-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BMZ6Efzws/UH77egDMRhR1gYE4UBOHnSFFRsuFuNB3Svp0kbaHUe49TjOgPZzpws 9Sn+7qFBC1UYIShqO5Kgbg== 0000106455-08-000012.txt : 20080425 0000106455-08-000012.hdr.sgml : 20080425 20080425134525 ACCESSION NUMBER: 0000106455-08-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080421 ITEM INFORMATION: Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080425 DATE AS OF CHANGE: 20080425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESTMORELAND COAL CO CENTRAL INDEX KEY: 0000106455 STANDARD INDUSTRIAL CLASSIFICATION: BITUMINOUS COAL & LIGNITE SURFACE MINING [1221] IRS NUMBER: 231128670 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11155 FILM NUMBER: 08776985 BUSINESS ADDRESS: STREET 1: 2 NORTH CASCADE AVENUE 14TH FLOOR CITY: COLORADO SPRINGS STATE: CO ZIP: 80903 BUSINESS PHONE: 7194422600 MAIL ADDRESS: STREET 1: 2 N CASCADE AVE STREET 2: # 14THFL CITY: COLORADO SPRINGS STATE: CO ZIP: 80903-1614 8-K 1 wcc_8k042508.htm FORM 8-K Form 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act 1934


Date of report (Date of earliest event reported):   April 21, 2008

WESTMORELAND COAL COMPANY
(Exact Name of Registrant as Specified in Charter)

Delaware 001-11155 23-1128670
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)

2nd Floor, 2 North Cascade Avenue, Colorado Springs, CO   80903
(Address of Principal Executive Offices)   (Zip Code)


Registrant's telephone number, including area code: (719) 442-2600

______________________________________________________
(Former Name or Former Address, if Changed Since Last Report)

               Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the obligation of the registrant under any of the following provisions:

             Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

             Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Item 5.02.   Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

               On April 21, 2008, the registrant appointed D.L. Lobb as its Chief Executive Officer and President, effective as of April 28, 2008. Mr. Lobb joins the Company from Peabody Energy Corporation, where, since April 2005, he was Group Executive of Peabody’s Powder River Basin operations, the largest of Peabody’s regions. While at Peabody, Mr. Lobb had overall enterprise responsibility for three operating mines, including the largest surface coal mine in the U.S., representing total sales of approximately 140 million tons per year. Prior to his service at Peabody, from March 2003 through April 2005, Mr. Lobb served as Operations Manager, Veladero Project for Barrick Gold Corporation, where he was in charge of developing the Veladero gold mine from an exploration project into a fully operational mining complex.

               In connection with his appointment, the registrant agreed to provide Mr. Lobb with the following compensation:

      Annual salary paid at a rate of $500,000 per year.

      Bonus opportunity under the registrant’s annual incentive plan between 70% and 200% of annual salary, with the bonus to be determined by the board of directors or the compensation and benefits committee in its discretion, but for 2008 Mr. Lobb shall be guaranteed to receive a bonus of not less than 70% of the amount paid to him as salary in 2008, paid at such time in 2009 as the registrant pays bonuses under the annual incentive plan to its senior executives.

      A grant, under the registrant’s 2007 Equity Incentive Plan for Employees and Non-Employee Directors, of 100,000 shares of restricted stock, which shares shall be subject to forfeiture upon the termination of Mr. Lobb’s employment with the registrant, to the extent not vested prior to such date. The restricted shares will vest in three equal installments on the first, second and third anniversaries of the date of grant.

      Long term incentive compensation in such amounts and at such times as may be determined by the board of directors or the compensation and benefits committee in its discretion.

      For 2008, additional compensation of $200,000, paid either in cash or stock as Mr. Lobb and the board of directors shall agree, paid at such time in 2009 as the Corporation pays bonuses under the annual incentive plan to its senior executives.

      Relocation assistance.

      Participation in the benefit programs offered to the registrant’s other executive officers.

               On April 21, 2008, Keith E. Alessi informed the registrant that he is resigning as Chief Executive Officer and President of the registrant, effective April 28, 2008. Mr. Alessi will continue to serve as a member of the board of directors of the registrant and will stand for re-election to the board of directors at the registrant’s annual meeting of stockholders scheduled for May 15, 2008. Mr. Alessi will serve as a consultant to the registrant for the period from April 28, 2008 through May 15, 2008, and will be entitled to the following compensation for that period:


-1-

      Consulting fees paid at a rate of $25,000 per month.

      Reimbursement at the normal commercial, coach rate if Mr. Alessi uses his personal airplane while providing services to the registrant.

Item 7.01.   Regulation FD Disclosure.

               On April 22, 2008, the registrant issued a press release entitled, “Westmoreland Announces Hiring of D.L. Lobb as President and CEO.” A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

Item 9.01.   Financial Statements and Exhibits.

(d) Exhibits

  Exhibit 99.1 Press release entitled, “Westmoreland Announces Hiring of D.L. Lobb as President and CEO,” issued by the registrant on April 22, 2008.


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SIGNATURE

               Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 25, 2008


WESTMORELAND COAL COMPANY
   
By:  /s/ Morris W. Kegley
Name: Morris W. Kegley
Title: General Counsel and Assistant Secretary


-3-

EXHIBIT INDEX

Exhibit No. Description

99.1 Press release entitled, "Westmoreland Announces Hiring of D.L. Lobb as President and CEO," issued by the registrant on April 22, 2008.


-4-

EX-99 2 wcc_8k042508ex991.htm EXHIBIT 99.1 Exhibit 99.1

EXHIBIT 99.1

Westmoreland Coal Company
(719) 442-2600 - Telephone
2 N. Cascade Ave., 2nd Floor
Colorado Springs, CO 80903


Westmoreland Announces Hiring of
D.L. Lobb as President and CEO



               Colorado Springs, CO– April 22, 2008 — Westmoreland Coal Company (AMEX:WLB) today announced that it has hired D.L. Lobb as President and Chief Executive Officer effective April 28, 2008. Mr. Lobb joins the Company from Peabody Energy Corporation, where he was Group Executive of Peabody’s Powder River Basin operations, the largest of Peabody’s regions. While at Peabody, Mr. Lobb had overall enterprise responsibility for three operating mines, including the largest surface coal mine in the U.S., representing total sales of approximately 140 million tons per year.

               The Company also announced that Keith E. Alessi, the Company’s current President and CEO will be transitioning to a new role. Mr. Alessi will remain on the Board of Directors and will be standing for re-election to the Board at the 2008 annual meeting scheduled for May 15. If elected to the Board, he has agreed to serve as the Company’s Executive Chairman of the Board. The Company’s current Chairman, Robert E. Killen, will retire from the Board at the expiration of his current term in May.

               “We are delighted to welcome D.L. Lobb to Westmoreland,” said Robert E. Killen, Westmoreland’s Chairman of the Board. “D.L. is one of America’s premier coal executives, operators, and leaders and we anticipate that his depth of mining experience will help enhance the value of Westmoreland’s operations and provide the leadership necessary to expand our business. I am pleased to report that we expect D.L. to join the Board of Directors following the 2008 Annual Meeting. His participation will be a major asset as Westmoreland energizes its long-term strategic business plan for sustainable growth.”

               “We have been fortunate to have Keith Alessi serve as our President and CEO over the past year and we have completed a number of very important strategic, operational, and financial initiatives under his leadership,” continued Killen. “We expect a very smooth transition of duties from Keith to D.L. as a result of Keith’s continued involvement with the Company as a valued member of the Board.”

               “I am excited about joining Westmoreland,” said D.L. Lobb. “Westmoreland has terrific people and properties. I look forward to working with the Company’s team to drive the business forward by focusing on safety and productivity and adopting a continuous improvement mentality in the way we do business.”

               “On behalf of Westmoreland, I want to thank Bob Killen for his years of service to the Company,” said Mr. Alessi, President and CEO. “Bob has been a director since 1996. In that period, the Company transitioned its principal business from Eastern, underground operations, to Western, surface mining. Over the last year, the Board and management have refocused our strategic vision to our core competency, coal and we have reshaped our operation at many levels. This would not have been possible without Bob’s leadership. I am personally honored to have served with Bob.”

               Westmoreland engaged Russell Reynolds Associates to assist it with the executive search.

1

               Westmoreland Coal Company is the oldest independent coal company in the United States and a developer of highly clean and efficient independent power projects. The Company’s coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its current power operations include ownership and operation of the two-unit ROVA coal-fired power plant in North Carolina and an interest in a natural gas-fired power plant in Colorado. Westmoreland is dedicated to meeting America’s dual goals of low-cost power and a clean environment. For more information visit www.westmoreland.com.


Safe Harbor Statement

               Throughout this news release, the Company makes statements which are not historical facts or information and that may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include, but are not limited to, the information set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations. For example, words such as “may,” “will,” “should,” “estimates,” “predicts,” “potential,” “continue,” “strategy,” “believes,” “anticipates,” “plans,” “expects,” “intends,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievements, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions; the material weaknesses in the Company’s internal controls over financial reporting identified in its Annual Report on Form 10-K for the year ended December 31, 2007 (“our 2007 Form 10-K”), the associated ineffectiveness of the Company’s disclosure controls; health care cost trends; the cost and capacity of the surety bond market; the Company’s ability to pay the preferred stock dividends that are accumulated but unpaid; the Company’s ability to retain key senior management; the Company’s access to financing; the Company’s ability to maintain compliance with debt covenant requirements or obtain waivers from its lenders in cases of non-compliance; the Company’s ability to achieve anticipated cost savings and profitability targets; the Company’s ability to successfully identify new business opportunities; the Company’s ability to negotiate profitable coal contracts, price reopeners and extensions; the Company’s ability to predict or anticipate commodity price changes; the Company’s ability to maintain satisfactory labor relations; changes in the industry; competition; the Company’s ability to utilize its deferred income tax assets; the ability to reinvest cash, including cash that has been deposited in reclamation accounts, at an acceptable rate of return; weather conditions; the availability of transportation; price of alternative fuels; costs of coal produced by other countries; the demand for electricity; the performance of ROVA and the structure of ROVA’s contracts with its lenders and Dominion Virginia Power; the effect of regulatory and legal proceedings; environmental issues, including the cost of compliance with existing and future environmental requirements; the Company’s ability to raise additional capital; and the other factors discussed in our 2007 Form 10-K. As a result of the foregoing and other factors, no assurance can be given as to the future results and achievement of the Company’s goals. The Company disclaims any duty to update these statements, even if subsequent events cause its views to change.


# # #

Contact: Diane Jones   (719) 442-2600

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