Equity Method Investments and Membership Interests in Joint Ventures

The Company accounts for its investments and membership interests in joint ventures under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. Equity method investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. Certain of the Company's investments are in development stage companies whose success depends on factors including the receipt of permits and other regulatory environmental issues, the ability of the investee companies to raise additional funds in financial markets that can be volatile, and other key business factors, any of which may impact the Company's ability to recover its investment.

Below are the equity method investments reflected in the consolidated balance sheets:



	Investee	Knight Hawk			DTA			Millennium			Tongue River			DKRW			Tenaska			Other			Total

Balance at	January 1, 2012	$	135,225		$	16,086		$	26,324		$	12,989		$	19,715		$	15,266		$	—		$	225,605
Investments in affiliates		—			—			—			—			—			—			—			—
Advances to (distributions from) affiliates, net		(7,151		)	4,335			8,798			1,708			—			—			—			7,690
Equity in comprehensive income (loss)		20,989			(4,959		)	(2,908		)	—			(4,200		)	(2		)	—			8,920
Balance at	December 31, 2012	149,063			15,462			32,214			14,697			15,515			15,264			—			242,215
Advances to (distributions from) affiliates, net		(13,536		)	3,644			6,476			4,004			—			—			200			788
Equity in comprehensive income (loss)		17,279			(4,969		)	(2,796		)	(282		)	(1,832		)	—			—			7,400
Impairment of equity investment		—			—			—			—			(13,683		)	(15,264		)	—			(28,947		)
Balance at	December 31, 2013	152,806			14,137			35,894			18,419			—			—			200			221,456
Advances to (distributions from) affiliates, net		(12,603		)	3,774			6,742			2,541			—			—			3,600			4,054
Equity in comprehensive income (loss)		18,274			(4,173		)	(2,413		)	(220		)	—			—			(1,136		)	10,332
Balance at	December 31, 2014	$	158,477		$	13,738		$	40,223		$	20,740		$	—		$	—		$	2,664		$	235,842

The Company holds a 49% equity interest in Knight Hawk Holdings, LLC ("Knight Hawk"), a coal producer in the Illinois Basin.

The Company holds a general partnership interest of 21.875% in Dominion Terminal Associates ("DTA"), which is accounted for under the equity method. DTA operates a ground storage-to-vessel coal transloading facility in Newport News, Virginia for use by the partners. Under the terms of a throughput and handling agreement with DTA, each partner is charged its share of cash operating and debt-service costs in exchange for the right to use the facility's loading capacity and is required to make periodic cash advances to DTA to fund such costs.

The Company holds a 38% ownership interest in Millennium Bulk Terminals-Longview, LLC ("Millennium"), the owner of a brownfield bulk commodity terminal on the Columbia River near Longview, Washington. Additional future purchase consideration is due upon the completion of certain project milestones. Millennium continues to work on obtaining the required approvals and necessary permits to complete dredging and other upgrades to ship coal, alumina and cementitious material from the terminal. The Company will control 38% of the terminal's throughput and storage capacity, in order to facilitate export shipments of coal off the west coast of the United States.

The Company holds a 35% membership interest in the Tongue River Holding Company, LLC ("Tongue River") joint venture. Tongue River will develop and construct a railway line near Miles City, Montana and the Company's Otter Creek reserves. The Company has the right, upon the receipt of permits and approval for construction or under other prescribed circumstances, to require the other investors to purchase all of the Company's units in the venture at an amount equal to the capital contributions made by the Company at that time, less any distributions received.

The Company holds a 24% equity interest in DKRW Advanced Fuels LLC ("DKRW"), who had entered into an Engineering, Procurement and Construction Agreement with a Chinese company to construct and commission the Medicine Bow coal-to-liquids facility. However, as the project did not progress to the next stage of development, the Company recorded an other-than-temporary impairment charge of $57.7 million in the third quarter of 2013, representing the Company's equity investment of $13.7 million and an outstanding $44.0 million loan receivable balance. The impairment charges are included on the line "Asset impairment and mine closure costs" in the consolidated statement of operations.

During the second quarter of 2013, Tenaska Trailblazer Partners, LLC ("Tenaska") announced that it was discontinuing its development plans for the Trailblazer Energy Center in Texas. As a result, the Company recorded a $20.5 million impairment charge, which consisted of its 35% equity investment of $15.3 million and a $5.2 million receivable balance related to advances for development work. The impairment charges are included on the line "Asset impairment and mine closure costs" in the consolidated statement of operations.

The Company may be required to make future contingent payments of up to $58.5 million related to development financing for certain of its equity investees. The Company’s obligation to make these payments, as well as the timing of any payments required, is contingent upon the achievement of project development milestones, which can be affected by the factors named above.