Exhibit (a)(3)




July 31, 2007

TO:           UNIT HOLDERS OF KIEWIT ROYALTY TRUST

SUBJECT:      OFFER TO PURCHASE UNITS

Dear Unit Holder:

As  described  in  the  enclosed  Offer  to  Purchase  and  related  Letters  of
Transmittal   (the  "Offer")  the   Purchasers   named  in  the  attached  Offer
(collectively  the  "Purchasers") are offering to purchase up to 2,526,686 Units
of beneficial  interest (the "Units") in KIEWIT ROYALTY TRUST (the "Trust") at a
purchase price equal to:

                                 $0.60 per Unit
                                 --------------

The Offer will provide you with an  opportunity  to liquidate  all, or a portion
of, your investment in KIEWIT ROYALTY TRUST without the usual  transaction costs
associated with market sales or transfer fees. Reasons you may wish to sell your
Units include:

   o  UNCERTAINTY  OF  TRUST  TERMINATION.  Our  offer  provides  you  with  the
      opportunity  to receive a guaranteed  amount of money in a specified  time
      period.  The  Trustee  has  given no  indication  when the  Trust  will be
      liquidating,  if ever. The terms of the Trust  Indenture  provide that the
      Trust will  continue  until net revenues fall below  $1,000,000  for three
      consecutive years or until unit holders vote to terminate  (subject to the
      "Rule Against  Perpetutities"  savings clause which limits the term of the
      trust to 21 years after the death of all members of the board of directors
      of the predecessor to the Trust,  Peter Kiewit Sons', Inc.; the Purchasers
      believe Walter Scott, Jr. was and is a director and is still alive). Thus,
      the  Trust  could  continue  for well over 21 years or until the coal mine
      reserves are depleted sufficiently.

   o  ILLIQUIDITY OF UNITS. The relative illiquidity of the Units resulting from
      the absence of a formal trading market makes the Units difficult to sell.

   o  NO FUTURE  IRS  FILING  REQUIREMENTS.  The tax year in which you sell your
      Units will be the final year for which you will be obligated to file a K-1
      for the Trust with your tax return.  This may  represent  a  reduction  in
      costs  associated with filing  complicated  tax returns.  Your decision to
      sell  may  have  other  favorable  or  unfavorable  tax  consequences  and
      potential sellers should consult their individual tax advisers.

   o  ELIMINATION  OF RETIREMENT  ACCOUNT FEES. If you sell your Units,  you may
      avoid  incurring fees for having this investment in your IRA or retirement
      account.  Because  many  custodians  have  transfer  restrictions  against
      illiquid  alternative  assets or charge  additional  fees for holding this
      type of asset,  many  investors are faced with the task of searching for a
      way to avoid these fees.  Once our cash  payment is sent  directly to your
      retirement  account,  you are free to consolidate your retirement accounts
      or transfer the funds to a custodian that offers lower fees.

After  carefully  reading the enclosed Offer, if you elect to tender your Units,
mail (using the  enclosed  pre-addressed,  postage  paid  envelope) or fax (then
mail) a duly completed and executed copy of the Letter of  Transmittal  (printed
on purple paper),  a your  certificate  (required for  transfer),  and change of
address forms, and any other documents required by the Letter of Transmittal, to
the Depositary for the Offer at:

                         MacKenzie Patterson Fuller, LP
                  1640 School Street, Moraga, California 94556
                            Facsimile: (925) 631-9119

If you have any  questions or need  assistance,  please call the  Depositary  at
800-854-8357.

This Offer expires (unless extended) September 14, 2007.