Note 12 - Related Party Transactions

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

RELATED PARTY TRANSACTIONS

NOTE 12—RELATED PARTY TRANSACTIONS

Mineral Lease and Surface Rights Agreements—Much of the coal reserves and surface rights that we control were acquired through a series of mineral leases and surface rights agreements with Ramaco Coal, LLC. Production royalty payables due to Ramaco Coal, LLC totaling $0.4 million at both December 31, 2021 and 2020, were included in accounts payable in the consolidated balance sheets. Royalties paid to Ramaco Coal, LLC in 2021, 2020 and 2019 totaled $5.7 million, $4.5 million and $9.0 million, respectively.

On-going Administrative Services—Under a Mutual Services Agreement dated December 22, 2017 but effective as of March 31, 2017, the Company and Ramaco Coal, LLC agreed to share the services of certain of each company’s employees. Each party will pay the other a fee on a quarterly basis for such services calculated as the annual base salary of each employee providing services multiplied by the percentage of time each employee spent providing services for the other party. The services will be provided for 12-month terms, but may be terminated by either party at the end of any 12-month term by providing written notice at least 30 days prior to the end of the then-current term. Charges to Ramaco Coal, LLC were $0.1 million in 2021 and $0.2 million in both 2020 and 2019.