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 of 1934

Date of Report (Date of earliest event reported): November 12, 2010

WESTMORELAND COAL COMPANY

(Exact name of registrant as specified in its charter)

Delaware	001-11155	23-1128670
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2 North Cascade Avenue, 2nd Floor, 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 filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

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

Item 1.01. Entry into a Material Definitive Agreement.

On November 12, 2010, Westmoreland Resources, Inc. (“WRI”), a wholly-owned subsidiary of Westmoreland Coal Company (the “Company”), entered into a thirty-day extension of its revolving line of credit with First Interstate Bank, Billings, Montana (“FIB”). All other terms of the borrowing remain the same during the extension period. Outstanding borrowings at November 12, 2010 were $12.6 million. During the extension period, WRI will be working with FIB to finalize the renewal of the revolving line of credit. As a result of significant increases in operating profits, a decrease in the Company’s heritage health benefit costs, and an increase in WRI’s term debt, the Company anticipates that its cash from operations and available borrowing capacity will be sufficient to meet its cash requirements for the foreseeable future. The Company projects that the margin by which it will be able to meet its cash requirements will increase over the remainder of 2010 and into 2011. The Company believes it can satisfy its liquidity needs for the foreseeable future without relying on proceeds from sales of assets or securities or other capital-raising transactions.

Forward Looking Statements. Statements made in this Current Report on Form 8-K relating to the Company’s future liquidity, capital resources and requirements and potential financing sources, and all other statements except statements of historical fact, are 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 statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and the company’s future performance are both subject to a wide range of business risks and uncertainties, including risks set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and other filings with the Securities and Exchange Commission.

Item 9.01. Financial Statements and Exhibits

Exhibit No.		Description
	10.1	Change in Terms Agreement between Westmoreland Resources, Inc. and First Interstate Bank dated November 12, 2010

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.

	WESTMORELAND COAL COMPANY
Date: November 18, 2010	By:	/s/ Kevin Paprzycki
		Kevin Paprzycki
		Chief Financial Officer

EXHIBIT INDEX

Exhibit No.		Description
	10.1	Change in Terms Agreement between Westmoreland Resources, Inc. and First Interstate Bank dated November 12, 2010

EX-10.1

Exhibit 10.1

CHANGE IN TERMS AGREEMENT

BORROWER:	Lender:
WESTMORELAND RESOURCES, INC.	FIRST INTERSTATE BANK
PO BOX 449	BILLINGS OFFICE-COMMERCIAL DEPT.
HARDIN, MT 59034-0449	401 NORTH 31st STREET
	PO BOX 30918
	BILLINGS, MT 59116

Date of Agreement: NOVEMBER 3, 2010
Note Number: 1100236355

Description of Existing Indebtedness: REVOLVING LINE OF CREDIT SHOWING A CURRENT PRINCIPAL BALANCE OF $12,600,000.00.

Description of Collateral: 10,000 SHARES OF WESTMORELAND RESOURCES STOCK PLEDGED BY WESTMORELAND COAL COMPANY AND ALL INVENTORY, CHATTEL PAPER, ACCOUNTS, GENERAL INTANGIBLES AND EQUIPMENT OF WESTMORELAND RESOURCES, INC.

Description of Change in Terms: THE MATURITY DATE IS EXTENDED TO DECEMBER 18, 2010. ALL OTHER TERMS AND CONDITIONS TO REMAIN THE SAME.

Continuing Validity. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender’s right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions.

PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE AGREEMENT.

BORROWER: WESTMORELAND RESOURCES, INC.
BY:	/s/ KEVIN PAPRZYCKI
	KEVIN PAPRZYCKI, VICE PRESIDENT
	FIRST INTERSTATE BANK
BY:	/s/ STEVE TOSTENRUD	BY:	/s/ SUSAN RIPLETT
	STEVE TOSTENRUD, VICE PRESIDENT		SUSAN M. RIPLETT, VICE PRESIDENT

CHANGE IN TERMS