Note 8 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

8.

         Commitments and Contingencies

Leases

—The Company leases office space in Lexington, Kentucky. The lease term expires in

March 2022.

Monthly rents under the lease are

$6,053.

 Remaining commitments under the lease over its term are

$308,703.

The Company leases office space in South Charleston, West Virginia for its operations management. The lease term expires on

May 1

7,

2020.

Monthly rents are

$4,725.

Total commitments remaining under the lease over its term are

$146,475.

Environmental Liabilities

—Environmental liabilities are recognized when the expenditures are considered probable and can be reasonably estimated. Measurement of liabilities is based on currently enacted laws and regulations, existing technology and undiscounted site-specific costs. Generally, such recognition would coincide with a commitment to a formal plan of action.

No

amounts have been recognized for environmental liabilities. 

Surety Bond

—In accordance with state laws, the Company is required to post reclamation bonds to assure that reclamation work is completed. Reclamation bonds outstanding at

September 30, 2017

totaled approximately

$12.2

million. 

Construction Commitments

—On

September 2, 2016,

the Company entered into a fixed price contract with a West Virginia contractor for the construction of a coal preparation plant, coal loadout and associated belting and storage facilities on the Elk Creek property for

$27.8

million. A remaining

$1.7

million under the contract is yet to be billed.