(UNAUDITED) are prepared on a modified cash basis and are not intended to present financial position and results of operations in conformity with accounting principles generally accepted in the United States of America. Preparation of the Trust’s financial statements on such basis includes the following:

•1. ~~Royalty~~TRUST ~~income~~ORGANIZATION ~~and~~AND ~~interest income are recorded in the period in which amounts are received by the Trust rather than in the period of production and accrual, respectively.~~PROVISIONS

•Dominion ~~General~~Resources Black Warrior Trust (the “Trust”) was formed as a Delaware business trust pursuant to the terms of the Trust Agreement of Dominion Resources Black Warrior Trust (as amended, the “Trust Agreement”), entered into effective as of May 31, 1994, among Dominion Black Warrior Basin, Inc., an Alabama corporation, as trustor; Dominion Resources, Inc., a Virginia corporation (“Dominion Resources”); and ~~administrative~~NationsBank ~~expenses~~of ~~recorded~~Texas, ~~are~~N.A., ~~based~~a onnational ~~liabilities~~banking ~~paid~~association, as the initial trustee; and BNY ~~cash~~Mellon ~~reserves~~Trust ~~established~~of ~~out~~Delaware, a national banking association (the “Delaware Trustee”), as trustees. Southwest Bank, a state bank chartered under the laws of ~~cash~~the ~~received~~State of Texas (“Southwest Bank”) now serves as the trustee (the “Trustee”). The trustees are independent financial institutions.

•On ~~Amortization~~January 9, 2014, Bank of ~~the~~America, ~~Royalty~~N.A. ~~Interests~~(as issuccessor to ~~calculated~~NationsBank onof aTexas, ~~unit-~~N.A.) gave notice to holders of~~-production~~ ~~basis~~units of beneficial interest in the Trust (“Unitholders”) and ~~charged~~the ~~directly~~Delaware Trustee that it would be resigning as trustee subject to ~~trust~~certain ~~corpus~~conditions ~~when~~that ~~revenues~~included ~~are~~the ~~received~~appointment of Southwest Bank or another successor trustee as trustee of the Trust by a vote of the Unitholders or a court order. Effective as of August 29, 2014, a court appointed Southwest Bank as successor trustee of the Trust and Bank of America’s resignation as trustee became effective.

•The ~~Distributions~~Trust is a grantor trust formed to ~~Unitholders~~acquire ~~are~~and ~~recorded~~hold ~~when~~certain ~~declared~~overriding royalty interests (the “Royalty Interests”) burdening proved natural gas properties located in the Pottsville coal formation of the Black Warrior Basin, Tuscaloosa County, Alabama (the “Underlying Properties”) owned by Walter Black Warrior Basin LLC, a Delaware limited liability company, as successor to Dominion Black Warrior Basin, Inc. (the ~~Trustee~~“Company”). The Trust was initially created by the filing of its Certificate of Trust with the Delaware Secretary of State on May 31, 1994. In accordance with the Trust Agreement, the Company contributed $1,000 as the initial corpus of the Trust. On June 28, 1994, the Royalty Interests were conveyed to the Trust by the Company pursuant to the Overriding Royalty Conveyance (~~see~~the ~~Note~~“Conveyance”), 5effective as of June 1, 1994, from the Company to the Trust, in consideration for all the 7,850,000 authorized units of beneficial interest (“Units”) in the Trust. The Company transferred all the Units to its parent, Dominion Energy, Inc., a Virginia corporation, which in turn transferred all the Units to its parent, Dominion Resources, Inc., a Virginia corporation (“Dominion Resources”), which sold an aggregate of 6,904,000 Units to the public through various underwriters (the “Underwriters”) in June and August 1994 and the remaining 946,000 Units through certain of the Underwriters in June 1995. All of the Underlying Properties consist of producing properties. Accordingly, the proved reserves attributable to the Underlying Properties are expected to decline substantially during the term of the Trust and a portion of each cash distribution made by the Trust will, therefore, be analogous to a return of capital. Accordingly, cash yields attributable to the Units are expected to decline over the term of the Trust.

The ~~financial~~ ~~statements~~Trustee ofhas ~~the~~all powers ~~Trust~~to ~~differ~~collect ~~from~~and ~~financial~~distribute ~~statements~~proceeds ~~prepared~~received inby ~~accordance~~the ~~with~~Trust ~~accounting~~and ~~principles~~to ~~generally~~pay ~~accepted~~Trust inliabilities ~~the~~and ~~United~~expenses. ~~States~~The ofDelaware ~~America~~Trustee ~~because~~has ~~royalty~~only ~~income~~such ispowers ~~not~~as ~~accrued~~are set forth in the ~~period~~Trust ofAgreement ~~production,~~or ~~general and administrative expenses recorded~~ are ~~based~~required onby ~~liabilities~~law ~~paid~~ and ~~certain~~is ~~cash~~not ~~reserves~~empowered ~~that~~to ~~may~~otherwise manage beor ~~established~~take ~~rather~~part ~~than~~in onthe anmanagement ~~accrual basis, and amortization~~ of the Trust. The Royalty Interests isare ~~not~~passive ~~charged~~in ~~against~~nature ~~operating~~and ~~results.~~neither ~~This~~the ~~comprehensive basis~~Delaware ofTrustee ~~accounting~~nor ~~other~~the ~~than~~Trustee ~~accounting~~has ~~principles~~any ~~generally~~control ~~accepted~~over, inor ~~the~~any ~~United~~responsibility ~~States~~relating ~~of America corresponds~~ to, the ~~accounting~~operation ~~permitted~~of ~~for royalty trusts by~~ the ~~U.S.~~Underlying ~~Securities~~Properties ~~and Exchange Commission (~~or the ~~“SEC”),~~Company’s asinterest ~~specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts~~therein.

~~Impairment~~The Trust is subject to termination under certain circumstances described in the Trust Agreement. Upon the termination of the Trust, all Trust assets will be sold and the net proceeds therefrom distributed to Unitholders. The amount realized by the Trust upon termination will be allocated to Unitholders in the same manner as the Trustee allocates the income received by the Trust.

The ~~Trustee~~only ~~routinely~~assets ~~reviews~~of the Trust’s, ~~royalty~~other ~~interests~~than incash ~~gas~~and ~~properties~~temporary ~~for~~investments ~~impairment~~being ~~whenever~~held ~~events~~for ~~or circumstances indicate~~the ~~that~~payment ~~the carrying amount~~ of anexpenses ~~asset~~and ~~may~~liabilities ~~not~~and befor ~~recoverable.~~distribution Ifto anUnitholders, ~~impairment~~are ~~event~~the ~~occurs~~Royalty ~~and~~Interests. itThe isRoyalty ~~determined~~Interests ~~that~~consist ~~the carrying value~~ of ~~the~~overriding ~~Trust’s~~ royalty interests ~~may~~burdening ~~not~~the beCompany’s ~~recoverable,~~interest anin ~~impairment~~the ~~will~~Underlying beProperties. ~~recognized~~The asRoyalty Interests ~~measured~~generally byentitle the ~~amount~~ byTrust ~~which~~to ~~the~~receive ~~carrying~~65 ~~amount~~percent of the ~~royalty~~Company’s ~~interests~~Gross ~~exceeds~~Proceeds ~~the~~(as ~~fair~~defined ~~value of these assets, which would likely be measured by discounting projected cash flows~~below). AsThe ofRoyalty ~~June 30, 2015, no impairment is required.~~

~~Use~~7 ~~of Estimates~~

TheTable preparation of financial statements in conformity with the basis of accounting described above requires the Trustee to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues and expenses as of and for the reporting period. Actual results may differ from such estimates. Contents

~~Distributable~~ Interests ~~Income~~are ~~Per~~non-operating ~~Unit~~interests and bear only expenses related to property, production and related taxes (including severance taxes). “Gross Proceeds” consist generally of the aggregate amounts received by the Company attributable to the interests of the Company in the Underlying Properties from the sale of coal seam gas at the central delivery points in the gathering system for the Underlying Properties. The definitions, formulas and accounting procedures and other terms governing the computation of the Royalty Interests are set forth in the Conveyance. However, recent rulings by the Bankruptcy Court related to the Walter Energy bankruptcy proceeding described under Note 6 to the condensed financial statements of the Trust in this Form 10-Q and efforts by the Company to dissolve the Trust’s ownership of its interest in the Underlying Properties have resulted in the Trust recording a $3.3 million impairment at September 30, 2015 and could result in additional substantial impairments if no timely relief is provided by the Bankruptcy Court currently considering these issues or an appellate court.

~~Basic~~Because ~~distributable~~of ~~income~~the ~~per~~passive ~~unit~~nature isof ~~computed~~the byTrust ~~dividing~~and ~~distributable~~the ~~income~~restrictions byand limitations on the ~~weighted~~powers ~~average~~and ~~units~~activities ~~outstanding.~~of ~~Distributable income~~the ~~per~~Trustee ~~unit~~contained ~~assuming~~in ~~dilution~~the Trust isAgreement, ~~computed~~the byTrustee ~~dividing~~does ~~distributable~~not ~~income~~consider byany of the ~~weighted~~officers ~~average~~and ~~number~~employees of ~~units~~the ~~and~~Trustee ~~equivalent~~to ~~units~~be ~~outstanding.~~“officers” ~~The~~or ~~Trust~~“executive ~~had~~officers” noof ~~equivalent~~the ~~units~~Trust ~~outstanding~~as ~~for~~such ~~any~~terms ~~period~~are ~~presented,~~defined ~~thus~~under ~~basic~~applicable ~~distributable income~~rules ~~per~~and ~~unit~~regulations ~~and~~adopted ~~diluted~~under the ~~distributable~~Securities ~~income~~Exchange ~~per~~Act ~~unit~~of ~~are~~1934, ~~the~~as ~~same~~amended.

9On July 31, 2007, subsidiaries of HighMount Exploration & Production LLC (“HighMount”) purchased certain assets from subsidiaries of Dominion Resources, including all of the equity interests in the Company which owns the interests in the Underlying Properties that are burdened by the Trust’s Royalty Interests. The Trust continued to have ownership in the Royalty Interests burdening the Underlying Properties and such sale did not affect that ownership. In connection with the sale, Dominion Resources assigned its rights and obligations under the Trust Agreement governing the Trust and the Administrative Services Agreement, dated as of June 28, 1994, between Dominion Resources and the Trust, to HighMount Exploration & Production Alabama LLC (“HighMount Alabama”), a Delaware limited liability company, which was a subsidiary of HighMount.

~~Contingencies~~On May 28, 2010, Walter Natural Gas, LLC, a wholly owned subsidiary of Walter Energy, LLC, acquired the Alabama natural gas interests of HighMount, effective March 1, 2010. The acquisition included the Company’s Alabama coal bed methane operations, including the 532 existing conventional gas wells in which the Trust has a net profits interest. The transaction was structured as an acquisition of the membership interests in HighMount Alabama, following which, HighMount Alabama’s name was changed to “Walter Exploration & Production LLC.” Walter Exploration & Production will continue to be party to the Administrative Services Agreement and Trust Agreement. Walter Exploration & Production will continue to own all the interests in the Company, and the Company, which has changed its name to “Walter Black Warrior Basin LLC,” will continue to own the Underlying Properties. The Trust continues to have ownership in the Royalty Interests burdening the Underlying Properties and such sale did not affect that ownership. However, recent rulings by the Bankruptcy Court related to the Walter Energy bankruptcy proceeding described under Note 6 to the condensed financial statements of the Trust in this Form 10-Q and efforts by the Company to dissolve the Trust’s ownership of its interest in the Underlying Properties could affect the Trust’s ownership if no timely relief is provided by the Bankruptcy Court currently considering these issues or an appellate court. (See Note 6 to the condensed financial statements of the Trust in this Form 10-Q for additional information regarding the bankruptcy matter filed on behalf of Walter Energy, Inc., the parent of the Company, together with certain of its subsidiaries and affiliates, including the Company.)

Contingencies related to the Underlying Properties that are unfavorably resolved would generally be reflected by the Trust as reductions to future royalty income payments to the Trust with corresponding reductions to cash distributions to Unitholders2. ~~The~~BASIS ~~Trustee~~OF isACCOUNTING ~~aware~~AND ofGOING ~~no such items as of June 30, 2015, other than as stated in Note 6 below.~~ CONCERN

~~New~~The ~~Accounting~~financial ~~Pronouncements~~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 accounting principles generally accepted in the United States of America. Preparation of the Trust’s financial statements on such basis includes the following:

~~There~~• ~~are~~Royalty noincome ~~new accounting~~and ~~pronouncements~~interest ~~that~~income are ~~expected~~recorded toin ~~have~~the aperiod ~~significant~~in ~~impact~~which onamounts are received by the Trust’s ~~financial~~rather ~~statements.~~than in the period of production and accrual, respectively.

~~Going~~• ~~Concern~~General and administrative expenses recorded are based on liabilities paid and cash reserves established out of cash received.

~~The~~• ~~accompanying~~Amortization ~~condensed~~of ~~financial statements have been prepared assuming that~~ the ~~Trust~~Royalty ~~will~~Interests ~~continue~~is ascalculated ~~a going concern. Financial statements prepared~~ on ~~the~~a ~~going~~unit-of-production ~~concern~~ basis ~~assume the realization of assets~~ and ~~the~~charged ~~settlement~~directly ~~of liabilities in the normal course of business. As discussed in Note 6~~ to ~~the~~trust ~~financial~~corpus ~~statements,~~when ~~certain~~revenues ~~conditions raise substantial doubt about the Trust’s ability to continue as a going concern. The Trustee’s plans concerning this matter~~ are ~~also discussed in Note 6 to the financial statements~~received. ~~The condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.~~

3.• ~~FEDERAL~~Distributions ~~INCOME~~to ~~TAXES~~Unitholders are recorded when declared by the Trustee (see Note 5).

~~For~~8 federal income tax purposes, the Trust constitutes a fixed investment trust that is taxed as a grantor trust. A grantor trust is not subject to tax at the trust level. The Unitholders are considered, for federal tax purposes, to own the Trust’s income and principal as though no trust were in existence. The income of the Trust is deemed to have been received or accrued by each Unitholder at the time such income is received or accrued by the Trust and not when distributed by the Trust. To the extent that distributions to the Trust are delayed due to the Walter Energy bankruptcy proceeding described under Note 6, a corresponding delay will result for a Unitholder in when such distribution must be included in its federal taxable income.

TheTable Royalty Interests constitute “economic interests” in oil and gas properties for federal income tax purposes. Unitholders must report their share of the revenues from the Royalty Interests as ordinary income from oil and gas royalties and are entitled to claim depletion with respect to such income. During the second quarter of 2015, the Trust also incurred administration expenses and earned interest income on funds held for distribution and for the cash reserve maintained for the payment of contingent and future obligations of the Trust.Contents

The ~~classification~~financial statements of the Trust’s ~~income~~differ ~~for~~from ~~purposes~~financial statements prepared in accordance with accounting principles generally accepted in the United States of America because royalty income is not accrued in the ~~passive~~period ~~loss~~of ~~rules~~production, general and administrative expenses recorded are based on liabilities paid and certain cash reserves that may be ~~important~~established torather athan ~~Unitholder.~~on an accrual basis, and amortization of the Royalty ~~income generally~~Interests is ~~treated~~not ascharged ~~portfolio~~against ~~income~~operating results. This comprehensive basis of accounting other than accounting principles generally accepted in the United States of America corresponds to the accounting permitted for royalty trusts by the U.S. Securities and ~~does~~Exchange ~~not~~Commission ~~offset~~(the ~~passive~~“SEC”), ~~losses~~as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts.

~~Some~~Impairment 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 customer in street name, collectively referred to herein as “middlemen”). Therefore, the Trustee considers the Trust to be a non-mortgage widely held fixed investment trust (“WHFIT”) for U.S. federal income tax purposes. Southwest Bank, EIN: 75-1105980, 2911 Turtle Creek Boulevard, Suite 850, Dallas, Texas 75219, telephone number (855) 588-7839, email address trustee@dom-dominion.com is the representative of the Trust that will provide tax information in accordance with applicable U.S. Treasury Regulations governing the information

The Trustee routinely reviews the Trust’s Royalty Interests in gas properties for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If an impairment event occurs and it is determined that the carrying value of the Trust’s Royalty Interests may not be recoverable, an impairment will be recognized as measured by the amount by which the carrying amount of the Royalty Interests exceeds the fair value of these assets, which would likely be measured by discounting projected cash flows. Given the uncertainty of the impact from the ongoing Walter Energy, Inc. bankruptcy and the uncertain status of the court rulings as of this filing date (see Note 6 to the condensed financial statements of the Trust in this Form 10-Q), the Trust has recorded an impairment of $3.3 million during the three-month period ended September 30, 2015. The impairment resulted in a non-cash charge to trust corpus and did not affect the Trust’s distributable income. There were no impairments in the carrying value of the Royalty Interests during 2014.

~~reporting~~Use ~~requirements~~ of ~~the~~Estimates Trust as a WHFIT. Tax information is also posted by the Trustee at www.dom-dominion.com. Notwithstanding the foregoing, the middlemen holding Trust Units on behalf of 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 Forms 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.

~~Pursuant~~The topreparation ~~the~~of ~~Foreign~~financial ~~Account~~statements ~~Tax~~in ~~Compliance~~conformity ~~Act~~with ~~(commonly~~the ~~referred~~basis toof asaccounting ~~“FATCA”),~~described ~~distributions~~above ~~from~~requires the ~~Trust~~Trustee to ~~“foreign financial~~make ~~institutions”~~estimates and ~~certain other “non-financial foreign entities” may be subject to U.S. withholding taxes. Specifically, certain “withholdable payments” (including certain royalties, interest and other gains or~~ ~~income~~assumptions ~~from~~that ~~U.S.~~affect ~~sources) made to a foreign financial institution or non-financial foreign entity will generally be subject to~~ the ~~withholding~~reported ~~tax~~amounts ~~unless~~of ~~the foreign financial institution or non-financial foreign entity complies with~~ certain ~~information~~ ~~reporting~~assets, ~~withholding~~liabilities, ~~identification,~~revenues ~~certification~~ and ~~related~~expenses ~~requirements~~as ~~imposed~~of byand ~~FATCA.~~for ~~Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with~~ the ~~United~~reporting ~~States~~period. ~~governing~~Actual ~~FATCA~~results may be ~~subject~~differ tofrom ~~different~~such ~~rules~~estimates.

~~The~~Distributable ~~Treasury~~Income ~~Department~~Per ~~has~~Unit issued guidance providing that the FATCA withholding rules described above generally apply to qualifying payments made after June 30, 2014. Foreign Unitholders are encouraged to consult their own tax advisors regarding the possible implications of these withholding provisions on their investment in Trust Units.

~~Unitholders~~Basic distributable ~~should~~income ~~consult~~per ~~their~~unit ~~tax~~is ~~advisors~~computed ~~regarding~~by dividing distributable income by the weighted average units outstanding. Distributable income per unit assuming dilution is computed by dividing distributable income by the weighted average number of units and equivalent units outstanding. The Trust ~~tax~~had ~~compliance~~no ~~matters~~equivalent units outstanding for any period presented, thus basic distributable income per unit and diluted distributable income per unit are the same.

4.Contingencies ~~STATE TAX CONSIDERATIONS~~

~~The~~Contingencies related to the Underlying Properties that are unfavorably resolved would generally be reflected by the Trust ~~holds~~as ~~properties~~reductions ~~located~~to infuture ~~Alabama.~~royalty ~~Unitholders~~income ~~should consult~~payments to the Trust’s ~~latest~~with ~~annual~~corresponding ~~report~~reductions onto ~~Form~~cash ~~10-K~~distributions ~~for~~to aUnitholders. ~~summary~~The Trustee is not aware of ~~Alabama~~any ~~state~~such ~~tax~~items ~~matters~~as of September 30, 2015, other than as stated in Note 6 to the condensed financial statements of the Trust in this Form 10-Q.

5.New ~~DISTRIBUTIONS~~Accounting TOPronouncements ~~UNITHOLDERS~~

~~The~~There ~~Trustee determines for each calendar quarter the amount of~~are ~~cash~~no ~~available~~new ~~for~~accounting ~~distribution~~pronouncements to Unitholders. Such amount (the “Quarterly Distribution Amount”) is an amount equal to the excess, if any, of the cash received by the Trust attributable to production from the Royalty Interests during such quarter, provided that ~~such~~are ~~cash is received by the Trust on or before the last business day prior to the 45th day following the end of such calendar quarter, plus the amount of interest~~ expected ~~by the Trustee~~ to behave earned on such cash proceeds during the period between the date of receipt by the Trust of such cash proceeds and the date of payment to the Unitholders of such Quarterly Distribution Amount, plus all other cash receipts of the Trust during such quarter (to the extent not distributed or held for future distribution as a ~~Special~~significant ~~Distribution~~impact ~~Amount~~on ~~(as defined below) or included in~~ the previous Quarterly Distribution Amount) (which might include sales proceeds not sufficient in amount to qualify for a special distribution as described in the next paragraph and interest), over the liabilities of the Trust’s ~~paid~~financial during such quarter and not taken into account in determining a prior Quarterly Distribution Amount, subject to adjustments for changes made by the Trustee during such quarter in any cash reserves established for the payment of contingent or future obligations of the Truststatements. ~~An amount that is not included in the Quarterly Distribution Amount for a calendar quarter because such~~

11Going Concern

~~amount~~The isaccompanying ~~received~~condensed byfinancial ~~the~~statements ~~Trust~~have ~~after~~been ~~the~~prepared ~~last~~assuming ~~business~~that ~~day~~the ~~prior~~Trust towill ~~the~~continue ~~45th~~as ~~day~~a ~~following~~going ~~the~~concern. ~~end~~Financial statements ofprepared ~~such~~on ~~calendar~~the ~~quarter~~going ~~will~~concern bebasis ~~included~~assume in the ~~Quarterly~~realization ~~Distribution~~of ~~Amount~~assets ~~for~~and the ~~next calendar~~settlement ~~quarter.~~of ~~The~~liabilities ~~Quarterly~~in ~~Distribution~~the ~~Amount~~normal ~~for~~course ~~each~~of ~~quarter~~business. ~~will~~As bediscussed ~~payable~~in toNote ~~Unitholders~~6 ofto ~~record on~~ the ~~60th~~condensed ~~day~~financial ~~following~~statements ~~the end~~ of ~~such~~the ~~calendar~~Trust ~~quarter~~in ~~unless~~this ~~such~~Form ~~day~~10-Q, iscertain conditions ~~not~~raise asubstantial ~~business~~doubt ~~day~~about ~~in which case~~ the ~~record~~Trust’s ~~date~~ability isto ~~the~~continue ~~next business~~as ~~day~~a ~~thereafter~~going concern. The Trustee’s ~~will~~plans ~~distribute~~concerning ~~the~~this ~~Quarterly~~matter ~~Distribution~~are ~~Amount~~also ~~for~~discussed ~~each~~in ~~calendar~~Note ~~quarter~~6 onto orthe ~~prior~~condensed tofinancial 70statements ~~days~~of ~~after~~ the ~~end~~Trust ofin ~~such~~this ~~calendar~~Form ~~quarter~~10-Q. toThe condensed ~~each~~financial ~~person~~statements ~~who~~do ~~was~~not ainclude ~~Unitholder~~any ofadjustments ~~record~~that onmight ~~the~~result ~~record~~from ~~date~~the ~~for~~outcome ~~such calendar~~of ~~quarter~~this uncertainty.

~~The~~9 Royalty Interests may be sold under certain circumstances and will be sold following termination of the Trust. A special distribution will be made of undistributed net sales proceeds and other amounts received by the Trust aggregating in excess of $10 million (a “Special Distribution Amount”). The record date for a Special Distribution Amount will be the 15th day following the receipt by the Trust of amounts aggregating a Special Distribution Amount (unless such day is not a business day, in which case the record date will be the next business day thereafter) unless such day is within 10 days or less prior to the record date for a Quarterly Distribution Amount, in which case the record date will be the date that is established for the next Quarterly Distribution Amount. Distribution to Unitholders of a Special Distribution Amount will be made no later than 15 days after the Special Distribution Amount record date.

6.Table CONTINGENCIESof Contents

Contingencies related to the Underlying Properties that are unfavorably resolved would generally be reflected by the Trust as reductions to future royalty income payments to the Trust with corresponding reductions to cash distributions to Unitholders3. ~~The~~FEDERAL ~~Trustee~~INCOME ~~is aware of no such items as of June 30, 2015, other than as stated below.~~ TAXES

OnFor ~~July~~federal ~~28,~~income ~~2015~~tax purposes, the Trust ~~announced~~constitutes ~~that it received~~ a ~~letter from Walter Energy, Inc., the parent of the Company,~~fixed ~~stating~~investment ~~that~~trust it, together with certain of its subsidiaries and affiliates, including the Company (“Debtors”) filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code with the United States District Court for the Northern District of Alabama Southern Division on July 15, 2015 and that itis ~~has~~taxed anas ~~agreement with lenders regarding~~ a ~~pre-negotiated~~grantor ~~restructuring plan~~trust. InA ~~the~~grantor ~~letter,~~trust ~~Walter Energy, Inc. advised the Trust that it~~ is not ~~permitted~~subject to ~~pay~~tax ~~obligations~~at ~~that arose prior to July 15, 2015, including royalty payments. Specifically,~~ the ~~Trustee~~trust ~~was informed by Walter Energy, Inc~~level. ~~that~~The itUnitholders ~~will~~are ~~not be paying the distribution to the Trust~~considered, ~~which~~for ~~would~~federal ~~normally~~tax ~~be paid by August 14~~purposes, ~~and~~to ~~normally~~own ~~would include royalty payments for~~ the ~~production~~Trust’s ~~months~~income ~~of April, May~~ and ~~June~~principal ~~2015,~~ as ~~well~~though asno ~~the~~trust ~~portion~~were ofin ~~any future quarterly distributions relating to production attributable to periods prior to July 15, 2015~~existence. The ~~Trustee~~income ~~has~~of ~~received no assurances regarding~~ the ~~status~~Trust ofis ~~distributions~~deemed ~~relating~~ to ~~production~~have ~~for~~been ~~periods~~received ~~after~~or ~~July~~accrued ~~15,~~by ~~2015.~~each OnUnitholder ~~the~~at ~~date~~ the ~~bankruptcy~~time ~~hearing~~such ~~was~~income ~~filed~~is –received inor aaccrued ~~series~~by ~~of “first day motions” –~~ the ~~Debtors~~Trust ~~filed motions relating to use of their cash collateral~~ and cash management, which provide that Debtors’ cash and certain other property constitute collateral of the Debtors’ lenders subject to protective liens and permit use of a “zero balance” cash management system where receipts from operations including Debtors’ gas operations could be swept into certain concentration or disbursement accounts. The motions do not ~~separately~~when ~~segregate~~distributed orby ~~provide separate treatment for production proceeds relating to~~ the ~~Trust’s~~ ~~Royalty Interests~~Trust. ~~The~~To ~~Trustee has engaged counsel, has filed motions asking~~ the ~~court~~extent tothat ~~reconsider~~distributions ~~and amend the Debtors’ cash management order and has objected~~ to the ~~cash collateral motion seeking segregation of production proceeds relating to the~~ Trust’s, ~~Royalty~~if ~~Interests~~any, ~~and judicial confirmation that such proceeds~~ are delayed ~~not~~until ~~property~~after ~~of the Debtor’s bankruptcy estate. A hearing on the Trustee’s motions is currently scheduled for August 18,~~ 2015. ~~The Trustee~~due ~~additionally~~to ~~filed a separate action seeking declaratory judgment that~~ the ~~Trust’s~~Walter ~~overriding~~Energy ~~royalty interests and related production proceeds are not property of the debtors’~~ bankruptcy ~~estate~~proceeding ~~and~~described ~~seeking~~under aNote ~~preliminary~~6 ~~injunction against the debtor~~ to ~~prevent it from (1) co-mingling~~ the ~~production~~condensed ~~proceeds~~financial ~~with~~statements ~~other funds~~ of the ~~debtor;~~Trust ~~(2) placing any lien or encumbrance on the production proceeds and (3) refusing to make distributions~~ in ~~accordance~~this ~~with~~Form ~~the~~10-Q, ~~Conveyance governing~~a ~~the~~corresponding ~~overriding~~delay ~~royalty~~will ~~interests~~result ~~and Alabama law. The Trustee also filed an application~~ for a ~~temporary~~Unitholder ~~restraining~~in ~~order~~when ~~seeking~~such ~~similar~~distribution ~~relief.~~must ~~A failure to receive distributions from the Company for two consecutive calendar quarters~~be ~~would~~included ~~likely result~~ in aits ~~termination~~federal oftaxable ~~the Trust~~income. ~~See “Item 2 –Trustee’s Discussion and Analysis of Financial Condition and Results of Operations –Termination and Liquidation of the Trust.”~~

InThe ~~March~~Royalty ~~2012,~~Interests ~~the~~constitute ~~Company~~“economic ~~notified~~interests” ~~the~~in ~~Trustee~~oil ~~that~~and itgas isproperties ~~undertaking~~for federal aincome ~~study~~tax ofpurposes. ~~the~~Unitholders ~~Underlying~~must ~~Properties~~report ontheir ashare ~~well-by-well~~of ~~basis to determine~~ the ~~economic~~revenues ~~viability~~from ~~of continuing to produce each individual well. The Company informed~~ the ~~Trustee~~Royalty ~~that~~Interests itas ~~abandoned~~ordinary 11income ~~wells~~from inoil ~~2012, 11 wells in 2013~~ and 8gas ~~wells~~royalties ~~in 2014 as the Company considered them uneconomic~~ and ~~will~~are ~~continue~~entitled to ~~evaluate~~ anclaim ~~additional~~depletion 10with respect to 20such ~~wells in 2015~~income. ItDuring isthe ~~currently~~third ~~unclear~~quarter ~~what~~of 2015, ~~impact~~ the ~~bankruptcy~~Trust ~~proceeding~~also ~~will~~incurred ~~have~~administration onexpenses ~~this~~and ~~process.~~earned Ifinterest ~~the~~income ~~Company~~on ~~decides~~funds toheld ~~suspend~~for ~~production~~distribution orand ~~abandon~~for ~~any~~the ~~such~~cash ~~additional~~reserve maintained ~~wells,~~for ~~such decision could adversely affect~~ the ~~Trust’s~~payment ~~future~~of ~~revenue~~contingent ~~stream,~~ and iffuture aobligations ~~significant number~~ of ~~wells are abandoned, it could cause a termination of~~ the Trust.

12The classification of the Trust’s income for purposes of the passive loss rules may be important to a Unitholder. Royalty income generally is treated as portfolio income and does not offset passive losses.

~~The~~Some Trust isUnits ~~named~~are held by middlemen, as asuch ~~defendant~~term is broadly defined in anU.S. ~~action~~Treasury Regulations (and includes custodians, ~~styled~~nominees, ~~Southwest~~certain ~~Royalties~~joint owners, ~~Inc.~~and v.brokers ~~Dominion Black~~holding ~~Warrior~~an ~~Basin,~~interest ~~Inc.~~for a customer in street name, etcollectively alreferred to herein as “middlemen”). Therefore, ~~filed~~the inTrustee considers the ~~Circuit~~Trust ~~Court~~to ofbe ~~Fayette~~a ~~County~~non-mortgage ~~Alabama~~widely onheld ~~October 5,~~fixed ~~2007~~investment ~~regarding~~trust ~~the~~(“WHFIT”) ~~quieting~~for ofU.S. ~~title~~federal inincome ~~certain~~tax ~~oil~~purposes. ~~and~~Southwest ~~gas~~Bank, ~~rights~~EIN: ~~related~~75-1105980, to2911 ~~property~~Turtle inCreek ~~Fayette~~Boulevard, ~~and~~Suite ~~Tuscaloosa~~850, ~~Counties~~Dallas, inTexas ~~Alabama.~~75219, ~~The~~telephone number ~~plaintiff~~(855) 588-7839, ~~alleges~~email ~~that~~address ~~defendants~~trustee@dom-dominion.com ~~are~~is ~~knowingly~~the ~~producing~~representative ~~gas~~of the Trust that will provide tax information in ~~violation~~accordance with applicable U.S. Treasury Regulations governing the information reporting requirements of the ~~deeds~~Trust inas a ~~question~~WHFIT. ~~The~~Tax ~~plaintiff~~information is also ~~alleging~~posted ~~conversion~~by ofthe ~~gas~~Trustee at www.dom-dominion.com. Notwithstanding the foregoing, ~~continuing~~the ~~trespass~~middlemen byholding ~~defendants~~Trust Units on ~~the~~behalf ~~plaintiff’s~~of ~~property~~Unitholders, and ~~suppression~~not ofthe ~~material facts~~Trustee byof ~~defendants~~the Trust, ~~and~~are solely responsible for complying with the ~~plaintiff~~information isreporting ~~requesting~~requirements anunder ~~accounting,~~the ~~injunctive~~U.S. ~~relief~~Treasury ~~and~~Regulations ~~compensatory~~with ~~and~~respect ~~punitive~~to ~~damages~~such Trust Units, ~~plus~~including ~~court~~the ~~costs~~issuance of IRS Forms 1099 and ~~attorneys~~certain ~~fees~~written tax statements. ~~The~~Unitholders ~~Trustee~~whose ~~does~~Trust ~~not~~Units ~~believe~~are ~~this~~held ~~litigation~~by middlemen should consult with such middlemen regarding the information that will ~~have~~be areported ~~material~~to ~~effect~~them onby the ~~Trust’s~~ ~~financial~~middlemen ~~statements~~with respect to the Trust Units.

~~* * * * *~~Pursuant to the Foreign Account Tax Compliance Act (commonly referred to as “FATCA”), distributions from the Trust to “foreign financial institutions” and certain other “non-financial foreign entities” may be subject to U.S. withholding taxes. Specifically, certain “withholdable payments” (including certain royalties, interest and other gains or income from U.S. sources) made to a foreign financial institution or non-financial foreign entity will generally be subject to the withholding tax unless the foreign financial institution or non-financial foreign entity complies with certain information reporting, withholding, identification, certification and related requirements imposed by FATCA. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

~~Item~~The Treasury Department has issued guidance providing that the FATCA withholding rules described above generally apply to qualifying payments made after June 230, 2014. ~~Trustee’s~~Foreign ~~Discussion~~Unitholders ~~and~~are ~~Analysis~~encouraged ofto ~~Financial~~consult ~~Condition~~their ~~and~~own ~~Results~~tax advisors regarding the possible implications of ~~Operations~~these withholding provisions on their investment in Trust Units.

~~Liquidity~~Unitholders ~~and~~should ~~Capital~~consult ~~Resources~~their tax advisors regarding Trust tax compliance matters.

~~The~~10 Trust makes 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 burdening the Underlying Properties. The Royalty Interests owned by the Trust burden the interest in the Underlying Properties that is owned by the Company, an indirect wholly-owned subsidiary of Walter Energy, LLC.

DistributableTable income of the Trust consists of the excess of royalty income plus interest income over the 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. Contents

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 amounts4. ~~The~~STATE ~~financial~~TAX statements of the Trust are prepared on a modified cash basis pursuant to which the expenses of the Trust are recognized when they are paid or reserves are established for them. 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 paid by the Trust during such quarter. The amount of cash available for distribution to Unitholders is determined as adjusted for changes in reserves for unpaid liabilities in accordance with the provisions of the Trust Agreement. (See Note 5 to the condensed financial statements of the Trust appearing elsewhere in this Form 10-Q for additional information regarding the determination of the amount of cash available for distribution to Unitholders.) CONSIDERATIONS

OnThe ~~July 28, 2015, the~~ Trust ~~announced~~holds ~~that~~properties itlocated ~~received~~in a letter from Walter Energy, Inc., the parent of the Company, stating that it, together with certain of its subsidiaries and affiliates, including the Company (“Debtors”) filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code with the United States District Court for the Northern District of Alabama ~~Southern Division on July 15, 2015 and that it has an agreement with lenders regarding a pre-negotiated restructuring plan~~. ~~In the letter, Walter Energy, Inc. advised the Trust that it is not permitted to pay obligations that arose prior to July 15, 2015,~~Unitholders ~~including~~should ~~royalty~~consult ~~payments. Specifically,~~ the ~~Trustee was informed by Walter Energy, Inc. that it will not be paying the distribution to the~~ Trust, which would normally be paid by August 14, and normally would include royalty payments for the production months of April, May and June 2015, as well as the portion of any future quarterly distributions relating to production attributable to periods prior to July 15, 2015. The Trustee has received no assurances regarding the status of distributions relating to production for periods after July 15, 2015. On the date the bankruptcy hearing was filed – in a series of “first day motions” – the Debtors filed motions relating to use of their cash collateral and cash management, which provide that Debtors’ cash and certain other property constitute collateral of the Debtors’ lenders subject to protective liens and permit use of a “zero balance” cash management system where receipts from operations including Debtors’ gas operations could be swept into certain concentration or disbursement accounts. The motions do not separately segregate or provide separate treatment for production proceeds relating to the Trust’s ~~Royalty Interests.~~latest ~~The~~annual ~~Trustee~~report has engaged counsel, has filed motions asking the court to reconsider and amend the Debtors’ cash management order and has objected to the cash collateral motion seeking segregation of production proceeds relating to the Trust’s Royalty Interests and judicial confirmation that such proceeds are not property of the Debtor’s bankruptcy estate. A hearing on ~~the~~Form ~~Trustee’s~~10-K ~~motions is currently scheduled~~ for ~~August 18, 2015. The Trustee additionally filed~~ a ~~separate~~ ~~action~~summary ~~seeking declaratory judgment that the Trust’s overriding royalty interests and related production proceeds are not property~~ of the debtors’ bankruptcy estate and seeking a preliminary injunction against the debtor to prevent it from (1) co-mingling the production proceeds with other funds of the debtor; (2) placing any lien or encumbrance on the production proceeds and (3) refusing to make distributions in accordance with the Conveyance governing the overriding royalty interests and Alabama ~~law.~~state ~~The~~tax ~~Trustee also filed an application for a temporary restraining order seeking similar relief~~matters. A failure to receive distributions from the Company for two consecutive calendar quarters would likely result in a termination of the Trust. See “Item 2 –Trustee’s Discussion and Analysis of Financial Condition and Results of Operations –Termination and Liquidation of the Trust.”

135. DISTRIBUTIONS TO UNITHOLDERS

InThe ~~March~~Trustee ~~2012,~~determines for each calendar quarter the amount ~~Company~~of ~~notified~~cash available for distribution to Unitholders. Such amount (the ~~Trustee~~“Quarterly ~~that~~Distribution itAmount”) is ~~undertaking~~an aamount ~~study~~equal to the excess, if any, of the ~~Underlying~~cash received by the Trust attributable to production from the Royalty Interests ~~Properties~~during onsuch aquarter, ~~well-~~provided that such cash is received by~~-well~~ ~~basis~~the Trust on or before the last business day prior to ~~determine~~the 45th day following the ~~economic~~end ~~viability~~of such calendar quarter, plus the amount of ~~continuing~~interest expected by the Trustee to ~~produce~~be ~~each~~earned ~~individual~~on ~~well.~~such ~~The~~cash proceeds ~~Company~~during ~~informed~~the period between the ~~Trustee~~date ~~that~~of itreceipt ~~abandoned~~by 11the ~~wells~~Trust inof ~~2012~~such cash proceeds and the date of payment to the Unitholders of such Quarterly Distribution Amount, 11plus ~~wells~~all inother ~~2013~~cash ~~and~~receipts 8of ~~wells~~the inTrust ~~2014~~during such quarter (to the extent not distributed or held for future distribution as a Special Distribution Amount (as defined below) or included in the ~~Company~~previous ~~considered them~~Quarterly ~~uneconomic~~Distribution ~~and~~Amount) ~~will~~(which ~~continue~~might toinclude ~~evaluate~~sales anproceeds ~~additional~~not 10sufficient in amount to 20qualify ~~wells~~for a special distribution as described in ~~2015.~~the Itnext isparagraph ~~currently~~and ~~unclear~~interest), ~~what~~over ~~impact~~the liabilities of the ~~bankruptcy~~Trust ~~proceeding~~paid ~~will~~during ~~have~~such onquarter ~~this~~and ~~process.~~not Iftaken ~~the~~into ~~Company~~account ~~decides~~in determining a prior Quarterly Distribution Amount, subject to ~~suspend~~adjustments ~~production~~for orchanges ~~abandon~~made ~~any~~by ~~additional~~the ~~wells,~~Trustee during such ~~decision~~quarter ~~could~~in ~~adversely~~any ~~affect~~cash reserves established for the ~~Trust’s~~payment of contingent or future ~~revenue~~obligations ~~stream,~~of ~~and~~the ifTrust. aAn ~~significant~~amount ~~number~~that ofis ~~wells~~not ~~are~~included ~~abandoned,~~in itthe ~~could~~Quarterly ~~cause~~Distribution Amount for a ~~termination~~calendar ofquarter because such amount is received by the Trust. ~~See~~after ~~“Item~~the 1last —business ~~Business~~day —prior ~~Description~~to the 45th day following the end of such calendar quarter will be included in the ~~Trust~~Quarterly Distribution Amount for the next calendar quarter if a distribution is made. The Quarterly Distribution —Amount ~~Termination~~for ~~and~~each ~~Liquidation~~quarter will be payable to Unitholders of record on the ~~Trust”~~60th ~~and~~day ~~“Item~~following 1Athe —end ~~Risk~~of ~~Factors”~~such calendar quarter unless such day is not a business day in which case the ~~Trust’s~~record ~~Annual~~date ~~Report~~is onthe ~~Form~~next ~~10-K~~business ~~for~~day thereafter. The Trustee will distribute the ~~year~~Quarterly ~~ended~~Distribution ~~December 31,~~Amount ~~2014~~for ~~filed~~each ~~with~~calendar quarter on or prior to 70 days after the ~~SEC~~end of such calendar quarter to each person who was a Unitholder of record on ~~March 23,~~the ~~2015~~record date for such calendar quarter. However, ~~which~~as isa ~~accessible~~result of onrulings by the ~~SEC’s~~Bankruptcy ~~website~~Court atrelated ~~www.sec.gov~~to the Walter Energy bankruptcy proceeding described under Note 6 to the condensed financial statements of the Trust in this Form 10-Q, ~~for~~a ~~additional~~distribution ~~information~~was not made during the third quarter of 2015 and the Trust does not anticipate being able to make further distributions in 2015.

~~Going~~The ~~Concern~~Royalty Interests may be sold under certain circumstances and will be sold following termination of the Trust. A special distribution will be made of undistributed net sales proceeds and other amounts received by the Trust aggregating in excess of $10 million (a “Special Distribution Amount”). The record date for a Special Distribution Amount will be the 15th day following the receipt by the Trust of amounts aggregating a Special Distribution Amount (unless such day is not a business day, in which case the record date will be the next business day thereafter) unless such day is within 10 days or less prior to the record date for a Quarterly Distribution Amount, in which case the record date will be the date that is established for the next Quarterly Distribution Amount. Distribution to Unitholders of a Special Distribution Amount will be made no later than 15 days after the Special Distribution Amount record date.

The accompanying condensed financial statements have been prepared assuming that the Trust will continue as a going concern. Financial statements prepared on the going concern basis assume the realization of assets and the settlement of liabilities in the normal course of business. As discussed in Note 6 ~~to the financial statements, certain conditions raise substantial doubt about the Trust’s ability to continue as a going concern~~. The Trustee’s plans concerning this matter are also discussed in Note 6 to the financial statements. The condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty. CONTINGENCIES

~~Termination~~Contingencies ~~and~~related ~~Liquidation~~to ofthe Underlying Properties that are unfavorably resolved would generally be reflected by the Trust as reductions to future royalty income payments to the Trust with corresponding reductions to cash distributions to Unitholders. The Trustee is aware of no such items as of September 30, 2015, other than as stated below.

~~The~~On ~~Trust~~July 28, ~~will~~2015, ~~terminate upon~~ the ~~occurrence~~Trust ~~of:~~announced ~~(i) an~~that ~~affirmative~~it ~~vote~~received ofa ~~the~~letter ~~holders~~from ofWalter ~~not~~Energy, ~~less~~Inc., ~~than~~the 66parent ~~2/3 percent~~ of ~~the outstanding~~ ~~Units to terminate~~ the ~~Trust;~~Company, ~~(ii) such~~stating ~~time~~that asit, ~~the~~together ~~ratio~~with certain of ~~the~~its ~~cash~~subsidiaries ~~amounts~~and ~~received~~affiliates, byincluding the ~~Trust~~Company ~~attributable~~(“Debtors”) tofiled ~~the~~a ~~Royalty~~petition ~~Interests~~for inrelief ~~any~~under ~~calendar~~Chapter ~~quarter~~11 ~~to administrative costs~~ of the ~~Trust~~U.S. ~~for~~Bankruptcy ~~such~~Code ~~calendar~~with ~~quarter~~the isUnited ~~less~~States ~~than~~Bankruptcy ~~1.2~~Court tofor ~~1.0~~the ~~for~~Northern ~~two~~District ~~consecutive calendar quarters; or (iii) March 1~~ of ~~any~~Alabama ~~year~~Southern ifDivision iton ~~is determined~~July 15, ~~based~~2015 onand athat ~~reserve~~it ~~report~~had asan ofagreement ~~December 31~~with oflenders ~~the~~regarding ~~prior year prepared by~~ a ~~firm~~pre-negotiated ofrestructuring ~~independent~~plan. ~~petroleum~~In ~~engineers~~the ~~mutually~~letter, ~~selected~~Walter byEnergy, ~~the Trustee~~Inc. ~~and~~advised the ~~Company,~~Trust that ~~the~~it ~~net~~is ~~present~~not ~~value~~permitted ~~(discounted~~to atpay obligations 10that ~~percent)~~arose ofprior ~~estimated future net revenues from proved reserves attributable~~ to ~~the Royalty Interests plus the amount of all remaining Section~~July 2915, ~~tax~~2015, ~~credits~~including ~~attributable~~payments to on the Royalty Interests. ~~is equal to or less than $5 million (as applicable~~Specifically, the ~~“Termination~~Trustee ~~Date”).~~was ~~Upon~~informed ~~such~~by ~~occurrence~~Walter ~~causing the Trust to terminate~~Energy, ~~the~~Inc. ~~remaining~~that ~~assets~~it ofwould ~~the~~not ~~Trust will~~ be ~~sold,~~paying the ~~net~~distribution ~~proceeds of the sale will be distributed~~ to ~~Unitholders and~~ the Trust ~~will~~that bewould ~~wound~~normally upbe ~~and~~paid ~~a certificate of cancellation filed. With respect to (ii)~~by August ~~above~~14, ~~the~~2015 ~~ratio~~and ofnormally ~~cash~~would ~~amounts~~include ~~received~~payments toon ~~administrative~~the ~~costs~~Royalty Interests for the ~~first~~production ~~and~~months ~~second quarters~~ of ~~2015 were 1.9 to 1.0 and 4.9 to 1.0~~April, ~~respectively,~~May and ~~with~~June ~~(iii) above~~2015, ~~the net present value of the estimated future net revenues computed~~ as ~~described~~well ~~above by the independent petroleum engineers~~ as ~~of December 31, 2014 was approximately $27.5 million. While~~ the ~~results~~portion of ~~these~~any ~~computations will not trigger an early termination of the Trust as of June 30, 2015,~~ future ~~computations~~quarterly ~~are~~distributions ~~subject~~relating to ~~the~~production ~~numerous~~attributable ~~uncertainties. A failure~~ to ~~receive two consecutive quarterly distributions as a~~periods ~~result~~prior ofto ~~the Walter Energy bankruptcy proceeding would likely result in a termination of the Trust. See also “Item 1A — Risk Factors” in the Trust’s Form 10-K for the year ended December~~July 3115, ~~2014~~2015.

1411

UponTable the termination of the Trust, the Trustee will use its best efforts to sell any remaining Royalty Interests then owned by the Trust for cash pursuant to the procedures described in the Trust Agreement. Within five business days following the Termination Date, the Trustee will provide written notice of termination to the Company, Dominion Resources and the Delaware Trustee. The Trustee will retain a nationally recognized investment banking firm (the “Advisor”) on behalf of the Trust who will assist the Trustee in selling the remaining Royalty Interests. The Company has the right, but not the obligation, 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. In the event such an offer is made by the Company, the Trustee will decide, based on the recommendation of the Advisor, to either (i) accept such offer (in which case no sale to the Company will be made unless a fairness opinion is given by the Advisor that the purchase price is fair to Unitholders) or (ii) defer action on the offer for approximately 60 days and seek to locate other buyers for the remaining Royalty Interests. If the Trustee defers action on the Company’s offer, the offer will be deemed withdrawn and the Trustee will then use its best efforts, assisted by the Advisor, to locate other buyers for the Royalty Interests. At the end of the 120-day period following the Termination Date, the Trustee is required to notify the Company of the highest of any other offers acceptable to the Trustee (which must be an all-cash offer) received during such period (such price, net of any commissions or other fees payable by the Trust, the “Highest Acceptable Offer”). The Company then has the 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 the Company’s original offer (or if the Company 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 the Company’s original 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 the Company to submit another offer for consideration by the Trustee and may accept or reject such offer. Contents

IfOn the date the bankruptcy was filed – in a ~~sale~~series of “first day motions” – the ~~Royalty~~Debtors ~~Interests~~filed ismotions ~~made~~relating orto ause ~~definitive~~of ~~contract~~their ~~for~~cash ~~sale~~collateral and cash management, which provide that Debtors’ cash and certain other property constitute collateral of the ~~Royalty~~Debtors’ ~~Interests~~lenders issubject ~~entered~~to protective liens and permit use of a “zero balance” cash management system where receipts from operations, including Debtors’ gas operations, could be swept into certain concentration or disbursement accounts. The motions did not separately segregate or provide ~~within~~separate atreatment ~~150-day~~for ~~period~~production ~~following~~proceeds relating to the ~~Termination~~Trust’s ~~Date~~Royalty Interests. The Trust engaged counsel, filed motions asking the ~~buyer~~court to reconsider and amend the Debtors’ cash management order and objected to the cash collateral motion by seeking segregation of production proceeds relating to the Trust’s Royalty Interests, and judicial confirmation that such proceeds are not property of the ~~Trust~~Debtor’s orbankruptcy ~~Unitholders~~estate. On August 18, ~~will~~2015, bethe ~~entitled~~Bankruptcy Court denied the Trust’s motion to ~~all~~reconsider the Debtors’ cash management order. A hearing on the Trust’s objection to the Debtors’ cash collateral motion, among others, was held on September 2 and 3, 2015. On September 14, 2015, the court issued its ruling on the Debtors’ cash collateral motion and denied the Trust’s request for protections based on the Debtors’ use of the production proceeds, which included denying (i) segregation of the production ~~attributable~~proceeds and (ii) a requirement for continued distributions of production proceeds to the ~~Royalty~~Trust ~~Interests~~in ~~following~~the ordinary course of business. After a subsequent hearing to consider additional cash collateral issues, on October 12, 2015, the ~~Termination~~Trust ~~Date~~filed a notice of appeal of the Bankruptcy Court’s cash collateral ruling, and the appeal is currently pending.

InOn October 2, ~~the~~2015, ~~event that~~ the Company ~~does~~filed ~~not~~a ~~purchase~~motion in the ~~Royalty~~Bankruptcy ~~Interests,~~Court to reject the ~~Trustee~~Conveyance ~~may~~(and ~~accept~~certain ~~any~~related ~~offer~~contracts) ~~for~~effective ~~all~~retroactively orto ~~any~~July 15, ~~part~~2015. ofThe ~~the~~contracts ~~Royalty Interests~~that asthe itCompany ~~deems~~seeks to bereject increate the ~~best~~Trust’s right ~~interests~~to ofreceive ~~the~~payments ~~Trust~~on ~~and~~the ~~Unitholders~~Royalty ~~and~~Interests ~~may~~from ~~continue,~~the ~~for~~Company. upIf togranted ~~one~~and ~~calendar~~not ~~year~~reversed ~~after~~on ~~the~~subsequent ~~Termination Date~~appeal, tothe ~~attempt~~relief tosought ~~locate~~in athis ~~buyer~~motion orwould ~~buyers~~excuse of the ~~remaining~~Company ~~Royalty~~from ~~Interests~~performance inunder ~~order~~the toConveyance ~~sell~~at ~~such interests~~all intimes anafter ~~orderly~~July 15, 2015, ~~fashion.~~including Ifpayments on the Royalty Interests. ~~have~~The ~~not~~Company’s ~~been~~motion ~~sold~~to orreject athe ~~definitive~~Conveyance ~~agreement~~was ~~for~~heard ~~sale~~on ~~has~~November 10, ~~not~~2015. ~~been~~At ~~entered~~that ~~into~~time, by the ~~end~~Court ofrequested ~~such~~written ~~calendar~~findings ~~year,~~of ~~the~~fact ~~Trustee~~and isconclusions ~~required~~from ~~to sell~~ the ~~remaining~~Company ~~Royalty~~and ~~Interests~~the atTrustee and atook ~~public auction,~~the ~~which~~matter ~~sale~~under ~~may~~advisement. beThe toCourt ~~the~~has ~~Company~~not oryet ~~any~~ruled ofon ~~its~~the ~~affiliates~~motion.

~~The~~If ~~Company’s~~Walter ~~purchase rights~~Energy, asInc. ~~described~~does ~~above,~~not ~~may~~pay bea distribution to ~~exercised~~the Trust by December 31, 2015 representing payments on the ~~Company~~Royalty ~~and~~Interests ~~each~~for ofthe ~~its~~production ~~successors~~months inof ~~interest~~July, August and ~~assigns~~September 2015, pursuant to Section 9.02(b) ~~The~~of ~~Company’s~~the ~~purchase~~Trust ~~rights~~Agreement, ~~are~~it ~~fully~~is ~~assignable~~expected bythat the ~~Company~~Trust will terminate as a result of the failure to ~~any~~maintain ~~person~~a or1.2 ~~entity~~to 1.0 ~~The~~ratio ~~costs~~for two consecutive calendar quarters of ~~liquidation,~~(i) cash ~~including~~received pursuant to the ~~fees~~Royalty Interests to (ii) administrative costs. See “Item 2 –Trustee’s Discussion and ~~expenses~~Analysis of Financial Condition and Results of ~~the~~Operations ~~Advisor~~–Termination and Liquidation of the ~~Trustee’s~~Trust” ~~liquidation~~and ~~fee~~“Part II – Other Information – Item 1A – Risk Factors.” To date, ~~will~~Walter beEnergy, Inc. has not paid bya distribution to the Trust representing payments on the Royalty Interests for the production months of July, August and September.

~~The~~In ~~Trust~~March ~~may~~2012, ~~terminate~~the Company ~~without~~notified ~~Unitholder~~the ~~approval.~~Trustee ~~Unitholders~~that ~~are~~it ~~not entitled~~is toundertaking ~~any~~a ~~rights~~study of ~~appraisal~~the orUnderlying ~~similar~~Properties ~~rights~~on ina ~~connection~~well-by-well ~~with~~basis to determine the ~~termination~~economic viability of ~~the~~continuing ~~Trust~~to produce each individual well. The ~~sale~~Company ofinformed the ~~remaining~~Trustee ~~Royalty~~that ~~Interests~~it abandoned 11 wells in 2012, 11 wells in 2013 and ~~the~~8 ~~termination~~wells ofin 2014 as the ~~Trust~~Company considered them uneconomic and will becontinue ~~taxable~~to ~~events~~evaluate an additional 10 to ~~the~~20 ~~Unitholders~~wells in 2015. ~~Generally,~~It ais ~~Unitholder~~ currently unclear what impact the bankruptcy proceeding will ~~realize~~have ~~gain~~on orthis process. ~~loss~~If ~~equal~~the Company decides to suspend production or abandon any such additional wells, such decision could adversely affect the ~~difference~~Trust’s ~~between~~future revenue stream, and if a significant number of wells are abandoned, it could cause a termination of the Trust.

15The Trust is named as a defendant in an action, styled Southwest Royalties, Inc. v. Dominion Black Warrior Basin, Inc., et al., filed in the Circuit Court of Fayette County Alabama on October 5, 2007 regarding the quieting of title in certain oil and gas rights related to property in Fayette and Tuscaloosa Counties in Alabama. The plaintiff alleges that defendants are knowingly producing gas in violation of the deeds in question. The plaintiff is also alleging conversion of gas, continuing trespass by defendants on the plaintiff’s property, and suppression of material facts by defendants, and the plaintiff is requesting an accounting, injunctive relief and compensatory and punitive damages, plus court costs and attorneys’ fees. The Trustee does not believe this litigation will have a material effect on the Trust’s financial statements.

~~amount~~12 realized on the sale and termination of the Trust and the adjusted basis of such Units. The amount realized by the Trust upon termination will be allocated to Unitholders in the same manner as the Trustee allocates the income received by the Trust. 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. Other federal and state tax issues concerning the Trust are discussed herein in Notes 3 and 4 of the Notes to Condensed Financial Statements. Each Unitholder should consult his own tax advisor regarding Trust tax compliance matters, including federal and state tax implications concerning the sale of the Royalty Interests and the termination of the Trust.

ResultsTable of Operations Contents

~~Three~~Item ~~and~~2. ~~Six~~Trustee’s ~~Month~~Discussion ~~Periods~~and ~~Ended June 30,~~Analysis ~~2015~~of ~~Compared~~Financial toCondition ~~the Three~~ and ~~Six~~Results ~~Month~~of ~~Periods Ended June 30, 2014~~ Operations.

~~The~~Liquidity Trust’s Royalty Interests consist of overriding royalty interests burdening the Company’s interest in the Underlying Properties. The Royalty Interests generally entitle the Trust to receive 65 percent of the Company’s Gross Proceeds (as defined below). The Royalty Interests are non-operating interests and ~~bear~~Capital ~~only~~Resources expenses related to property, production and related taxes (including severance taxes). “Gross Proceeds” consist generally of the aggregate amounts received by the Company attributable to the interests of the Company in the Underlying Properties from the sale of coal seam gas at the central delivery points in the gathering system for the Underlying Properties. The definitions, formulas and accounting procedures and other terms governing the computation of the Royalty Interests are set forth in the Overriding Royalty Conveyance from the Company to the Trust.

The Trust ~~received~~ ~~royalty~~makes ~~income~~quarterly ~~amounting to $1,126,707 during the second quarter of 2015 compared to $1,957,613 during the second quarter of 2014. This revenue was derived from the receipt of~~ cash ondistributions ~~production of 404 Mmcf at an average price of $2.79 per mcf after deducting production taxes of $66,396 compared~~ to ~~429 Mmcf at an average price received of $4~~Unitholders.56 ~~per~~The ~~mcf~~only ~~after~~assets ~~deducting production taxes~~ of ~~$126,493 in~~ the ~~second quarter of 2014. The~~ Trust ~~received royalty income amounting to $2~~,~~747,134~~ ~~during~~other ~~the~~than ~~six~~cash ~~months~~and ~~ended June 30, 2015 compared to $3,547,692 during the six months ended June 30, 2014. This revenue was derived from the receipt of~~ cash onequivalents ~~production~~being ofheld ~~839 Mmcf at an average price received of $3.27 per~~for ~~mcf~~the ~~after~~payment ~~deducting production taxes~~ of ~~$168,398~~expenses inand ~~six~~liabilities ~~months~~and ~~ended~~for ~~June 30,~~distribution ~~2015 compared~~ to ~~903 Mmcf at an average price received of $3.93 per mcf after deducting production taxes of $225~~Unitholders,~~287~~ inare the ~~six~~Royalty ~~months~~Interests ~~ended~~burdening ~~June 30, 2014. For~~ the ~~three~~Underlying ~~and~~Properties. ~~six-month~~The ~~periods~~Royalty ~~ended~~Interests ~~June 30,~~owned ~~2015,~~by the Trust ~~was~~burden ~~negatively impacted by~~ the ~~decrease~~interest in ~~natural gas production and by lower gas prices, as compared with~~ the ~~three~~Underlying ~~and~~Properties ~~six-month~~that ~~periods~~is ~~ended~~owned ~~June 30, 2014. Natural gas~~by ~~prices~~the ~~are influenced by many factors such as seasonal temperatures~~Company, ~~domestic~~an ~~demand~~indirect ~~and~~wholly-owned ~~other~~subsidiary ~~factors that are beyond the control~~ of ~~the~~Walter ~~Trustee. The decrease in production volumes is attributed to declining production. Production taxes are based on revenues rather than production volumes. Accordingly~~Energy, ~~production taxes did not fluctuate proportionately to the decrease in volumes~~LLC.

~~Interest~~Distributable income ~~during~~of the ~~second~~Trust ~~quarter~~consists of ~~2015 amounted to $12 compared to $88 for~~ the ~~same~~excess ~~period~~of royalty inincome ~~2014.~~plus ~~Interest~~interest income ~~during~~over the ~~six months~~administrative ~~ended~~expenses ~~June 30,~~of ~~2015~~the ~~amounted~~Trust. toUpon ~~$26~~receipt ~~compared~~by ~~to $150 for~~ the ~~six months ended June 30~~Trust, ~~2014.~~royalty ~~The~~income ~~decrease~~is invested in ~~interest~~short-term ~~income~~investments in ~~the~~accordance ~~second~~with ~~quarter of 2015 as compared to~~ the ~~second~~Trust ~~quarter~~Agreement ofuntil ~~2014~~its issubsequent ~~primarily~~distribution ~~due~~ to ~~the timing of~~ ~~investments~~Unitholders.

16The 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 the expenses of the Trust are recognized when they are paid or reserves are established for them. 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 paid by the Trust during such quarter. The amount of cash available for distribution to Unitholders is determined as adjusted for changes in reserves for unpaid liabilities in accordance with the provisions of the Trust Agreement. (See Note 5 to the condensed financial statements of the Trust appearing elsewhere in this Form 10-Q for additional information regarding the determination of the amount of cash available for distribution to Unitholders.)

~~General~~See ~~and~~Note ~~administrative~~6 ~~expenses~~to ~~during~~ the ~~second~~condensed ~~quarter~~financial statements of ~~2015~~the ~~amounted~~Trust toappearing ~~$409,794 compared~~elsewhere toin ~~$327,161~~this inForm ~~the~~10-Q ~~second~~for ~~quarter~~additional ofinformation ~~2014.~~regarding ~~General~~the bankruptcy ~~and~~proceedings ~~administrative~~of ~~expenses~~Walter ~~during~~Energy, Inc., the ~~six~~parent ~~months~~of ~~ended~~the ~~June 30~~Company, ~~2015~~together ~~amounted~~with tocertain ~~$667,850~~of ~~compared~~its tosubsidiaries ~~$682~~and affiliates,~~044~~ ~~for~~including the ~~six~~Company ~~months~~(“Debtors”). ~~ended~~See ~~June 30,~~“Item ~~2014.~~1 ~~For~~— ~~this~~Business ~~period,~~— ~~these expenses~~Description ~~were~~of ~~primarily~~the ~~related~~Trust to— Termination ~~general~~ and ~~administrative~~Liquidation ~~services~~of ~~provided by Walter Exploration & Production,~~ the ~~Trustee~~Trust” and ~~American~~“Item ~~Stock~~1A ~~Transfer &~~— ~~Trust~~Risk ~~Company,~~Factors” in the ~~transfer~~Trust’s ~~agent,~~Annual ~~and~~Report ~~the~~on ~~preparation~~Form of10-K ~~periodic reports~~ for ~~submission to~~ the ~~SEC~~year ~~and~~ended toDecember 31, ~~Unitholders~~2014 ~~during~~filed with the ~~period.~~SEC ~~The~~on ~~increase~~March 23, in2015, ~~general~~which ~~and~~is ~~administrative~~accessible ~~expenses~~on in the SEC’s ~~second~~website ~~quarter~~at ofwww.sec.gov, ~~2015~~and as“Part ~~compared~~II to— ~~the~~Other ~~second~~Information ~~quarter~~— ofItem 1A. ~~2014~~Risk isFactors” ~~primarily~~below ~~due~~for toadditional ~~timing of payment of expenses~~information.

~~Distributable~~Going ~~income~~Concern for the second quarter of 2015 was $716,925, or $.09 per Unit, compared to distributable income for the second quarter of 2014 of $1,630,540, or $.21 per Unit. Distributable income for the six months ended June 30, 2015 was $2,079,310, or $.26 per Unit, compared to $2,865,798, or $.37 per Unit for the six months ended June 30, 2014. The Trust made a distribution on June 9, 2015 of $0.098752 per Unit compared to a distribution of $0.191957 per Unit made during the second quarter of 2014.

~~Critical~~The ~~Accounting~~accompanying ~~Policies~~condensed financial statements have been prepared assuming that the Trust will continue as a going concern. Financial statements prepared on the going concern basis assume the realization of assets and ~~Estimates~~the settlement of liabilities in the normal course of business. As discussed in Note 6 to the condensed financial statements of the Trust in this Form 10-Q, certain conditions raise substantial doubt about the Trust’s ability to continue as a going concern. The Trustee’s plans concerning this matter are also discussed in Note 6 to the financial statements. The condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

~~The~~Impairment Trust’s financial statements reflect the selection and application of accounting policies that require the Trust to make significant estimates and assumptions. The following are some of the more critical judgment areas in the application of accounting policies that currently affect the Trust’s financial condition and results of operations.

~~Basis~~The Trustee routinely reviews the Trust’s Royalty Interests in gas properties for impairment whenever events or circumstances indicate that the carrying amount of ~~Accounting~~an asset may not be recoverable. If an impairment event occurs and it is determined that the carrying value of the Trust’s Royalty Interests may not be recoverable, an impairment will be recognized as measured by the amount by which the carrying amount of the Royalty Interests exceeds the fair value of these assets, which would likely be measured by discounting projected cash flows. Given the uncertainty of the impact from the ongoing Walter Energy, Inc. bankruptcy and the uncertain status of the court rulings as of this filing date (see Note 6 to the condensed financial statements of the Trust in this Form 10-Q), the Trust has recorded an impairment of $3.3 million during the three-month period ended September 30, 2015. The impairment resulted in a non-cash charge to trust corpus and did not affect the Trust’s distributable income. There were no impairments in the carrying value of the Royalty Interests during 2014.

~~The~~13 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 accounting principles generally accepted in the United States of America. Preparation of the Trust’s financial statements on such basis includes the following:

•Table Royalty income and interest income are recorded in the period in which amounts are received by the Trust rather than in the period of production and accrual, respectively.Contents

•Termination ~~General~~ and ~~administrative~~Liquidation ~~expenses recorded are based on liabilities paid and cash reserves established out~~ of ~~cash~~the ~~received.~~Trust

•The ~~Amortization~~Trust will terminate upon the occurrence of: (i) an affirmative vote of the holders of not less than 66 2/3 percent of the outstanding Units to terminate the Trust; (ii) such time as the ratio of the cash amounts received by the Trust attributable to the Royalty Interests in any calendar quarter to administrative costs of the Trust for such calendar quarter is ~~calculated~~less than 1.2 to 1.0 for two consecutive calendar quarters; or (iii) March 1 of any year if it is determined, based on a ~~unit-~~reserve report as of~~-production~~ ~~basis~~December 31 of the prior year prepared by a firm of independent petroleum engineers mutually selected by the Trustee and ~~charged~~the ~~directly~~Company, that the net present value (discounted at 10 percent) of estimated future net revenues from proved reserves attributable to ~~trust~~the ~~corpus~~Royalty ~~when~~Interests plus the amount of all remaining Section 29 tax credits attributable to the Royalty Interests is equal to or less than $5 million (as applicable, the “Termination Date”). Upon such occurrence causing the Trust to terminate, the remaining assets of the Trust will be sold, the net proceeds of the sale will be distributed to Unitholders and the Trust will be wound up and a certificate of cancellation filed. With respect to (ii) above, the ratio of cash amounts received to administrative costs for the first, second and third quarters of 2015 were 6.3 to 1.0, 2.8 to 1.0 and 0 to 1.0, respectively, and with (iii) above, the net present value of the estimated future net revenues ~~are~~computed as described above by the independent petroleum engineers as of December 31, 2014 was approximately $27.5 million. While the results of these computations will not trigger an early termination of the Trust as of September 30, 2015, if Walter Energy, Inc. does not pay a distribution to the Trust during the fourth quarter of 2015, this will cause the Trust’s ratio of cash received to administrative costs to fall below 1.2 to 1.0 for a second consecutive calendar quarter in 2015, and, accordingly, result in an early termination of the Trust. The Trust had not received any proceeds from Walter Energy, Inc. as of November 23, 2015, the filing date of this Form 10-Q; therefore, there will not be a distribution made to Unitholders of record on November 30, 2015. See also “Item 1A — Risk Factors” in the Trust’s Form 10-K for the year ended December 31, 2014.

•Upon ~~Distributions~~the termination of the Trust, the Trustee is to use its best efforts to sell any remaining Royalty Interests then owned by the Trust for cash pursuant to the procedures described in the Trust Agreement. Within five business days following the Termination Date, the Trustee is to provide written notice of termination to the Company, Dominion Resources and the Delaware Trustee. The Trustee is to retain a nationally recognized investment banking firm (the “Advisor”) on behalf of the Trust who is to assist the Trustee in selling the remaining Royalty Interests. The Company has the right, but not the obligation, 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. In the event such an offer is made by the Company, the Trustee is to decide, based on the recommendation of the Advisor, to either (i) accept such offer (in which case no sale to the Company is to be made unless a fairness opinion is given by the Advisor that the purchase price is fair to Unitholders) ~~are~~or ~~recorded~~(ii) defer ~~when~~action ~~declared~~on the offer for approximately 60 days and seek to locate other buyers for the remaining Royalty Interests. If the Trustee defers action on the Company’s offer, the offer will be deemed withdrawn and the Trustee is to then use its best efforts, assisted by the Advisor, to locate other buyers for the Royalty Interests. At the end of the 120-day period following the Termination Date, the Trustee is to notify the Company of the highest of any other offers acceptable to the Trustee (~~see~~which ~~Note~~must 5be an all-cash offer) received during such period (such price, net of any commissions or other fees payable by the Trust, the “Highest Acceptable Offer”). The Company then has the 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 ~~condensed~~Highest ~~financial~~Acceptable ~~statements~~Offer is more than 105 percent of the Company’s original offer (or if the Company did not make an initial offer), the purchase price is to be 105 percent of the Highest Acceptable Offer, or (ii) if the Highest Acceptable Offer is equal to or less than 105 percent of the Company’s original offer, the purchase price is to be equal to the Highest Acceptable Offer. If no other acceptable offers are received for all remaining Royalty Interests, the Trustee may request the Company to submit another offer for consideration by the Trustee and may accept or reject such offer.

~~The~~If ~~financial~~a ~~statements~~sale of the ~~Trust~~Royalty ~~differ~~Interests ~~from~~is ~~financial~~made ~~statements~~or ~~prepared~~a indefinitive ~~accordance~~contract ~~with accounting principles generally accepted in~~for ~~the~~sale ~~United States~~ of ~~America~~the ~~because~~Royalty ~~royalty~~Interests ~~income~~ is ~~not~~entered ~~accrued~~into inwithin ~~the~~a 150-day period offollowing ~~production,~~the ~~general~~Termination ~~and administrative expenses recorded are based on liabilities paid and cash reserves established rather than on an accrual basis~~Date, ~~and amortization~~the buyer of the Royalty Interests, isand not ~~charged~~the ~~against~~Trust ~~operating~~or ~~results.~~Unitholders, ~~This~~will ~~comprehensive~~be ~~basis~~entitled ofto ~~accounting~~all ~~other~~proceeds ~~than accounting principles generally accepted in the United States~~ of ~~America~~production ~~corresponds~~attributable to the ~~accounting permitted for~~Royalty ~~royalty~~Interests ~~trusts~~following by the ~~SEC,~~Termination ~~as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts~~Date.

1714

ImpairmentTable of Contents

~~The~~In ~~Trustee~~the ~~routinely~~event ~~reviews~~that the ~~Trust’s~~Company ~~royalty~~does ~~interests~~not inpurchase ~~gas~~the ~~properties~~Royalty ~~for~~Interests, ~~impairment~~the ~~whenever~~Trustee ~~events~~may oraccept ~~circumstances indicate~~any ~~that~~offer ~~the~~for ~~carrying~~all ~~amount~~or any part of anthe ~~asset~~Royalty ~~may~~Interests ~~not~~as it deems to be ~~recoverable.~~in Ifthe anbest ~~impairment~~interests ~~event~~of ~~occurs~~the Trust and itUnitholders isand ~~determined~~may ~~that~~continue, for up to one calendar year after the ~~carrying~~Termination ~~value~~Date, to attempt to locate a buyer or buyers of the ~~Trust’s~~remaining Royalty ~~royalty~~Interests ~~interests~~in ~~may~~order ~~not~~to besell ~~recoverable,~~such interests in an ~~impairment~~orderly ~~will~~fashion. beIf ~~recognized~~the asRoyalty ~~measured~~Interests byhave ~~the amount~~not bybeen ~~which~~sold ~~the~~or ~~carrying~~a ~~amount~~definitive ofagreement ~~the~~for ~~royalty~~sale ~~interests~~has ~~exceeds~~not ~~the~~been ~~fair~~entered ~~value~~into by the end of ~~these~~such ~~assets~~calendar year, ~~which~~the ~~would~~Trustee ~~likely~~is berequired ~~measured~~to bysell ~~discounting~~the remaining ~~projected~~Royalty ~~cash~~Interests ~~flows.~~at Asa ofpublic ~~June 30~~auction, ~~2015,~~which nosale ~~impairment~~may isbe ~~required~~to the Company or any of its affiliates.

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

~~Revenues~~The ~~from~~Trust may terminate without ~~Royalty~~Unitholder ~~Interests~~approval. Unitholders are ~~recognized~~not inentitled ~~the~~to ~~period~~any rights of appraisal or similar rights in ~~which~~connection ~~amounts~~with ~~are~~the ~~received~~termination byof the Trust. The sale of the remaining Royalty ~~income~~Interests ~~received~~and bythe termination of the Trust inwill abe ~~given~~taxable ~~calendar~~events ~~year~~to the Unitholders. Generally, a Unitholder will ~~generally~~realize ~~reflect~~gain or loss equal to the ~~proceeds,~~difference between the amount realized on anthe ~~entitlements~~sale ~~basis,~~and ~~from~~termination ~~natural~~of ~~gas~~the ~~produced~~Trust and ~~sold~~ ~~for~~the adjusted basis of such Units. The amount realized by the ~~twelve-month~~Trust ~~period~~upon ~~ended~~termination will ~~September 30th~~be allocated to Unitholders in ~~that~~the ~~calendar~~same ~~year.~~manner ~~Royalty~~as the Trustee allocates the income received by the Trust. inGain ~~the~~or ~~second~~loss ~~quarter~~realized by a Unitholder who is not a dealer with respect to such Units and who has a holding period for the Units of ~~2015~~more than ~~generally~~one ~~reflects~~year will be treated as long-term capital gain or loss except to the ~~proceeds,~~extent onof anany ~~entitlements~~depletion ~~basis~~recapture amount, ~~from~~ ~~natural~~which ~~gas~~must ~~produced~~be treated as ordinary income. Other federal and ~~sold~~state tax issues concerning the Trust are discussed herein in Notes 3 and 4 of the ~~first~~Notes ~~quarter~~to condensed financial statements. Each Unitholder should consult his own tax advisor regarding Trust tax compliance matters, including federal and state tax implications concerning the sale of ~~2015~~the Royalty Interests and the termination of the Trust.

~~Reserve~~Results ~~Disclosure~~of Operations

~~Independent~~Three ~~petroleum~~and ~~engineers~~Nine ~~estimate~~Month ~~the~~Periods ~~net~~Ended ~~proved~~September 30, ~~reserves~~2015 ~~attributable~~Compared to the ~~Royalty~~Three ~~Interests.~~and InNine ~~accordance~~Month ~~with~~Periods ~~FASB~~Ended ~~guidance, estimates of future net revenues from proved reserves have been prepared using the average market gas prices over the prior 12-month period or applicable contract price as of December~~September 3130, as2014 appropriate, and related costs. Numerous uncertainties are inherent in estimating volumes and the value of proved reserves and in projecting future production rates and the timing of development of non-producing reserves. Such reserve estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production may be substantially different from the reserve estimates.

~~Contingencies~~The Trust’s Royalty Interests consist of overriding royalty interests burdening the Company’s interest in the Underlying Properties. The Royalty Interests generally entitle the Trust to receive 65 percent of the Company’s Gross Proceeds (as defined below). The Royalty Interests are non-operating interests and bear only expenses related to property, production and related taxes (including severance taxes). “Gross Proceeds” consist generally of the aggregate amounts received by the Company attributable to the interests of the Company in the Underlying Properties from the sale of coal seam gas at the central delivery points in the gathering system for the Underlying Properties. The definitions, formulas and accounting procedures and other terms governing the computation of the Royalty Interests are set forth in the Overriding Royalty Conveyance from the Company to the Trust.

~~Contingencies~~The ~~related~~Trust ~~to the~~did ~~Underlying~~not ~~Properties~~receive ~~that~~any ~~are~~royalty ~~unfavorably~~income ~~resolved~~during ~~would~~the ~~generally~~third bequarter ~~reflected~~of by2015 compared to $1,848,299 during the third ~~Trust~~quarter asof ~~reductions~~2014. toThis ~~future~~2014 royalty income ~~payments~~was toderived from the ~~Trust~~receipt ~~with~~of ~~corresponding~~cash ~~reductions~~on toproduction ~~cash~~of ~~distributions~~428 toMmcf ~~Unitholders.~~at ~~The~~an ~~Trustee~~average isprice ~~aware~~ received of no$4.32 ~~such~~per ~~items~~mcf asafter deducting production taxes of ~~June 30~~$119,336 ~~2015,~~in ~~other~~the ~~than~~third asquarter ~~stated~~of ~~below~~2014.

OnThe ~~July 28, 2015, the~~ Trust ~~announced that it~~ received aroyalty ~~letter from~~income ~~Walter~~amounting ~~Energy,~~to ~~Inc.~~$2, ~~the parent of the Company~~747,134 ~~stating~~during ~~that it, together with certain of its subsidiaries and affiliates, including~~ the ~~Company~~nine ~~(“Debtors”)~~months ~~filed~~ended ~~a petition for relief under Chapter 11 of the U.S. Bankruptcy Code with the United States District Court for the Northern District of Alabama Southern Division on July 15~~September 30, 2015 ~~and~~compared ~~that it has an agreement with lenders regarding a pre-negotiated restructuring plan. In the letter, Walter Energy, Inc. advised the Trust that it is not permitted~~ to ~~pay obligations that arose prior to July 15~~$5, ~~2015~~395,991 ~~including royalty payments. Specifically, the Trustee was informed by Walter Energy, Inc. that it will not be paying the distribution to the Trust, which would normally~~during ~~be paid by August 14, and normally would include royalty payments for~~ the ~~production~~nine months ofended ~~April~~September 30, ~~May and June 2015, as well as the portion of any future quarterly distributions relating to production attributable to periods prior to July 15, 2015~~2014. ~~The~~This ~~Trustee~~revenue ~~has received no assurances regarding the status of distributions relating to production for periods after July 15, 2015. On the date the bankruptcy hearing~~ was ~~filed~~derived –from ~~in a series of “first day motions” –~~ the ~~Debtors~~ ~~filed~~receipt ~~motions relating to use~~ of ~~their~~ cash ~~collateral~~on ~~and~~production ~~cash management, which provide that Debtors’ cash and certain other property constitute collateral~~ of ~~the~~839 ~~Debtors’~~Mmcf ~~lenders~~at ~~subject~~an toaverage ~~protective~~price ~~liens~~received ~~and permit use~~ of ~~a “zero balance” cash management system where receipts from operations including Debtors’ gas operations could be swept into certain concentration or disbursement accounts~~$3.27 ~~The~~per ~~motions~~mcf doafter ~~not~~deducting ~~separately segregate or provide separate treatment for~~ production ~~proceeds~~taxes ~~relating~~of ~~to the Trust’s Royalty Interests. The Trustee has engaged counsel~~$168,398 ~~has~~in ~~filed motions asking~~ the ~~court~~nine tomonths ~~reconsider and amend the Debtors’ cash management order and has objected to the cash~~ended collateral motion seeking segregation of production proceeds relating to the Trust’s Royalty Interests and judicial confirmation that such proceeds are not property of the Debtor’s bankruptcy estate. A hearing on the Trustee’s motions is currently scheduled for August 18September 30, 2015. ~~The~~compared Trustee additionally filed a separate action seeking declaratory judgment that the Trust’s overriding royalty interests and related production proceeds are not property of the debtors’ bankruptcy estate and seeking a preliminary injunction against the debtor to ~~prevent it from (~~1),330 ~~co-mingling~~Mmcf ~~the~~at ~~production~~an ~~proceeds~~average ~~with~~price ~~other~~received ~~funds~~ of ~~the~~$4.05 ~~debtor;~~per ~~(2)~~mcf ~~placing~~after ~~any~~deducting ~~lien or encumbrance on the~~ production ~~proceeds~~taxes ~~and~~of ~~(3)~~$344,623 ~~refusing to make distributions~~ in ~~accordance with~~ the ~~Conveyance~~nine ~~governing~~months ~~the~~ended ~~overriding~~September 30, ~~royalty interests and Alabama law~~2014. The Trustee also filed an application for a temporary restraining order seeking similar relief. A failure to receive distributions from the Company for two consecutive calendar quarters would likely result in a termination of the Trust. See “Item 2 –Trustee’s Discussion and Analysis of Financial Condition and Results of Operations –Termination and Liquidation of the Trust.”

1815

InTable March 2012, the Company notified the Trustee that it is undertaking a study of the Underlying Properties on a well-by-well basis to determine the economic viability of continuing to produce each individual well. The Company informed the Trustee that it abandoned 11 wells in 2012, 11 wells in 2013 and 8 wells in 2014 as the Company considered them uneconomic and will continue to evaluate an additional 10 to 20 wells in 2015. It is currently unclear what impact the bankruptcy proceeding will have on this process. If the Company decides to suspend production or abandon any such additional wells, such decision could adversely affect the Trust’s future revenue stream, and if a significant number of wells are abandoned, it could cause a termination of the Trust. See “Item 1 — Business — Description of the Trust — Termination and Liquidation of the Trust” and “Item 1A — Risk Factors” in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 23, 2015, which is accessible on the SEC’s website at www.sec.gov, for additional information. Contents

~~The~~ For ~~Trust~~the isthree ~~named~~and asnine-month aperiods ~~defendant~~ended ~~in an action~~September 30, ~~styled~~ ~~Southwest Royalties~~2015, ~~Inc.~~in v.addition ~~Dominion~~to ~~Black~~not ~~Warrior~~receiving ~~Basin,~~a ~~Inc.,~~distribution etto ~~al., filed in~~ the ~~Circuit~~Trust ~~Court~~representing payment of ~~Fayette~~Royalty ~~County~~Interests ~~Alabama~~for ~~on October 5, 2007 regarding~~ the ~~quieting~~production months of April ~~title~~through inSeptember ~~certain~~2015 ~~oil~~the ~~and~~Trust ~~gas~~was ~~rights~~negatively ~~related~~impacted toby ~~property~~the ~~in Fayette~~decrease ~~and Tuscaloosa Counties~~ in ~~Alabama.~~natural ~~The~~gas ~~plaintiff~~production ~~alleges~~and ~~that~~by ~~defendants~~lower ~~are knowingly producing~~ gas inprices, ~~violation~~as ofcompared with the ~~deeds~~three inand ~~question.~~nine-month ~~The~~periods ~~plaintiff~~ended isSeptember 30, ~~also~~2014. ~~alleging~~Natural ~~conversion of~~ gas, ~~continuing~~prices ~~trespass~~are byinfluenced ~~defendants on the~~by ~~plaintiff’s~~many ~~property,~~factors ~~and~~such ~~suppression~~as ofseasonal ~~material~~temperatures, ~~facts~~domestic bydemand ~~defendants,~~ and ~~the~~other ~~plaintiff~~factors isthat ~~requesting~~are anbeyond ~~accounting,~~the ~~injunctive~~control ~~relief~~of ~~and~~the ~~compensatory~~Trustee. ~~and~~Production ~~punitive~~taxes ~~damages,~~are ~~plus~~based ~~court~~on ~~costs~~revenues ~~and~~rather ~~attorneys~~than ~~fees~~production volumes. ~~The~~Accordingly, ~~Trustee~~production ~~does~~taxes did not ~~believe~~fluctuate ~~this~~proportionately ~~litigation~~to ~~will have a material effect on~~ the ~~Trust’s~~decrease ~~financial~~in ~~statements~~volumes.

~~Use~~Interest income during the third quarter of ~~Estimates~~2015 amounted to $4 compared to $26 for the same period in 2014. Interest income during the nine months ended September 30, 2015 amounted to $31 compared to $176 for the nine months ended September 30, 2014. The decrease in interest income in the third quarter of 2015 as compared to the third quarter of 2014 is primarily due to the lack of funds to invest and earn interest.

~~The~~General ~~preparation~~and administrative expenses during the third quarter of ~~financial~~2015 ~~statements~~amounted into ~~conformity~~$640,054 ~~with~~compared to $273,993 in the ~~basis~~third quarter of ~~accounting~~2014. ~~described~~General ~~above~~and ~~requires~~administrative ~~management~~expenses during the nine months ended September 30, 2015 amounted to ~~make~~$1,307,904 ~~estimates~~compared ~~and assumptions~~to ~~that~~$956,037 ~~affect~~for the ~~reported~~nine ~~amounts~~months ended ofSeptember 30, ~~certain~~2014. ~~assets~~For these periods, ~~liabilities~~these expenses were primarily related to general and administrative services provided by Walter Exploration & Production, ~~revenues~~the Trustee and ~~expenses~~American asStock Transfer & Trust Company, the transfer agent, the preparation of ~~and~~periodic reports for submission to the ~~reporting~~SEC and to Unitholders during the period and legal fees related to the Walter Energy bankruptcy proceeding described under Note 6 to the condensed financial statements of the Trust in this Form 10-Q. ~~Actual~~The ~~results~~increase ~~may~~in ~~differ~~general ~~from~~and ~~such~~administrative ~~estimates~~expenses in the third quarter of 2015 as compared to the third quarter of 2014 is primarily legal fees related to the Walter Energy bankruptcy proceeding.

The distributable loss for the third quarter of 2015 was $640,050, or a loss of $0.08 per Unit, compared to distributable income for the third quarter of 2014 of $1,574,332, or $0.20 per Unit. Distributable ~~Income~~income ~~Per~~for the nine months ended September 30, 2015 was $1,439,261, or $0.18 per Unit, compared to $4,440,130, or $0.57 per Unit for the nine months ended September 30, 2014. As a result of rulings by the Bankruptcy Court related to the Walter Energy bankruptcy proceeding described under Note 6 to the condensed financial statements of the Trust in this Form 10-Q, the Trust does not anticipate making any further distributions in 2015.

~~Basic distributable~~Critical ~~income~~Accounting ~~per~~Policies unit is computed by dividing distributable income by the weighted average units outstanding. Distributable income per unit assuming dilution is computed by dividing distributable income by the weighted average number of units and ~~equivalent~~Estimates ~~units outstanding. The Trust had no equivalent units outstanding for any period presented, thus basic distributable income per unit and diluted distributable income per unit are the same.~~

~~New~~The ~~Accounting~~Trust’s ~~Pronouncements~~financial statements reflect the selection and application of accounting policies that require the Trust to make significant estimates and assumptions. The following are some of the more critical judgment areas in the application of accounting policies that currently affect the Trust’s financial condition and results of operations.

~~There~~Basis ~~are no~~of ~~new~~Accounting ~~accounting pronouncements that are expected to have a significant impact on the Trust’s financial statements.~~

~~Forward-Looking~~The financial ~~Statements~~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 accounting principles generally accepted in the United States of America. Preparation of the Trust’s financial statements on such basis includes the following:

~~This~~• ~~report~~Royalty onincome ~~Form~~and ~~10-Q~~interest ~~includes~~income ~~“forward-looking~~are ~~statements”~~recorded ~~within~~in the ~~meaning~~period ofin ~~Section 27A~~which ofamounts ~~the Securities~~are ~~Act~~received ofby ~~1933, as amended, and Section 21E of~~ the ~~Securities~~Trust ~~Exchange~~rather ~~Act of 1934, as amended (the “Exchange Act”). All statements other~~ than ~~statements of historical fact included~~ in ~~this~~the ~~Form~~period ~~10-Q, including, without limitation, statements contained in this “Trustee’s Discussion and Analysis~~ of ~~Financial~~production ~~Condition~~ and ~~Results of Operations” regarding the Trust’s financial position and industry conditions~~accrual, ~~are forward-looking statements~~respectively. ~~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.~~

19• General and administrative expenses recorded are based on liabilities paid and cash reserves established out of cash received.

~~Item 3.~~• ~~Quantitative~~Amortization of the Royalty Interests is calculated on a unit-of-production basis and ~~Qualitative~~charged ~~Disclosures~~directly ~~About~~to ~~Market~~trust ~~Risk.~~corpus when revenues are received.

~~The~~• ~~Trust~~Impairment invests in no derivative financial instruments and has no foreign operations or long-term debt instruments. Other than the Trust’s ability to periodically borrow money as necessary to pay expenses, liabilities and obligations of the ~~Trust~~Royalty ~~that~~Interests ~~cannot be paid out of cash held by the Trust, the Trust~~ is ~~prohibited~~charged ~~from~~directly ~~engaging in borrowing transactions. The amount of any such borrowings is unlikely~~ to bethe ~~material~~trust tocorpus ~~the~~when ~~Trust~~incurred.

~~The~~• ~~Trust~~Distributions ~~periodically holds short-term investments acquired with funds held by the Trust pending distribution~~ to Unitholders ~~and~~are ~~funds~~recorded ~~held~~when indeclared 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 which may be held by the ~~Trust, the~~ Trustee ~~believes~~(see ~~that~~Note ~~the~~5 ~~Trust is not subject~~ to ~~any material interest rate risk. Funds held by~~ the ~~Trust~~condensed ~~pending~~financial ~~distribution to Unitholders and in reserve for the payment of Trust expenses and liabilities are invested in a fund that holds only U~~statements).S. Treasury Securities. Additionally, the Trust’s future royalty income may be subject to risks relating to the creditworthiness of the operators of the Underlying Properties and other purchasers of crude oil and natural gas produced from the Underlying Properties, as well as risks associated with fluctuations in the price of crude oil and natural gas. See “Item 1A - Risk Factors - Future royalty income may be subject to risks relating to the creditworthiness of third parties” in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 23, 2015, which is accessible on the SEC’s website at www.sec.gov. The Trust does not engage in transactions in foreign currencies which could expose the Trust or Unitholders to any foreign currency related market risk.

~~Item 4.~~The ~~Controls~~financial ~~and~~statements ~~Procedures.~~of the Trust differ from financial statements prepared in accordance with accounting principles generally accepted in the United States of America because royalty income is not accrued in

As16 of the end of the period covered by this report, 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 Rules 13a-15 and 15d-15. Based upon that evaluation, the Trustee concluded that the Trust’s disclosure controls and procedures are effective in timely 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 Exchange Act and are effective in ensuring that information required to be disclosed by the Trust in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Trustee to 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 the Company. There has not been any change in the Trust’s internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

20Table of Contents

~~PART~~ the IIperiod -of ~~OTHER~~production, ~~INFORMATION~~general and administrative expenses recorded are based on liabilities paid and cash reserves established rather than on an accrual basis, and amortization of the Royalty Interests is not charged against operating results. This comprehensive basis of accounting other than accounting principles generally accepted in the United States of America corresponds to the accounting permitted for royalty trusts by the SEC, as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts.

~~Item 1.~~Impairment ~~Legal Proceedings.~~

~~For~~The ~~a discussion~~Trustee ofroutinely ~~legal~~reviews ~~proceedings,~~the ~~see~~Trust’s ~~the~~Royalty ~~information~~Interests ~~under~~in gas properties for impairment whenever events or circumstances indicate that the ~~heading~~carrying ~~“Item~~amount 3of an asset may not be recoverable. ~~Legal~~If ~~Proceedings”~~an inimpairment event occurs and it is determined that the carrying value of the Trust’s ~~Annual~~Royalty ~~Report~~Interests onmay ~~Form~~not ~~10-K~~be ~~for~~recoverable, an impairment will be recognized as measured by the amount ~~year~~by ~~ended~~which ~~December 31,~~the ~~2014~~carrying ~~filed~~amount ~~with~~of the ~~SEC~~Royalty onInterests ~~March 23~~exceeds ~~2015~~the fair value of these assets, which ~~is accessible~~would onlikely be measured by discounting projected cash flows. Given the ~~SEC’s~~uncertainty ~~website~~of atthe ~~www~~impact from the ongoing Walter Energy, Inc.~~sec.gov.~~ bankruptcy ~~There~~and ~~have~~the ~~been~~uncertain nostatus ~~material~~of ~~developments~~the incourt rulings as of this filing date (see Note 6 to the ~~legal~~condensed ~~proceedings~~financial ~~disclosed~~statements inof the Trust’s ~~Annual~~in ~~Report~~this on Form 10-KQ), ~~for~~the Trust has recorded an impairment of $3.3 million during the ~~year~~three-month period ended ~~December~~September 3130, 2015. The impairment resulted in a non-cash charge to trust corpus and did not affect the Trust’s distributable income. There were no impairments in the carrying value of the Royalty Interests during 2014.

~~Items~~Revenue 1ARecognition ~~through 5. Not applicable.~~

~~Item~~Revenues 6from Royalty Interests are recognized in the period in which amounts are received by the Trust. ~~Exhibits~~Royalty income received by the Trust in a given calendar year will generally reflect the proceeds, on an entitlements basis, from natural gas produced and sold for the twelve-month period ended September 30th in that calendar year. Royalty income received by the Trust in the third quarter of 2015 generally reflects the proceeds, on an entitlements basis, from natural gas produced and sold in the second quarter of 2015.

3.1		Trust Agreement of Dominion Resources Black Warrior Trust dated as of May 31, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank of Texas, N.A. (filed as Exhibit 3.1 to Dominion Resources, Inc.’s Registration Statement on Form S-3 (No. 33-53513), and incorporated herein by reference).
3.2		First Amendment of Trust Agreement of Dominion Resources Black Warrior Trust dated as of June 27, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 3.2 to the Registrant’s Form 10-Q for the quarter ended June 30, 1994 and incorporated herein by reference).
31.1		Certification required by Rule 13a-14(a) or Rule 15d-14(a).
32.1		Certification required by Rule 13a-14(a) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002.

Reserve Disclosure

21Independent petroleum engineers estimate the net proved reserves attributable to the Royalty Interests. In accordance with FASB guidance, estimates of future net revenues from proved reserves have been prepared using the average market gas prices over the prior 12-month period or applicable contract price as of December 31, as appropriate, and related costs. Numerous uncertainties are inherent in estimating volumes and the value of proved reserves and in projecting future production rates and the timing of development of non-producing reserves. Such reserve estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production may be substantially different from the reserve estimates.

~~SIGNATURES~~Contingencies

~~Pursuant~~Contingencies related to the ~~requirements~~Underlying ofProperties that are unfavorably resolved would generally be reflected by the ~~Securities~~Trust ~~Exchange~~as ~~Act~~reductions to future royalty income payments to the Trust with corresponding reductions to cash distributions to Unitholders. The Trustee is aware of ~~1934~~no such items as of September 30, ~~the~~2015, ~~registrant~~other ~~has~~than ~~duly~~as ~~caused~~set ~~this~~forth ~~report~~in Note 6 to bethe ~~signed~~condensed onfinancial ~~its~~statements ~~behalf~~of by the ~~undersigned~~Trust ~~thereunto~~appearing ~~duly~~elsewhere ~~authorized~~in this Form 10-Q.

~~DOMINION~~Use ~~RESOURCES~~of ~~BLACK~~Estimates ~~WARRIOR TRUST By: SOUTHWEST BANK, TRUSTEE By: /s/ RON E. HOOPER Ron E. Hooper SVP Royalty Trust Management~~

~~Date:~~The ~~August 14~~preparation of financial statements in conformity with the basis of accounting described above requires management to make estimates and assumptions that affect the reported amounts of certain assets, ~~2015~~liabilities, revenues and expenses as of and for the reporting period. Actual results may differ from such estimates.

~~(The~~Distributable ~~Trust~~Income ~~has~~Per noUnit ~~directors or executive officers.)~~

22Basic distributable income per unit is computed by dividing distributable income by the weighted average units outstanding. Distributable income per unit assuming dilution is computed by dividing distributable income by the weighted average number of units and equivalent units outstanding. The Trust had no equivalent units outstanding for any period presented, thus basic distributable income per unit and diluted distributable income per unit are the same.

~~Index~~17 ~~to Exhibits~~

Exhibit Number		Exhibit
3.1 —		Trust Agreement of Dominion Resources Black Warrior Trust dated as of May 31, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank of Texas, N.A. (filed as Exhibit 3.1 to Dominion Resources, Inc.’s Registration Statement* on Form S-3 (No. 33-53513), and incorporated herein by reference).
3.2 —		First Amendment of Trust Agreement of Dominion Resources Black Warrior Trust dated as of June 27, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 3.2 to the Registrant’s Form 10-Q for the quarter ended June 30, 1994 and incorporated herein by reference).
31.1 —		Certification required by Rule 13a-14(a) or Rule 15d-14(a).
32.1 —		Certification required by Rule 13a-14(a) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002.

*New OnAccounting ~~its~~Pronouncements ~~own behalf and as sponsor of the Dominion Resources Black Warrior Trust~~

23There are no new accounting pronouncements that are expected to have a significant impact on the Trust’s financial statements.

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 (the “Exchange Act”). All statements other than statements of historical fact included in this 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, industry conditions and the Walter Energy, Inc. bankruptcy and its impact on 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 Trust invests in no derivative financial instruments and has no foreign operations or long-term debt instruments. 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 ability to obtain such financing may be impaired as a result of the bankruptcy matter filed on behalf of the Debtors and its impact on the payment on the Royalty Interests 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 which may be held by the Trust, the Trustee believes that the Trust is not subject to any material interest rate risk. Funds held by the Trust pending distribution to Unitholders and in reserve for the payment of Trust expenses and liabilities are invested in a fund that holds only U.S. Treasury Securities. Additionally, the Trust’s future royalty income may be subject to risks relating to the creditworthiness of the operators of the Underlying Properties and other purchasers of crude oil and natural gas produced from the Underlying Properties, as well as risks associated with fluctuations in the price of crude oil and natural gas. See Note 6 to the condensed financial statements of the Trust appearing elsewhere in this Form 10-Q for additional information regarding the bankruptcy matter filed on behalf of the Debtors and its impact on the payment on the Royalty Interests to the Trust. See “Item 1A - Risk Factors - Future royalty income may be subject to risks relating to the creditworthiness of third parties” in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 23, 2015, which is accessible on the SEC’s website at www.sec.gov, and “Part II — Other Information — Item 1A. Risk Factors” below. The Trust does not engage in transactions in foreign currencies which could expose the Trust or Unitholders to any foreign currency related market risk.

Item 4. Controls and Procedures.

As of the end of the period covered by this report, 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 Rules 13a-15 and 15d-15. Based upon that evaluation, the Trustee concluded that the Trust’s disclosure controls and procedures are effective in timely 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 Exchange Act and are effective in ensuring that information required to be disclosed by the Trust in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Trustee to 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 the Company. There has not been any change in the Trust’s internal control over financial reporting during the period covered by this report 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.

For a discussion of legal proceedings, see the information above in Note 6 to the condensed financial statements of the Trust in this Form 10-Q.

Item 1A. Risk Factors

Except as set forth below, there have been no material changes from the risk factors previously disclosed under the heading “Item 1A. Risk Factors” in the Trust’s Annual Report filed on Form 10-K for the year ended December 31, 2014.

The Trust will be terminated upon the occurrence of certain events.

Pursuant to the terms of the Trust Agreement, the Trust will terminate upon the occurrence of: (i) an affirmative vote of the holders of not less than 66 2/3 percent of the outstanding Units to terminate the Trust; (ii) such time as the ratio of the cash amounts received by the Trust attributable to the Royalty Interests in any calendar quarter to administrative costs of the Trust for such calendar quarter is less than 1.2 to 1.0 for two consecutive calendar quarters; or (iii) March 1 of any year if it is determined, based on a reserve report as of December 31 of the prior year prepared by a firm of independent petroleum engineers mutually selected by the Trustee and the Company, that the net present value (discounted at 10 percent) of estimated future net revenues from proved reserves attributable to the Royalty Interests is equal to or less than $5 million. With respect to (ii) above, the ratio of cash amounts received to administrative costs for the first, second and third quarters of 2015 were 6.3 to 1.0, 2.8 to 1.0 and 0 to 1.0, respectively, and with (iii) above, the net present value of the estimated future net revenues computed as described above by the independent petroleum engineers as of December 31, 2014 was approximately $27.5 million. While the results of these computations will not trigger an early termination of the Trust as of September 30, 2015, if Walter Energy, Inc. does not pay a distribution to the Trust during the fourth quarter of 2015, this will cause the Trust’s ratio of cash received to administrative costs to fall below 1.2 to 1.0 for a second consecutive calendar quarter in 2015, and, accordingly, result in an early termination of the Trust. The Trust had not received any proceeds from Walter Energy, Inc. as of November 23, 2015, the filing date of this Form 10-Q. In addition, future computations are subject to the numerous uncertainties in estimating the future net revenues as described in “Item 1A — Risk Factors — 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” of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2014, including changes in pricing, costs and production volumes. Additionally, the Company notified the Trustee that it abandoned 11 wells in 2012, 11 wells in 2013, and 8 wells in 2014 as it considered them uneconomic and that it is continuing to study the economic viability of an additional 10 to 20 wells within the Underlying Properties in 2015, as a result of which the Company could decide to suspend production or abandon such additional wells. As a result, the ability of the Trust’s ratio of cash receipts to expenses or the ability of the reserves to exceed the threshold in the future is uncertain. Following termination, the Trustee will use best efforts to sell any remaining Royalty Interests then owned by the Trust and the net proceeds of any sale would be distributed to Unitholders. There is no assurance that any such sale will be on terms acceptable to all Unitholders. In the Trust’s Annual Report filed on Form 10-K for the year ended December 31, 2014, “Item 1 — Business — Description of the Trust — Termination and Liquidation of the Trust” discusses consequences including tax consequences that may result to Unitholders, in the event Trust assets are sold and the Trust is terminated.

Future royalty income may be subject to risks relating to the creditworthiness of third parties, including the Walter Energy, Inc. bankruptcy proceedings.

The Trust does not lend money and has limited ability to borrow money, which the Trustee believes limits the Trust’s risk from the 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 other purchasers of the natural gas produced from the Underlying Properties, as well as risks associated with fluctuations in the price of natural gas. For example, the Walter Energy bankruptcy proceeding described under Note 6 to the condensed financial statements of the Trust in this Form 10-Q may result in the cessation of royalty income to the Trust.

Items 2 through 5. Not applicable.

Item 6.

Exhibits.



3.1		Trust Agreement of Dominion Resources Black Warrior Trust dated as of May 31, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank of Texas, N.A. (filed as Exhibit 3.1 to Dominion Resources, Inc.’s Registration Statement on Form S-3 (No. 33-53513), and incorporated herein by reference).

3.2		First Amendment of Trust Agreement of Dominion Resources Black Warrior Trust dated as of June 27, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 3.2 to the Registrant’s Form 10-Q for the quarter ended June 30, 1994 and incorporated herein by reference).

31.1		Certification required by Rule 13a-14(a) or Rule 15d-14(a).

32.1		Certification required by Rule 13a-14(a) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002.

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.


DOMINION RESOURCES BLACK WARRIOR TRUST

By:		Southwest Bank, in its capacity as trustee of Dominion Resources Black Warrior Trust and not in its individual capacity or otherwise

By:		/s/ RON E. HOOPER
		Ron E. Hooper
		SVP Royalty Trust Management

Date: November 23, 2015

(The Trust has no directors or executive officers.)

Index to Exhibits


Exhibit Number		Exhibit

3.1 —		Trust Agreement of Dominion Resources Black Warrior Trust dated as of May 31, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank of Texas, N.A. (filed as Exhibit 3.1 to Dominion Resources, Inc.’s Registration Statement* on Form S-3 (No. 33-53513), and incorporated herein by reference).

3.2 —		First Amendment of Trust Agreement of Dominion Resources Black Warrior Trust dated as of June 27, 1994, by and among Dominion Black Warrior Basin, Inc., Dominion Resources, Inc., Mellon Bank (DE) National Association and NationsBank, N.A. (as successor to NationsBank of Texas, N.A.) (filed as Exhibit 3.2 to the Registrant’s Form 10-Q for the quarter ended June 30, 1994 and incorporated herein by reference).

31.1 —		Certification required by Rule 13a-14(a) or Rule 15d-14(a).

32.1 —		Certification required by Rule 13a-14(a) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002.

*	On its own behalf and as sponsor of the Dominion Resources Black Warrior Trust

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