0001140361-11-026379.txt : 20110510 0001140361-11-026379.hdr.sgml : 20110510 20110510155220 ACCESSION NUMBER: 0001140361-11-026379 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20110331 FILED AS OF DATE: 20110510 DATE AS OF CHANGE: 20110510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MASSEY ENERGY CO CENTRAL INDEX KEY: 0000037748 STANDARD INDUSTRIAL CLASSIFICATION: BITUMINOUS COAL & LIGNITE SURFACE MINING [1221] IRS NUMBER: 950740960 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07775 FILM NUMBER: 11828031 BUSINESS ADDRESS: STREET 1: 4 NORTH 4TH STREET CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 9493492000 MAIL ADDRESS: STREET 1: 4 NORTH 4TH STREET CITY: RICHMOND STATE: VA ZIP: 23219 FORMER COMPANY: FORMER CONFORMED NAME: FLUOR CORP/DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FLUOR CORP LTD DATE OF NAME CHANGE: 19710624 10-Q 1 form10q.htm MASSEY ENERGY COMPANY 10-Q 3-31-2011 form10q.htm


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

FORM 10-Q

(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2011

OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                      to                     
 
Commission File No. 001-07775
_____________

MASSEY ENERGY COMPANY
 (Exact name of registrant as specified in its charter)
_____________
 
Delaware
95-0740960
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification Number)
   
4 North 4th Street, Richmond, Virginia
23219
(Address of principal executive offices)
(Zip Code)

(804) 788-1800
 (Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):
 
Large accelerated filer x
Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of April 20, 2011, there were 103,101,921 shares of common stock, $0.625 par value (“Common Stock”), outstanding.
 


 
1

 

MASSEY ENERGY COMPANY

FORM 10-Q

For the Quarterly Period Ended March 31, 2011



PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

MASSEY ENERGY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
UNAUDITED

   
Three Months Ended
March 31,
 
   
2011
   
2010
 
Revenues
           
Produced coal revenue
  $ 831,301     $ 571,802  
Freight and handling revenue
    84,370       74,289  
Purchased coal revenue
    15,951       19,465  
Other revenue
    18,134       23,083  
Total revenues
    949,756       688,639  
                 
Costs and expenses
               
Cost of produced coal revenue
    690,408       469,936  
Freight and handling costs
    84,370       74,289  
Cost of purchased coal revenue
    15,832       20,623  
Depreciation, depletion and amortization, applicable to:
               
Cost of produced coal revenue
    86,002       64,207  
Selling, general and administrative
    11,270       262  
Selling, general and administrative
    27,274       28,109  
Other expense
    800       871  
Loss (Gain) on derivative instruments
    18,360       (36,453 )
Total costs and expenses
    934,316       621,844  
                 
Income before interest and taxes
    15,440       66,795  
                 
Interest income
    296       1,463  
Interest expense
    (25,751 )     (25,216 )
Gain on short-term investment
    -       3,780  
(Loss) income before taxes
    (10,015 )     46,822  
                 
Income tax benefit (expense)
    2,341       (13,196 )
                 
Net (loss) income
  $ (7,674 )   $ 33,626  
                 
                 
Net (loss) income per share
               
Basic
  $ (0.07 )   $ 0.39  
Diluted
  $ (0.07 )   $ 0.39  
                 
Shares used to calculate net (loss) income per share
               
Basic
    102,326       86,137  
Diluted
    102,326       87,393  
Dividends per share
  $ 0.06     $ 0.06  

See Notes to Consolidated Financial Statements


MASSEY ENERGY COMPANY
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
UNAUDITED

   
March 31,
   
December 31,
 
   
2011
   
2010
 
ASSETS
           
Current assets
           
Cash and cash equivalents
  $ 280,696     $ 327,179  
Trade and other accounts receivable, less allowance of $906
    366,114       296,770  
Inventories
    304,491       289,027  
Income taxes receivable
    12,957       10,912  
Other current assets
    208,916       193,176  
Total current assets
    1,173,174       1,117,064  
                 
Property, plant and equipment, net
    3,236,065       3,217,685  
Intangible assets, net
    106,618       120,923  
Goodwill
    36,707       36,707  
Other noncurrent assets
    111,547       118,603  
Total assets
  $ 4,664,111     $ 4,610,982  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
Current liabilities
               
Accounts payable, principally trade and bank overdrafts
  $ 255,517     $ 245,312  
Short-term debt
    9,672       12,327  
Payroll and employee benefits
    103,586       95,446  
Other current liabilities
    325,150       309,980  
Total current liabilities
    693,925       663,065  
Noncurrent liabilities
               
Long-term debt
    1,309,251       1,303,852  
Deferred income taxes
    165,172       163,383  
Pension obligation
    76,377       79,721  
Other noncurrent liabilities
    631,036       620,499  
Total noncurrent liabilities
    2,181,836       2,167,455  
Total liabilities
    2,875,761       2,830,520  
Shareholders’ equity
               
Capital stock
               
Preferred – authorized 20,000,000 shares without par value; none issued
    -       -  
Common – authorized 300,000,000 shares of $0.625 par value; issued 103,122,505 and 102,496,160 shares, respectively
    64,925       64,561  
Treasury stock
    (31,822 )     (31,822 )
Additional capital
    1,362,292       1,343,966  
Retained earnings
    512,195       526,025  
Accumulated other comprehensive loss
    (119,240 )     (122,268 )
Total shareholders’ equity
    1,788,350       1,780,462  
Total liabilities and shareholders’ equity
  $ 4,664,111     $ 4,610,982  

See Notes to Consolidated Financial Statements


MASSEY ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
UNAUDITED

   
Three Months Ended
March 31,
 
   
2011
   
2010
 
             
CASH FLOWS FROM OPERATING ACTIVITIES
           
Net (loss) income
  $ (7,674 )   $ 33,626  
Adjustments to reconcile Net (loss)  income to Cash provided by operating activities:
               
Depreciation, depletion and amortization
    97,272       64,469  
Share-based compensation expense
    2,481       2,709  
Amortization of bond discount
    5,399       5,013  
Deferred income taxes
    (146 )     3,089  
Gain on disposal of assets
    (5,579 )     (1,019 )
Gain on reserve exchange
    -       (2,313 )
Gain on insurance recovery
    -       (5,810 )
Net change in fair value of derivative instruments
    21,520       (28,017 )
Realized gain on short-term investment
    -       (3,780 )
Asset retirement obligations accretion
    4,613       4,131  
Changes in operating assets and liabilities:
               
Increase in accounts receivable
    (69,344 )     (93,743 )
Increase in inventories
    (15,464 )     (3,856 )
Decrease in other current assets
    7,056       66,572  
Increase in other assets
    (34,076 )     (9,204 )
(Increase) decrease in accrued income taxes
    (2,045 )     9,468  
Increase in accounts payable and bank overdrafts
    10,205       20,090  
Increase in other accrued liabilities
    6,967       12,685  
Increase in other noncurrent liabilities
    19,976       2,708  
Increase in pension obligation
    682       1,429  
Asset retirement obligations payments
    (1,736 )     (1,090 )
Cash provided by operating activities
    40,107       77,157  
                 
CASH FLOWS FROM INVESTING ACTIVITIES
               
Capital expenditures
    (100,804 )     (56,146 )
Proceeds from redemption of short-term investment
    -       14,644  
Proceeds from sale of assets
    6,816       1,019  
Proceeds from insurance recovery
    -       9,125  
Cash utilized by investing activities
    (93,988 )     (31,358 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES
               
Issuance of common stock
    -       466,759  
Repayments of capital lease obligations
    (2,655 )     (382 )
Repayment for 6.625% senior notes
    -       (21,949 )
Cash dividends paid
    (6,156 )     (5,167 )
Proceeds from stock options exercised
    16,209       11,490  
Income tax benefit from stock option exercises
    -       625  
Cash provided by financing activities
    7,398       451,376  
                 
(Decrease) increase in cash and cash equivalents
    (46,483 )     497,175  
Cash and cash equivalents at beginning of period
    327,179       665,762  
Cash and cash equivalents at end of period
  $ 280,696     $ 1,162,937  

See Notes to Consolidated Financial Statements
 

Notes to Consolidated Financial Statements

(1)
Significant Accounting Policies

Basis of Presentation

The consolidated financial statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States (“GAAP”) and, therefore, should be read in conjunction with the Annual Report on Form 10-K of Massey Energy Company (“we,” “our,” “us,” “Massey” or the “Company”) for the year ended December 31, 2010.  Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end.  The results of operations for the quarterly period ended March 31, 2011 are not necessarily indicative of results that can be expected for the fiscal year ending December 31, 2011.

The consolidated financial statements included herein are unaudited; however, the financial statements contain all adjustments (consisting of normal recurring accruals), which, in our opinion, are necessary to present fairly our consolidated financial position at March 31, 2011, our consolidated results of operations for the three months ended March 31, 2011 and 2010, and cash flows for the three months ended March 31, 2011 and 2010, in conformity with GAAP.

The consolidated financial statements include our accounts and the accounts of our wholly owned and majority owned direct and indirect subsidiaries.  Significant intercompany transactions and accounts are eliminated in consolidation.  We have no independent assets or operations.  We do not have a controlling interest in any separate independent operations.  Investments in business entities in which we do not have control, but have the ability to exercise significant influence over the operating and financial policies, are accounted for under the equity method.

All of our direct and substantially all of our indirect operating subsidiaries, each such subsidiary being indirectly 100% owned by us, fully and unconditionally, jointly and severally, guarantee our obligations under the 6.875% senior notes due 2013 (“6.875% Notes”), the 3.25% convertible senior notes due 2015 (“3.25% Notes”) and the 2.25% convertible senior notes due 2024 (“2.25% Notes”).  The subsidiaries not providing a guarantee of the 6.875% Notes, the 3.25% Notes and the 2.25% Notes are minor (as defined under Securities and Exchange Commission (“SEC”) Rule 3-10(h)(6) of Regulation S-X).  See Note 8 to the Notes to Consolidated Financial Statements for a more complete discussion of debt.

We have evaluated subsequent events through the date the consolidated financial statements were issued.

(2)
Merger with Alpha Natural Resources, Inc.

On January 28, 2011, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Alpha Natural Resources, Inc., a Delaware corporation (“Alpha”), and Mountain Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Alpha (“Merger Sub”), providing for the acquisition of Massey by Alpha.  Subject to the terms and conditions of the Merger Agreement, Massey will be merged with and into Merger Sub (the “Merger”), with Massey surviving the Merger as a wholly owned subsidiary of Alpha.

At the effective time of the Merger, each share of Common Stock issued and outstanding immediately prior to the effective time (other than shares owned by (i) Alpha, us or Merger Sub or their respective subsidiaries (which will be cancelled) or (ii) stockholders who have properly exercised and perfected appraisal rights under Delaware law) will be converted into the right to receive 1.025 shares of Alpha common stock and $10.00 in cash, without interest (the “Massey Merger Consideration”).  No fractional shares of Alpha common stock will be issued in the Merger, and Massey stockholders will receive cash in lieu of fractional shares, if any, of Common Stock. Immediately upon completion of the Merger, Massey stockholders will own approximately 46% of the combined company.

The consummation of the Merger is subject to certain conditions, including (i) the adoption by Massey stockholders of the Merger Agreement and (ii) the approval by the Alpha stockholders of (x) an amendment to Alpha’s certificate of incorporation to increase the number of shares of Alpha common stock that Alpha is authorized to issue in order to permit issuance of the Alpha common stock in connection with the Merger and (y) the issuance of Alpha common stock in connection with the Merger.  In addition, the Merger is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the ”HSR Act”), as amended, which has been received, as well as other customary closing conditions.


The Merger Agreement contains customary covenants, including covenants providing for each of the parties: (i) to conduct its operations in all material respects according to the ordinary and usual course of business consistent with past practice during the period between the execution of the Merger Agreement and the closing of the Merger; (ii) to use reasonable best efforts to cause the transaction to be consummated; (iii) not to initiate, solicit or knowingly encourage inquiries, proposals or offers relating to alternate transactions or, subject to certain exceptions, engage in any discussions or negotiations with respect thereto; and (iv) to call and hold a special stockholders’ meeting and, subject to certain exceptions, recommend adoption of the Merger Agreement, in our case, and amendment of the Alpha certificate of incorporation and issuance of Alpha common stock in connection with the Merger, in the case of Alpha.

The Merger Agreement also contains certain termination rights and provides that, (i) upon termination of the Merger Agreement under specified circumstances, including, but not limited to, a change in the recommendation of the Massey board of directors or termination of the Merger Agreement to enter into a written definitive agreement for a “superior proposal”, Massey will owe Alpha a cash termination fee of $251 million; (ii) upon the termination of the Merger Agreement under specified circumstances, including, but not limited to, a change in the recommendation of the board of directors of Alpha or termination of the Merger Agreement to enter into a written definitive agreement for a “superior proposal”, Alpha will owe Massey a cash termination fee of $252 million; and (iii) upon the termination of the Merger Agreement due to Alpha’s failure to obtain the required stockholder approval at the Alpha stockholders’ meeting in the absence of a competing proposal, Alpha will owe Massey a cash termination fee of $72 million. In addition, Alpha is obligated to pay a cash termination fee of $360 million to us if all the conditions to closing have been met and the Merger is not consummated because of a breach by Alpha’s lenders of their obligations to finance the Merger.

The SEC has declared effective the Form S-4 Registration Statement concerning the agreement and plan of merger between Alpha and Massey. In connection with the Merger, a definitive joint proxy statement/prospectus has been mailed to our stockholders on or about April 29, 2011.  The close of business on April 27, 2011 is the record date for determining the holders of common stock that will be entitled to notice of and to vote at each of Alpha’s and Massey’s respective special meetings of stockholders regarding the Merger and any adjournment of the special meetings.  Each of Alpha and Massey intend to hold their respective special meetings of stockholders on June 1, 2011. If the Alpha and Massey stockholders approve the Merger-related proposals at their respective special meetings, then, subject to certain other customary closing conditions, Alpha and Massey expect to close the Merger promptly after the special meetings on June 1, 2011.

(3)
Acquisition of Cumberland

On April 19, 2010, we completed the acquisition of Cumberland Resources Corporation and certain affiliated entities (“Cumberland”) for a purchase price of $644.7 million in cash and 6,519,034 shares of Common Stock.  Prior to the acquisition, Cumberland was one of the largest privately held coal producers in the United States.  Cumberland’s operations include primarily underground coal mines in Southwestern Virginia and Eastern Kentucky.  As a result of the acquisition, we obtained an estimated 415 million tons of contiguous coal reserves. We also obtained a preparation plant in Kentucky served by the CSX railroad and a preparation plant in Virginia served by the Norfolk Southern railroad.  We did not incur or assume any third-party debt as a result of the acquisition of Cumberland.  The acquisition of Cumberland increases our metallurgical coal reserves, strengthens our ability to globally market steam and metallurgical quality coal, and optimizes both operational best practices and working capital generation.
 
The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the acquisition of Cumberland occurred at the beginning of each of the periods being presented.  The unaudited pro forma results have been prepared based on estimates and assumptions that we believe are reasonable; however, they are not necessarily indicative of the consolidated results of operations had the acquisition of Cumberland occurred at the beginning of each of the periods presented or of future results of operations.

 
   
Three Months Ended March 31,
 
   
2011
   
2010
 
     (In Thousands)  
Total revenue
           
As reported
  $ 949,756     $ 688,639  
Pro forma
  $ 949,756     $ 858,490  
                 
Net (loss) income
               
As reported
  $ (7,674 )   $ 33,626  
Pro forma
  $ (7,674 )   $ 45,515  

(4)
Inventories

Inventories consisted of the following:

   
March 31, 2011
   
December 31, 2010
 
   
(In Thousands)
 
Saleable coal
  $ 194,645     $ 183,156  
Raw coal
    51,637       47,376  
Coal inventory
    246,282       230,532  
Supplies inventory
    58,209       58,495  
Total inventory
  $ 304,491     $ 289,027  

Saleable coal represents coal ready for sale, including inventories designated for customer facilities under consignment arrangements of $29.5 million and $34.8 million at March 31, 2011 and December 31, 2010, respectively.  Raw coal represents coal that generally requires further processing prior to shipment to the customer.

(5)           Other Current Assets

Other current assets are comprised of the following:

   
March 31, 2011
   
December 31, 2010
 
   
(In Thousands)
 
Longwall panel costs
  $ 13,791     $ 10,430  
Deposits
    103,259       105,216  
Other
    91,866       77,530  
Total other current assets
  $ 208,916     $ 193,176  

Deposits consist primarily of funds placed in restricted accounts with financial institutions to collateralize letters of credit that support workers’ compensation requirements, insurance and other obligations.  As of March 31, 2011 and December 31, 2010, Deposits includes $59.4 million of funds pledged as collateral to support $58.2 million of outstanding letters of credit.  In addition, Deposits at March 31, 2011 and December 31, 2010, includes  $11.6 million of United States Treasury securities supporting various regulatory obligations.  Deposits also includes $16.3 million and $17.8 million for future equipment deliveries as of March 31, 2011 and December 31, 2010, respectively.

The Other caption in the table above at March 31, 2011 and December 31, 2010 includes $42.0 million and $10.0 million, respectively, associated with the funding of a portion of our deferred compensation plan.


We have committed to the divestiture of certain assets that are not part of our short-term mining plan.  At March 31, 2011 and December 31, 2010, the carrying amount of assets held for sale totaled $18.9 million and $24.2 million, respectively, and is included in Other current assets.

(6) 
Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

   
March 31, 2011
   
December 31, 2010
 
   
(In Thousands)
 
Land, buildings and equipment
  $ 3,024,819     $ 2,983,866  
Mining properties owned in fee and leased mineral rights
  $ 1,419,522     $ 1,428,394  
Mine development
  $ 1,231,270     $ 1,221,529  
Total property, plant and equipment
    5,675,611       5,633,789  
Less accumulated depreciation, depletion and amortization
    (2,439,546 )     (2,416,104 )
Property, plant and equipment, net
  $ 3,236,065     $ 3,217,685  

Property, plant and equipment includes gross assets under capital leases of $12.3 million at December 31, 2010.

(7)
Intangible assets

As part of the acquisition of Cumberland during 2010, we acquired intangible assets with a fair value of $167.0 million.  Intangible assets are comprised of the following:

(In Thousands)
 
March 31, 2011
   
December 31, 2010
 
             
Coal sales contracts
  $ 96,870     $ 96,870  
Transportation contracts
    61,700       61,700  
Mining permits
    8,451       8,451  
Intangible assets, cost
    167,021       167,021  
Accumulated amortization
    (60,403 )     (46,098 )
Intangible assets, net
  $ 106,618     $ 120,923  

Amortization expense related to these Intangible assets was $14.3 million for the three months ended March 31, 2011.


(8)
Debt

Debt is comprised of the following:

   
March 31, 2011
   
December 31, 2010
 
   
(In Thousands)
 
             
6.875% senior notes due 2013, net of discount of $2,346 and $2,538, respectively
  $ 757,654     $ 757,462  
3.25% convertible senior notes due 2015, net of discount of $107,532 and $112,740, respectively
    551,531       546,323  
2.25% convertible senior notes due 2024
    9,647       9,647  
Capital lease obligations
    91       2,747  
Total debt
    1,318,923       1,316,179  
Amounts due within one year
    (9,672 )     (12,327 )
Total long-term debt
  $ 1,309,251     $ 1,303,852  

The weighted average effective interest rate of the outstanding borrowings was 7.3% at both March 31, 2011 and December 31, 2010.

Convertible Debt Securities

The discount associated with the 3.25% Notes is being amortized via the effective-interest method increasing the reported liability until the notes are carried at par value on their maturity date.  We separately account for the liability and equity components in a manner reflective of our nonconvertible debt borrowing rate, which was determined to be 7.75% at the date of issuance. We recognized $5.2 million and $4.8 million of pre-tax non-cash interest expense for the amortization of the discount for the three months ended March 31, 2011 and 2010, respectively.

As a result of the announcement of a June 1, 2011 expected closing date for the Merger, on May 2, 2011 the 3.25% Notes became convertible at the option of each of the holders into consideration in (a) an amount up to 100% of the 3.25% Notes’ principal amount payable in cash, plus (b) the excess of such amount, if any, payable, at our option, in cash, stock or a combination of cash and stock (collectively “Conversion Property”).  The 3.25% Notes are convertible into Conversion Property equal to 11.4542 shares of Common Stock (or, after the Merger, of Reference Property, as defined in the Indenture) per $1,000 principal amount of the 3.25% Notes.  The conversion period will remain open, at a minimum, until July 2, 2011, unless notice is provided that the Merger will not occur, and may be extended under certain circumstances.

The 2.25% Notes became callable by us at par as of April 6, 2011.  On May 2, 2011, we issued a redemption notice to the holders of the 2.25% Notes, with redemption subject to certain conditions set forth in the redemption notice, redeemable on June 1, 2011 (“Redemption Date”) subject to certain conditions, including the consummation of the Merger.  The holders of the 2.25% Notes can convert their notes into shares of Common Stock up until the close of business May 31, 2011. If all of the 2.25% Notes outstanding at March 31, 2011 are converted prior to the Redemption Date, we will have to issue 287,113 shares of Common Stock.
 
6.875% Notes

On May 4, 2011, in connection with the Merger, Alpha announced that it commenced a cash tender offer for any and all of our outstanding 6.875% Notes (the "Tender Offer").  The Tender Offer is conditioned upon satisfaction or waiver of certain conditions, including the closing of the Merger and the consummation of an offering by Alpha of one or more series of its senior notes, the net proceeds of which are sufficient to purchase the 6.875% Notes tendered in the Tender Offer.  The complete terms and conditions of the Tender Offer are set forth in the Offer to Purchase and related Letter of Transmittal that were issued by Alpha in connection with the Tender Offer.

 
(9) 
Pension Expense

Net periodic pension expense for both our qualified defined benefit pension plan and nonqualified supplemental benefit pension plan is comprised of the following components:

   
Three Months Ended
 
   
March 31,
 
   
2011
   
2010
 
   
(In Thousands)
 
Service cost
  $ 2,951     $ 2,642  
Interest cost
    4,870       4,444  
Expected return on plan assets
    (5,415 )     (4,605 )
Recognized loss
    4,141       3,491  
Amortization of prior service cost
    1       1  
Net periodic pension expense
  $ 6,548     $ 5,973  

We paid benefits to participants of the nonqualified supplemental benefit pension plan $0.1 million for the three month periods ended March 31, 2011 and 2010, respectively.  We expect to contribute approximately $0.3 million for benefit payments to participants for the nonqualified supplemental benefit pension plan in 2011.  During the first quarter of 2011 and 2010, we contributed $5.5 million and $4.6 million, respectively, to the qualified defined benefit pension plan.  We expect to make contributions totaling approximately $20 million to the qualified defined benefit pension plan in 2011.
 
(10)
Other Noncurrent Liabilities

Other noncurrent liabilities are comprised of the following:

   
March 31, 2011
   
December 31, 2010
 
   
(In Thousands)
 
Reclamation
  $ 233,431     $ 230,968  
Workers' compensation and black lung
    154,306       155,685  
Other postretirement benefits
    180,410       178,113  
Other
    62,889       55,733  
Total other noncurrent liabilities
  $ 631,036     $ 620,499  

(11)
Black Lung and Workers’ Compensation Expense

Expenses for black lung benefits and workers’ compensation related benefits include the following components:

   
Three Months Ended
 
   
March 31,
 
   
2011
   
2010
 
   
(In Thousands)
 
Self-insured black lung benefits:
           
Service cost
  $ 925     $ 1,000  
Interest cost
    1,025       775  
Amortization of actuarial (gain) loss
    275       (875 )
Subtotal black lung benefits expense
    2,225       900  
Other workers' compensation benefits
    8,118       7,473  
Total black lung and workers' compensation benefits expense
  $ 10,343     $ 8,373  


Payments for benefits, premiums and other costs related to black lung and workers’ compensation liabilities were $12.3 million and $8.4 million for the three months ended March 31, 2011 and 2010, respectively.

(12)
Other Postretirement Benefits Expense

Net periodic postretirement benefit cost includes the following components:

   
Three Months Ended
 
   
March 31,
 
   
2011
   
2010
 
   
(In Thousands)
 
Service cost
  $ 679     $ 812  
Interest cost
    2,504       2,378  
Recognized loss
    1,035       830  
Amortization of prior service credit
    (720 )     (763 )
Net periodic postretirement benefit cost
  $ 3,498     $ 3,257  

Payments for benefits related to postretirement benefit cost were $1.3 million and $1.5 million for the three months ended March 31, 2011 and 2010, respectively.

(13)
Common Stock Issuance

On March 23, 2010, we completed a registered underwritten public offering of 9,775,000 shares of our common stock, $0.625 par value per share at a public offering price of $49.75 per share, resulting in proceeds to us of $466.7 million, net of fees.  In April 2010, we used the net proceeds of this offering to fund a portion of the cash consideration for the acquisition of Cumberland.  See Note 3 to the Notes to Consolidated Financial Statements for a discussion of the acquisition of Cumberland.

(14)
Earnings Per Share

The number of shares of our Common Stock used to calculate basic earnings per share for both the three months ended March 31, 2011 and 2010, is based on the weighted average of outstanding shares of Common Stock during the respective periods.  The number of shares of Common Stock used to calculate diluted earnings per share is based on the number of shares of Common Stock used to calculate basic earnings per share plus the dilutive effect of stock options and other stock-based instruments held by our employees and directors during each period and debt securities currently convertible into shares of Common Stock during each period.  The effect of dilutive securities issuances in the amount of 0.9 million and 0.1 million shares of Common Stock for the three months ended March 31, 2011 and 2010, respectively, and were excluded from the calculation of diluted income per share of Common Stock, as such inclusion would result in antidilution.


The computations for basic and diluted (loss) income per share are based on the following per share information:

   
Three Months Ended
 
   
March 31,
 
   
2011
   
2010
 
   
(In Thousands, Except Per Share Amounts)
 
Numerator:
           
Net (loss) income - numerator for basic
  $ (7,674 )   $ 33,626  
Effect of convertible notes
    -       44  
Adjusted net (loss) income - numerator for diluted
  $ (7,674 )   $ 33,670  
                 
Denominator:
               
Weighted average shares - denominator for basic
    102,326       86,137  
Effect of stock options/restricted stock
    -       969  
Effect of convertible notes
    -       287  
Adjusted weighted average shares - denominator for diluted
    102,326       87,393  
                 
Net (loss) income per share:
               
Basic
  $ (0.07 )   $ 0.39  
Diluted
  $ (0.07 )   $ 0.39  

The 2.25% Notes are convertible by holders into shares of Common Stock during certain periods under certain circumstances.  As of March 31, 2011, the price per share of Common Stock had reached the specified threshold for conversion.  If all of the 2.25% Notes outstanding at March 31, 2011 had been eligible for conversion and were converted at that date, we would have issued 287,113 shares of Common Stock.  On May 2, 2011,we issued a redemption notice to the holders of the 2.25% Notes (see Note 8 for additional details).
 
The 3.25% Notes are convertible under certain circumstances and during certain periods into (i) cash, up to the aggregate principal amount of the 3.25% Notes subject to conversion and (ii) cash, Common Stock or a combination thereof, at our election in respect to the remainder (if any) of our conversion obligation.  As of March 31, 2011, the 3.25% Notes had not reached the specified threshold for conversion.
 
As a result of the announcement of a June 1, 2011 expected closing date for the Merger, on May 2, 2011 the 3.25% Notes became convertible at the option of each of the holders into consideration in (a) an amount up to 100% of the 3.25% Notes’ principal amount payable in cash, plus (b) the excess of such amount, if any, payable, at our option, in cash, stock or a combination of cash and stock (collectively “Conversion Property”).  The 3.25% Notes are convertible into Conversion Property equal to 11.4542 shares of Common Stock (or, after the Merger, of Reference Property, as defined in the Indenture) per $1,000 principal amount of the 3.25% Notes.  The conversion period will remain open, at a minimum, until July 2, 2011, unless notice is provided that the Merger will not occur, and may be extended under certain circumstances.


(15)
Derivative Instruments

Upon entering into each coal sales and coal purchase contract, we evaluate each of our contracts to determine if they qualify for the normal purchase normal sale (“NPNS”) exception prescribed by current accounting guidance.  We use coal purchase contracts to supplement our produced and processed coal in order to provide coal to meet customer requirements under sales contracts.  We are exposed to certain risks related to coal price volatility.  The purchases and sales contracts we enter into allow us to mitigate a portion of the underlying risk associated with coal price volatility.  The majority of our contracts qualify for the NPNS exception and therefore are not accounted for at fair value.  For those contracts that do not qualify for the NPNS exception at inception or lose their designation at some point during the duration of the contract, the contracts are required to be accounted for as derivative instruments and must be recognized as assets or liabilities and measured at fair value.  Those contracts that do not qualify for the NPNS exception have not been designated as cash flow or fair value hedges and, accordingly, the net change in fair value is recorded in current period earnings.  Our coal sales and coal purchase contracts that do not qualify for the NPNS exception as prescribed by current accounting guidance are offset on a counterparty-by-counterparty basis for derivative instruments executed with the same counterparty under a master netting arrangement.
 
Tons outstanding under coal purchase and coal sales contracts that do not qualify for the NPNS exception are as follows:

   
March 31,
   
December 31,
 
   
2011
   
2010
 
   
(In Thousands)
 
Purchase contracts
    765       360  
Sales contracts 
    2,519       600  

The increase in tons outstanding under coal purchase and coal sales contracts that do not qualify for the NPNS exception as of March 31, 2011, is primarily due to certain contracts identified in the first quarter of 2011 that no longer qualified for the NPNS exception, which are now accounted for at fair value.

The fair values of our purchase and sales derivative contracts have been aggregated in the Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010, as follows:

   
March 31,
   
December 31,
 
   
2011
   
2010
 
   
(In Thousands)
 
Other current assets
  $ -     $ 15,424  
Other noncurrent assets
    -       -  
Other current liabilities
    (4,311 )     -  
Other noncurrent liabilities
    (1,784 )     -  
Total aggregated derivative balance
  $ (6,095 )   $ 15,424  

We have recorded net losses (gains) related to coal sales and purchase contracts that did not qualify for the NPNS exception in the Consolidated Statements of Income under the caption Gain on derivative instruments.
 
   
For the three months ended
 
   
March 31,
 
   
2011
   
2010
 
   
(In Thousands)
 
Unrealized losses (gains) on outstanding contracts
  $ 21,520     $ (28,017 )
Realized gains due to settlements on existing contracts
    (3,160 )     (8,436 )
Loss (Gain) on derivative instruments
  $ 18,360     $ (36,453 )


(16)
Fair Value

Financial and non-financial assets and liabilities that are required to be measured at fair value must be categorized based upon the levels of judgment associated with the inputs used to measure their fair value.  Hierarchical levels – directly related to the amount of subjectivity associated with the inputs used to determine the fair value of financial assets and liabilities – are as follows:

 
Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

 
Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the assets or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

 
Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.  Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

Each major category of financial assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations.
 
   
March 31, 2011
 
   
(In Thousands)
 
Assets
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Fixed income securities
                       
U.S. Treasury securities
  $ 11,659     $ -     $ -     $ 11,659  
Money market funds
                               
U.S. Treasury money market fund
    14,399       -       -       14,399  
Other money market funds
    267,000       -       -       267,000  
Total
  $ 293,058     $ -     $ -     $ 293,058  
                                 
                                 
Liabilities
                               
Derivative instruments
  $ -     $ 6,095     $ -     $ 6,095  
Total
  $ -     $ 6,095     $ -     $ 6,095  

   
December 31, 2010
 
   
(In Thousands)
 
Assets
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Fixed income securities
                       
U.S. Treasury securities
  $ 11,645     $ -     $ -     $ 11,645  
Certificates of deposit
    50,061       -       -       50,061  
Money market funds
                               
U.S. Treasury money market fund
    20,399       -       -       20,399  
Other money market funds
    216,362       -       -       216,362  
Derivative instruments
    -       15,424       -       15,424  
Total
  $ 298,467     $ 15,424     $ -     $ 313,891  

Fixed income securities and money market funds

All fixed income securities are deposits, consisting of obligations of the U.S. Treasury, supporting various regulatory obligations.  All investments in money market funds are cash equivalents or deposits pledged as collateral and are invested in prime money market funds and Treasury-backed funds.  Included in the money market funds at March 31, 2011 and December 31, 2010 are $58.2 million of funds pledged as collateral to support $59.4 million of outstanding letters of credit.  See Note 5 to the Notes to Consolidated Financial Statements for more information on deposits.


Derivative Instruments

Certain of our coal sales and coal purchase contracts that do not qualify for the NPNS exception at inception or lose their designation at some point during the life of the contract are accounted for as derivative instruments and are required to be recognized as assets or liabilities and measured at fair value.  To establish fair values for these contracts, we use bid/ask price quotations obtained from independent third-party brokers. We also consider the risk of nonperformance of or nonpayment by the counterparties when determining the fair values for these contracts by evaluating the credit quality and financial condition of each counterparty.  We could experience difficulty in valuing our derivative instruments if the number of third-party brokers should decrease or market liquidity is reduced.  See Note 15 to the Notes to Consolidated Financial Statements for more information.

Fair Value Option

The following methods and assumptions were used to estimate the fair value of those financial instruments that are not required to be carried at fair value within our Consolidated Balance Sheets:
 
Short-term debt: The carrying amount reported in the Consolidated Balance Sheets for short-term debt approximates its fair value due to the short-term maturity of these instruments.

Long-term debt: The fair values of long-term debt are estimated using the most recent market prices quoted on or before March 31, 2011.

The carrying amounts and fair values of these financial instruments are presented in the table below.  The carrying value of the 3.25% Notes reflected in Long-term debt in the table below reflects the full face amount of $659.1 million, which is reflected net of discount in the Consolidated Balance Sheets.

   
March 31, 2011
   
December 31, 2010
 
   
Carrying Value
   
Fair Value
   
Carrying Value
   
Fair Value
 
   
(In Thousands)
 
Short-term debt
  $ 9,672     $ 9,672     $ 12,327     $ 12,327  
Long-term debt
  $ 1,428,710     $ 1,524,498     $ 1,419,063     $ 1,419,627  

(17)
Contingencies
 
West Virginia Flooding

Since August 2004, five of our subsidiaries have been sued in six civil actions filed in the Circuit Courts of Boone, McDowell, Mingo, Raleigh, Summers and Wyoming Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding on or about May 2, 2002.  These complaints covered approximately 350 plaintiffs seeking unquantified compensatory and punitive damages from approximately 35 defendants.  Of these cases two were dismissed by the court without prejudice for failure to prosecute, two were dismissed by plaintiffs voluntarily and with prejudice, and one was settled for a nominal amount.  Only the Mingo County case comprised of four plaintiffs and 34 defendants remains active.

Since May 2006, we and 12 of our subsidiaries have been sued in three civil actions filed in the Circuit Courts of Logan and Mingo Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding between May 30 and June 4, 2004.  These complaints cover approximately 400 plaintiffs seeking unquantified compensatory and punitive damages from approximately 52 defendants.  Four of our subsidiaries have been dismissed without prejudice from one of the Logan County cases.

We believe the remaining cases will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.


West Virginia Trucking

Since January 2003, an advocacy group and residents in Boone, Kanawha, Mingo and Raleigh Counties, West Virginia, filed 17 suits in the Circuit Courts of Kanawha and Mingo Counties, West Virginia, against 12 of our subsidiaries.  Plaintiffs alleged that defendants illegally transported coal in overloaded trucks, causing damage to state roads, thereby interfering with plaintiffs’ use and enjoyment of their properties and their right to use the public roads. Plaintiffs seek injunctive relief and compensatory and punitive damages.  The Supreme Court of Appeals of West Virginia (“WV Supreme Court”) referred the consolidated lawsuits, and similar lawsuits against other coal and transportation companies not involving our subsidiaries, to the Circuit Court of Lincoln County, West Virginia (“Circuit Court”), to be handled by a mass litigation panel judge. Plaintiffs filed motions requesting class certification. On June 7, 2007, plaintiffs voluntarily dismissed their public nuisance claims seeking monetary damages for road and bridge repairs.  Plaintiffs also agreed to an order limiting any damages for nuisance to two years prior to the filing of any suit.  A motion to dismiss any remaining public nuisance claims was resisted by plaintiffs and argued at hearings on December 14, 2007 and June 25, 2008.  No rulings on these matters have been made.  Defendants filed a motion requesting that the mass litigation panel judge recommend to the WV Supreme Court that the cases be sent back to the circuit courts of origin for resolution.  That motion was verbally denied as to those cases in which our subsidiaries are defendants, and a class certification hearing was held on October 21, 2009.  To date, no decision has been rendered by the Circuit Court on the class certification issues.  No date has been set for trial. A mediation is being scheduled in the Mingo County case.  We believe we have insurance coverage applicable to these items and that they will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.

Well Water Suits

Since September 2004, approximately 738 plaintiffs have filed approximately 400 suits against us and our subsidiary, Rawl Sales & Processing Co., in the Circuit Court of Mingo County, West Virginia (“Mingo Court”), for alleged property damage and personal injuries arising out of slurry injection and impoundment practices allegedly contaminating plaintiffs’ water wells. Plaintiffs seek injunctive relief and compensatory damages in excess of $170 million and unquantified punitive damages.  Specifically, plaintiffs are claiming that defendants’ activities during the period of 1978 through 1987 rendered their property valueless and request monetary damages to pay, inter alia, the value of their property and future water bills.  In addition, many plaintiffs are also claiming that their exposure to the contaminated well water caused neurological injury or physical injury, including cancers, kidney problems and gall stones.  Finally, all plaintiffs claimed entitlement to medical monitoring for the next 30 years and have requested unliquidated compensatory damages for pain and suffering, annoyance and inconvenience and legal fees.  On April 30, 2009, the Mingo Court held a mandatory settlement conference. At that settlement conference, all plaintiffs agreed to settle and dismiss their medical monitoring claims.  Additionally, 180 plaintiffs agreed to settle all of their remaining claims and be dismissed from the case.  All settlements to date will be funded by insurance proceeds.  Plaintiffs challenged the medical monitoring settlement. There are currently 585 plaintiffs with individual claims.  A number of motions that could impact the number of Plaintiffs and scope of the issues of these suits are pending.

The West Virginia Supreme Court issued an administrative order transferring the cases to the Mass Litigation Panel.  Mediation of all pending suits was held on February 22-23, 2011 in Charleston, West Virginia.  The mediation resulted in the final settlement of all medical monitoring claims and disposed of Plaintiffs’ earlier challenge of the prior medical monitoring settlement.  The medical monitoring claims will be paid by insurance proceeds.  No other claims were resolved.  The Mass Litigation Panel has randomly selected seven civil actions consisting of seventeen plaintiffs for the First Trial Group which is scheduled for August 1, 2011 in Wheeling, West Virginia.   

Beginning in December 2008, we and certain of our subsidiaries along with several other companies were sued in numerous actions in Boone County, West Virginia involving approximately 374 plaintiffs alleging well water contamination resulting from coal mining operations.  The claims mirror those made above in the separate action before the Mass Litigation Panel, as described above. The separate civil actions have been consolidated for discovery purposes with trial for 266 plaintiffs scheduled for October 25, 2011.  No trial date is set for the remaining approximately 108 plaintiffs.


We do not believe there was any contamination caused by our activities or that plaintiffs suffered any damage and we believe that we have strong defenses to these matters.  We plan to vigorously contest these claims.  We believe that we have insurance coverage applicable to these matters and have initiated litigation against our insurers to establish that coverage.  At this time, we believe that the litigation by the plaintiffs will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.

Customer Disputes

We have been sued by one customer who claims they did not receive, or did not timely receive, all of the coal required to be shipped to them during prior years under their sales contract. This customer filed a claim for cover damages, which damages are equal to the difference between the contract price of the coal that was not delivered and the market price of replacement coal or comparable quality coal, and for other compensatory damages, the total of which could exceed $31 million.  The customer is also seeking punitive damages.  We believe that we have strong defenses and have not recorded an accrual for this matter because we do not believe a loss is probable.  It is reasonably possible that our judgment regarding this matter could change in the near term, resulting in the recording of a material loss that would affect our operating results and financial position.

During the first quarter of 2011, we received notice of a suit from a plaintiff regarding whether or not a binding contract existed for the sale of coal, which coal the plaintiff had planned to broker to a third party in 2008.  The suit asks that we reimburse plaintiff for an $18 million court judgment against plaintiff awarded to the third party.  We do not believe that a binding sales contract was reached and currently believe that we have strong defenses and, therefore, have not recorded an accrual for this matter because we do not believe a loss is probable. It is reasonably possible that our judgment regarding this matter could change in the near term, resulting in the recording of a material loss that would affect our operating results and financial position.

Separately, we are currently in litigation with one customer regarding whether or not binding contracts for the sale of coal were reached.  We maintain that this customer improperly terminated a signed, higher-priced contract; the customer argues that it was only required to purchase coal under a purported agreement reached by email. On February 12, 2010, we received a decision from an arbitration panel awarding this customer $10.5 million on the grounds that the purported agreement by email was valid and that the higher-priced contract was invalid.  We believed that the arbitration panel’s decision as to the validity of the higher-priced contract was beyond the panel’s jurisdiction of the award, which amounts to $8.2 million, and challenged that decision in federal court.  On June 2, 2010, the federal court rejected our challenge.  We are appealing this matter to the United States Court of Appeals for the Fourth Circuit (the "Fourth Circuit Court").  Oral argument before the Fourth Circuit Court is scheduled for May 10, 2011.  While we will vigorously pursue this appeal, the amount of the judgment is fully accrued in Other current liabilities at March 31, 2011.  We have paid $2.3 million for the award relating to the panels’ decision that the agreement by email was valid, but have not yet paid the portion of the award under appeal.

Spartan Unfair Labor Practice Matter & Related Age Discrimination Class Action

In 2005, the UMWA filed an unfair labor practice charge with the National Labor Relations Board (“NLRB”) alleging that one of our subsidiaries, Spartan Mining Company (“Spartan”), discriminated on the basis of anti-union animus in its employment offers.  The NLRB issued a complaint and an NLRB Administrative Law Judge (“ALJ”) issued a recommended decision making detailed findings that Spartan committed a number of unfair labor practice violations and awarding, among other relief, back pay damages to union discriminatees.  On September 30, 2009, the NLRB upheld the ALJ’s recommended decision.  Spartan has appealed the NLRB’s decision to the Fourth Circuit Court. We have no insurance coverage applicable to this unfair labor practice matter; however, its resolution is not expected to have a material impact on our cash flows, results of operations or financial condition.

Upper Big Branch Mine

On April 5, 2010, an accident occurred at the UBB mine, tragically resulting in the deaths of 29 miners and seriously injuring two others.  The Federal Mine Safety and Health Administration (“MSHA”) and the State of West Virginia have undertaken a joint investigation into the cause of the UBB tragedy.  We also have commenced our own investigation.  We believe these investigations will continue for the foreseeable future, and we cannot provide any assurance as to their outcome, including whether we become subject to possible criminal and civil penalties or enforcement actions. Additionally, the U.S. Attorney for the Southern District of West Virginia has commenced a grand jury investigation. In order to accommodate these investigations, the UBB mine will be closed for an extended period of time, the length of which we cannot predict at this time.  The Company has recently sought permission to close the UBB mine; regulatory authorities have not yet granted such permission.  The Company believes that it can construct another portal and access reserves previously accessed by the UBB mine, but it has not yet received this permission from regulatory authorities.  We self-insure the underground mining equipment, including the longwalls at the UBB mine.  We do not currently carry business interruption insurance for the UBB mine.  We have third-party general liability insurance coverage that applies to litigation risk, which coverage we believe applies to litigation stemming from the UBB tragedy.


While updated analyses will continue in future periods, we have recorded our best estimate of probable losses related to this matter.  The most significant components of these losses related to: the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, possible legal and other contingencies, and asset impairment charges.  We have recorded a $78 million liability in Other current liabilities at March 31, 2011, which represents our best estimate of the probable loss related to potential future litigation settlements associated with the UBB tragedy.  Thirteen of the families have filed wrongful death suits against us, while eight families have signed agreements to settle their claims (five of which have been finalized after receiving the required judicial approval).  In addition, four employees have filed lawsuits against us alleging emotional distress or personal injuries due to their proximity to the explosion.   Insurance recoveries related to our general liability insurance policy that are deemed probable and that are reasonably estimable have been recognized in the Consolidated Statements of Income to the extent of the related losses, less applicable deductibles.  Such recognized recoveries for litigation settlements associated with the UBB tragedy totaled $78 million and are included in Trade and other accounts receivable at March 31, 2011.

Given the uncertainty of the outcome of current investigations, including whether we become subject to possible civil penalties or enforcement actions, it is possible that the total costs incurred related to this tragedy could exceed our current estimates.  As of March 31, 2011, we believe that the reasonably possible aggregate loss related to these claims in excess of amounts currently recorded cannot be estimated.  It is possible, however, that the ultimate liabilities in the future with respect to these claims, in the aggregate, may be material.  We will continue to review the amount of any necessary accruals, potential asset impairments, or other related expenses and record the charges in the period in which the determination is made and an adjustment is required.

Clean Water Act Citizens’ Suits

The Sierra Club and others have filed two citizens’ suits against several of our subsidiaries in federal court in the Southern District of West Virginia (“Southern District Court”) alleging violations of the terms of our water discharge permits. One of the cases is limited to allegations that two of our subsidiaries, Independence Coal Company and Jacks Branch Coal Company, are violating limits on the allowable concentrations of selenium in their discharges of storm water from several surface mines. The other action is limited to claims that several of our subsidiaries are violating discharge limits on substances other than selenium, such as aluminum. The plaintiffs in these cases seek both a civil penalty and injunctive relief.

In the non-selenium case, we have argued that the alleged violations are contemplated by an existing consent decree with the United States government and should not be the subject of a new lawsuit, but the Southern District Court has allowed the case to progress.  In the selenium case, we have argued that the limits on selenium concentrations in our discharges have been stayed by an order of the West Virginia Environmental Quality Board and therefore cannot be the subject of a Clean Water Act case until after those limits become effective. The plaintiffs have nonetheless filed a motion for summary judgment in the selenium case, arguing that we are in violation of our permit limits despite the stays. Recently, the federal court ruled that the stays issued by the Environmental Quality Board were ineffective.  The plaintiffs have also filed reports of experts contending that our subsidiaries should have commenced construction on selenium treatment units in October 2008.  They claim that the failure to do so has saved our subsidiaries over $100 million and asked the Southern District Court to require us to install selenium treatment systems and to impose a penalty that recoups all of the savings realized by the alleged non-compliance.  We strongly disagree with plaintiffs’ position and while we do not expect the resolution of this matter to have a material impact on our cash flows, results of operations or financial condition it is possible that the ultimate liabilities in the future with respect to these claims, in the aggregate, may be material.


Other Legal Proceedings

We are parties to a number of other legal proceedings, incident to our normal business activities.  These include, for example, contract disputes, personal injury claims, property damage claims, environmental issues, and employment and safety matters. While we cannot predict the outcome of any of these proceedings, based on our current estimates we do not believe that any liability arising from these matters individually or in the aggregate should have a material adverse impact upon our consolidated cash flows, results of operations or financial condition.  It is possible, however, that the ultimate liabilities in the future with respect to these lawsuits and claims, in the aggregate, may be materially adverse to our cash flows, results of operations or financial condition.

* * * * * * * *


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis is provided to increase understanding of, and should be read in conjunction with, the Consolidated Financial Statements and accompanying notes included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2010.

Forward-Looking Information


From time to time, we make certain comments and disclosures in reports, including this report, or through statements made by our officers that may be forward-looking in nature.  Examples include statements related to our future outlook, anticipated capital expenditures, projected cash flows and borrowings and sources of funding.  We caution readers that forward-looking statements, including disclosures that use words such as “target,” “goal,” “objective,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “may,” “plan,” “project,” “will” and similar words or statements are subject to certain risks, trends and uncertainties that could cause actual cash flows, results of operations, financial condition, cost reductions, acquisitions, dispositions, financing transactions, operations, expansion, consolidation and other events to differ materially from the expectations expressed or implied in such forward-looking statements.  Any forward-looking statements are also subject to a number of assumptions regarding, among other things, future economic, competitive and market conditions.  These assumptions are based on facts and conditions, as they exist at the time such statements are made as well as predictions as to future facts and conditions, the accurate prediction of which may be difficult and involve the assessment of circumstances and events beyond our control.  We disclaim any intent or obligation to update these forward-looking statements unless required by securities law, and we caution the reader not to rely on them unduly.

We have based any forward-looking statements we have made on our current expectations and assumptions about future events and circumstances that are subject to risks, uncertainties and contingencies that could cause results to differ materially from those discussed in the forward-looking statements, including, but not limited to:

 
(i)
our cash flows, results of operations or financial condition;
(ii)
the impact of the Upper Big Branch ("UBB") mine tragedy;
(iii)
the successful completion of acquisition, disposition or financing transactions and the effect thereof on our business;
(iv)
our ability to successfully integrate the operations we acquire, including as a result of the acquisition of Cumberland Resources Corporation and certain affiliated entities ("Cumberland");
(v)
governmental policies, laws, regulatory actions and court decisions affecting the coal industry or our customers’ coal usage;
(vi)
legal and administrative proceedings, settlements, investigations and claims and the availability of insurance coverage related thereto;
(vii)
inherent risks of coal mining beyond our control, including weather and geologic conditions or catastrophic weather-related damage;
(viii)
inherent complexities make it more difficult and costly to mine in Central Appalachia than in other parts of the United States;
(ix)
our production capabilities to meet market expectations and customer requirements;
(x)
our ability to obtain coal from brokerage sources or contract miners in accordance with their contracts;
(xi)
our ability to obtain and renew permits necessary for our existing and planned operations in a timely manner;
(xii)
the cost and availability of transportation for our produced coal;
(xiii)
our ability to expand our mining capacity;
(xiv)
our ability to manage production costs, including labor costs;
(xv)
adjustments made in price, volume or terms to existing coal supply agreements;
(xvi)
the worldwide market demand for coal, electricity and steel;
(xvii)
environmental concerns related to coal mining and combustion and the cost and perceived benefits of alternative sources of energy such as natural gas and nuclear energy;
(xviii)
competition among coal and other energy producers, in the United States and internationally;
(xix)
our ability to timely obtain necessary supplies and equipment;
(xx)
our reliance upon and relationships with our customers and suppliers;
(xxi)
the creditworthiness of our customers and suppliers;
(xxii)
our ability to attract, train and retain a skilled workforce to meet replacement or expansion needs;
(xxiii)
our assumptions and projections concerning economically recoverable coal reserve estimates;
(xxiv)
our failure to enter into anticipated new contracts;
(xxv)
future economic or capital market conditions;
(xxvi)
foreign currency fluctuations;
(xxvii)
the availability and costs of credit, surety bonds and letters of credit that we require;
(xxviii)
the lack of insurance against all potential operating risks;
(xxix)
our assumptions and projections regarding pension and other post-retirement benefit liabilities;
(xxx)
our interpretation and application of accounting literature related to mining specific issues;
(xxxi)
the successful implementation of our strategic plans and objectives for future operations and expansion or consolidation;
(xxxii)
the ability to obtain regulatory approvals of the proposed merger (the "Merger") with Alpha Natural Resources, Inc. ("Alpha") on the proposed terms and schedule;
(xxxiii)
the failure of our stockholders or Alpha's stockholders to approve the transactions contemplated by the Merger;
(xxxiv)
the outcome of pending or potential litigation related to the Merger;
(xxxv)
the risk that the combined businesses of Massey and Alpha will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected;
(xxxvi)
uncertainty of the expected financial performance of Alpha following completion of the Merger;
(xxxvii)
Alpha’s ability to achieve the cost savings and synergies contemplated by the Merger within the expected time frame;
(xxxviii)
uncertainty of the effect of the Merger on relationships with customers, employees or suppliers;
(xxxix)
the calculations of, and factors that may impact the calculations of, the acquisition price in connection with the Merger and the allocation of such acquisition price to the net assets acquired in accordance with applicable accounting rules and methodologies; and
(xxxx)
the diversion of management's time and attention from our ongoing business during the time period leading up to the Merger.

We are including this cautionary statement in this Quarterly Report on Form 10-Q to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf, of us.  Any forward-looking statements should be considered in context with the various disclosures made by us about our businesses in our public filings with the SEC, including without limitation the risk factors more specifically described in Part II Item 1A.  Risk Factors of this Quarterly Report on Form 10-Q and in Part I Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2010.


Available Information

We file our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and other information with the SEC.  Our SEC filings are available to the public over the Internet at the SEC’s website at www.sec.gov.  You may also read and copy any document we file at the SEC’s public reference room at 100 F Street, N.E., Washington, D.C. 20549.  Please call the SEC at 1-800-SEC-0330 for further information on the public reference room.  We make available, free of charge through our Internet website, www.masseyenergyco.com (which website is not incorporated by reference into this report), our annual report, quarterly reports, current reports, proxy statements, section 16 reports and other information (and any amendments thereto) as soon as practicable after filing or furnishing the material to the SEC, in addition to our Corporate Governance Guidelines, codes of ethics and the charters of the Audit, Compensation, Executive, Finance, Governance and Nominating, Public Policy and Safety and Environmental Committees.  These materials also may be requested at no cost by telephone at (866) 814-6512 or by mail at: Massey Energy Company, Post Office Box 26765, Richmond, Virginia 23261, Attention: Investor Relations.


Executive Overview

We operate coal mines and processing facilities in Central Appalachia, which generate revenues and cash flow through the mining, processing and selling of steam and metallurgical grade coal, primarily of a low sulfur content.  We also generate income and cash flow through other coal-related businesses, including the management of material handling facilities.  Other revenue is obtained from royalties, rentals, gas well revenues, gains on the sale or exchange of non-strategic assets and miscellaneous income.
 
We reported a net loss for the first quarter of 2011 of ($7.7) million, or ($0.07) per diluted share, compared to net income of $33.6 million, or $0.39 per diluted share, for the first quarter of 2010.  The first quarter of 2011 results included a loss on derivative instruments of ($18.4) million ($21.5 million of unrealized losses primarily due to certain contracts identified in the first quarter that no longer qualified for the normal purchase normal sale (“NPNS”) exception that are now accounted for at fair value less $3.2 million of realized gains due to settlements on existing purchase and sales contracts).  The first quarter of 2010 results included a gain on derivative instruments of $36.5 million.  Additionally, in the first quarter of 2010, we received $9.1 million in insurance proceeds, resulting in a $5.8 million pre-tax gain on insurance recovery related to the Bandmill preparation plant fire property insurance claim.   
 
Produced tons sold were 10.3 million in the first quarter of 2011, compared to 8.5 million in the first quarter of 2010. We produced 10.3 million and 8.5 million tons in the first quarters of 2011 and 2010, respectively.  Shipments of utility coal increased by 37% in the quarter compared to the same period a year ago and represented 69% of total tons shipped compared to 61% of the total in the first quarter 2010. Exports increased from 1.7 million tons in the first quarter of 2010 to 2.3 million tons in the first quarter of 2011. The increase in export shipments was driven by strong overseas demand for metallurgical coal.
 
During the first quarter of 2011, Produced coal revenue increased by 45% compared to the first quarter of 2010, reflecting improved pricing for all grades of coal sold, led by a 53% increase in the average sales price of metallurgical coal shipped in the quarter.  Prices for utility coal shipped in the quarter increased by 12 percent compared to the first quarter of 2010.  Our average Produced coal revenue per ton sold in the first quarter of 2011 increased to $80.96 compared to $67.38 in the first quarter of 2010. Our average Produced coal revenue per ton for metallurgical tons sold increased from $84.30 in the first quarter of 2010 to $129.08 in the first quarter of 2011.
 
Our Average cash cost per ton sold (see Note 1 below) was $66.04, compared to $55.38 in the previous year’s first quarter. The increase was due largely to higher fixed cost absorption on lower than planned production.  Additional drivers of higher cash cost per ton include higher sales related costs related to higher average sales prices, and higher costs for labor and mining supplies.

Merger with Alpha

On January 28, 2011, we entered into the Merger Agreement with Alpha and Merger Sub, providing for the acquisition of Massey by Alpha.  Subject to the terms and conditions of the Merger Agreement, we will be merged with and into Merger Sub, with Massey surviving the Merger as a wholly owned subsidiary of Alpha.

At the effective time of the Merger, each share of our Common Stock issued and outstanding immediately prior to the effective time (other than shares owned by (i) Alpha, us or Merger Sub or their respective subsidiaries (which will be cancelled) or (ii) stockholders who have properly exercised and perfected appraisal rights under Delaware law) will be converted into the right to receive 1.025 shares of Alpha common stock and $10.00 in cash, without interest.  No fractional shares of Alpha common stock will be issued in the Merger, and our stockholders will receive cash in lieu of fractional shares, if any, of Common Stock. Immediately upon completion of the Merger, our stockholders will own approximately 46% of the combined company.

The consummation of the Merger is subject to certain conditions, including (i) the adoption by our stockholders of the Merger Agreement and (ii) the approval by the Alpha stockholders of (x) an amendment to Alpha’s certificate of incorporation to increase the number of shares of Alpha common stock that Alpha is authorized to issue in order to permit issuance of the Alpha common stock in connection with the Merger and (y) the issuance of Alpha common stock in connection with the Merger.  In addition, the Merger is subject to the HSR Act, as well as other customary closing conditions.  Approval under the HSR Act has been received.


The Merger Agreement contains customary covenants, including covenants providing for each of the parties: (i) to conduct its operations in all material respects according to the ordinary and usual course of business consistent with past practice during the period between the execution of the Merger Agreement and the closing of the Merger; (ii) to use reasonable best efforts to cause the transaction to be consummated; (iii) not to initiate, solicit or knowingly encourage inquiries, proposals or offers relating to alternate transactions or, subject to certain exceptions, engage in any discussions or negotiations with respect thereto; and (iv) to call and hold a special stockholders’ meeting and, subject to certain exceptions, recommend adoption of the Merger Agreement, in our case, and amendment of the Alpha certificate of incorporation and issuance of Alpha common stock in connection with the Merger, in the case of Alpha.

The Merger Agreement also contains certain termination rights and provides that, (i) upon termination of the Merger Agreement under specified circumstances, including, but not limited to, a change in the recommendation of our board of directors or termination of the Merger Agreement to enter into a written definitive agreement for a “superior proposal”, we will owe Alpha a cash termination fee of $251 million; (ii) upon the termination of the Merger Agreement under specified circumstances, including, but not limited to, a change in the recommendation of the board of directors of Alpha or termination of the Merger Agreement to enter into a written definitive agreement for a “superior proposal”, Alpha will owe us a cash termination fee of $252 million; and (iii) upon the termination of the Merger Agreement due to Alpha’s failure to obtain the required stockholder approval at the Alpha stockholders’ meeting in the absence of a competing proposal, Alpha will owe us a cash termination fee of $72 million. In addition, Alpha is obligated to pay a cash termination fee of $360 million to us if all the conditions to closing have been met and the Merger is not consummated because of a breach by Alpha’s lenders of their obligations to finance the Merger.

The SEC has declared effective the Form S-4 Registration Statement concerning the agreement and plan of merger between Alpha and Massey.  In connection with the Merger, a definitive joint proxy statement/prospectus has been mailed to our stockholders on or about April 29, 2011. The close of business on April 27, 2011 is the record date for determining the holders of common stock that will be entitled to notice of and to vote at each of Alpha’s and Massey’s respective special meetings of stockholders regarding the Merger and any adjournment of the special meetings.  Each of Alpha and Massey intend to hold their respective special meetings of stockholders on June 1, 2011. If the Alpha and Massey stockholders approve the Merger-related proposals at their respective special meetings, then, subject to certain other customary closing conditions, Alpha and Massey expect to close the Merger promptly after the special meetings on June 1, 2011.

STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER DOCUMENTS RELATING TO THE MERGER FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER.  You may obtain a copy of the joint proxy statement/prospectus and other related documents filed by Alpha and Massey with the SEC regarding the proposed merger as well as other filings containing information, free of charge, through the web site maintained by the SEC at www.sec.gov, by directing a request to Alpha’s Investor Relations department at Alpha Natural Resources, Inc., One Alpha Place, P.O. Box 2345, Abingdon, Virginia 24212, Attn: Investor Relations, to D.F. King & Co., Inc., 48 Wall Street, 22nd Floor, New York, New York  10005 or to Massey’s Investor Relations department at, (804) 788 - 1824 or by email to Investor@masseyenergyco.com.  Copies of the joint proxy statement/prospectus and the filings with the SEC that are incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge, from Alpha’s website at www.alphanr.com under the heading “Investor Relations” and then under the heading “SEC Filings” and Massey’s website at www.masseyenergyco.com under the heading “Investors” and then under the heading “SEC Filings”.

Alpha, Massey and their respective directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies in favor of the Merger.  Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of proxies in favor of the Merger is set forth in the definitive joint proxy statement/prospectus filed with the SEC.  You can find information about Alpha’s directors and executive officers in Alpha’s definitive proxy statement filed with the SEC on April 1, 2011.  You can find information about Massey’s directors and executive officers in Amendment No. 1 to Massey’s annual report on Form 10-K filed with the SEC on April 19, 2011. You can obtain free copies of these documents from us.


___________________

Note 1: Average cash cost per ton is calculated as the Cost of produced coal revenue (excluding Selling, general and administrative expense (“SG&A”) and Depreciation, depletion and amortization), divided by the number of produced tons sold.  Although Average cash cost per ton is not a measure of performance calculated in accordance with GAAP, management believes that it is useful to investors in evaluating us because it is widely used in the coal industry as a measure to evaluate a company’s control over its cash costs. Average cash cost per ton should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. In addition, because Average cash cost per ton is not calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. The table below reconciles the GAAP measure of Total costs and expenses to Average cash cost per ton.

   
Three Months Ended March 31,
 
   
2011
   
2010
 
   
(In Millions, Except Per Ton Amounts)
 
Total costs and expenses
  $ 934.3     $ 621.8  
Less: Freight and handling costs
    84.4       74.3  
Less: Cost of purchased coal revenue
    15.8       20.6  
Less: Depreciation, depletion and amortization
    97.2       64.5  
Less:  Selling, general and administrative
    27.3       28.1  
Less: Other expense
    0.8       0.9  
Less: Loss (Gain) on derivative instruments
    18.4       (36.5 )
Less: UBB Charge(a)
    12.4       -  
Average cash cost
  $ 678.0     $ 469.9  
Average cash cost per ton
  $ 66.04     $ 55.38  

(a) The three months ended March 31, 2011, includes pre-tax charges of $12.4 million in Cost of produced coal revenue associated with the tragic accident at the UBB mine that occurred in April 2010 (see Note 17 to the Notes to Consolidated Financial Statements for further discussion).

Results of Operations

Three months ended March 31, 2011 compared to three months ended March 31, 2010

Revenues

   
Three Months Ended
March 31,
             
   
2011
   
2010
   
Increase
(Decrease)
   
% Increase
(Decrease)
 
   
(In Thousands)
             
Revenues
                       
Produced coal revenue
  $ 831,301     $ 571,802     $ 259,499       45 %
Freight and handling revenue
    84,370       74,289       10,081       14 %
Purchased coal revenue
    15,951       19,465       (3,514 )     -18 %
Other revenue
    18,134       23,083       (4,949 )     -21 %
Total revenues
  $ 949,756     $ 688,639     $ 261,117       38 %


The following is a breakdown by market served of the changes in produced tons sold and average produced coal revenue per ton sold for the first quarter of 2011, compared to the first quarter of 2010:

   
Three Months Ended
March 31,
             
   
2011
   
2010
   
Increase (Decrease)
   
% Increase (Decrease)
 
   
(In Millions, Except Per
Ton Amounts)
             
                         
Produced tons sold:
                       
Utility
    7.1       5.2       1.9       37 %
Metallurgical
    2.3       2.4       (0.1 )     -4 %
Industrial
    0.9       0.9       0.0       0 %
Total
    10.3       8.5       1.8       21 %
                                 
Produced coal revenue per ton sold:
                               
Utility
  $ 66.23     $ 58.88     $ 7.35       12 %
Metallurgical
  $ 129.08     $ 84.30     $ 44.78       53 %
Industrial
  $ 71.32     $ 70.90     $ 0.42       1 %
Weighted average
  $ 80.96     $ 67.38     $ 13.58       20 %

Total produced tons sold during the first quarter of 2011 increased by 21% compared to the first quarter of 2010.  The increase was driven primarily by shipments of utility coal, which increased during the first quarter of 2011 primarily as a result of contracts assumed in the Cumberland acquisition in April 2010.  Shipments of metallurgical and industrial coal were relatively flat when comparing the first quarter of 2011 to the first quarter of 2010.  The weighted average per ton sales price for our coal increased 20% in the first quarter of 2011 compared to the first quarter of 2010, which was the result of improving market prices.

Freight and handling revenue increased in the first quarter of 2011, compared to the same period in 2010, due primarily to the increase in export tons shipped of 2.3 million in the first quarter of 2011, compared to 1.7 million in the first quarter of 2010.

Purchased coal revenue decreased in the first quarter of 2011, compared to the same period in 2010, primarily due to a decrease in purchased tons sold to 0.1 million in the first quarter of 2011, from 0.3 million in the first quarter of 2010, partially offset by an increase in purchased coal revenue per ton to $147.23 in the first quarter of 2011, from $70.04 in the first quarter of 2010.

Other revenue includes refunds on railroad agreements, royalties related to coal lease agreements, gas well revenue, gains on the sale or exchange of non-strategic assets and reserve exchanges, joint venture revenue and other miscellaneous revenue. Other revenue for the first quarter of 2010 included a $5.8 million pre-tax gain on insurance recovery related to the Bandmill preparation plant fire property insurance claim.


Costs

   
Three Months Ended
March 31,
             
               
Increase
   
% Increase
 
   
2011
   
2010
   
(Decrease)
   
(Decrease)
 
   
(In Thousands)
             
Costs and expenses
                       
Cost of produced coal revenue
  $ 690,408     $ 469,936     $ 220,472       47 %
Freight and handling costs
    84,370       74,289       10,081       14 %
Cost of purchased coal revenue
    15,832       20,623       (4,791 )     -23 %
Depreciation, depletion and amortization, applicable to:
                               
Cost of produced coal revenue
    86,002       64,207       21,795       34 %
Selling, general and administrative
    11,270       262       11,008       n/a  
Selling, general and administrative
    27,274       28,109       (835 )     -3 %
Other expense
    800       871       (71 )     -8 %
Loss (gain) on derivative instruments
    18,360       (36,453 )     54,813       n/a  
Total costs and expenses
  $ 934,316     $ 621,844     $ 312,472       50 %

Cost of produced coal revenue increased primarily due to increased volume of produced tons sold from 8.5 million in the first quarter of 2010, to 10.3 million in the first quarter of 2011.  There was also an increase in Cost of produced coal revenue on a per ton basis due primarily to higher fixed cost absorption on lower than planned production. Additional drivers of the increase in cash cost per ton included higher sales related costs related to higher average sales prices, and higher costs for labor and mining supplies.

Freight and handling costs increased in the first quarter of 2011, compared to the same period in 2010, due primarily to the increase in export tons shipped of 2.3 million in the first quarter of 2011, compared to 1.7 million in the first quarter of 2010.

Cost of purchased coal revenue decreased in the first quarter of 2011, compared to the same period in 2010, primarily due to a decrease in purchased tons sold to 0.1 million in the first quarter of 2011, from 0.3 million in the first quarter of 2010, which was offset by an increase in market prices paid for purchased coal.

Depreciation, depletion and amortization applicable to Cost of produced coal revenue increased in the first quarter of 2011, compared to the same period in 2010, primarily due to the addition of the operations from the Cumberland acquisition in April 2010. Depreciation, depletion and amortization applicable to Selling, general and administrative increased in 2011, compared to 2010 as a result of amortization expense recorded on coal sales contracts acquired as part of the acquisition of Cumberland, (see Note 3 to the Notes to Consolidated Financials for further discussion).

Selling, general and administrative expense was lower in the first quarter of 2011, compared to the first quarter of 2010, due to lower compensation accruals in 2011, offset by the addition of transaction costs associated with the Merger (see Note 2 to the Notes to the Consolidated Financials for further discussion).

Loss (Gain) on derivative instruments of ($18.4) million represents $21.5 million of unrealized losses primarily due to certain contracts identified in the first quarter that no longer qualified for the NPNS exception that are now accounted for at fair value less $3.2 million of realized gains due to settlements on existing purchase and sales contracts.  The first quarter of 2010 results included a gain on derivative instruments of $36.5 million (see Note 15 to the Notes to Consolidated Financial Statements for further discussion).


Interest Expense

Interest expense includes $5.2 million and $4.8 million of non-cash interest expense for the amortization of the discount of our 3.25% Notes for the first quarter of 2011 and 2010, respectively (see Note 8 to the Notes to Consolidated Financial Statements for further discussion).

Gain on short-term investment

Gain on short-term investment reflects the difference between our book value in the Reserve Primary Fund (“Primary Fund”) and total distributions received from the fund.  During January 2010, we received a distribution from the Primary Fund in the amount of $14.6 million.

Income Taxes

Our effective tax rate is sensitive to changes in estimates of annual pre-tax earnings and percentage depletion. The slight increase in the effective tax rate from the first quarter of 2010 to the first quarter of 2011 is primarily the result of differences in pre-tax income, the impact of percentage depletion and projected changes in deferred taxable and deductible differences. Also impacting the 2010 income tax rate was a $2.6 million charge related to the reduction in the tax benefit available to us as a result of the Patient Protection and Affordable Care Act signed into law in March 2010.

Liquidity and Capital Resources

At March 31, 2011, our available liquidity was $403.5 million, comprised of Cash and cash equivalents of $280.7 million and $122.8 million of availability from our asset-based revolving credit facility (“ABL”).  Our total debt-to-book capitalization ratio was 42.41% at March 31, 2011.

Our Debt was comprised of the following:

   
March 31, 2011
   
December 31, 2010
 
   
(In Thousands)
 
             
6.875% senior notes due 2013, net of discount of $2,346 and $2,538, respectively
  $ 757,654     $ 757,462  
3.25% convertible senior notes due 2015, net of discount of $107,532 and $112,740, respectively
    551,531       546,323  
2.25% convertible senior notes due 2024
    9,647       9,647  
Capital lease obligations
    91       2,747  
Total debt
    1,318,923       1,316,179  
Amounts due within one year
    (9,672 )     (12,327 )
Total long-term debt
  $ 1,309,251     $ 1,303,852  

We believe that we are currently in compliance with our debt covenants.


As a result of the announcement of a June 1, 2011 expected closing date for the Merger, on May 2, 2011 the 3.25% Notes became convertible at the option of each of the holders into consideration in (a) an amount up to 100% of the 3.25% Notes’ principal amount payable in cash, plus (b) the excess of such amount, if any, payable, at our option, in cash, stock or a combination of cash and stock (collectively “Conversion Property”).  The 3.25% Notes are convertible into Conversion Property equal to 11.4542 shares of Common Stock (or, after the Merger, of Reference Property, as defined in the Indenture) per $1,000 principal amount of the 3.25% Notes.  The conversion period will remain open, at a minimum, until July 2, 2011, unless notice is provided that the Merger will not occur, and may be extended under certain circumstances.

The 2.25% Notes became callable by us at par as of April 6, 2011.  On May 2, 2011, we issued a redemption notice to the holders of the 2.25% Notes, with redemption subject to certain conditions set forth in the redemption notice, redeemable on June 1, 2011 (“Redemption Date”) subject to certain conditions, including the consummation of the Merger.  The holders of the 2.25% Notes can convert their notes into shares of Common Stock up until the close business on May 31, 2011. If all of the 2.25% Notes outstanding at March 31, 2011 are converted prior to the Redemption Date, we will have to issue 287,113 shares of Common Stock.

On May 4, 2011, in connection with the Merger, Alpha announced that it commenced a cash tender offer for any and all of our outstanding 6.875% Notes (the "Tender Offer").  The Tender Offer is conditioned upon satisfaction or waiver of certain conditions, including the closing of the Merger and the consummation of an offering by Alpha of one or more series of its senior notes, the net proceeds of which are sufficient to purchase the 6.875% Notes tendered in the Tender Offer.  The complete terms and conditions of the Tender Offer are set forth in the Offer to Purchase and related Letter of Transmittal that were issued by Alpha in connection with the Tender Offer.

Cash Flow

Net cash provided by operating activities was $40.1 million for the three months ended March 31, 2011 compared to $77.2 million for the three months ended March 31, 2010. Cash provided by operating activities reflects Net income adjusted for non-cash charges and changes in working capital requirements.

Net cash utilized by investing activities was $94.0 million and $31.4 million for the three months ended March 31, 2011 and 2010, respectively. The cash used in investing activities reflects capital expenditures in the amount of $100.8 million and $56.1 million for the three months ended March 31, 2011 and 2010, respectively. These capital expenditures are for replacement of mining equipment, the expansion of mining and shipping capacity, projects to improve the efficiency of mining operations and for compliance with safety regulations.  The three months ended March 31, 2010 also includes $9.1 million of proceeds from insurance recoveries.

Net cash provided by financing activities was $7.4 million and $451.4 million for the three months ended March 31, 2011 and 2010, respectively.  Cash provided by financing activities primarily reflects cash generated from stock options exercised, payments for capital leases, and payments for dividends.  Cash provided by financing activities for the three months ended March 31, 2010 also includes a registered underwritten public equity offering, resulting in proceeds to us of $466.8 million, net of fees, partially offset by the repayment of our 6.625% Notes of $21.9 million.

We believe that cash on hand, cash generated from operations and our borrowing capacity will be sufficient to meet our working capital requirements, scheduled debt payments, potential share repurchases and debt repurchases, anticipated dividend payments, expected settlements of outstanding litigation, anticipated capital expenditures and costs related to the Upper Big Branch (“UBB”) mine tragedy (see Note 17 to the Notes to Consolidated Financial Statements), including any increased premiums for insurance, any claims that may be asserted against us and other expenses that are not covered, in whole or in part, by our insurance policies, for at least the next twelve months. Nevertheless, our ability to satisfy our debt service obligations, repurchase shares and debt, pay dividends, pay settlements or judgments in respect of pending litigation, fund planned capital expenditures or pay the costs related to the UBB tragedy, will substantially depend upon our future operating performance, which will be affected by prevailing economic conditions in the coal industry, debt covenants and financial, business and other factors, some of which are beyond our control.


We frequently evaluate potential acquisitions. As a result of the cash needs we have described above and possible acquisition opportunities, in the future we may consider a variety of financing sources, including debt or equity financing.  Currently, other than our ABL, we have no commitments for any additional financing.  We cannot be certain that we will be able to replace our ABL when it expires or that we will be able to obtain additional financing on terms that we find acceptable, if at all, through the issuance of equity securities or the incurrence of additional debt.  Additional equity financing may dilute our stockholders, and debt financing, if available, may among other things, restrict our ability to repurchase shares of Common Stock, declare and pay dividends and raise future capital.  If we are unable to obtain additional needed financing, it may prohibit us from making acquisitions, capital expenditures and/or investments, which could materially and adversely affect our prospects for long-term growth.

Certain Trends and Uncertainties

In addition to trends and uncertainties set forth below, please refer to “Certain Trends and Uncertainties” of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation, of our Annual Report on Form 10-K for the year ended December 31, 2010, for a discussion of certain trends and uncertainties that may impact our business.

Off-Balance Sheet Arrangements

In the normal course of business, we are a party to certain off-balance sheet arrangements including guarantees, operating leases, indemnifications, and financial instruments with off-balance sheet risk, such as bank letters of credit and performance or surety bonds. Liabilities related to these arrangements are not reflected in the Consolidated Balance Sheets, and, except for the operating leases, we do not expect any material impact on our cash flows, results of operations or financial condition to result from these off-balance sheet arrangements.

From time to time we use bank letters of credit to secure our obligations for workers’ compensation programs, various insurance contracts and other obligations. At March 31, 2011, we had $135.4 million of letters of credit outstanding of which $58.2 million was collateralized by $59.4 million of cash deposited in restricted, interest bearing accounts pledged to issuing banks and $77.2 million was issued under our ABL. No claims were outstanding against those letters of credit as of March 31, 2011.

We use surety bonds to secure reclamation, workers’ compensation, wage payments and other miscellaneous obligations. As of March 31, 2011, we had $373.2 million of outstanding surety bonds. These bonds were in place to secure obligations as follows: post-mining reclamation bonds of $352.1 million and other miscellaneous obligation bonds of $21.1 million. Outstanding surety bonds of $46.9 million are secured with letters of credit.

Generally, the availability and market terms of surety bonds continue to be challenging. If we are unable to meet certain financial tests applicable to some of our surety bonds, or to the extent that surety bonds otherwise become unavailable, we would need to replace the surety bonds or seek to secure them with letters of credit, cash deposits, or other suitable forms of collateral.

Critical Accounting Estimates and Assumptions

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts. These estimates and assumptions are based on information available as of the date of the financial statements. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the quarterly period ended March 31, 2011, are not necessarily indicative of results that can be expected for the full year. Please refer to the section entitled “Critical Accounting Estimates and Assumptions” of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation of our Annual Report on Form 10-K for the year ended December 31, 2010, for a discussion of our critical accounting estimates and assumptions.


Item 3:  Quantitative and Qualitative Discussions About Market Risk

In addition to quantitative and qualitative discussions about market risk set forth below, please refer to Item 7A. Quantitative and Qualitative Discussions About Market Risk of our Annual Report on Form 10-K for the year ended December 31, 2010, for a discussion of certain market risk factors, which may impact our business.
 
Our derivative contracts that do not qualify for NPNS designation give rise to commodity price risk, which represents the potential gain or loss that can be caused by an adverse change in the price of coal. See Note 15 to the Notes to Consolidated Financial Statements for further discussion of our derivatives. The outstanding purchase and sales contracts at March 31, 2011, that are accounted for as derivative instruments, are summarized as follows:  
 
   
Price Range
   
Tons Outstanding
 
Delivery Period
Purchase Contracts
    $65.50-$67.00       765,000  
04/01/2011-12/31/2011
Sales Contracts 
    $61.50-$105.00       2,519,000  
04/01/2011-06/30/2012

As of March 31, 2011, a hypothetical increase of 10% in the forward market price would result in an additional fair value loss recorded for these derivative instruments of $13.7 million.  A hypothetical decrease of 10% in the forward market price would result in a fair value gain recorded for these derivative instruments of $13.7 million.

Item 4:  Controls and Procedures
 
Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we carried out an evaluation, with the participation of our management, including our Chief Executive Officer (“CEO”), who is our principal executive officer, and Chief Financial Officer (“CFO”), who is our principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, our CEO and CFO concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.
 
There has been no change in our internal control over financial reporting during the three months ended March 31, 2011, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 
Our management, including our CEO and CFO, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of the controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.
 
PART II: OTHER INFORMATION

Item 1. Legal Proceedings
 
Derivative Litigation and Related Class Action Litigation Arising out of the Merger

A number of purported stockholders have brought lawsuits derivatively on behalf of Massey, in West Virginia and Delaware state courts, in connection with the April 5, 2010, tragedy at UBB and related claims.  In addition, the purported stockholders who brought lawsuits derivatively on behalf of Massey in Delaware state court also now assert class claims allegedly arising out of the proposed Merger between Massey and Alpha.


On January 10, 2011, Helene Hutt, Sandy Taylor, NJBL. IUOE and LAMPERS (the “Delaware Plaintiffs”) filed a Verified Shareholder Consolidated Derivative Complaint, alleging that certain current and former Massey directors and officers breached their fiduciary duties by failing to monitor and oversee Massey’s employees, which failure allegedly resulted in fines against Massey and in the explosion at UBB, and by wasting corporate assets by paying allegedly excessive and inflated amounts to former Chairman Blankenship as part of his retirement package.  The Delaware Plaintiffs seek (1) an award against each defendant for restitution and/or compensatory damages, plus pre-judgment interest; (2) removal of former Chairman Blankenship from his position as a Company consultant; (3) an order establishing a litigation trust to preserve the claims asserted in the complaint in the event of a sale, merger, reorganization or any other extraordinary transaction sufficient to eliminate the shareholder plaintiffs’ derivative standing to pursue those claims; and (4) an award of costs, disbursements and reasonable allowances for fees incurred in this action.
 
On January 31, 2011, the Delaware Plaintiffs filed a motion for leave to amend their Verified Shareholder Consolidated Derivative Complaint, seeking leave to add factual allegations concerning the terms of and process leading to the proposed merger between Massey and Alpha (the “Proposed Transaction”) and to add class action claims challenging the board of directors’ alleged breaches of fiduciary duty in agreeing to the Proposed Transaction, as well as Alpha’s, and Alpha’s subsidiary created for the purposes of effecting the transaction, Merger Sub alleged aiding and abetting of those alleged breaches.

On February 4, 2011, the Delaware Plaintiffs filed a motion seeking a preliminary injunction or, in the alternative, a permanent injunction following an expedited trial, enjoining the defendants from consummating the Proposed Transaction and seeking an order creating a litigation trust to preserve their derivative claims in the event the Proposed Transaction was consummated.  In connection with this motion, the Delaware Plaintiffs, also on February 4, 2011, filed a motion for expedited proceedings.
 
On February 7, 2011, purported Massey stockholder Richard Silverman (“Silverman”) filed, on behalf of a proposed class of Massey stockholders, a verified class action complaint for breach of fiduciary duty (the “Silverman Action”).  Silverman alleged that the directors breached their fiduciary duties of loyalty, good faith, and independence by (1) failing to take steps to maximize the value of Massey to its public stockholders and by taking steps to avoid competitive bidding; (2) failing to properly value Massey; and (3) ignoring or not protecting against alleged conflicts of interest resulting from the directors’ interrelationships or connection with the Proposed Transaction.  Silverman also alleged that Alpha, Massey and Merger Sub aided and abetted the directors’ breaches of their fiduciary duties.  Silverman requested that the court (1) declare that the action is a class action and certify Silverman as the class representative and his counsel as class counsel; (2) enjoin, preliminary and permanently, the Proposed Transaction; (3) rescind or award to Silverman and the proposed class recissory damages, in the event the Proposed Transaction is consummated prior to the entry of the court’s final judgment; (4) direct defendants to account to Silverman and the other members of the proposed class for all damages caused by them and account for all profits and any special benefits obtained as a result of their breaches of their fiduciary duties; and (5) award to Silverman the costs of the action, including a reasonable allowance for the fees and expenses of Silverman’s attorneys and experts.
 
By order dated February 9, 2011, the court ordered that the Silverman Action be consolidated with the Consolidated Delaware Action.
 
On February 14, 2011, purported Massey stockholder Brian Goe (“Goe”) filed, on behalf of a class of Massey stockholders, a class action complaint (the “Goe Action”).  Goe alleged that the Massey directors violated their fiduciary duties of care and loyalty in connection with the Proposed Transaction by (1) failing to properly value the Company; (2) failing to take steps to maximize the Company’s value to its public stockholders; and (3) agreeing to terms in the merger agreement and other terms that favor Alpha and deter alternative bids.  Goe also alleged that Alpha and Merger Sub aided and abetted the directors’ alleged breaches of their fiduciary duties.  Goe requested that the court (1) declare that the action is properly maintainable as a class action; (2) enjoin defendants, their agents, counsel, employees and all persons acting in concert with them from consummating the Proposed Transaction with Alpha, unless and until the Company adopts and implements a procedure or process to obtain the highest possible price for stockholders; (3) impose a constructive trust, in favor of Goe, upon any benefits improperly received by defendants as a result of their wrongful conduct; and (4) award to Goe the costs and disbursements of this action, including reasonable attorneys’ and experts’ fees.


By order dated February 24, 2011, the court ordered that the Goe Action be consolidated with the Consolidated Delaware Action.
 
On February 25, 2011, defendants moved to dismiss the Verified Shareholder Consolidated Derivative Complaint.

On March 1, 2011, an office conference was held before the court to discuss, among other things, the Delaware Plaintiffs’ motions to amend and expedite.  The court stated that it would grant the Delaware Plaintiffs’ motion for leave to amend and deny without prejudice their motion to expedite.  The court further stated that the Delaware Plaintiffs may commence discovery, including depositions, with respect to the class claims raised in their proposed second amended complaint.  Defendants’ February 25 motion to dismiss was deemed withdrawn in light of the court’s grant of leave to amend.  On March 9, 2011, the court entered the agreed Order Implementing March 1, 2011 Rulings.

On March 11, 2011, the Delaware Plaintiffs filed their Verified Shareholder Second Amended Derivative and Class Action Complaint, repeating the allegations contained in the Verified Shareholder Consolidated Derivative Complaint, described above, and further alleging that Massey’s directors breached their fiduciary duties by agreeing to the Proposed Transaction to eliminate their potential liability on the derivative claims asserted in the complaint and by failing to secure the best price possible in the Proposed Transaction; by failing to secure any downside protection (in the form of a “collar”) for the merger consideration, which is primarily Alpha stock; and by agreeing to deal protection provisions (specifically, a “no shop” provision, matching rights and a $251 million termination fee) that allegedly virtually eliminate the possibility of a proposal superior to Alpha’s.  The Delaware Plaintiffs further allege that Alpha and Merger Sub aided and abetted the directors’ alleged breaches of their fiduciary duties.  The Delaware Plaintiffs seek an order (1) declaring that the derivative counts of this action properly maintainable as a derivative action; (2) declaring that the class action counts of this action are properly maintainable as a class action; (3) ordering each of the defendants to pay restitution and/or compensatory damages in favor of Massey and/or in favor of the class, plus pre-judgment interest; (4) removing Mr. Blankenship from his consulting position; (5) enjoining the consummation of the merger; (6) establishing a litigation trust to preserve the derivative claims asserted in the complaint; and (7) awarding plaintiffs their costs and disbursements and reasonable allowances for fees of plaintiffs’ counsel and experts and reimbursement of expenses.
 
On April 18, 2011, defendants moved to dismiss the Verified Shareholder Second Amended Derivative and Class Action Complaint.
 
On April 19, 2011, the court set a hearing date of May 26, 2011 for the Delaware Plaintiffs’ motion requesting that the court preliminarily enjoin the Proposed Transaction.

We and the Defendants have insurance coverage applicable to these matters.  We believe these matters will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.

Federal Class Action

There is now one consolidated purported class action brought in connection with alleged violations of the Federal securities laws pending in the United States District Court for the Southern District of West Virginia.

On January 10, 2011, the court, pursuant to a Stipulation for Consolidation, Appointment as Lead Plaintiffs, and Approval of Selection of Counsel filed by Commonwealth of Massachusetts Pension Reserves Investment Trust and David Wager, consolidated the Macomb and Firefighters Actions for all purposes; appointed Massachusetts Pension Reserves Investment Trust as Lead Plaintiff; and approved the withdrawal of, or ordered the termination of as moot, all pending motions related to consolidation and appointment of lead plaintiff.
 
On February 2, 2011, the court entered a scheduling order requiring plaintiffs to file and serve a consolidated amended complaint by March 11, 2011, and defendants to file and serve responsive pleadings, move to dismiss or otherwise respond to the consolidated amended complaint by April 25, 2011.


On February 16, 2011, plaintiffs moved to partially lift the statutory discovery stay imposed by the Private Securities Litigation Reform Act of 1995 (“PSLRA”).  On March 3, 2011, the United States moved to intervene and to stay discovery until the completion of criminal proceedings arising from the same facts which allegedly gave rise to the action.  On March 7, 2011, defendants filed oppositions to plaintiffs’ motion to partially lift the PSLRA stay.  On April 1, 2011, plaintiffs filed a reply memorandum in further support of their motion to partially lift the PSLRA discovery stay and in opposition to the United States’ combined motions to intervene and to stay discovery.
 
On March 11, 2011, plaintiffs filed a Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws, alleging that Massy and certain of its current and former directors and officers had violated Section 10(b) of the Exchange Act and SEC Rule 10b-5 by intentionally misleading the market about the safety of Massey’s operations and that certain of Massey’s current and former officers had violated Section 20(a) of the Exchange Act by virtue of their control over persons alleged to have committed violations of Section 10(b) of the Exchange Act.  Plaintiffs seek (1) a determination that this action is a proper class action and certification as class representatives under Rule 23 of the Federal Rules of Civil Procedure; (2) an award of compensatory damages in favor of plaintiffs and the other class members against all defendants, jointly and severally, for all damages sustained as a result of defendants’ wrongdoing, in an amount to be proven at trial, including interest thereon; and (3) an award to plaintiffs and the class their reasonable costs and expenses incurred in this action, including counsel fees and expert fees.
 
On April 15, 2011, the United States filed a reply memorandum in support of its combined motions to intervene and to stay discovery.  In its reply memorandum, the United States declared that it and plaintiffs had reached an agreement regarding the United States’ motions to intervene and to stay discovery whereby, if the court decides to lift the discovery stay imposed by the PSLRA, the United States and plaintiffs request that the court limit the discovery to be provided by Massey in certain respects, as set forth in an attached proposed order granting plaintiffs’ motion to partially lift the PSLRA discovery stay.  On April 20, 2011, defendants filed an objection to the United States and Plaintiffs’ proposed order granting plaintiffs’ motion to partially lift the PSLRA discovery stay.  Plaintiffs’ motion to partially lift the PSLRA discovery stay is pending before the court.  
 
On April 25, 2011, defendants filed motions to dismiss the Consolidated Amended Complaint.  Plaintiffs’ oppositions to these motions, if any, are due on June 9, 2011.
 
We and the Defendants have insurance coverage applicable to these matters.  We believe these matters will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.

Merger Litigation

On January 29, 2011, we and Alpha entered into the Merger Agreement.  Since the date of the announcement of the merger, in addition to the Consolidated Delaware Litigation described above, actions have been filed in the U.S. District Court for the Eastern District of Virginia challenging the Merger.  The complaints, which we believe are without merit and which we are challenging vigorously, allege, among other things, that our directors violated their fiduciary duties to our stockholders, that the price to be paid for us by Alpha was too low and that the Merger should not be consummated.

On February 2, 2011, purported Massey stockholder Benjamin Mostaed (“Mostaed”) filed, on behalf of a proposed class of Massey stockholders, a complaint for breach of fiduciary duty in the U.S. District Court for the Eastern District of Virginia (the “Mostaed Action”).  Mostaed alleges that Massey’s directors breached their fiduciary duties of loyalty, good faith, candor and independence by (1) failing to take steps to maximize the value of Massey to its public stockholders and by taking steps to avoid competitive bidding, to cap the price of the Company’s stock and to give the directors an unfair advantage, by, among other things, failing to adequately solicit other potential acquirers or alternative transactions; (2) failing to properly value Massey and its various assets and operations; (3) ignoring or not protecting against alleged conflicts of interest resulting from the directors’ interrelationships or connections with the Merger; and (4) failing to disclose all material information to the Company’s stockholders necessary for them to make a fully informed decision with respect to the Merger.  Mostaed also alleges that Massey and Alpha aided and abetted the directors’ breaches of their fiduciary duties.  Mostaed requests that the court (1) declare that the action is properly maintainable as a class action; (2) declare and decree that the Merger Agreement was entered into in breach of defendants’ fiduciary duties and that the Merger Agreement is therefore unlawful and unenforceable; (3) enjoin defendants, their agents, counsel, employees and all persons acting in concert with them from consummating the Merger, unless and until the Company adopts and implements a procedure or process to obtain the highest possible value for stockholders; (4) direct defendants to exercise their fiduciary duties to obtain a transaction that is in the best interests of the Company’s stockholders until the process for the sale or auction of the Company is completed and the best possible consideration is obtained for Massey; (5) rescind, to the extent already implemented, the Merger Agreement or any of the terms thereof, including the deal protection devices; and (6) award to plaintiff the costs and disbursements of this action, including reasonable attorneys’ and experts’ fees.


On February 4, 2011, purported Massey stockholder William D. Perkins (“Perkins”) filed, on behalf of a proposed class of Massey stockholders, a complaint for breach of fiduciary duty in the U.S. District Court for the Eastern District of Virginia (the “Perkins Action”).  Perkins alleges the same claims and seeks the same relief as the Mostaed Action.
 
On February 17, 2011, Mostaed filed a motion for consolidation of related cases, appointment of Johnson Bottini, LLP as lead counsel, and appointment of Finkelstein Thompson LLP as liaison counsel.  Mostaed requests that the court consolidate the Perkins Action with the Mostaed Action, as well as any subsequently-filed actions challenging the Merger.
 
On February 18, 2011, purported Massey stockholder Henry Mandel (“Mandel”) filed, on behalf of a proposed class of Massey stockholders, a complaint for breach of fiduciary duty in the U.S. District Court for the Eastern District of Virginia (the “Mandel Action”).  Mandel alleges the same claims and seeks the same relief as the Mostaed Action and the Perkins Action.
 
On March 11, 2011, defendants moved to stay the Mostaed, Perkins and Mandel Actions pending resolution of the Consolidated Delaware Litigation, described above.  On March 22, 2011, Perkins filed an opposition to defendants’ motion to stay.  On March 23, 2011, Mostaed filed a motion for leave to file out of time a memorandum in opposition to defendants’ motion to stay, which motion was granted on March 30, 2011.  On March 30, 2011, Mostaed filed an opposition to defendants’ motion to stay.  Defendants filed reply memorandums in further support of their motion to stay on March 28 in the Mostaed and Perkins Actions.  Also on March 28, defendants informed the court that Mandel had informed defendants that he did not oppose defendants’ motion to stay.
 
On April 4, 2011, Mostaed purported to file an Amended Complaint, adding putative class action claims for alleged violations of Section 14(a) of the Exchange Act against Massey, Massey’s directors, and Alpha and Section 20(a) of the Exchange Act against Massey and its directors.  Mostaed seeks an order (1) declaring that this action is properly maintainable as a class action; (2) declaring and decreeing that the Merger Agreement was entered into in breach of the fiduciary duties of the defendants is therefore unlawful and unenforceable; (3) enjoining the consummation of the Merger unless and until Massey adopts and implements a procedure or process to obtain the highest possible value for stockholders; (4) directing defendants to exercise their fiduciary duties to obtain a transaction which is in the best interests of the Company’s stockholders until the process for the sale or auction of the Company is completed and the best possible consideration is obtained for Massey; (5) rescinding, to the extent already implemented, the Merger Agreement or any of the terms thereof, including the deal protection devices; and (6) awarding plaintiff the costs and disbursements of this action, including reasonable attorneys’ and experts’ fees.  Defendants believe that the Amended Complaint was not timely filed and, therefore, that Mostaed’s February 2, 2011 complaint remained the operative complaint.
 
On April 11, 2011, defendants filed an answer to Mostaed’s February 2, 2011 complaint.
 
On April 19, 2011, Mandel and defendants submitted an agreed order, which, upon entry, will stay the Mandel Action pending resolution of the Consolidated Delaware Action, described above.
 
On April 28, 2011, Mostaed and defendants submitted an agreed order, which, upon entry, will deem Mostaed’s April 4, 2011 Amended Complaint to be the operative complaint and require that defendants respond to it within twenty-one days from the date of the entry of the agreed order.
 
 
Other Legal Proceedings

We are parties to a number of other legal proceedings, incident to our normal business activities.  These include, for example, contract disputes, personal injury claims, property damage claims, environmental and safety issues, and employment matters.   While we cannot predict the outcome of any of these proceedings, based on our current estimates we do not believe that any liability arising from these matters individually or in the aggregate should have a material adverse impact upon our consolidated cash flows, results of operations or financial condition.  It is possible, however, that the ultimate liabilities in the future with respect to these lawsuits and claims, in the aggregate, may be materially adverse to our cash flows, results of operations or financial condition.

We strive to maintain compliance with all applicable laws at all times. Shortly after the UBB tragedy, the number of citations, orders and notices of violation issued by MSHA and other regulatory agencies increased significantly.  Some of our mines have been subject to impact inspections by MSHA that have resulted in withdrawal orders, citations and penalties.  We are not satisfied with the negative findings that are sometimes identified in these impact inspections. When we receive a citation, withdrawal order, or notice of violation, we attempt to promptly abate the condition cited, whether or not we agree as to whether the condition constitutes a violation, and, as deemed necessary, impose voluntary stand-downs to conduct additional training on mine safety and other issues that led to the negative findings.  Additionally, we either pay the assessed penalties, or, if we dispute the alleged facts behind the violation or the amount of the penalty relative to the violation, we contest the matter.  While these matters have not previously resulted in a material adverse impact on our cash flows, results of operations or financial condition, they could in the future have such an impact.  In addition, if one or more of our operations is placed on a pattern of violations by the regulatory authorities, such designation and the enhanced enforcement regime that accompanies such designation could have a material adverse effect on our cash flows, results of operations or financial condition.

We continue to move forward with a great sense of urgency, intensifying our efforts and commitment to significantly reduce the number of infractions received from MSHA and other regulatory agencies.  As an example of our commitment, on both October 29, 2010 and April 5, 2011, we idled production at all of our underground coal producing sections to conduct site specific training at these operations and to reinforce the fact that we expect our miners to follow all safety rules and regulations.  We reviewed past violations at these operations and emphasized best practices to eliminate future violations.  In addition, each mine conducted its own safety inspection and all identified safety infractions were remediated before recommencing production.

Additional legal proceedings required by this Item 3 are contained in Note 22, “Contingencies” to the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K, which is incorporated herein by reference.

Material developments in legal proceedings affecting us, as previously described in Part I, Item 3. Legal Proceedings, of our Annual Report on Form 10-K for the year ended December 31, 2010, and in subsequently filed interim reports, as they relate to the fiscal quarter ended March 31, 2011, are set forth in Note 17, “Contingencies,” of the Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q and is incorporated herein by reference.
 
Specialized Disclosures

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and proposed Item 106 of Regulation S-K is included in exhibit 99.1 to this Quarterly Report on Form 10-Q.

 Item 1A. Risk Factors
 
We are subject to a variety of risks, including, but not limited to those referenced under the heading “Certain Trends and Uncertainties” of Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and those referenced herein to other Items contained in our Annual Report on Form 10-K for the year ended December 31, 2010, including Item 1. Business, under the headings “Customers and Coal Contracts,” “Competition,” and “Environmental, Safety and Health Laws and Regulations,” Item 1A. Risk Factors, Item 3. Legal Proceedings and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, under the headings “Critical Accounting Estimates and Assumptions,” “Certain Trends and Uncertainties” and elsewhere in Management’s Discussion and Analysis of Financial Condition and Results of Operations.  Except as set forth under “Certain Trends and Uncertainties” and elsewhere under Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q, we do not believe there have been any material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2010, except as follows:


The combined company may fail to realize revenue growth and the cost savings estimated as a result of the merger.
 
The success of the Merger will depend, in part, on the combined company’s ability to realize the anticipated synergies, business opportunities and growth prospects from combining the businesses of Alpha and Massey. The combined company may never realize these anticipated synergies, business opportunities and growth prospects. Integrating operations will be complex and will require significant efforts and expenditures on the part of both Alpha and Massey. Employees might leave or be terminated because of the Merger. Management of the combined company might have its attention diverted while trying to integrate operations and corporate and administrative infrastructures. The combined company might experience increased competition that limits its ability to expand its business, and it might not be able to capitalize on expected business opportunities, including retaining current customers. The combined company’s management may be unable to manage successfully the combined company’s exposure to pending and potential litigation. The combined company may be required by regulators to undertake certain remedial measures upon the closing of the Merger, and the combined company’s management may not be able to implement those and other remedial measures successfully. The combined company may experience difficulties integrating Massey’s system of financial reporting. The combined company will be permitted to exclude the operations of Massey from its management certification and auditor attestation regarding the effectiveness of its internal control over financial reporting as of December 31, 2011, such that its first certification of the effectiveness of its internal control over financial reporting will be as of December 31, 2012. The combined company may experience difficulties in applying its Running Right safety program at legacy Massey mines and facilities after consummation of the Merger. Moreover, assumptions underlying estimates of expected cost savings as a result of the Merger may be inaccurate, and general industry and business conditions might deteriorate. If any of these factors limit The combined company’s ability to integrate the operations of Alpha and Massey successfully or on a timely basis, the expectations of future results of operations, including certain cost savings and synergies expected to result from the Merger, might not be met.
 
The combine company’s success will also depend on the integration into its operations of Cumberland, which Massey acquired on April 19, 2010. At the time of the Merger, Massey’s integration of Cumberland’s operations will still be ongoing. The combined company may fail to realize the benefits of Massey’s acquisition of Cumberland. In particular, prior to its acquisition by Massey, Cumberland was a private company and was not required to comply with many requirements applicable to U.S. public companies, including the documentation and assessment of the effectiveness of its internal control over financial reporting. Establishing, testing and maintaining an effective system of internal control over financial reporting will require significant resources and time commitments on the part of the combined company’s management and finance and accounting staff, may require additional staffing and infrastructure investments, could increase the combined company’s legal, insurance and financial compliance costs and may divert the attention of management. In addition, The combined company’s actual operating costs may exceed the operating costs set forth in “Selected Unaudited Pro Forma Condensed Combined Consolidated Financial Information.” Moreover, if the combined company discovers aspects of Cumberland’s internal control over financial reporting that require improvement, the combined company cannot be certain that its remedial measures will be effective. Any failure to implement required new or improved controls, or difficulties encountered in their implementation could adversely affect the combined company’s financial and operating results, investor’s confidence or increase the combined company’s risk of material weaknesses in internal control over financial reporting.
 
In addition, Alpha and Massey have operated and, until the completion of the Merger, will continue to operate, independently. It is possible that the integration process could result in the loss of key employees, the disruption of each company’s ongoing businesses, tax costs or inefficiencies, or inconsistencies in standards, controls, information technology systems, procedures and policies, any of which could adversely affect the combined company’s ability to maintain relationships with clients, employees or other third parties or Alpha’s ability to achieve the anticipated benefits of the merger or could reduce Alpha’s earnings.
 
 
Massey and Massey’s directors and officers are named parties to a number of lawsuits, including various lawsuits relating to the explosion at the Upper Big Branch mine and safety conditions at Massey mines, one of Massey’s employees has been indicted by a grand jury and federal criminal charges have been filed against one of Massey’s former employees, and further lawsuits may be filed against Massey and charges may also be brought against Massey and certain other of Massey’s directors, officers and employees by the U.S. Attorney’s Office.
 
A number of legal actions are pending in Delaware state court and West Virginia state and federal courts relating to safety conditions at Massey’s mines, the April 2010 explosion at the Upper Big Branch mine, which we refer to as the UBB explosion, and other related matters, including accusations of securities fraud. These include derivative actions against current and former Massey directors and officers and actions brought by certain of the families of the twenty-nine miners that died in the UBB explosion. Massey and its officers, directors and employees may be subject to future claims, including additional claims from families of the twenty-nine miners that died in the UBB explosion. In addition, the U.S. Attorney’s Office and the federal Mine Safety and Health Administration, in conjunction with the State of West Virginia, are currently investigating the UBB explosion. On February 28, 2011, Massey’s head of security at the UBB mine was charged with obstruction of justice and making false statements in connection with the U.S. Attorney’s investigation. On March 22, 2011, federal criminal charges were filed against a former Massey employee who worked at UBB until August 2009 in connection with falsifying his foreman’s license and making false statements in connection with the U.S. Attorney’s investigation.
 
The outcomes of these pending and potential cases, claims, and investigations are uncertain. Depending on the outcome, these actions could have adverse financial effects or cause reputational harm to the combined company following the merger. The combined company following the merger may not resolve these actions favorably or may not be successful in implementing remedial safety measures that may be imposed as a result of some of these actions and/or investigations. Also, under the Merger Agreement, Alpha has agreed to leave in place and not to modify those provisions granting rights to indemnification and exculpation from liabilities for acts or omissions occurring at or prior to the effective time of the Merger and related rights to the advancement of expenses in favor of any current or former director, officer, employee or agent of Massey contained in the organizational documents of Massey and its subsidiaries and certain related indemnification agreements.
 
In addition, plaintiffs in the pending derivative actions against current and former Massey directors and officers, (the “Derivative Plaintiffs”), and other plaintiffs who have filed suit challenging the Merger have asserted that, if the Merger is completed, the derivative plaintiffs may lose standing to assert those claims.
 
We and Alpha must obtain required approvals and governmental and regulatory consents to complete the Merger, which, if delayed, not granted or granted with unacceptable conditions, may jeopardize or delay the Merger, result in additional expenditures of money and resources and/or reduce the anticipated benefits of the Merger.
 
The Merger is subject to customary closing conditions. These closing conditions include, among others, the receipt of required approvals of the respective stockholders of us and Alpha at their respective special meetings, the receipt of requisite governmental approvals and the expiration or termination of all waiting periods under applicable antitrust laws, including the applicable waiting periods under the HSR Act and foreign antitrust laws. Following expiration of the 30-day waiting period required under the HSR Act and clearance by German and Turkish antitrust authorities, all antitrust closing conditions have been satisfied.
 
The governmental agencies from which the parties will seek these approvals have broad discretion in administering the governing regulations. No assurance can be given that the required stockholder approvals will be obtained or that the required closing conditions will be satisfied, and, if all required consents and approvals are obtained and the closing conditions are satisfied, no assurance can be given as to the terms, conditions and timing of the approvals. We and Alpha will also be obligated to pay certain transaction-related fees and expenses in connection with the Merger, whether or not the Merger is completed.


The consummation of the Merger will constitute a change of control under Massey’s existing indebtedness and may permit counterparties to other agreements to terminate those agreements.
 
The Merger will constitute a change of control under our existing credit agreement and instruments governing Massey’s 6.875% senior notes due 2013, which we refer to as the 6.875% senior notes, and 3.25% convertible senior notes due 2015, which we refer to as the 3.25% convertible notes. As of March 31, 2011, there were $77.2 million of letters of credit issued and there were no outstanding borrowings under our existing credit agreement. As of March 31, 2011, there was approximately $760.0 million and $659.1 million aggregate principal amount outstanding under our 6.875% senior notes and 3.25% convertible notes, respectively. Such a change in control will cause the indebtedness under our credit agreement to become immediately due and payable. Under instruments governing our 6.875% senior notes, if a change in control occurs, holders of these notes may require us to buy back the notes for a price equal to 101% of the notes’ principal amount, plus any interest which has accrued and remains unpaid as of the repurchase date. The 6.875% senior notes are also redeemable at a price equal to 101.719% of the notes’ principal amount through December 14, 2011, and thereafter at a price equal to 100% of the notes’ principal amount, in each case, plus any interest which has accrued and remains unpaid on the redemption date. Under the instruments governing our 3.25% convertible notes, if a change of control occurs, holders of such series of our 3.25% convertible notes may require us to repurchase the notes for a price equal to 100% of the notes’ principal amount, plus any interest that has accrued and remains unpaid as of the repurchase date, or make payments to holders who elect to convert the notes into an amount up to 100% of the notes’ principal amount payable in cash and the excess of such amount payable at the election of us or Alpha in cash or a combination of cash and stock based on the trading prices of our or Alpha stock. If less than 90% of the consideration paid to our stockholders is common stock of Alpha, and if notice of conversion is given on or after the date the merger is consummated, holders may also be entitled to a make-whole conversion premium. In such event the amount up to 100% of the notes’ principal amount will be payable in cash and the excess of such amount will be payable at the election of Alpha in cash or a combination of cash and stock. As a result of the announcement of a June 1, 2011 expected closing date for the Merger, on May 2, 2011, the 3.25% Notes became convertible at the option of each of the holders.  The conversion period will remain open, at a minimum, until July 2, 2011, unless notice is provided that the Merger will not occur, and may be extended under certain circumstances.
 
Alpha intends to repurchase some or all of the outstanding principal amount of Massey’s 6.875% senior notes. In addition, on May 4, 2011, in connection with the Merger, Alpha announced that it commenced a cash tender offer for any and all of Massey’s outstanding 6.875% senior notes (the "Tender Offer").  The Tender Offer is conditioned upon satisfaction or waiver of certain conditions, including the closing of the Merger and the consummation of an offering by Alpha of one or more series of its senior notes, the net proceeds of which are sufficient to purchase the 6.875% senior notes tendered in the Tender Offer.
 
Alpha may not be able to refinance our existing debt or have sufficient funds available for any repurchases that could be required by a change of control, the Tender Offer, or the conversion of our 3.25% convertible notes, any of which may have an adverse effect on the value of the combine company’s common stock.
 
In addition, certain of our leases, surety bond indemnity agreements and other agreements permit a counterparty to terminate the agreement because consummation of the Merger would cause a default or violate an anti-assignment, change of control or similar clause. If this happens, the combined company may have to seek to replace any such agreement with a new agreement. We cannot assure our stockholders that the combined company will be able to replace a terminated agreement on comparable terms or at all. Depending on the importance of a terminated agreement to our business, failure to replace that agreement on similar terms or at all may increase the costs to the combined company of operating our business or prevent the combined company from operating part of our business following completion of the merger.
 
If the combined company is unable to comply with restrictions in the proposed financing package, the indebtedness thereunder could be accelerated.
 
The credit facilities, loan agreements and potential bonds contemplated by the commitment letter received by Alpha will impose restrictions on Alpha and require certain payments of principal and interest over time. A failure to comply with these restrictions or to make these payments could lead to an event of default that could result in an acceleration of the indebtedness. We cannot make any assurances that the combined company’s future operating results will be sufficient to ensure compliance with the covenants in the combined company’s agreements or to remedy any such default. In the event of an acceleration of this indebtedness, the combined company may not have or be able to obtain sufficient funds to make any accelerated payments.
 
We and/or Alpha may waive one or more of the conditions to the Merger without resoliciting stockholder approval for the Merger.
 
We and/or Alpha may agree to waive, in whole or in part, one or more of the conditions to its obligations to complete the Merger, to the extent permitted by applicable laws. Our and Alpha’s board of directors, as the case may be, will evaluate the materiality of any such waiver and its effect on us and/or Alpha stockholders in light of the facts and circumstances at the time to determine whether a resolicitation of proxies for the Merger is required or warranted. In some instances, if our or Alpha’s board of directors, as the case may be, determines that such a waiver or its effect on us and/or Alpha stockholders is not sufficiently material to warrant resolicitation of stockholders, we or Alpha, as the case may be, has the discretion to complete the Merger without seeking further stockholder approval. However, the waiver of any one or a combination of conditions or the effect of any such waiver on us and/or Alpha stockholders may be deemed by the us or Alpha’s board of directors to be sufficiently material to require or warrant supplemental disclosure to stockholders. Any determination as to resoliciting stockholder approval as a result of a waiver will be made by the board of directors of us and/or Alpha at the time of such waiver based on the facts and circumstances as they exist at such time.

Some of our and Alpha’s officers and directors may have interests in the Merger that are different from, or in addition to, the interests of our and Alpha stockholders.
 
When considering the recommendation of our and the Alpha boards of directors with respect to the Merger, stockholders should be aware that some directors and executive officers of Alpha may have interests in the merger that may be different from, or in addition to, their interests as stockholders and the interests of stockholders generally. In addition, stockholders should be aware that the directors and executive officers of Massey have interests in the Merger that may be different from, or in addition to, their interests as stockholders and the interests of stockholders generally. These interests include, among others, potential payments under employment agreements and change in control severance agreements, rights to acceleration of vesting and exercisability of options, and acceleration of vesting of restricted stock, restricted stock units and restricted cash units as a result of the Merger and rights to ongoing indemnification and insurance coverage by the combined company for acts or omissions occurring prior to the Merger.
 
Current and former Massey directors and officers are defendants in the pending derivative actions brought by the derivative plaintiffs. In accordance with the advice of Cravath, our outside legal counsel, our board of directors assumed that the derivative claims would survive the closing of the Merger, although the plaintiffs in the pending cases would lose their standing to bring those claims and might have to make a demand on the  combined company board of directors to pursue the claims. However, if the derivative claims are not pursued following the closing of the Merger, our directors and officers that are defendants in the pending derivative actions would have an interest in the merger in addition to those set forth above. Since our board of directors assumed that the derivative claims would survive the Merger, our board of directors did not consider this potential interest in evaluating and negotiating the Merger Agreement and the Merger, and in recommending to the stockholders that the Merger Agreement be adopted
 
As a result of these interests, these directors and executive officers of Alpha or Massey, as the case may be, might be more likely to support and to vote in favor of the proposals related to the Merger described in their joint proxy statement/prospectus than if they did not have these interests. Stockholders should consider whether these interests might have influenced these directors and executive officers to support or recommend adoption of the Merger Agreement. At the close of business on April 27, 2011, Alpha directors and executive officers were entitled to vote approximately 0.7% of the then-outstanding shares of Alpha common stock. As of the close of business on April 27, 2011, our directors and executive officers were entitled to vote approximately 0.6% of the then-outstanding shares of our common stock.
 
Multiple lawsuits have been filed against us, certain of our current and former directors and officers, Alpha and Mountain Merger Sub challenging the Merger, and an adverse judgment in such lawsuits may prevent the Merger from becoming effective or from becoming effective within the expected timeframe.
 
Massey, certain of our current and former directors and officers, Alpha and Mountain Merger Sub are named as defendants in multiple class action lawsuits brought by purported Massey stockholders challenging the proposed Merger, seeking, among other things, to enjoin the defendants from consummating the Merger on the agreed-upon terms.


One of the conditions to the closing of the Merger is that no temporary restraining order, preliminary or permanent injunction or other judgment, order or restraint issued by any federal or state court of competent jurisdiction or governmental entity shall be in effect enjoining or otherwise prohibiting the consummation of the Merger. As such, if the plaintiffs are successful in obtaining an injunction prohibiting the defendants from consummating the Merger on the agreed upon terms, then such injunction may prevent the Merger from becoming effective, or from becoming effective within the expected timeframe.
 
The outcome of the pending derivative actions against our current and former directors and officers is uncertain; recovery, if any, following the effective time of the Merger will benefit all stockholders and not only those stockholders who had been Massey stockholders; and it will not be known at the time of the special meetings whether the underlying derivative claims will be pursued against our current and former directors and officers following the effective time of the Merger or whether or not those claims have substantial value.
 
Although the underlying derivative claims against our current and former directors and officers would survive the closing of the Merger, our board of directors has been advised (and for purposes of voting on the Merger stockholders should assume) that the plaintiffs in those pending cases would lose their standing to continue their suits on those claims. If the derivative claims are not resolved prior to the effective time of the Merger, we expect that the combined company’s board of directors will consider whether to pursue these derivative claims. If, after the effective time of the Merger, the combined company’s board of directors determines not to pursue the derivative claims, our current stockholders who become Alpha stockholders may make a demand on the combined company’s board of directors to pursue the underlying derivative claims or demonstrate to a court the futility of making a demand on the combined company’s board. Whether any such demand will result in the combined company pursuing such claims, or if not, whether stockholders would thereafter be able to pursue (and would choose to pursue) such claims themselves, is not known. Thus, if the derivative claims against our current and former directors and officers are not resolved prior to the effective time of the Merger, it is possible that the value of such claims, if any, will be lost, despite the assertion by the plaintiffs that such claims have substantial value.
 
Moreover, while recovery, if any, on the derivative claims obtained in the absence of the Merger would benefit only us and, indirectly as a result, our stockholders, if the derivative claims are successfully pursued following the effective time of the Merger, any recovery from them will benefit the combined company, and our stockholders will only own 46% of the combined company as a result of the Merger.
 
If the Merger does not qualify as a reorganization under Section 368(a) of the Code, our stockholders may be required to pay substantial U.S. federal income taxes.
 
As a condition to the completion of the Merger, each of Cleary Gottlieb Steen & Hamilton LLP, tax counsel to Alpha, and Cravath, Swaine & Moore LLP, tax counsel to Massey, will have delivered an opinion as of the closing date of the Merger, that the Merger will be treated for U.S. federal income tax purposes as a “reorganization” within the meaning of Section 368(a) of the Code. These opinions will be based on certain assumptions and representations as to factual matters from Alpha and Massey, as well as certain covenants and undertakings by Alpha and Massey. If any of the assumptions, representations, covenants or undertakings is incorrect, incomplete, inaccurate or is violated in any material respect, the validity of the conclusions reached by counsel in their opinions would be jeopardized. Additionally, an opinion of counsel represents counsel’s best legal judgment but is not binding on the IRS or any court, so there can be no certainty that the IRS will not challenge the conclusions reflected in the opinions or that a court will not sustain such a challenge. If the IRS or a court determines that the Merger should not be treated as a “reorganization,” a holder of our common stock would recognize taxable gain or loss upon the exchange of our common stock for Alpha common stock pursuant to the Merger.
 
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table summarizes information about shares of Common Stock that were purchased during the first quarter of 2011.

Period
 
Total Number of Shares Purchased
   
Average Price Paid per Share
   
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
   
Maximum Number of Shares that May Yet Be Purchased Under the Plan
 
   
(In Thousands, Except Average Price Paid Per Share)
 
Jan. 1 through Jan. 31
    -       -       -       -  
Feb. 1 through Feb. 28
    -       -       -       -  
Mar. 1 through Mar. 31
    -       -       -       -  
Total
    -               -       5,873,448 (2)
 

 
(1)
We maintain a share repurchase program (the “Repurchase Program”), which was authorized by the Board of Directors and announced on November 14, 2005 that provides we may repurchase shares of Common Stock for an aggregate amount not to exceed $500 million. The Repurchase Program does not require us to acquire any specific number of shares, may be terminated at any time and has no expiration date.
 
(2)
Calculated using the  $388 million that may yet be purchased under the Repurchase Program and a price per share of $66.06, the closing price of Common Stock as reported on the New York Stock Exchange on April 20, 2011.


Item 6. Exhibits
 
31.1
 
Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 [filed herewith]
31.2
 
Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 [filed herewith]
32.1
 
Certification of Chief Executive Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 [furnished herewith]
32.2
 
Certification of Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 [furnished herewith]
 
Dodd-Frank Act Disclosure of Mine Safety and Health Administration Safety Data [filed herewith]
101
 
Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended March 31, 2011, furnished in XBRL (eXtensible Business Reporting Language)).
   
Attached as Exhibit 101 to this report are the following documents formatted in XBRL:  (i) the Consolidated Statements of Income for the three months ended March 31, 2011 and 2010, (ii) the Consolidated Balance Sheets at March 31, 2011 and December 31, 2010, (iii) the Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010 and (iv) the Notes to Consolidated Financial Statements, tagged as blocks of text. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections.



Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
MASSEY ENERGY COMPANY
 
 
(Registrant)
   
   
Date:  May 10, 2011
/s/ Eric B. Tolbert
 
 
Eric B. Tolbert,
 
Vice President and Chief Financial Officer
   
   
   
Date:  May 10, 2011
/s/ David W. Owings
 
 
David W. Owings,
 
Controller

 
45

EX-31.1 2 ex31_1.htm EXHIBIT 31.1 ex31_1.htm

Exhibit 31.1


Section 302 Certification
 
I, Baxter F. Phillips, Jr., certify that:
 
 
1.
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 of Massey Energy Company;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
(a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
(b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
(c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
 
 
(d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of  the registrant’s board of directors (or persons performing the equivalent functions):
 
 
(a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
(b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: May 10, 2011
 
   
   
 
/s/ Baxter F. Phillips, Jr.        
 
Baxter F. Phillips, Jr.
 
Chief Executive Officer & President
 
 

EX-31.2 3 ex31_2.htm EXHIBIT 31.2 ex31_2.htm

Exhibit 31.2


Section 302 Certification
 
I, Eric B. Tolbert, certify that:
 
 
1.
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 of Massey Energy Company;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
(a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
(b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
(c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
 
 
(d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
 
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of  the registrant’s board of directors (or persons performing the equivalent functions):
 
 
(a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
(b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: May 10, 2011
 
   
   
 
/s/ Eric B. Tolbert     
 
Eric B. Tolbert
Vice President and Chief Financial Officer
 
 

EX-32.1 4 ex32_1.htm EXHIBIT 32.1 ex32_1.htm

Exhibit 32.1


CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report on Form 10-Q of Massey Energy Company (the “Company”) for the quarter ending March 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Baxter F. Phillips, Jr., Chief Executive Officer & President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
 
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
 
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
       /s/ Baxter F. Phillips, Jr.
Baxter F. Phillips, Jr.
Chief Executive Officer & President
 
May 10, 2011 
 


EX-32.2 5 ex32_2.htm EXHIBIT 32.2 ex32_2.htm

Exhibit 32.2


CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report on Form 10-Q of Massey Energy Company (the “Company”) for the quarter ending March 31, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric B. Tolbert, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
 
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
 
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Eric B. Tolbert
Eric B. Tolbert
Vice President and Chief Financial Officer
 
May 10, 2011
 
 

EX-99.1 6 ex99_1.htm EXHIBIT 99.1 ex99_1.htm

Exhibit 99.1

Dodd-Frank Act Disclosure of Mine Safety and Health Administration Safety Data

We are committed to providing a safe workplace for all of our employees.  Our company has in place health and safety programs that include extensive employee training, accident prevention, workplace inspection, emergency response, accident investigation, regulatory compliance and program auditing. The objectives of our health and safety programs are to eliminate workplace incidents, comply with all mining-related regulations and provide support for both regulators and the industry to improve mine safety.  We believe our company has a well-developed process of training, mentoring, monitoring, reduction of risk through safety innovation, and recognition of safety excellence.
 
The operation of our mines is subject to regulation by the MSHA under the Federal Mine Safety and Health Act of 1977 (the “FMSH Act”). MSHA inspects our mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the FMSH Act. We present information below regarding certain mining safety and health citations which MSHA has issued with respect to our coal mining operations. In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the coal mine, (ii) the number of citations issued will vary from inspector to inspector and mine to mine, and (iii) citations and orders can be contested and appealed, and in that process, are often reduced in severity and amount, and are sometimes dismissed.

As required by the reporting requirements regarding coal mine safety included in §1503(a)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the table below presents the following information for the three months ended March 31, 2011, except for pending legal actions, which are as of December 31, 2010, for each coal mine of which we or a subsidiary of ours is an operator:
 
 
(a)
The total number of FMSH Act section 104 significant and substantial citations received, which are for alleged violations of a mining safety standard or regulation where there exists a reasonable likelihood that the hazard could result in an injury or illness of a reasonably serious nature;
 
 
(b)
The total number of FMSH Act section 104(b) orders received, which are for an alleged failure to totally abate the subject matter of a FMSH Act section 104(a) citation within the period specified in the citation;
 
 
(c)
The total number of FMSH Act section 104(d) citations and orders received, which are for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with a mining safety standard or regulation;
 
 
(d)
The total number of flagrant violations (i.e., reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury) under §110(b)(2) of the FMSH Act received;
 
 
(e)
The total number of imminent danger orders (i.e., the existence of any condition or practice in a coal or other mine which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated) issued under §107(a) of the FMSH Act;
 
 
(f)
The total dollar value of proposed assessments from MSHA under the FMSH Act;
 
 
(g)
The total number of mining-related fatalities; and
 
 
(h)
The total number of pending legal actions before the Federal Mine Safety and Health Review Commission as required by §1503(a)(3) of the Dodd-Frank Act; see Pending Legal Actions table below for a complete listing of pending legal actions for each coal mine of which we or a subsidiary of ours is an operator.

 
 

 
 
Mine
 
( a ) #
   
( b ) #
   
( c ) #
   
( d ) #
   
( e ) #
   
( f ) $
   
(g) #
   
(h) #
 
#1 Prep Plant (Sidney)
    1       -       -       -       -     $ 672       -       6  
Alex Energy Inc.
    -       -       -       -       -     $ -       -       1  
Allegiance Mine
    37       -       1       -       -     $ 81,501       -       -  
Allen Powellton Mine
    4       -       -       -       -     $ 15,631       -       11  
Alloy Powellton
    12       -       -       -       -     $ 24,191       -       5  
Alloy Prep Plant #1
    -       -       -       -       -     $ -       -       -  
Aracoma Alma Mine #1
    34       -       2       -       -     $ 132,554       -       26  
Aracoma Coal Company
    -       -       -       -       -     $ -       -       1  
Beetree Surface Mine
    1       -       -       -       -     $ 323       -       -  
Bent Branch Energy Co Mine No 1
    -       -       -       -       -     $ -       -       1  
Black Castle Mining Co
    28       -       2       -       -     $ 55,164       -       3  
Black King I North Portal
    7       -       -       -       -     $ 24,742       -       7  
Black Knight II
    -       -       -       -       -     $ -       -       7  
Blue Pennant Transfer
    1       -       -       -       -     $ 308       -       -  
Brushy Eagle
    17       2       -       -       -     $ 39,516       -       -  
Camp Branch Mine
    -       -       -       -       -     $ -       -       7  
Castle East Portal
    -       -       -       -       -     $ -       -       1  
Castle Mine
    18       -       -       -       -     $ 95,506       -       9  
Cedar Grove #1
    12       -       -       -       -     $ 13,841       -       3  
Cedar Grove #2 Mine
    -       -       -       -       -     $ -       -       1  
Chess Processing
    4       -       -       -       -     $ 5,045       -       3  
Chesterfield Prep Plant
    -       -       -       -       -     $ -       -       9  
Clean Energy Mining Company
    -       -       -       -       -     $ -       -       1  
Coal Creek Prep Plant
    1       -       -       -       -     $ 1,077       -       -  
Coalgood Crusher/Loadout
    -       -       -       -       -     $ 100       -       -  
Collins Fork Slurry Impoundment
    -       -       -       -       -     $ 112       -       -  
Cook Mine
    7       -       1       -       -     $ 33,039       -       -  
Coon Cedar Grove Mine
    3       -       -       -       -     $ 11,050       -       7  
Delbarton Preparation Plant
    6       -       -       -       -     $ 9,347       -       2  
Derby Wilson Mine
    7       -       -       -       -     $ 11,953       -       -  
Diamond Energy
    17       -       1       -       -     $ 41,829       -       16  
Edwight Surface Mine
    2       -       -       -       -     $ 2,470       -       5  
Emily Creek Energy
    -       -       -       -       -     $ -       -       2  
Fraley Branch Surface Mine
    -       -       -       -       -     $ -       -       3  
Freeze Fork Surface Mine
    -       -       -       -       -     $ -       -       10  
Goals Preparation Plant
    4       -       -       -       -     $ 1,894       -       1  
Grassy Creek No 1
    12       -       1       -       -     $ 74,705       -       4  
Hatfield Energy Mine
    9       -       2       -       -     $ 28,208       -       2  
Hernshaw Mine
    6       -       -       -       -     $ 33,001       -       5  
Hess Creek Surface Mine
    -       -       -       -       -     $ -       -       -  
Highland Coal Handling Facility
    2       -       -       -       -     $ 514       -       2  
Homer III Processing
    6       -       -       -       -     $ 2,391       -       -  
Hominy Creek Mine
    -       -       -       -       -     $ 1,324       -       -  
Horse Creek Eagle
    15       -       1       -       -     $ 41,502       -       14  
 
 
 

 
 
Hunter Peerless Mine
    16       -       -       -       -     $ 15,685       -       3  
Hurricane Branch Strip #1
    -       -       -       -       -     $ 300       -       -  
Jerry Fork Eagle
    4       -       -       -       -     $ 11,877       -       16  
Justice #1
    23       2       2       -       -     $ 120,574       -       1  
Kennedy #3 Surface
    -       -       -       -       -     $ 117       -       -  
Kepler Sewell Mine #1
    -       -       -       -       -     $ 100       -       -  
Laurel Coalburg Tunnel Mine
    3       -       -       -       -     $ 30,833       -       9  
Laurel Creek/Spirit Mine
    -       -       -       -       -     $ -       -       3  
Long Fork Preparation Plant
    15       -       1       -       -     $ 14,563       -       -  
Long Pole Energy Mine
    2       -       -       -       -     $ 1,829       -       2  
Looney Creek Marker Mine
    8       -       -       -       -     $ 12,950       -       -  
Looney Creek Taggart Mine
    13       -       3       -       -     $ 120,473       -       -  
Love Branch South
    5       -       -       -       -     $ 12,761       -       19  
Low Splint A Mine
    4       -       -       -       -     $ 40,273       -       -  
Lower Big Branch Impoundment
    -       -       -       -       -     $ 112       -       -  
Mammoth #2 Gas
    7       -       1       -       -     $ 53,966       -       11  
Mammoth Coal  Processing Pl & Riv Tipple
    8       -       -       -       -     $ 14,557       -       2  
Mammoth Coal Company
    -       -       -       -       -     $ -       -       1  
Mammoth Coal Co. Surface Mine
    -       -       -       -       -     $ 100       -       -  
Marfork Processing
    8       -       -       -       -     $ 19,385       -       4  
Marmet Dock
    -       -       -       -       -     $ 1,275       -       -  
Marsh Fork Mine
    5       -       -       -       -     $ 21,957       -       2  
Massey HWM #11
    -       -       -       -       -     $ 100       -       -  
Meade Branch Surface
    -       -       -       -       -     $ -       -       1  
Mine #1 (Cave Spur)
    3       -       -       -       -     $ 11,590       -       -  
Mine #1 (Clean Energy)
    2       -       -       -       -     $ 3,005       -       30  
Mine #1 (Freedom Energy)
    9       -       3       -       -     $ 34,569       -       44  
Mine #1 (Rockhouse Energy)
    17       -       -       -       -     $ 45,338       -       35  
Mine #1 (Solid Energy)
    14       -       -       -       -     $ 27,809       -       8  
Mine No 1 (Bluff Spur)
    9       -       -       -       -     $ 15,854       -       -  
Mine No 1 (Stillhouse Mining)
    1       -       -       -       -     $ 7,192       -       -  
Mine No 2 (Big Laurel Mining)
    12       -       -       -       -     $ 38,798       -       13  
Mine No 2 (Stillhouse Mining)
    8       -       -       -       -     $ 11,545       -       -  
Mine No 4 (North Fork)
    29       -       -       -       -     $ 101,638       -       -  
Mine No 5 (Guest Mountain)
    13       -       -       -       -     $ 32,019       -       -  
Mine No 5 (North Fork)
    2       -       -       -       -     $ 6,200       -       -  
Mine No 8
    5       -       -       -       -     $ 2,647       -       -  
Mine No. 1 (Cloverlick Coal)
    7       -       -       -       -     $ 18,345       -       -  
Mine No. 1 (Osaka Mining)
    17       -       -       -       -     $ 63,711       -       1  
Mine No. 1 (Panther Mining)
    6       -       -       -       -     $ 19,690       -       -  
Mine No. 3 (Cloverlick Coal)
    12       -       -       -       -     $ 6,544       -       -  
Mine No. 4 (Dorchester)
    16       -       -       -       -     $ 61,980       -       2  
Moore Processing
    -       -       -       -       -     $ 687       -       -  
MTR Surface Mine
    -       -       -       -       -     $ -       -       5  
 
 
 

 
 
MTR Wolf Creek Mine
    -       -       -       -       -     $ -       -       2  
New Ridge Mining Company
    1       -       -       -       -     $ 405       -       3  
No 1 (M3 Energy)
    13       -       2       -       -     $ 28,801       -       21  
No 1 Preparation Plant (Green Valley)
    5       -       -       -       -     $ 3,684       -       -  
No 1 Surface
    2       -       -       -       -     $ 21,838       -       9  
No 130 Mine
    -       -       -       -       -     $ 112       -       11  
No 6
    -       -       -       -       -     $ -       -       1  
No. 1 (Process Energy)
    34       -       -       -       -     $ 99,989       -       24  
North Surface Mine
    -       -       -       -       -     $ -       -       4  
Parker Peerless Mine
    13       -       -       -       -     $ 21,288       -       15  
Phillips Rider No. 1 Mine
    -       -       -       -       -     $ 1,359       -       -  
Plant No 1 (Pigeon Creek)
    5       -       -       -       -     $ 9,075       -       -  
Pocahontas Mine
    15       -       2       -       -     $ 41,924       -       -  
Power Mountain Processing
    16       -       6       -       -     $ 17,339       -       2  
Prep Plant (Greyeagle)
    19       -       2       -       -     $ 37,755       -       -  
Preparation Plant (Martin County)
    -       -       -       -       -     $ -       -       3  
Preparation Plant (Stirrat)
    -       -       -       -       -     $ -       -       2  
Randolph Mine
    40       3       4       -       -     $ 96,042       -       28  
Red Cedar Surface Mine
    -       -       -       -       -     $ -       -       3  
Republic Energy
    9       -       -       -       -     $ 10,915       -       7  
Right Fork Splint
    -       -       -       -       -     $ 200       -       -  
Road Fork #51 Mine
    49       1       10       -       -     $ 662,130       -       21  
Roundbottom Powellton Deep Mine
    16       -       -       -       -     $ 43,616       -       16  
Roundbottom Surface
    7       -       -       -       -     $ 3,321       -       1  
Ruby Energy
    22       1       -       -       -     $ 174,066       -       29  
Rum Creek Preparation Plant
    25       -       -       -       1     $ 24,189       -       9  
Seng Creek Powellton
    21       -       5       -       -     $ 149,491       -       7  
Shadrick 5 Block
    5       -       -       -       -     $ 7,014       -       7  
Sidney Coal Company, Inc.
    -       -       -       -       -     $ -       -       1  
Slabcamp
    2       -       -       -       -     $ 30,257       -       5  
Slip Ridge Cedar Grove Mine
    19       -       2       -       -     $ 116,900       -       16  
Sprouse Creek Processing Company Inc
    2       -       -       -       -     $ 926       -       1  
Stockton Mine
    -       -       -       -       -     $ 262       -       4  
Superior Surface Mine
    -       -       -       -       -     $ -       -       7  
Talon Loadout
    -       -       -       -       -     $ 412       -       -  
Taylor Fork Energy
    3       -       -       -       -     $ 11,045       -       22  
Tiller No 1
    32       -       -       -       -     $ 37,851       -       1  
Tower Mountain
    -       -       -       -       -     $ -       -       4  
Tunnel Mine
    -       -       -       -       -     $ 1,074       -       -  
Twilight Mtr Surface Mine
    5       -       4       -       -     $ 19,851       -       2  
Upper Big Branch Mine-South
    71       23       22       -       -     $ 950,228       -       55  
Upper Big Branch Raw Coal Facil
    -       -       -       -       -     $ -       -       1  
Voyager #7
    9       -       4       -       1     $ 23,607       -       15  
West Cazy Surface Mine
    -       -       -       -       -     $ -       -       2  
White Buck No. 2
    -       -       -       -       -     $ -       -       1  
White Cabin #7
    2       -       -       -       -     $ 1,793       -       7  
White Cabin #9
    1       1       -       -       -     $ 1,332                  

 
 

 

In addition, as required by the reporting requirements regarding coal mine safety included in §1503(a)(2) of the Dodd-Frank Act, the following is a list for the three months ended March 31, 2011, of each coal mine of which we or a subsidiary of ours is an operator, that has received written notice from MSHA of:

 
(a)
a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards under §104(e) of the FMSH Act:

None; or

 
(b)
the potential to have such a pattern:

None

 
 

 

Pending Legal Actions before the Federal Mine Safety and Health Review Commission
 
Mine Name
 
Docket Number
#1 Prep Plant (Sidney)
 
KENT 2008-172
#1 Prep Plant (Sidney)
 
KENT 2008-757
#1 Prep Plant (Sidney)
 
KENT 2009-1499
#1 Prep Plant (Sidney)
 
KENT 2010-313
#1 Prep Plant (Sidney)
 
KENT 2010-48
#1 Prep Plant (Sidney)
 
KENT 2010-551
Alex Energy Inc.
 
N/A
Allen Powellton Mine
 
WEVA 2008-717
Allen Powellton Mine
 
WEVA 2009-1054
Allen Powellton Mine
 
WEVA 2009-1422
Allen Powellton Mine
 
WEVA 2009-270
Allen Powellton Mine
 
WEVA 2009-271
Allen Powellton Mine
 
WEVA 2009-631
Allen Powellton Mine
 
WEVA 2009-910
Allen Powellton Mine
 
WEVA 2010-100
Allen Powellton Mine
 
WEVA 2010-373
Allen Powellton Mine
 
WEVA 2010-374
Allen Powellton Mine
 
WEVA 2010-519
Alloy Powellton
 
WEVA 2010-1022
Alloy Powellton
 
WEVA 2010-1142
Alloy Powellton
 
WEVA 2010-1224
Alloy Powellton
 
WEVA 2010-478
Alloy Powellton
 
WEVA 2011-1042
Aracoma Alma Mine #1
 
N/A
Aracoma Alma Mine #1
 
WEVA 2007-40
Aracoma Alma Mine #1
 
WEVA 2007-41
Aracoma Alma Mine #1
 
WEVA 2009-1913
Aracoma Alma Mine #1
 
WEVA 2009-1920
Aracoma Alma Mine #1
 
WEVA 2009-1920
Aracoma Alma Mine #1
 
WEVA 2009-1944 WEVA 2009-1377-R WEVA 2009-1378-R
Aracoma Alma Mine #1
 
WEVA 2009-726
Aracoma Alma Mine #1
 
WEVA 2010-110
Aracoma Alma Mine #1
 
WEVA 2010-1162
Aracoma Alma Mine #1
 
WEVA 2010-1163
Aracoma Alma Mine #1
 
WEVA 2010-1345
Aracoma Alma Mine #1
 
WEVA 2010-1346
Aracoma Alma Mine #1
 
WEVA 2010-1595
Aracoma Alma Mine #1
 
WEVA 2010-1616
Aracoma Alma Mine #1
 
WEVA 2010-203
Aracoma Alma Mine #1
 
WEVA 2010-267
Aracoma Alma Mine #1
 
WEVA 2010-538
Aracoma Alma Mine #1
 
WEVA 2010-796
Aracoma Alma Mine #1
 
WEVA 2010-915
Aracoma Alma Mine #1
 
WEVA 2011-1160
Aracoma Alma Mine #1
 
WEVA 2011-1161
Aracoma Alma Mine #1
 
WEVA 2011-238
Aracoma Alma Mine #1
 
WEVA 2011-239
Aracoma Alma Mine #1
 
WEVA 2011-912
Aracoma Alma Mine #1
 
WEVA 2011-915
 
 
 

 
 
Mine Name   Docket Number
Aracoma Coal Company
 
N/A
Bent Branch Energy Co Mine No 1
 
KENT 2010-132
Black Castle Mining Co.
 
WEVA 2007-421; WEVA 2007-288
Black Castle Mining Co.
 
WEVA 2009-1453
Black Castle Mining Co.
 
WEVA 2011-831
Black King I North Portal
 
WEVA 2007-547
Black King I North Portal
 
WEVA 2008-1101
Black King I North Portal
 
WEVA 2008-1541
Black King I North Portal
 
WEVA 2008-915
Black King I North Portal
 
WEVA 2009-1903
Black King I North Portal
 
WEVA 2010-173
Black King I North Portal
 
WEVA 2010-452
Black Knight II
 
WEVA 2008-1336
Black Knight II
 
WEVA 2008-1539
Black Knight II
 
WEVA 2009-1766
Black Knight II
 
WEVA 2010-315
Black Knight II
 
WEVA 2010-451
Black Knight II
 
WEVA 2010-50
Black Knight II
 
WEVA 2011-17
Camp Branch Mine
 
WEVA 2007-774
Camp Branch Mine
 
WEVA 2008-1152
Camp Branch Mine
 
WEVA 2008-938
Camp Branch Mine
 
WEVA 2009-1798
Camp Branch Mine
 
WEVA 2009-694
Camp Branch Mine
 
WEVA 2009-695
Camp Branch Mine
 
WEVA 2010-674
Castle East Portal
 
WEVA 2008-555
Castle Mine
 
WEVA 2008-1545
Castle Mine
 
WEVA 2008-382
Castle Mine
 
WEVA 2009-1305
Castle Mine
 
WEVA 2009-511
Castle Mine
 
WEVA 2009-826
Castle Mine
 
WEVA 2010-167
Castle Mine
 
WEVA 2010-449
Castle Mine
 
WEVA 2010-47
Castle Mine
 
WEVA 2010-560
Cedar Grove #1 Mine
 
N/A
Cedar Grove #1 Mine
 
WEVA 2009-1921
Cedar Grove #1 Mine
 
WEVA 2011-391
Cedar Grove #2 Mine
 
WEVA 2010-1596
Chess Processing
 
WEVA 2010-172
Chess Processing
 
WEVA 2010-317
Chess Processing
 
WEVA 2010-46
Chesterfield Prep Plant
 
WEVA 2008-1277
Chesterfield Prep Plant
 
WEVA 2009-1315
Chesterfield Prep Plant
 
WEVA 2009-1800
Chesterfield Prep Plant
 
WEVA 2009-395
Chesterfield Prep Plant
 
WEVA 2009-472
Chesterfield Prep Plant
 
WEVA 2009-473
Chesterfield Prep Plant
 
WEVA 2010-1210
 
 
 

 
 
Mine Name   Docket Number
Chesterfield Prep Plant
 
WEVA 2010-454
Chesterfield Prep Plant
 
WEVA 2011-580
Clean Energy Inundation
 
N/A
Clean Energy Mining Company
 
N/A
Coon Cedar Grove Mine
 
WEVA 2008-1126
Coon Cedar Grove Mine
 
WEVA 2008-1187
Coon Cedar Grove Mine
 
WEVA 2008-720
Coon Cedar Grove Mine
 
WEVA 2009-1425
Coon Cedar Grove Mine
 
WEVA 2009-627
Coon Cedar Grove Mine
 
WEVA 2009-628
Coon Cedar Grove Mine
 
WEVA 2009-907
Delbarton Preparation Plant
 
WEVA 2008-1052
Delbarton Preparation Plant
 
WEVA 2008-1053
Diamond Energy
 
WEVA 2008-704
Diamond Energy
 
WEVA 2009-1066
Diamond Energy
 
WEVA 2009-1268
Diamond Energy
 
WEVA 2009-1458
Diamond Energy
 
WEVA 2009-1534
Diamond Energy
 
WEVA 2009-1535
Diamond Energy
 
WEVA 2009-1641
Diamond Energy
 
WEVA 2009-1824
Diamond Energy
 
WEVA 2009-340
Diamond Energy
 
WEVA 2009-714
Diamond Energy
 
WEVA 2010-109
Diamond Energy
 
WEVA 2010-221
Diamond Energy
 
WEVA 2010-515
Diamond Energy
 
WEVA 2010-816
Diamond Energy
 
WEVA 2010-858
Diamond Energy
 
WEVA 2010-858
Edwight Surface Mine
 
WEVA 2008-1776
Edwight Surface Mine
 
WEVA 2009-1644
Edwight Surface Mine
 
WEVA 2009-1763
Edwight Surface Mine
 
WEVA 2010-448
Edwight Surface Mine
 
WEVA 2010-685
Emily Creek Energy
 
KENT 2009-1495
Emily Creek Energy
 
KENT 2010-201
Fraley Branch Surface Mine
 
KENT 2008-443
Fraley Branch Surface Mine
 
KENT 2009-1472
Fraley Branch Surface Mine
 
KENT 2010-55
Freeze Fork Surface Mine
 
WEVA 2009-110
Freeze Fork Surface Mine
 
WEVA 2009-1497
Freeze Fork Surface Mine
 
WEVA 2009-1834
Freeze Fork Surface Mine
 
WEVA 2009-1882
Freeze Fork Surface Mine
 
WEVA 2009-618
Freeze Fork Surface Mine
 
WEVA 2009-688
Freeze Fork Surface Mine
 
WEVA 2009-689
Freeze Fork Surface Mine
 
WEVA 2009-829;   WEVA 2008-727-R thru 2008-729-R
Freeze Fork Surface Mine
 
WEVA 2009-935
Freeze Fork Surface Mine
 
WEVA 2010-571
Grassy Creek No 1
 
WEVA 2009-1161
 
 
 

 
 
Mine Name   Docket Number
Grassy Creek No 1
 
WEVA 2009-1383
Grassy Creek No 1
 
WEVA 2009-1709
Grassy Creek No 1
 
WEVA 2010-1018
Hatfield Energy Mine
 
WEVA 2009-1536
Hatfield Energy Mine
 
WEVA 2009-1619
Hernshaw Mine
 
WEVA 2009-1677
Hernshaw Mine
 
WEVA 2010-1165
Hernshaw Mine
 
WEVA 2010-787
Hernshaw Mine
 
WEVA 2011-1162
Hernshaw Mine
 
WEVA 2011-240
Highland Coal Handling Facility
 
WEVA 2008-1160
Highland Coal Handling Facility
 
WEVA 2009-1037
Horse Creek Eagle
 
N/A
Horse Creek Eagle
 
WEVA 2008-1130
Horse Creek Eagle
 
WEVA 2008-1460
Horse Creek Eagle
 
WEVA 2008-719
Horse Creek Eagle
 
WEVA 2009-1053
Horse Creek Eagle
 
WEVA 2009-1308   WEVA 2009-1309
Horse Creek Eagle
 
WEVA 2009-1426
Horse Creek Eagle
 
WEVA 2009-630
Horse Creek Eagle
 
WEVA 2010-372
Horse Creek Eagle
 
WEVA 2010-517
Horse Creek Eagle
 
WEVA 2010-518
Horse Creek Eagle
 
WEVA 2010-587
Horse Creek Eagle
 
WEVA 2010-59
Horse Creek Eagle
 
WEVA 2010-955
Hunter Peerless Mine
 
WEVA 2009-1907
Hunter Peerless Mine
 
WEVA 2010-169
Hunter Peerless Mine
 
WEVA 2010-324
Jerry Fork Eagle
 
WEVA 2008-1124
Jerry Fork Eagle
 
WEVA 2008-1481
Jerry Fork Eagle
 
WEVA 2008-1786
Jerry Fork Eagle
 
WEVA 2009-1127
Jerry Fork Eagle
 
WEVA 2009-1336
Jerry Fork Eagle
 
WEVA 2009-1549
Jerry Fork Eagle
 
WEVA 2009-246
Jerry Fork Eagle
 
WEVA 2009-393
Jerry Fork Eagle
 
WEVA 2009-394
Jerry Fork Eagle
 
WEVA 2009-587
Jerry Fork Eagle
 
WEVA 2009-588
Jerry Fork Eagle
 
WEVA 2009-955
Jerry Fork Eagle
 
WEVA 2010-447
Jerry Fork Eagle
 
WEVA 2010-55
Jerry Fork Eagle
 
WEVA 2010-567
Jerry Fork Eagle
 
WEVA 2010-700
Justice #1
 
WEVA 2010-1568
Laurel Coalburg Tunnel Mine
 
WEVA 2009-1848
Laurel Coalburg Tunnel Mine
 
WEVA 2010-114
Laurel Coalburg Tunnel Mine
 
WEVA 2010-1690
Laurel Coalburg Tunnel Mine
 
WEVA 2010-1934
 
 
 

 
 
Mine Name   Docket Number
Laurel Coalburg Tunnel Mine
 
WEVA 2010-1935
Laurel Coalburg Tunnel Mine
 
WEVA 2010-281
Laurel Coalburg Tunnel Mine
 
WEVA 2010-482
Laurel Coalburg Tunnel Mine
 
WEVA 2010-614
Laurel Coalburg Tunnel Mine
 
WEVA 2010-742
Laurel Creek/Spirit Mine
 
WEVA 2007-663
Laurel Creek/Spirit Mine
 
WEVA 2007-664
Laurel Creek/Spirit Mine
 
WEVA 2010-499
Long Pole Energy Mine
 
KENT 2011-131
Long Pole Energy Mine
 
KENT 2011-694
Love Branch Mine
 
KENT 2008-1012
Love Branch Mine
 
KENT 2008-1013
Love Branch Mine
 
KENT 2009-1035
Love Branch Mine
 
KENT 2009-1280
Love Branch Mine
 
KENT 2009-1515
Love Branch Mine
 
KENT 2010-1137
Love Branch Mine
 
KENT 2010-195
Love Branch Mine
 
KENT 2010-196
Love Branch Mine
 
KENT 2010-354
Love Branch Mine
 
KENT 2010-355
Love Branch Mine
 
KENT 2010-384
Love Branch Mine
 
KENT 2010-577
Love Branch Mine
 
KENT 2010-66
Love Branch Mine
 
KENT 2010-69
Love Branch Mine
 
KENT 2010-720
Love Branch Mine
 
KENT 2010-843
Love Branch Mine
 
KENT 2010-963
Love Branch South
 
KENT 2009-1446
Love Branch South
 
KENT 2009-1523-R KENT 2009-1524-R
Mammoth #2 Gas
 
WEVA 2008-1653
Mammoth #2 Gas
 
WEVA 2008-1654
Mammoth #2 Gas
 
WEVA 2008-1655
Mammoth #2 Gas
 
WEVA 2009-1295
Mammoth #2 Gas
 
WEVA 2009-1296
Mammoth #2 Gas
 
WEVA 2009-1826
Mammoth #2 Gas
 
WEVA 2010-178
Mammoth #2 Gas
 
WEVA 2010-1933
Mammoth #2 Gas
 
WEVA 2010-277
Mammoth #2 Gas
 
WEVA 2010-483
Mammoth #2 Gas
 
WEVA 2010-707
Mammoth Coal Company
 
N/A
Mammoth Coal Processing Plant
 
WEVA 2010-1706
Mammoth Coal Processing Plant
 
WEVA 2010-295
Marfork Processing
 
WEVA 2009-1047
Marfork Processing
 
WEVA 2009-904
Marfork Processing
 
WEVA 2010-164
Marfork Processing
 
WEVA 2010-772
Marsh Fork Mine
 
WEVA 2010-1715
Marsh Fork Mine
 
WEVA 2010-60
Meade Branch Surface
 
KENT 2010-1564
 
 
 

 
 
Mine Name   Docket Number
Mine #1 (Clean Energy)
 
KENT 2008-1458
Mine #1 (Clean Energy)
 
KENT 2008-538
Mine #1 (Clean Energy)
 
KENT 2009-1102
Mine #1 (Clean Energy)
 
KENT 2009-1152
Mine #1 (Clean Energy)
 
KENT 2009-1274
Mine #1 (Clean Energy)
 
KENT 2009-1448
Mine #1 (Clean Energy)
 
KENT 2009-566
Mine #1 (Clean Energy)
 
KENT 2009-901
Mine #1 (Clean Energy)
 
KENT 2009-925
Mine #1 (Clean Energy)
 
KENT 2010-1038
Mine #1 (Clean Energy)
 
KENT 2010-1168
Mine #1 (Clean Energy)
 
KENT 2010-1169
Mine #1 (Clean Energy)
 
KENT 2010-1258
Mine #1 (Clean Energy)
 
KENT 2010-1443
Mine #1 (Clean Energy)
 
KENT 2010-1444
Mine #1 (Clean Energy)
 
KENT 2010-1532
Mine #1 (Clean Energy)
 
KENT 2010-1533
Mine #1 (Clean Energy)
 
KENT 2010-177
Mine #1 (Clean Energy)
 
KENT 2010-178
Mine #1 (Clean Energy)
 
KENT 2010-304
Mine #1 (Clean Energy)
 
KENT 2010-49
Mine #1 (Clean Energy)
 
KENT 2010-552
Mine #1 (Clean Energy)
 
KENT 2010-553
Mine #1 (Clean Energy)
 
KENT 2010-966
Mine #1 (Clean Energy)
 
KENT 2010-967
Mine #1 (Clean Energy)
 
KENT 2011-607
Mine #1 (Clean Energy)
 
KENT 2011-78
Mine #1 (Clean Energy)
 
N/A
Mine #1 (Clean Energy)
 
0
Mine #1 (Freedom Energy)
 
KENT 2008-1531
Mine #1 (Freedom Energy)
 
KENT 2008-1532
Mine #1 (Freedom Energy)
 
KENT 2008-1535-R
Mine #1 (Freedom Energy)
 
KENT 2009-1146
Mine #1 (Freedom Energy)
 
KENT 2009-1297
Mine #1 (Freedom Energy)
 
KENT 2009-1341
Mine #1 (Freedom Energy)
 
KENT 2009-1351
Mine #1 (Freedom Energy)
 
KENT 2009-325
Mine #1 (Freedom Energy)
 
KENT 2009-687
Mine #1 (Freedom Energy)
 
KENT 2009-705
Mine #1 (Freedom Energy)
 
KENT 2009-73
Mine #1 (Freedom Energy)
 
KENT 2009-924
Mine #1 (Freedom Energy)
 
KENT 2010-1069
Mine #1 (Freedom Energy)
 
KENT 2010-1070
Mine #1 (Freedom Energy)
 
KENT 2010-1175
Mine #1 (Freedom Energy)
 
KENT 2010-1259
Mine #1 (Freedom Energy)
 
KENT 2010-1260
Mine #1 (Freedom Energy)
 
KENT 2010-1541
Mine #1 (Freedom Energy)
 
KENT 2010-1542
Mine #1 (Freedom Energy)
 
KENT 2010-1582-R
Mine #1 (Freedom Energy)
 
KENT 2010-1583-R
 
 
 

 
 
Mine Name   Docket Number
Mine #1 (Freedom Energy)
 
KENT 2010-1584-R
Mine #1 (Freedom Energy)
 
KENT 2010-1585-R
Mine #1 (Freedom Energy)
 
KENT 2010-1586-R
Mine #1 (Freedom Energy)
 
KENT 2010-1587-R
Mine #1 (Freedom Energy)
 
KENT 2010-1588-R
Mine #1 (Freedom Energy)
 
KENT 2010-1589-R
Mine #1 (Freedom Energy)
 
KENT 2010-1590-R
Mine #1 (Freedom Energy)
 
KENT 2010-1591-R
Mine #1 (Freedom Energy)
 
KENT 2010-1592-R
Mine #1 (Freedom Energy)
 
KENT 2010-1593-R
Mine #1 (Freedom Energy)
 
KENT 2010-1594-R
Mine #1 (Freedom Energy)
 
KENT 2010-1595-R
Mine #1 (Freedom Energy)
 
KENT 2010-174
Mine #1 (Freedom Energy)
 
KENT 2010-204
Mine #1 (Freedom Energy)
 
KENT 2010-358
Mine #1 (Freedom Energy)
 
KENT 2010-449
Mine #1 (Freedom Energy)
 
KENT 2010-566
Mine #1 (Freedom Energy)
 
KENT 2010-64
Mine #1 (Freedom Energy)
 
KENT 2010-65
Mine #1 (Freedom Energy)
 
KENT 2010-775
Mine #1 (Freedom Energy)
 
KENT 2010-776
Mine #1 (Freedom Energy)
 
KENT 2010-924
Mine #1 (Freedom Energy)
 
KENT 2010-925
Mine #1 (Rockhouse Energy)
 
KENT 2007-248
Mine #1 (Rockhouse Energy)
 
KENT 2007-249
Mine #1 (Rockhouse Energy)
 
KENT 2008-1273
Mine #1 (Rockhouse Energy)
 
KENT 2008-1363
Mine #1 (Rockhouse Energy)
 
KENT 2008-1446
Mine #1 (Rockhouse Energy)
 
KENT 2008-1570
Mine #1 (Rockhouse Energy)
 
KENT 2008-1618
Mine #1 (Rockhouse Energy)
 
KENT 2008-970
Mine #1 (Rockhouse Energy)
 
KENT 2009-1257
Mine #1 (Rockhouse Energy)
 
KENT 2009-534
Mine #1 (Rockhouse Energy)
 
KENT 2009-535
Mine #1 (Rockhouse Energy)
 
KENT 2009-601
Mine #1 (Rockhouse Energy)
 
KENT 2009-904
Mine #1 (Rockhouse Energy)
 
KENT 2009-992
Mine #1 (Rockhouse Energy)
 
KENT 2010-1042
Mine #1 (Rockhouse Energy)
 
KENT 2010-1174
Mine #1 (Rockhouse Energy)
 
KENT 2010-1254
Mine #1 (Rockhouse Energy)
 
KENT 2010-1408
Mine #1 (Rockhouse Energy)
 
KENT 2010-190
Mine #1 (Rockhouse Energy)
 
KENT 2010-191
Mine #1 (Rockhouse Energy)
 
KENT 2010-352
Mine #1 (Rockhouse Energy)
 
KENT 2010-353
Mine #1 (Rockhouse Energy)
 
KENT 2010-429
Mine #1 (Rockhouse Energy)
 
KENT 2010-567
Mine #1 (Rockhouse Energy)
 
KENT 2010-571
Mine #1 (Rockhouse Energy)
 
KENT 2010-67
Mine #1 (Rockhouse Energy)
 
KENT 2010-68
 
 
 

 
 
Mine Name   Docket Number
Mine #1 (Rockhouse Energy)
 
KENT 2010-777
Mine #1 (Rockhouse Energy)
 
KENT 2010-882
Mine #1 (Rockhouse Energy)
 
KENT 2010-883
Mine #1 (Rockhouse Energy)
 
KENT 2011-195
Mine #1 (Rockhouse Energy)
 
KENT 2011-649
Mine #1 (Rockhouse Energy)
 
KENT 2011-767
Mine #1 (Rockhouse Energy)
 
N/A
Mine #1 (Rockhouse Energy)
 
N/A
Mine #1 (Solid Energy)
 
KENT 2008-555
Mine #1 (Solid Energy)
 
KENT 2010-1005
Mine #1 (Solid Energy)
 
KENT 2010-1165
Mine #1 (Solid Energy)
 
KENT 2010-1237
Mine #1 (Solid Energy)
 
KENT 2010-198
Mine #1 (Solid Energy)
 
KENT 2010-312
Mine #1 (Solid Energy)
 
KENT 2010-881
Mine #1 (Solid Energy)
 
KENT 2011-193
Mine No 2 (Big Laurel Mining)
 
N/A
Mine No 2 (Big Laurel Mining)
 
N/A
Mine No 2 (Big Laurel Mining)
 
N/A
Mine No 2 (Big Laurel Mining)
 
N/A
Mine No 2 (Big Laurel Mining)
 
VA 2008-118
Mine No 2 (Big Laurel Mining)
 
VA 2008-119
Mine No 2 (Big Laurel Mining)
 
VA 2008-35
Mine No 2 (Big Laurel Mining)
 
VA 2008-67
Mine No 2 (Big Laurel Mining)
 
VA 2009-146
Mine No 2 (Big Laurel Mining)
 
VA 2009-233
Mine No 2 (Big Laurel Mining)
 
VA 2009-276
Mine No 2 (Big Laurel Mining)
 
VA 2010-174
Mine No 2 (Big Laurel Mining)
 
VA 2010-175
Mine No. 1 (Osaka Mining)
 
VA 2011-105
Mine No. 4 (Dorchester)
 
VA-2010-172
Mine No. 4 (Dorchester)
 
VA-2010-173
MTR Surface Mine
 
KENT 2010-1563
MTR Surface Mine
 
KENT 2010-308
MTR Surface Mine
 
KENT 2010-425
MTR Surface Mine
 
KENT 2010-529
MTR Surface Mine
 
KENT 2010-907
MTR Wolf Creek Mine
 
KENT 2010-1411
MTR Wolf Creek Mine
 
KENT 2010-317
New Ridge Mining Company
 
KENT 2010-1445
New Ridge Mining Company
 
KENT 2010-1534
New Ridge Mining Company
 
KENT 2010-51
No 1 (M 3 Energy)
 
KENT 2009-1101
No 1 (M 3 Energy)
 
KENT 2009-1153
No 1 (M 3 Energy)
 
KENT 2009-1465
No 1 (M 3 Energy)
 
KENT 2009-1493
No 1 (M 3 Energy)
 
KENT 2009-1494
No 1 (M 3 Energy)
 
KENT 2009-674
No 1 (M 3 Energy)
 
KENT 2009-675
No 1 (M 3 Energy)
 
KENT 2009-912
 
 
 

 
 
Mine Name   Docket Number
No 1 (M 3 Energy)
 
KENT 2010-1041
No 1 (M 3 Energy)
 
KENT 2010-1405
No 1 (M 3 Energy)
 
KENT 2010-1537
No 1 (M 3 Energy)
 
KENT 2010-1538
No 1 (M 3 Energy)
 
KENT 2010-184
No 1 (M 3 Energy)
 
KENT 2010-316
No 1 (M 3 Energy)
 
KENT 2010-33
No 1 (M 3 Energy)
 
KENT 2010-443
No 1 (M 3 Energy)
 
KENT 2010-556
No 1 (M 3 Energy)
 
KENT 2010-58
No 1 (M 3 Energy)
 
KENT 2010-59
No 1 (M 3 Energy)
 
KENT 2010-919
No 1 (M 3 Energy)
 
KENT 2011-18
No 1 Surface (Alex Energy)
 
WEVA 2008-1467
No 1 Surface (Alex Energy)
 
WEVA 2009-589
No 1 Surface (Alex Energy)
 
WEVA 2009-785
No 1 Surface (Alex Energy)
 
WEVA 2009-873  WEVA 2009-156-R
No 1 Surface (Alex Energy)
 
WEVA 2009-954
No 1 Surface (Alex Energy)
 
WEVA 2010-1658
No 1 Surface (Alex Energy)
 
WEVA 2010-235
No 1 Surface (Alex Energy)
 
WEVA 2010-672
No 1 Surface (Alex Energy)
 
WEVA 2010-770
No 130 Mine
 
WEVA 2007-829
No 130 Mine
 
WEVA 2008-1207-R      thru 2008-1209-R
No 130 Mine
 
WEVA 2008-1649
No 130 Mine
 
WEVA 2008-291
No 130 Mine
 
WEVA 2008-78
No 130 Mine
 
WEVA 2009-1823
No 130 Mine
 
WEVA 2009-852
No 130 Mine
 
WEVA 2010-107
No 130 Mine
 
WEVA 2010-219
No 130 Mine
 
WEVA 2010-296
No 130 Mine
 
WEVA 2010-704
No 6 (Aracoma)
 
WEVA 2010-1594
No. 1 (Process Energy)
 
KENT 2008-1442
No. 1 (Process Energy)
 
KENT 2008-1443
No. 1 (Process Energy)
 
KENT 2009-1148
No. 1 (Process Energy)
 
KENT 2009-1275
No. 1 (Process Energy)
 
KENT 2009-369
No. 1 (Process Energy)
 
KENT 2009-917
No. 1 (Process Energy)
 
KENT 2010-1040
No. 1 (Process Energy)
 
KENT 2010-1172
No. 1 (Process Energy)
 
KENT 2010-1336
No. 1 (Process Energy)
 
KENT 2010-1338
No. 1 (Process Energy)
 
KENT 2010-1412
No. 1 (Process Energy)
 
KENT 2010-1536
No. 1 (Process Energy)
 
KENT 2010-315
No. 1 (Process Energy)
 
KENT 2010-442
No. 1 (Process Energy)
 
KENT 2010-555
No. 1 (Process Energy)
 
KENT 2010-56
 
 
 

 
 
Mine Name   Docket Number
No. 1 (Process Energy)
 
KENT 2010-57
No. 1 (Process Energy)
 
KENT 2010-773
No. 1 (Process Energy)
 
KENT 2010-773
No. 1 (Process Energy)
 
KENT 2010-774
No. 1 (Process Energy)
 
KENT 2011-17
No. 1 (Process Energy)
 
KENT 2011-364
No. 1 (Process Energy)
 
KENT 2011-502
No. 1 (Process Energy)
 
KENT 2011-610
North Surface Mine
 
WEVA 2009-554
North Surface Mine
 
WEVA 2009-555
North Surface Mine
 
WEVA 2009-603
North Surface Mine
 
WEVA 2009-604
Parker Peerless Mine
 
WEVA 2009-1381
Parker Peerless Mine
 
WEVA 2009-1391
Parker Peerless Mine
 
WEVA 2009-1438
Parker Peerless Mine
 
WEVA 2009-1693
Parker Peerless Mine
 
WEVA 2009-1799
Parker Peerless Mine
 
WEVA 2009-272
Parker Peerless Mine
 
WEVA 2009-273
Parker Peerless Mine
 
WEVA 2009-453
Parker Peerless Mine
 
WEVA 2009-552
Parker Peerless Mine
 
WEVA 2009-553
Parker Peerless Mine
 
WEVA 2009-9
Parker Peerless Mine
 
WEVA 2010-325
Parker Peerless Mine
 
WEVA 2010-40
Parker Peerless Mine
 
WEVA 2010-616
Parker Peerless Mine
 
WEVA 2011-24
Power Mountain Processing
 
WEVA 2008-980
Power Mountain Processing
 
WEVA 2010-1116
Preparation Plant (Goals)
 
WEVA 2008-1122
Preparation Plant (Martin County)
 
KENT 2010-1559
Preparation Plant (Martin County)
 
KENT 2010-200
Preparation Plant (Martin County)
 
KENT 2011-135
Preparation Plant (Stirrat)
 
WEVA 2009-154
Preparation Plant (Stirrat)
 
WEVA 2009-155
Randolph Mine
 
110c
Randolph Mine
 
N/A
Randolph Mine
 
WEVA 2009-1278
Randolph Mine
 
WEVA 2009-1279
Randolph Mine
 
WEVA 2009-1365
Randolph Mine
 
WEVA 2009-1456
Randolph Mine
 
WEVA 2009-1655
Randolph Mine
 
WEVA 2009-1656
Randolph Mine
 
WEVA 2009-1811
Randolph Mine
 
WEVA 2009-294
Randolph Mine
 
WEVA 2009-464
Randolph Mine
 
WEVA 2009-489
Randolph Mine
 
WEVA 2009-490
Randolph Mine
 
WEVA 2009-490
Randolph Mine
 
WEVA 2009-607
 
 
 

 
 
Mine Name   Docket Number
Randolph Mine
 
WEVA 2009-607
Randolph Mine
 
WEVA 2009-818
Randolph Mine
 
WEVA 2009-818
Randolph Mine
 
WEVA 2009-980
Randolph Mine
 
WEVA 2009-980
Randolph Mine
 
WEVA 2010-1014
Randolph Mine
 
WEVA 2010-1014
Randolph Mine
 
WEVA 2010-1144
Randolph Mine
 
WEVA 2010-1144
Randolph Mine
 
WEVA 2010-1425
Randolph Mine
 
WEVA 2010-1425
Randolph Mine
 
WEVA 2010-588
Randolph Mine
 
WEVA 2010-588
Red Cedar Surface Mine
 
WEVA 2009-332
Red Cedar Surface Mine
 
WEVA 2009-853
Red Cedar Surface Mine
 
WEVA 2009-854
Republic Energy
 
WEVA 2008-1843
Republic Energy
 
WEVA 2010-1563
Republic Energy
 
WEVA 2010-186
Republic Energy
 
WEVA 2010-222
Republic Energy
 
WEVA 2010-51
Republic Energy
 
WEVA 2010-563
Republic Energy
 
WEVA 2010-668
Road Fork #51 Mine
 
WEVA 2008-1112
Road Fork #51 Mine
 
WEVA 2009-1065
Road Fork #51 Mine
 
WEVA 2009-1434
Road Fork #51 Mine
 
WEVA 2009-1533
Road Fork #51 Mine
 
WEVA 2009-1640
Road Fork #51 Mine
 
WEVA 2009-1941
Road Fork #51 Mine
 
WEVA 2009-334
Road Fork #51 Mine
 
WEVA 2009-335
Road Fork #51 Mine
 
WEVA 2009-510
Road Fork #51 Mine
 
WEVA 2009-691
Road Fork #51 Mine
 
WEVA 2009-692
Road Fork #51 Mine
 
WEVA 2009-693
Road Fork #51 Mine
 
WEVA 2010-106
Road Fork #51 Mine
 
WEVA 2010-1147
Road Fork #51 Mine
 
WEVA 2010-1290
Road Fork #51 Mine
 
WEVA 2010-1440
Road Fork #51 Mine
 
WEVA 2010-1442
Road Fork #51 Mine
 
WEVA 2010-1683
Road Fork #51 Mine
 
WEVA 2010-687
Road Fork #51 Mine
 
WEVA 2010-890
Road Fork #51 Mine
 
WEVA 2011-378
Round Bottom Surface Mine
 
KENT 2010-1576
Roundbottom Powellton Deep Mine
 
WEVA 2008-1543
Roundbottom Powellton Deep Mine
 
WEVA 2008-1703
Roundbottom Powellton Deep Mine
 
WEVA 2008-711
Roundbottom Powellton Deep Mine
 
WEVA 2009-1133
Roundbottom Powellton Deep Mine   WEVA 2009-1337
 
 
 

 
 
Mine Name
   Docket Number
Roundbottom Powellton Deep Mine
 
WEVA 2009-1769
Roundbottom Powellton Deep Mine
 
WEVA 2009-1905
Roundbottom Powellton Deep Mine
 
WEVA 2009-1906
Roundbottom Powellton Deep Mine
 
WEVA 2009-621
Roundbottom Powellton Deep Mine
 
WEVA 2009-782
Roundbottom Powellton Deep Mine
 
WEVA 2009-877
Roundbottom Powellton Deep Mine
 
WEVA 2010-174
Roundbottom Powellton Deep Mine
 
WEVA 2010-323
Roundbottom Powellton Deep Mine
 
WEVA 2010-458
Roundbottom Powellton Deep Mine
 
WEVA 2010-53
Roundbottom Powellton Deep Mine
 
WEVA 2010-54
Ruby Energy
 
WEVA 2008-461
Ruby Energy
 
WEVA 2009-1085
Ruby Energy
 
WEVA 2009-1086
Ruby Energy
 
WEVA 2009-1125
Ruby Energy
 
WEVA 2009-1126
Ruby Energy
 
WEVA 2009-1353
Ruby Energy
 
WEVA 2009-1510
Ruby Energy
 
WEVA 2009-1694
Ruby Energy
 
WEVA 2009-1874
Ruby Energy
 
WEVA 2009-1875
Ruby Energy
 
WEVA 2009-1942
Ruby Energy
 
WEVA 2009-333
Ruby Energy
 
WEVA 2009-403
Ruby Energy
 
WEVA 2009-697
Ruby Energy
 
WEVA 2009-698
Ruby Energy
 
WEVA 2009-821
Ruby Energy
 
WEVA 2010-1010
Ruby Energy
 
WEVA 2010-113
Ruby Energy
 
WEVA 2010-1296
Ruby Energy
 
WEVA 2010-1688
Ruby Energy
 
WEVA 2010-181
Ruby Energy
 
WEVA 2010-182
Ruby Energy
 
WEVA 2010-280
Ruby Energy
 
WEVA 2010-348 thru 2010-352; WEVA 2010-378-R; WEVA 2010-401-R thru 2010-403; WEVA 2010-512-R
Ruby Energy
 
WEVA 2010-461
Ruby Energy
 
WEVA 2010-601
Ruby Energy
 
WEVA 2010-860
Ruby Energy
 
WEVA 2011-833
Ruby Energy
 
N/A
Rum Creek Preparation Plant
 
WEVA 2008-1647
Rum Creek Preparation Plant
 
WEVA 2009-1160
Rum Creek Preparation Plant
 
WEVA 2009-121
Rum Creek Preparation Plant
 
WEVA 2009-1386
Rum Creek Preparation Plant
 
WEVA 2009-1923
Rum Creek Preparation Plant
 
WEVA 2009-672
Rum Creek Preparation Plant
 
WEVA 2009-690
Rum Creek Preparation Plant
 
WEVA 2010-1707
Rum Creek Preparation Plant
 
WEVA 2011-810
Seng Creek Powellton
 
WEVA 2010-232
 
 
 

 
 
Mine Name   Docket Number
Seng Creek Powellton
 
WEVA 2010-322
Seng Creek Powellton
 
WEVA 2010-450
Seng Creek Powellton
 
WEVA 2010-611
Seng Creek Powellton
 
WEVA 2010-731
Seng Creek Powellton
 
WEVA 2010-838
Seng Creek Powellton
 
WEVA 2011-400-R
Shadrick 5 Block
 
WEVA 2010-101
Shadrick 5 Block
 
WEVA 2010-119
Shadrick 5 Block
 
WEVA 2010-1931
Shadrick 5 Block
 
WEVA 2010-306
Shadrick 5 Block
 
WEVA 2010-619
Shadrick 5 Block
 
WEVA 2011-1223
Shadrick 5 Block
 
WEVA 2011-372
Sidney Coal Company, Inc.
 
N/A
Slabcamp
 
WEVA 2010-1013
Slabcamp
 
WEVA 2010-116
Slabcamp
 
WEVA 2010-504
Slabcamp
 
WEVA 2010-617
Slabcamp
 
WEVA 2010-708
Slip Ridge Cedar Grove Mine
 
WEVA 2008-1093
Slip Ridge Cedar Grove Mine
 
WEVA 2008-1094
Slip Ridge Cedar Grove Mine
 
WEVA 2009-1049
Slip Ridge Cedar Grove Mine
 
WEVA 2009-1318
Slip Ridge Cedar Grove Mine
 
WEVA 2009-1464
Slip Ridge Cedar Grove Mine
 
WEVA 2009-1797
Slip Ridge Cedar Grove Mine
 
WEVA 2009-1881
Slip Ridge Cedar Grove Mine
 
WEVA 2009-452
Slip Ridge Cedar Grove Mine
 
WEVA 2009-732
Slip Ridge Cedar Grove Mine
 
WEVA 2009-909
Slip Ridge Cedar Grove Mine
 
WEVA 2010-166
Slip Ridge Cedar Grove Mine
 
WEVA 2010-371
Slip Ridge Cedar Grove Mine
 
WEVA 2010-39
Slip Ridge Cedar Grove Mine
 
WEVA 2010-516
Slip Ridge Cedar Grove Mine
 
WEVA 2010-586
Slip Ridge Cedar Grove Mine
 
WEVA 2010-739
Sprouse Creek Processing
 
WEVA 2010-332
Stockton Mine
 
WEVA 2009-1845
Stockton Mine
 
WEVA 2010-177
Stockton Mine
 
WEVA 2010-279
Stockton Mine
 
WEVA 2010-613
Superior Surface Mine
 
WEVA 2008-1431
Superior Surface Mine
 
WEVA 2008-1617
Superior Surface Mine
 
WEVA 2008-1773
Superior Surface Mine
 
WEVA 2008-1774
Superior Surface Mine
 
WEVA 2009-780
Superior Surface Mine
 
WEVA 2009-936
Superior Surface Mine
 
WEVA 2009-99
Taylor Fork Energy
 
KENT 2006-501
Taylor Fork Energy
 
KENT 2007-39
Taylor Fork Energy
 
KENT 2009-1034
 
 
 

 
 
Mine Name   Docket Number
Taylor Fork Energy
 
KENT 2009-111
Taylor Fork Energy
 
KENT 2009-1147
Taylor Fork Energy
 
KENT 2009-1424
Taylor Fork Energy
 
KENT 2009-1500
Taylor Fork Energy
 
KENT 2009-902
Taylor Fork Energy
 
KENT 2010-1039
Taylor Fork Energy
 
KENT 2010-1171
Taylor Fork Energy
 
KENT 2010-1446
Taylor Fork Energy
 
KENT 2010-1535
Taylor Fork Energy
 
KENT 2010-180
Taylor Fork Energy
 
KENT 2010-314
Taylor Fork Energy
 
KENT 2010-448
Taylor Fork Energy
 
KENT 2010-52
Taylor Fork Energy
 
KENT 2010-53
Taylor Fork Energy
 
KENT 2010-554
Taylor Fork Energy
 
KENT 2010-772
Taylor Fork Energy
 
KENT 2010-915
Taylor Fork Energy
 
KENT 2011-15
Taylor Fork Energy
 
KENT 2011-16
Tiller No 1
 
VA 2009-417
Tower Mountain
 
WEVA 2009-123
Tower Mountain
 
WEVA 2009-1808
Tower Mountain
 
WEVA 2009-202
Tower Mountain
 
WEVA 2009-832
Twilight MTR Surface Mine
 
WEVA 2007-835
Twilight MTR Surface Mine
 
WEVA 2010-22
Upper Big Branch Mine Raw Coal Facility
 
WEVA 2008-887
Upper Big Branch Mine-South
 
Post-explosion violations
Upper Big Branch Mine-South
 
WEVA 2007-460
Upper Big Branch Mine-South
 
WEVA 2007-470
Upper Big Branch Mine-South
 
WEVA 2007-576
Upper Big Branch Mine-South
 
WEVA 2007-608
Upper Big Branch Mine-South
 
WEVA 2007-672
Upper Big Branch Mine-South
 
WEVA 2007-767
Upper Big Branch Mine-South
 
WEVA 2008-1825
Upper Big Branch Mine-South
 
WEVA 2008-249
Upper Big Branch Mine-South
 
WEVA 2008-888
Upper Big Branch Mine-South
 
WEVA 2008-889
Upper Big Branch Mine-South
 
WEVA 2008-890
Upper Big Branch Mine-South
 
WEVA 2008-891
Upper Big Branch Mine-South
 
WEVA 2008-892
Upper Big Branch Mine-South
 
WEVA 2009-1129
Upper Big Branch Mine-South
 
WEVA 2009-1130
Upper Big Branch Mine-South
 
WEVA 2009-129
Upper Big Branch Mine-South
 
WEVA 2009-1375
Upper Big Branch Mine-South
 
WEVA 2009-1839
Upper Big Branch Mine-South
 
WEVA 2009-1840
Upper Big Branch Mine-South
 
WEVA 2009-1928
Upper Big Branch Mine-South
 
WEVA 2009-1929
Upper Big Branch Mine-South
 
WEVA 2009-281
 
 
 

 
 
Mine Name   Docket Number
Upper Big Branch Mine-South
 
WEVA 2009-282
Upper Big Branch Mine-South
 
WEVA 2009-283
Upper Big Branch Mine-South
 
WEVA 2009-370
Upper Big Branch Mine-South
 
WEVA 2009-831
Upper Big Branch Mine-South
 
WEVA 2009-970
Upper Big Branch Mine-South
 
WEVA 2010-1190-R
Upper Big Branch Mine-South
 
WEVA 2010-1213
Upper Big Branch Mine-South
 
WEVA 2010-1559
Upper Big Branch Mine-South
 
WEVA 2010-1704
Upper Big Branch Mine-South
 
WEVA 2010-1909-R
Upper Big Branch Mine-South
 
WEVA 2010-2002
Upper Big Branch Mine-South
 
WEVA 2010-207
Upper Big Branch Mine-South
 
WEVA 2010-208
Upper Big Branch Mine-South
 
WEVA 2010-318
Upper Big Branch Mine-South
 
WEVA 2010-319
Upper Big Branch Mine-South
 
WEVA 2010-535
Upper Big Branch Mine-South
 
WEVA 2010-626
Upper Big Branch Mine-South
 
WEVA 2010-64
Upper Big Branch Mine-South
 
WEVA 2010-65
Upper Big Branch Mine-South
 
WEVA 2010-728
Upper Big Branch Mine-South
 
WEVA 2010-729
Upper Big Branch Mine-South
 
WEVA 2010-869
Upper Big Branch Mine-South
 
WEVA 2010-902
Upper Big Branch Mine-South
 
WEVA 2010-903
Upper Big Branch Mine-South
 
WEVA 2010-941
Upper Big Branch Mine-South
 
WEVA 2010-978
Upper Big Branch Mine-South
 
WEVA 2010-979
Upper Big Branch Mine-South
 
WEVA 2011-1286
Upper Big Branch Mine-South
 
WEVA 2011-270
Upper Big Branch Mine-South
 
WEVA 2011-583
Upper Big Branch Mine-South
 
WEVA 2011-807
Upper Big Branch Mine-South
 
WEVA 2011-945
Voyager #7
 
KENT 2009-1496
Voyager #7
 
KENT 2010-1012
Voyager #7
 
KENT 2010-1164
Voyager #7
 
KENT 2010-1257
Voyager #7
 
KENT 2010-1561
Voyager #7
 
KENT 2010-1562
Voyager #7
 
KENT 2010-170
Voyager #7
 
KENT 2010-311
Voyager #7
 
KENT 2010-427
Voyager #7
 
KENT 2010-530
Voyager #7
 
KENT 2010-60
Voyager #7
 
KENT 2010-734
Voyager #7
 
KENT 2010-906
Voyager #7
 
KENT 2011-125
Voyager #7
 
KENT 2011-5
West Cazy Surface Mine
 
WEVA 2008-848
West Cazy Surface Mine
 
WEVA 2009-267
White Buck No 2
 
WEVA 2009-1908
 
 
 

 
 
Mine Name   Docket Number
White Cabin #7
 
KENT 2010-1256
White Cabin #7
 
KENT 2010-1560
White Cabin #7
 
KENT 2010-426
White Cabin #7
 
KENT 2010-533
White Cabin #7
 
KENT 2010-54
White Cabin #7
 
KENT 2010-733
White Cabin #7
 
KENT 2011-136
Winifrede #1 Mine
 
WEVA 2008-1651
Winifrede #1 Mine
 
WEVA 2008-79
     
     
N/A - Docket number has not yet been assigned
 

EX-101.INS 7 mee-20110331.xml EX-101 INSTANCE DOCUMENT 0000037748 2011-01-01 2011-03-31 0000037748 2010-01-01 2010-03-31 0000037748 2011-03-31 0000037748 2010-12-31 0000037748 2009-12-31 0000037748 2010-03-31 0000037748 2010-06-30 0000037748 2011-04-20 iso4217:USD iso4217:USD xbrli:shares xbrli:shares 366114000 296770000 -119240000 -122268000 1362292000 1343966000 -21520000 -28017000 906000 906000 4506000 4131000 0.07 0.39 5399000 5013000 280696000 327179000 665762000 1162937000 -69344000 -93743000 -1736000 -1090000 -2045000 9468000 -15464000 -3856000 682000 1429000 -7056000 66572000 0 -14644000 10205000 20090000 6967000 12685000 <div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 36pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">(17)</font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Contingencies</font></div></td></tr></table></div><div style="text-indent: 0pt; display: block;">&#160;</div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">West Virginia Flooding</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since August 2004, five of our subsidiaries have been sued in six civil actions filed in the Circuit Courts of Boone, McDowell, Mingo, Raleigh, Summers and Wyoming Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding on or about May 2, 2002.&#160;&#160;These complaints covered approximately 350 plaintiffs seeking unquantified compensatory and punitive damages from approximately 35 defendants.&#160;&#160;Of these cases two were dismissed by the court without prejudice for failure to prosecute, two were dismissed by plaintiffs voluntarily and with prejudice, and one was settled for a nominal amount.&#160;&#160;Only the Mingo County case comprised of four plaintiffs and 34 defendants remains active.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since May 2006, we and 12 of our subsidiaries have been sued in three civil actions filed in the Circuit Courts of Logan and Mingo Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding between May 30 and June 4, 2004.&#160;&#160;These complaints cover approximately 400 plaintiffs seeking unquantified compensatory and punitive damages from approximately 52 defendants.&#160;&#160;Four of our subsidiaries have been dismissed without prejudice from one of the Logan County cases.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We believe the remaining cases will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div><br /><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">West Virginia Trucking</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since January 2003, an advocacy group and residents in Boone, Kanawha, Mingo and Raleigh Counties, West Virginia, filed 17 suits in the Circuit Courts of Kanawha and Mingo Counties, West Virginia, against 12 of our subsidiaries.&#160;&#160;Plaintiffs alleged that defendants illegally transported coal in overloaded trucks, causing damage to state roads, thereby interfering with plaintiffs' use and enjoyment of their properties and their right to use the public roads. Plaintiffs seek injunctive relief and compensatory and punitive damages.&#160;&#160;The Supreme Court of Appeals of West Virginia (&#8220;WV Supreme Court&#8221;) referred the consolidated lawsuits, and similar lawsuits against other coal and transportation companies not involving our subsidiaries, to the Circuit Court of Lincoln County, West Virginia (&#8220;Circuit Court&#8221;), to be handled by a mass litigation panel judge. Plaintiffs filed motions requesting class certification. On June 7, 2007, plaintiffs voluntarily dismissed their public nuisance claims seeking monetary damages for road and bridge repairs.&#160;&#160;Plaintiffs also agreed to an order limiting any damages for nuisance to two years prior to the filing of any suit.&#160;&#160;A motion to dismiss any remaining public nuisance claims was resisted by plaintiffs and argued at hearings on December&#160;14, 2007 and June 25, 2008.&#160;&#160;No rulings on these matters have been made.&#160;&#160;Defendants filed a motion requesting that the mass litigation panel judge recommend to the WV Supreme Court that the cases be sent back to the circuit courts of origin for resolution.&#160;&#160;That motion was verbally denied as to those cases in which our subsidiaries are defendants, and a class certification hearing was held on October 21, 2009.&#160;&#160;To date, no decision has been rendered by the Circuit Court on the class certification issues.&#160;&#160;No date has been set for trial. A mediation is being scheduled in the Mingo County case.&#160;&#160;We believe we have insurance coverage applicable to these items and that they will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Well Water Suits</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since September 2004, approximately 738 plaintiffs have filed approximately 400 suits against us and our subsidiary, Rawl Sales &amp; Processing Co., in the Circuit Court of Mingo County, West Virginia (&#8220;Mingo Court&#8221;), for alleged property damage and personal injuries arising out of slurry injection and impoundment practices allegedly contaminating plaintiffs' water wells. Plaintiffs seek injunctive relief and compensatory damages in excess of $170 million and unquantified punitive damages.&#160;&#160;Specifically, plaintiffs are claiming that defendants' activities during the period of 1978 through 1987 rendered their property valueless and request monetary damages to pay, inter alia, the value of their property and future water bills.&#160;&#160;In addition, many plaintiffs are also claiming that their exposure to the contaminated well water caused neurological injury or physical injury, including cancers, kidney problems and gall stones.&#160;&#160;Finally, all plaintiffs claimed entitlement to medical monitoring for the next 30 years and have requested unliquidated compensatory damages for pain and suffering, annoyance and inconvenience and legal fees.&#160;&#160;On April 30, 2009, the Mingo Court held a mandatory settlement conference. At that settlement conference, all plaintiffs agreed to settle and dismiss their medical monitoring claims.&#160;&#160;Additionally, 180 plaintiffs agreed to settle all of their remaining claims and be dismissed from the case.&#160;&#160;All settlements to date will be funded by insurance proceeds.&#160;&#160;Plaintiffs challenged the medical monitoring settlement. There are currently 585 plaintiffs with individual claims.&#160;&#160;A number of motions that could impact the number of Plaintiffs and scope of the issues of these suits are pending.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The West Virginia Supreme Court issued an administrative order transferring the cases to the Mass Litigation Panel.&#160;&#160;Mediation of all pending suits was held on February 22-23, 2011 in Charleston, West Virginia.&#160;&#160;The mediation resulted in the final settlement of all medical monitoring claims and disposed of Plaintiffs' earlier challenge of the prior medical monitoring settlement.&#160;&#160;The medical monitoring claims will be paid by insurance proceeds.&#160; No other claims were resolved.&#160;&#160;The Mass Litigation Panel has randomly selected seven civil actions consisting of seventeen plaintiffs for the First Trial Group which is scheduled for August 1, 2011 in Wheeling, West Virginia.&#160;&#160;&#160;</font><br /></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Beginning in December&#160;2008, we and certain of our subsidiaries along with several other companies were sued in numerous actions in Boone County, West Virginia involving approximately 374 plaintiffs alleging well water contamination resulting from coal mining operations.&#160;&#160;The claims mirror those made above in the separate action before the Mass Litigation Panel, as described above. The separate civil actions have been consolidated for discovery purposes with trial for 266 plaintiffs scheduled for October 25, 2011.&#160;&#160;No trial date is set for the remaining approximately 108 plaintiffs.</font></div><br /><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We do not believe there was any contamination caused by our activities or that plaintiffs suffered any damage and we believe that we have strong defenses to these matters.&#160;&#160;We plan to vigorously contest these claims.&#160;&#160;We believe that we have insurance coverage applicable to these matters and have initiated litigation against our insurers to establish that coverage.&#160;&#160;At this time, we believe that the litigation by the plaintiffs will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Customer Disputes</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We have been sued by one customer who claims they did not receive, or did not timely receive, all of the coal required to be shipped to them during prior years under their sales contract. This customer filed a claim for cover damages, which damages are equal to the difference between the contract price of the coal that was not delivered and the market price of replacement coal or comparable quality coal, and for other&#160;compensatory damages, the total of which could exceed $31 million.&#160; The customer is also seeking punitive damages.&#160; We believe that we have strong defenses and have not recorded an accrual for this matter because we do not believe a loss is probable.&#160;&#160;It is reasonably possible that our judgment regarding this matter could change in the near term, resulting in the recording of a material loss that would affect our operating results and financial position.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During the first quarter of 2011, we received notice of a suit from a plaintiff regarding whether or not a binding contract existed for the sale of coal, which coal the plaintiff had planned to broker to a third party in 2008.&#160;&#160;The suit asks that we reimburse plaintiff for an $18 million court judgment against plaintiff awarded to the third party.&#160;&#160;We do not believe that a binding sales contract was reached and currently believe that we have strong defenses and, therefore, have not recorded an accrual for this matter because we do not believe a loss is probable. It is reasonably possible that our judgment regarding this matter could change in the near term, resulting in the recording of a material loss that would affect our operating results and financial position.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Separately, we are currently in litigation with one customer regarding whether or not binding contracts for the sale of coal were reached.&#160;&#160;We maintain that this customer improperly terminated a signed, higher-priced contract; the customer argues that it was only required to purchase coal under a purported agreement reached by email. On February 12, 2010, we received a decision from an arbitration panel awarding this customer $10.5 million on the grounds that the purported agreement by email was valid and that the higher-priced contract was invalid.&#160;&#160;We believed that the arbitration panel's decision as to the validity of the higher-priced contract was beyond the panel's jurisdiction of the award, which amounts to $8.2 million, and challenged that decision in federal court.&#160;&#160;On June 2, 2010, the federal court rejected our challenge.&#160;&#160;We are appealing this matter to the United States Court of Appeals for the Fourth Circuit&#160;(the "Fourth Circuit Court").&#160;&#160;Oral argument before the Fourth Circuit Court is scheduled for May 10, 2011.&#160;&#160;While we will vigorously pursue this appeal, the amount of the judgment is fully accrued in Other current liabilities at March 31, 2011.&#160;&#160;We have paid $2.3 million for the award relating to the panels' decision that the agreement by email was valid, but have not yet paid the portion of the award under appeal.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Spartan Unfair Labor Practice Matter &amp; Related Age Discrimination Class Action</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In 2005, the UMWA filed an unfair labor practice charge with the National Labor Relations Board (&#8220;NLRB&#8221;) alleging that one of our subsidiaries, Spartan Mining Company (&#8220;Spartan&#8221;), discriminated on the basis of anti-union animus in its employment offers.&#160;&#160;The NLRB issued a complaint and an NLRB Administrative Law Judge (&#8220;ALJ&#8221;) issued a recommended decision making detailed findings that Spartan committed a number of unfair labor practice violations and awarding, among other relief, back pay damages to union discriminatees.&#160;&#160;On September 30, 2009, the NLRB upheld the ALJ's recommended decision.&#160;&#160;Spartan has appealed the NLRB's decision to the Fourth Circuit Court. We have no insurance coverage applicable to this unfair labor practice matter; however, its resolution is not expected to have a material impact on our cash flows, results of operations or financial condition.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Upper Big Branch Mine</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On April 5, 2010, an accident occurred at the UBB mine, tragically resulting in the deaths of 29 miners and seriously injuring two others.&#160;&#160;The Federal Mine Safety and Health Administration (&#8220;MSHA&#8221;) and the State of West Virginia have undertaken a joint investigation into the cause of the UBB tragedy.&#160;&#160;We also have commenced our own investigation.&#160;&#160;We believe these investigations will continue for the foreseeable future, and we cannot provide any assurance as to their outcome, including whether we become subject to possible criminal and civil penalties or enforcement actions. Additionally, the U.S. Attorney for the Southern District of West Virginia has commenced a grand jury investigation. In order to accommodate these investigations, the UBB mine will be closed for an extended period of time, the length of which we cannot predict at this time.&#160;&#160;The Company has recently sought permission to close the UBB mine; regulatory authorities have not yet granted such permission.&#160;&#160;The Company believes that it can construct another portal and access reserves previously accessed by the UBB mine, but it has not yet received this permission from regulatory authorities.&#160;&#160;We self-insure the underground mining equipment, including the longwalls at the UBB mine.&#160;&#160;We do not currently carry business interruption insurance for the UBB mine.&#160;&#160;We have third-party general liability insurance coverage that applies to litigation risk, which coverage we believe applies to litigation stemming from the UBB tragedy.</font></div><br /><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">While updated analyses will continue in future periods, we have recorded our best estimate of probable losses related to this matter.&#160;&#160;The most significant components of these losses related to: the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, possible legal and other contingencies, and asset impairment charges.&#160;&#160;We have recorded a $78 million liability in Other current liabilities at March 31, 2011, which represents our best estimate of the probable loss related to potential future litigation settlements associated with the UBB tragedy.&#160;&#160;Thirteen of the families have filed wrongful death suits against us, while eight families have signed agreements to settle their claims (five of which have been finalized after receiving the required judicial approval). &#160;In addition, four employees have filed lawsuits against us alleging emotional distress or personal injuries due to their proximity to the explosion.&#160;&#160;&#160;Insurance recoveries related to our general liability insurance policy that are deemed probable and that are reasonably estimable have been recognized in the Consolidated Statements of Income to the extent of the related losses, less applicable deductibles.&#160;&#160;Such recognized recoveries for litigation settlements associated with the UBB tragedy totaled $78 million and are included in Trade and other accounts receivable at March 31, 2011.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Given the uncertainty of the outcome of current investigations, including whether we become subject to possible civil penalties or enforcement actions, it is possible that the total costs incurred related to this tragedy could exceed our current estimates.&#160;&#160;As of March 31, 2011, we believe that the reasonably possible aggregate loss related to these claims in excess of amounts currently recorded cannot be estimated.&#160;&#160;It is possible, however, that the ultimate liabilities in the future with respect to these claims, in the aggregate, may be material.&#160;&#160;We will continue to review the amount of any necessary accruals, potential asset impairments, or other related expenses and record the charges in the period in which the determination is made and an adjustment is required.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Clean Water Act Citizens' Suits</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The Sierra Club and others have filed two citizens' suits against several of our subsidiaries in federal court in the Southern District of West Virginia (&#8220;Southern District Court&#8221;) alleging violations of the terms of our water discharge permits. One of the cases is limited to allegations that two of our subsidiaries, Independence Coal Company and Jacks Branch Coal Company, are violating limits on the allowable concentrations of selenium in their discharges of storm water from several surface mines. The other action is limited to claims that several of our subsidiaries are violating discharge limits on substances other than selenium, such as aluminum. The plaintiffs in these cases seek both a civil penalty and injunctive relief.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In the non-selenium case, we have argued that the alleged violations are contemplated by an existing consent decree with the United States government and should not be the subject of a new lawsuit, but the Southern District Court has allowed the case to progress.&#160;&#160;In the selenium case, we have argued that the limits on selenium concentrations in our discharges have been stayed by an order of the West Virginia Environmental Quality Board and therefore cannot be the subject of a Clean Water Act case until after those limits become effective. The plaintiffs have nonetheless filed a motion for summary judgment in the selenium case, arguing that we are in violation of our permit limits despite the stays. Recently, the federal court ruled that the stays issued by the Environmental Quality Board were ineffective.&#160;&#160;The plaintiffs have also filed reports of experts contending that our subsidiaries should have commenced construction on selenium treatment units in October 2008.&#160;&#160;They claim that the failure to do so has saved our subsidiaries over $100 million and asked the Southern District Court to require us to install selenium treatment systems and to impose a penalty that recoups all of the savings realized by the alleged non-compliance.&#160;&#160;We strongly disagree with plaintiffs' position and while we do not expect the resolution of this matter to have a material impact on our cash flows, results of operations or financial condition it is possible that the ultimate liabilities in the future with respect to these claims, in the aggregate, may be material.</font></div><br /><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" style="border-bottom: black 2px solid;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline;">December&#160;31, 2010</font></font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160; </font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td colspan="6" valign="bottom"><div align="center" style="text-indent: 0pt; 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">11,659</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Money market funds</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,399</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Other money market funds</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Liabilities</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; 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display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Basis of Presentation</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The consolidated financial statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States (&#8220;GAAP&#8221;) and, therefore, should be read in conjunction with the Annual Report on Form 10-K of Massey Energy Company (&#8220;we,&#8221; &#8220;our,&#8221; &#8220;us,&#8221; &#8220;Massey&#8221; or the &#8220;Company&#8221;) for the year ended December&#160;31, 2010.&#160;&#160;Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end.&#160;&#160;The results of operations for the quarterly period ended March 31, 2011 are not necessarily indicative of results that can be expected for the fiscal year ending December&#160;31, 2011.</font></div><div style="text-indent: 0pt; 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display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">All of our direct and substantially all of our indirect operating subsidiaries, each such subsidiary being indirectly 100% owned by us, fully and unconditionally, jointly and severally, guarantee our obligations under the 6.875% senior notes due 2013 (&#8220;6.875% Notes&#8221;), the 3.25% convertible senior notes due 2015 (&#8220;3.25% Notes&#8221;) and the 2.25% convertible senior notes due 2024 (&#8220;2.25% Notes&#8221;).&#160;&#160;The subsidiaries not providing a guarantee of the 6.875% Notes, the 3.25% Notes and the 2.25% Notes are minor (as defined under Securities and Exchange Commission (&#8220;SEC&#8221;) Rule 3-10(h)(6) of Regulation S-X).&#160;&#160;See Note 8 to the Notes to Consolidated Financial Statements for a more complete discussion of debt.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We have evaluated subsequent events through the date the consolidated financial statements were issued.</font></div><div style="text-indent: 0pt; display: block;"><br /></div></div> <div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="font-family: times new roman; font-size: 10pt;"><tr valign="top"><td style="width: 36pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;"><!--EFPlaceholder-->(2)</font></div></td><td><div align="left"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Merger with Alpha Natural Resources, Inc.</font></div></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On January 28, 2011, the Company entered into an Agreement and Plan of Merger (the &#8220;Merger Agreement&#8221;) with Alpha Natural Resources, Inc., a Delaware corporation (&#8220;Alpha&#8221;), and Mountain Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Alpha (&#8220;Merger Sub&#8221;), providing for the acquisition of Massey by Alpha.&#160;&#160;Subject to the terms and conditions of the Merger Agreement, Massey will be merged with and into Merger Sub (the &#8220;Merger&#8221;), with Massey surviving the Merger as a wholly owned subsidiary of Alpha.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">At the effective time of the Merger, each share of Common Stock issued and outstanding immediately prior to the effective time (other than shares owned by (i) Alpha, us or Merger Sub or their respective subsidiaries (which will be cancelled) or (ii) stockholders who have properly exercised and perfected appraisal rights under Delaware law) will be converted into the right to receive 1.025 shares of Alpha common stock and $10.00 in cash, without interest (the &#8220;Massey Merger Consideration&#8221;).&#160;&#160;No fractional shares of Alpha common stock will be issued in the Merger, and Massey stockholders will receive cash in lieu of fractional shares, if any, of Common Stock. 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td align="left" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td align="left" colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">As reported</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: 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align="left" valign="bottom" width="76%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Pro forma</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">949,756</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" 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31,</font></font></div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160; </font></td><td valign="bottom" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td colspan="2" valign="bottom" style="border-bottom: black 2px solid;"><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline;">2011</font></font></div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 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font-size: 10pt;"><tr valign="top"><td style="width: 36pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">(17)</font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Contingencies</font></div></td></tr></table></div><div style="text-indent: 0pt; display: block;">&#160;</div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">West Virginia Flooding</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since August 2004, five of our subsidiaries have been sued in six civil actions filed in the Circuit Courts of Boone, McDowell, Mingo, Raleigh, Summers and Wyoming Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding on or about May 2, 2002.&#160;&#160;These complaints covered approximately 350 plaintiffs seeking unquantified compensatory and punitive damages from approximately 35 defendants.&#160;&#160;Of these cases two were dismissed by the court without prejudice for failure to prosecute, two were dismissed by plaintiffs voluntarily and with prejudice, and one was settled for a nominal amount.&#160;&#160;Only the Mingo County case comprised of four plaintiffs and 34 defendants remains active.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since May 2006, we and 12 of our subsidiaries have been sued in three civil actions filed in the Circuit Courts of Logan and Mingo Counties, West Virginia, for alleged property damages and personal injuries arising out of flooding between May 30 and June 4, 2004.&#160;&#160;These complaints cover approximately 400 plaintiffs seeking unquantified compensatory and punitive damages from approximately 52 defendants.&#160;&#160;Four of our subsidiaries have been dismissed without prejudice from one of the Logan County cases.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We believe the remaining cases will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div><br /><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">West Virginia Trucking</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since January 2003, an advocacy group and residents in Boone, Kanawha, Mingo and Raleigh Counties, West Virginia, filed 17 suits in the Circuit Courts of Kanawha and Mingo Counties, West Virginia, against 12 of our subsidiaries.&#160;&#160;Plaintiffs alleged that defendants illegally transported coal in overloaded trucks, causing damage to state roads, thereby interfering with plaintiffs' use and enjoyment of their properties and their right to use the public roads. Plaintiffs seek injunctive relief and compensatory and punitive damages.&#160;&#160;The Supreme Court of Appeals of West Virginia (&#8220;WV Supreme Court&#8221;) referred the consolidated lawsuits, and similar lawsuits against other coal and transportation companies not involving our subsidiaries, to the Circuit Court of Lincoln County, West Virginia (&#8220;Circuit Court&#8221;), to be handled by a mass litigation panel judge. Plaintiffs filed motions requesting class certification. On June 7, 2007, plaintiffs voluntarily dismissed their public nuisance claims seeking monetary damages for road and bridge repairs.&#160;&#160;Plaintiffs also agreed to an order limiting any damages for nuisance to two years prior to the filing of any suit.&#160;&#160;A motion to dismiss any remaining public nuisance claims was resisted by plaintiffs and argued at hearings on December&#160;14, 2007 and June 25, 2008.&#160;&#160;No rulings on these matters have been made.&#160;&#160;Defendants filed a motion requesting that the mass litigation panel judge recommend to the WV Supreme Court that the cases be sent back to the circuit courts of origin for resolution.&#160;&#160;That motion was verbally denied as to those cases in which our subsidiaries are defendants, and a class certification hearing was held on October 21, 2009.&#160;&#160;To date, no decision has been rendered by the Circuit Court on the class certification issues.&#160;&#160;No date has been set for trial. A mediation is being scheduled in the Mingo County case.&#160;&#160;We believe we have insurance coverage applicable to these items and that they will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Well Water Suits</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Since September 2004, approximately 738 plaintiffs have filed approximately 400 suits against us and our subsidiary, Rawl Sales &amp; Processing Co., in the Circuit Court of Mingo County, West Virginia (&#8220;Mingo Court&#8221;), for alleged property damage and personal injuries arising out of slurry injection and impoundment practices allegedly contaminating plaintiffs' water wells. Plaintiffs seek injunctive relief and compensatory damages in excess of $170 million and unquantified punitive damages.&#160;&#160;Specifically, plaintiffs are claiming that defendants' activities during the period of 1978 through 1987 rendered their property valueless and request monetary damages to pay, inter alia, the value of their property and future water bills.&#160;&#160;In addition, many plaintiffs are also claiming that their exposure to the contaminated well water caused neurological injury or physical injury, including cancers, kidney problems and gall stones.&#160;&#160;Finally, all plaintiffs claimed entitlement to medical monitoring for the next 30 years and have requested unliquidated compensatory damages for pain and suffering, annoyance and inconvenience and legal fees.&#160;&#160;On April 30, 2009, the Mingo Court held a mandatory settlement conference. At that settlement conference, all plaintiffs agreed to settle and dismiss their medical monitoring claims.&#160;&#160;Additionally, 180 plaintiffs agreed to settle all of their remaining claims and be dismissed from the case.&#160;&#160;All settlements to date will be funded by insurance proceeds.&#160;&#160;Plaintiffs challenged the medical monitoring settlement. There are currently 585 plaintiffs with individual claims.&#160;&#160;A number of motions that could impact the number of Plaintiffs and scope of the issues of these suits are pending.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The West Virginia Supreme Court issued an administrative order transferring the cases to the Mass Litigation Panel.&#160;&#160;Mediation of all pending suits was held on February 22-23, 2011 in Charleston, West Virginia.&#160;&#160;The mediation resulted in the final settlement of all medical monitoring claims and disposed of Plaintiffs' earlier challenge of the prior medical monitoring settlement.&#160;&#160;The medical monitoring claims will be paid by insurance proceeds.&#160; No other claims were resolved.&#160;&#160;The Mass Litigation Panel has randomly selected seven civil actions consisting of seventeen plaintiffs for the First Trial Group which is scheduled for August 1, 2011 in Wheeling, West Virginia.&#160;&#160;&#160;</font><br /></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Beginning in December&#160;2008, we and certain of our subsidiaries along with several other companies were sued in numerous actions in Boone County, West Virginia involving approximately 374 plaintiffs alleging well water contamination resulting from coal mining operations.&#160;&#160;The claims mirror those made above in the separate action before the Mass Litigation Panel, as described above. The separate civil actions have been consolidated for discovery purposes with trial for 266 plaintiffs scheduled for October 25, 2011.&#160;&#160;No trial date is set for the remaining approximately 108 plaintiffs.</font></div><br /><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We do not believe there was any contamination caused by our activities or that plaintiffs suffered any damage and we believe that we have strong defenses to these matters.&#160;&#160;We plan to vigorously contest these claims.&#160;&#160;We believe that we have insurance coverage applicable to these matters and have initiated litigation against our insurers to establish that coverage.&#160;&#160;At this time, we believe that the litigation by the plaintiffs will be resolved without a material adverse impact on our cash flows, results of operations or financial condition.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Customer Disputes</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We have been sued by one customer who claims they did not receive, or did not timely receive, all of the coal required to be shipped to them during prior years under their sales contract. This customer filed a claim for cover damages, which damages are equal to the difference between the contract price of the coal that was not delivered and the market price of replacement coal or comparable quality coal, and for other&#160;compensatory damages, the total of which could exceed $31 million.&#160; The customer is also seeking punitive damages.&#160; We believe that we have strong defenses and have not recorded an accrual for this matter because we do not believe a loss is probable.&#160;&#160;It is reasonably possible that our judgment regarding this matter could change in the near term, resulting in the recording of a material loss that would affect our operating results and financial position.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">During the first quarter of 2011, we received notice of a suit from a plaintiff regarding whether or not a binding contract existed for the sale of coal, which coal the plaintiff had planned to broker to a third party in 2008.&#160;&#160;The suit asks that we reimburse plaintiff for an $18 million court judgment against plaintiff awarded to the third party.&#160;&#160;We do not believe that a binding sales contract was reached and currently believe that we have strong defenses and, therefore, have not recorded an accrual for this matter because we do not believe a loss is probable. It is reasonably possible that our judgment regarding this matter could change in the near term, resulting in the recording of a material loss that would affect our operating results and financial position.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Separately, we are currently in litigation with one customer regarding whether or not binding contracts for the sale of coal were reached.&#160;&#160;We maintain that this customer improperly terminated a signed, higher-priced contract; the customer argues that it was only required to purchase coal under a purported agreement reached by email. On February 12, 2010, we received a decision from an arbitration panel awarding this customer $10.5 million on the grounds that the purported agreement by email was valid and that the higher-priced contract was invalid.&#160;&#160;We believed that the arbitration panel's decision as to the validity of the higher-priced contract was beyond the panel's jurisdiction of the award, which amounts to $8.2 million, and challenged that decision in federal court.&#160;&#160;On June 2, 2010, the federal court rejected our challenge.&#160;&#160;We are appealing this matter to the United States Court of Appeals for the Fourth Circuit&#160;(the "Fourth Circuit Court").&#160;&#160;Oral argument before the Fourth Circuit Court is scheduled for May 10, 2011.&#160;&#160;While we will vigorously pursue this appeal, the amount of the judgment is fully accrued in Other current liabilities at March 31, 2011.&#160;&#160;We have paid $2.3 million for the award relating to the panels' decision that the agreement by email was valid, but have not yet paid the portion of the award under appeal.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Spartan Unfair Labor Practice Matter &amp; Related Age Discrimination Class Action</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In 2005, the UMWA filed an unfair labor practice charge with the National Labor Relations Board (&#8220;NLRB&#8221;) alleging that one of our subsidiaries, Spartan Mining Company (&#8220;Spartan&#8221;), discriminated on the basis of anti-union animus in its employment offers.&#160;&#160;The NLRB issued a complaint and an NLRB Administrative Law Judge (&#8220;ALJ&#8221;) issued a recommended decision making detailed findings that Spartan committed a number of unfair labor practice violations and awarding, among other relief, back pay damages to union discriminatees.&#160;&#160;On September 30, 2009, the NLRB upheld the ALJ's recommended decision.&#160;&#160;Spartan has appealed the NLRB's decision to the Fourth Circuit Court. We have no insurance coverage applicable to this unfair labor practice matter; however, its resolution is not expected to have a material impact on our cash flows, results of operations or financial condition.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Upper Big Branch Mine</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">On April 5, 2010, an accident occurred at the UBB mine, tragically resulting in the deaths of 29 miners and seriously injuring two others.&#160;&#160;The Federal Mine Safety and Health Administration (&#8220;MSHA&#8221;) and the State of West Virginia have undertaken a joint investigation into the cause of the UBB tragedy.&#160;&#160;We also have commenced our own investigation.&#160;&#160;We believe these investigations will continue for the foreseeable future, and we cannot provide any assurance as to their outcome, including whether we become subject to possible criminal and civil penalties or enforcement actions. Additionally, the U.S. Attorney for the Southern District of West Virginia has commenced a grand jury investigation. In order to accommodate these investigations, the UBB mine will be closed for an extended period of time, the length of which we cannot predict at this time.&#160;&#160;The Company has recently sought permission to close the UBB mine; regulatory authorities have not yet granted such permission.&#160;&#160;The Company believes that it can construct another portal and access reserves previously accessed by the UBB mine, but it has not yet received this permission from regulatory authorities.&#160;&#160;We self-insure the underground mining equipment, including the longwalls at the UBB mine.&#160;&#160;We do not currently carry business interruption insurance for the UBB mine.&#160;&#160;We have third-party general liability insurance coverage that applies to litigation risk, which coverage we believe applies to litigation stemming from the UBB tragedy.</font></div><br /><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">While updated analyses will continue in future periods, we have recorded our best estimate of probable losses related to this matter.&#160;&#160;The most significant components of these losses related to: the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, possible legal and other contingencies, and asset impairment charges.&#160;&#160;We have recorded a $78 million liability in Other current liabilities at March 31, 2011, which represents our best estimate of the probable loss related to potential future litigation settlements associated with the UBB tragedy.&#160;&#160;Thirteen of the families have filed wrongful death suits against us, while eight families have signed agreements to settle their claims (five of which have been finalized after receiving the required judicial approval). &#160;In addition, four employees have filed lawsuits against us alleging emotional distress or personal injuries due to their proximity to the explosion.&#160;&#160;&#160;Insurance recoveries related to our general liability insurance policy that are deemed probable and that are reasonably estimable have been recognized in the Consolidated Statements of Income to the extent of the related losses, less applicable deductibles.&#160;&#160;Such recognized recoveries for litigation settlements associated with the UBB tragedy totaled $78 million and are included in Trade and other accounts receivable at March 31, 2011.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Given the uncertainty of the outcome of current investigations, including whether we become subject to possible civil penalties or enforcement actions, it is possible that the total costs incurred related to this tragedy could exceed our current estimates.&#160;&#160;As of March 31, 2011, we believe that the reasonably possible aggregate loss related to these claims in excess of amounts currently recorded cannot be estimated.&#160;&#160;It is possible, however, that the ultimate liabilities in the future with respect to these claims, in the aggregate, may be material.&#160;&#160;We will continue to review the amount of any necessary accruals, potential asset impairments, or other related expenses and record the charges in the period in which the determination is made and an adjustment is required.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Clean Water Act Citizens' Suits</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The Sierra Club and others have filed two citizens' suits against several of our subsidiaries in federal court in the Southern District of West Virginia (&#8220;Southern District Court&#8221;) alleging violations of the terms of our water discharge permits. One of the cases is limited to allegations that two of our subsidiaries, Independence Coal Company and Jacks Branch Coal Company, are violating limits on the allowable concentrations of selenium in their discharges of storm water from several surface mines. The other action is limited to claims that several of our subsidiaries are violating discharge limits on substances other than selenium, such as aluminum. The plaintiffs in these cases seek both a civil penalty and injunctive relief.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In the non-selenium case, we have argued that the alleged violations are contemplated by an existing consent decree with the United States government and should not be the subject of a new lawsuit, but the Southern District Court has allowed the case to progress.&#160;&#160;In the selenium case, we have argued that the limits on selenium concentrations in our discharges have been stayed by an order of the West Virginia Environmental Quality Board and therefore cannot be the subject of a Clean Water Act case until after those limits become effective. The plaintiffs have nonetheless filed a motion for summary judgment in the selenium case, arguing that we are in violation of our permit limits despite the stays. Recently, the federal court ruled that the stays issued by the Environmental Quality Board were ineffective.&#160;&#160;The plaintiffs have also filed reports of experts contending that our subsidiaries should have commenced construction on selenium treatment units in October 2008.&#160;&#160;They claim that the failure to do so has saved our subsidiaries over $100 million and asked the Southern District Court to require us to install selenium treatment systems and to impose a penalty that recoups all of the savings realized by the alleged non-compliance.&#160;&#160;We strongly disagree with plaintiffs' position and while we do not expect the resolution of this matter to have a material impact on our cash flows, results of operations or financial condition it is possible that the ultimate liabilities in the future with respect to these claims, in the aggregate, may be material.</font></div><br /><div align="left" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Other Legal Proceedings</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">We are parties to a number of other legal proceedings, incident to our normal business activities.&#160;&#160;These include, for example, contract disputes, personal injury claims, property damage claims, environmental issues, and employment and safety matters.<font style="display: inline; font-weight: bold;">&#160;</font>While we cannot predict the outcome of any of these proceedings, based on our current estimates we do not believe that any liability arising from these matters individually or in the aggregate should have a material adverse impact upon our consolidated cash flows, results of operations or financial condition.&#160;&#160;It is possible, however, that the ultimate liabilities in the future with respect to these lawsuits and claims, in the aggregate, may be materially adverse to our cash flows, results of operations or financial condition.</font></div><div style="text-indent: 0pt; display: block;"><br /></div></div>(17)Contingencies&#160;West Virginia FloodingSince August 2004, five of our subsidiaries have been sued in six civil actions filed in the Circuit Courts offalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringIncludes disclosure of commitments and contingencies. 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It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. 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Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer).No authoritative reference available.falsefalse8false0us-gaap_IncomeTaxesReceivableus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse1295700012957falsefalsefalsefalsefalse2truefalsefalse1091200010912falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryCarrying amount due within one year of the balance sheet date (or one operating cycle, if longer) from tax authorities as of the balance sheet date representing refunds of overpayments or recoveries based on agreed-upon resolutions of disputes.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 5 -Subparagraph c -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3 -Subparagraph a -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Section Appendix E -Paragraph 289 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 10 -Article 9 falsefalse9false0us-gaap_OtherAssetsCurrentus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse208916000208916falsefalsefalsefalsefalse2truefalsefalse193176000193176falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAggregate carrying amount, as of the balance sheet date, of current assets not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 8 -Article 5 falsefalse10false0us-gaap_AssetsCurrentus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse11731740001173174falsefalsefalsefalsefalse2truefalsefalse11170640001117064falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 9 -Article 5 truefalse11false0us-gaap_PropertyPlantAndEquipmentNetus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse32360650003236065falsefalsefalsefalsefalse2truefalsefalse32176850003217685falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 12 -Paragraph 5 -Subparagraph b, c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 7 falsefalse12false0us-gaap_IntangibleAssetsNetExcludingGoodwillus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse106618000106618falsefalsefalsefalsefalse2truefalsefalse120923000120923falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 45 falsefalse13false0us-gaap_Goodwillus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse3670700036707falsefalsefalsefalsefalse2truefalsefalse3670700036707falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryCarrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of FAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 43 falsefalse14false0us-gaap_OtherAssetsNoncurrentus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse111547000111547falsefalsefalsefalsefalse2truefalsefalse118603000118603falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 falsefalse15false0us-gaap_Assetsus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse46641110004664111falsefalsefalsefalsefalse2truefalsefalse46109820004610982falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 12 -Article 7 truefalse17true0us-gaap_LiabilitiesCurrentAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1falsefalsefalse00falsefalsefalsefalsefalse2falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse18false0us-gaap_AccountsPayableCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse255517000255517falsefalsefalsefalsefalse2truefalsefalse245312000245312falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryCarrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 falsefalse19false0us-gaap_LongTermDebtAndCapitalLeaseObligationsCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse96720009672falsefalsefalsefalsefalse2truefalsefalse1232700012327falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryObligation related to long-term debt (excluding convertible debt) and capital leases, the portion which is due in one year or less in the future.No authoritative reference available.falsefalse20false0us-gaap_EmployeeRelatedLiabilitiesCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse103586000103586falsefalsefalsefalsefalse2truefalsefalse9544600095446falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTotal of the carrying values as of the balance sheet date of obligations incurred through that date and payable for obligations related to services received from employees, such as accrued salaries and bonuses, payroll taxes and fringe benefits. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 falsefalse21false0us-gaap_OtherLiabilitiesCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse325150000325150falsefalsefalsefalsefalse2truefalsefalse309980000309980falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAggregate carrying amount, as of the balance sheet date, of current obligations not separately disclosed in the balance sheet due to materiality considerations. Current liabilities are expected to be paid within one year (or the normal operating cycle, if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 6 -Paragraph 15 falsefalse22false0us-gaap_LiabilitiesCurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse693925000693925falsefalsefalsefalsefalse2truefalsefalse663065000663065falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTotal obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 21 -Article 5 truefalse23true0us-gaap_LiabilitiesNoncurrentAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1falsefalsefalse00falsefalsefalsefalsefalse2falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse24false0us-gaap_LongTermDebtAndCapitalLeaseObligationsus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse13092510001309251falsefalsefalsefalsefalse2truefalsefalse13038520001303852falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying values as of the balance sheet date of all long-term debt, which is debt initially having maturities due after one year from the balance sheet date or beyond the operating cycle, if longer, but excluding the portions thereof scheduled to be repaid within one year or the normal operating cycle, if longer plus capital lease obligations due to be paid more than one year after the balance sheet date.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section H falsefalse25false0us-gaap_DeferredTaxLiabilitiesNoncurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1truefalsefalse165172000165172falsefalsefalsefalsefalse2truefalsefalse163383000163383falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryRepresents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 41, 42 falsefalse26false0us-gaap_DefinedBenefitPensionPlanLiabilitiesNoncurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse7637700076377falsefalsefalsefalsefalse2truefalsefalse7972100079721falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThis represents the noncurrent liability recognized in the balance sheet that is associated with the defined benefit pension plans. (The current liability will be separate, but it will normally be small, if there is even any at all.)Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 6 falsefalse27false0us-gaap_OtherLiabilitiesNoncurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse631036000631036falsefalsefalsefalsefalse2truefalsefalse620499000620499falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 24 -Article 5 falsefalse28false0us-gaap_LiabilitiesNoncurrentus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse21818360002181836falsefalsefalsefalsefalse2truefalsefalse21674550002167455falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTotal obligations incurred as part of normal operations that is expected to be repaid beyond the following twelve months or one business cycle.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22, 23, 24, 25, 26, 27 -Article 5 truefalse29false0us-gaap_Liabilitiesus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse28757610002875761falsefalsefalsefalsefalse2truefalsefalse28305200002830520falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetarySum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.No authoritative reference available.truefalse31true0mee_CapitalStockAbstractmeefalsenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00falsefalsefalsefalsefalse2falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse32false0us-gaap_PreferredStockValueus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse00falsefalsefalsefalsefalse2truefalsefalse00falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryDollar value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) whether issued at par value, no par or stated value. This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 3, 4, 5, 6, 7, 8 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 falsefalse33false0us-gaap_CommonStockValueOutstandingus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1truefalsefalse6492500064925falsefalsefalsefalsefalse2truefalsefalse6456100064561falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryValue of all classes of common stock held by shareholders, which is net of related treasury stock. May be all or a portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 falsefalse34false0us-gaap_TreasuryStockValueus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegated1truefalsefalse-31822000-31822falsefalsefalsefalsefalse2truefalsefalse-31822000-31822falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryValue of common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Treasury stock is issued but is not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Technical Bulletin (FTB) -Number 85-6 -Paragraph 3 falsefalse35false0us-gaap_AdditionalPaidInCapitalus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse13622920001362292falsefalsefalsefalsefalse2truefalsefalse13439660001343966falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryExcess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 falsefalse36false0us-gaap_RetainedEarningsAccumulatedDeficitus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse512195000512195falsefalsefalsefalsefalse2truefalsefalse526025000526025falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cumulative amount of the reporting entity's undistributed earnings or deficit.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 falsefalse37false0us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTaxus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse-119240000-119240falsefalsefalsefalsefalse2truefalsefalse-122268000-122268falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryAccumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 26 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 falsefalse38false0us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestus-gaaptruecreditinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse17886340001788634falsefalsefalsefalsefalse2truefalsefalse17804620001780462falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryTotal of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. 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font-size: 10pt;"><tr valign="top"><td style="width: 36pt;"><div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">(1)</font></div></td><td><div align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Significant Accounting Policies</font></div></td></tr></table></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;">Basis of Presentation</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The consolidated financial statements do not include footnotes and certain financial information normally presented annually under accounting principles generally accepted in the United States (&#8220;GAAP&#8221;) and, therefore, should be read in conjunction with the Annual Report on Form 10-K of Massey Energy Company (&#8220;we,&#8221; &#8220;our,&#8221; &#8220;us,&#8221; &#8220;Massey&#8221; or the &#8220;Company&#8221;) for the year ended December&#160;31, 2010.&#160;&#160;Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end.&#160;&#160;The results of operations for the quarterly period ended March 31, 2011 are not necessarily indicative of results that can be expected for the fiscal year ending December&#160;31, 2011.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The consolidated financial statements included herein are unaudited; however, the financial statements contain all adjustments (consisting of normal recurring accruals), which, in our opinion, are necessary to present fairly our consolidated financial position at March 31, 2011, our consolidated results of operations for the three months ended March 31, 2011 and 2010, and cash flows for the three months ended March 31, 2011 and 2010, in conformity with GAAP.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">The consolidated financial statements include our accounts and the accounts of our wholly owned and majority owned direct and indirect subsidiaries.&#160;&#160;Significant intercompany transactions and accounts are eliminated in consolidation.&#160;&#160;We have no independent assets or operations.&#160;&#160;We do not have a controlling interest in any separate independent operations.&#160;&#160;Investments in business entities in which we do not have control, but have the ability to exercise significant influence over the operating and financial policies, are accounted for under the equity method.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">All of our direct and substantially all of our indirect operating subsidiaries, each such subsidiary being indirectly 100% owned by us, fully and unconditionally, jointly and severally, guarantee our obligations under the 6.875% senior notes due 2013 (&#8220;6.875% Notes&#8221;), the 3.25% convertible senior notes due 2015 (&#8220;3.25% Notes&#8221;) and the 2.25% convertible senior notes due 2024 (&#8220;2.25% Notes&#8221;).&#160;&#160;The subsidiaries not providing a guarantee of the 6.875% Notes, the 3.25% Notes and the 2.25% Notes are minor (as defined under Securities and Exchange Commission (&#8220;SEC&#8221;) Rule 3-10(h)(6) of Regulation S-X).&#160;&#160;See Note 8 to the Notes to Consolidated Financial Statements for a more complete discussion of debt.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; 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Additionally discloses any changes in an accounting principle, including a change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. 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Includes cash flows from securities classified as trading securities that were acquired for reasons other than sale in the short-term.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 13 falsefalse31false0us-gaap_ProceedsFromSaleOfProductiveAssetsus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse68160006816falsefalsefalsefalsefalse2truefalsefalse10190001019falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph c falsefalse32false0us-gaap_ProceedsFromInsuranceSettlementInvestingActivitiesus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse00falsefalsefalsefalsefalse2truefalsefalse91250009125falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow from the amounts received by the insured under the terms of an insurance contract settlement. This element pertains only to insurance proceeds related to investments, for example fixed assets. It excludes insurance settlements classified as operating cash flows.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 22 -Subparagraph c falsefalse33false0us-gaap_NetCashProvidedByUsedInInvestingActivitiesus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse-93988000-93988falsefalsefalsefalsefalse2truefalsefalse-31358000-31358falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe net cash inflow (outflow) from investing activity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 truefalse34true0us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1falsefalsefalse00falsefalsefalsefalsefalse2falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse35false0us-gaap_PaymentsToAcquireRestrictedInvestmentsus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegated1truefalsefalse00falsefalsefalsefalsefalse2truefalsefalse466759000466759falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow to acquire investments (not to include restricted cash) that are pledged or subject to withdrawal restrictions.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 falsefalse36false0us-gaap_RepaymentsOfLongTermCapitalLeaseObligationsus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegated1truefalsefalse-2655000-2655falsefalsefalsefalsefalse2truefalsefalse-382000-382falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow for the obligation for lease meeting the criteria for capitalization (with maturities exceeding one year or beyond the operating cycle of the entity, if longer).Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26, 31 falsefalse37false0us-gaap_EarlyRepaymentOfSeniorDebtus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegated1truefalsefalse00falsefalsefalsefalsefalse2truefalsefalse-21949000-21949falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow for the extinguishment of borrowing, with the highest claim on the assets of the entity in case of bankruptcy or liquidation, before its maturity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b falsefalse38false0us-gaap_PaymentsOfDividendsus-gaaptruecreditdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsetruenegated1truefalsefalse-6156000-6156falsefalsefalsefalsefalse2truefalsefalse-5167000-5167falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash outflow from the entity's earnings to the shareholders.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a falsefalse39false0us-gaap_ProceedsFromStockOptionsExercisedus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse1620900016209falsefalsefalsefalsefalse2truefalsefalse1149000011490falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe cash inflow associated with the amount received from holders exercising their stock options.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A240 -Subparagraph i Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a falsefalse40false0us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivitiesus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalselabel1truefalsefalse00falsefalsefalsefalsefalse2truefalsefalse625000625falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryReductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A240 -Subparagraph i Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 00-15 -Paragraph 3 falsefalse41false0us-gaap_NetCashProvidedByUsedInFinancingActivitiesus-gaaptruedebitdurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse73980007398falsefalsefalsefalsefalse2truefalsefalse451376000451376falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe net cash inflow (outflow) from financing activity for the period.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 truefalse42false0us-gaap_CashAndCashEquivalentsPeriodIncreaseDecreaseus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsetotallabel1truefalsefalse-46483000-46483falsefalsefalsefalsefalse2truefalsefalse497175000497175falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryThe net change between the beginning and ending balance of cash and cash equivalents.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 truefalse43false0us-gaap_CashAndCashEquivalentsAtCarryingValueus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsetruefalsefalseperiodstartlabel1truefalsefalse327179000327179falsefalsefalsefalsefalse2truefalsefalse665762000665762falsefalsefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryIncludes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Footnote 1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 falsefalse44false0us-gaap_CashAndCashEquivalentsAtCarryingValueus-gaaptruedebitinstantNo definition available.falsefalsefalsefalsefalsefalsefalsefalsetruefalseperiodendlabel1truefalsefalse280696000280696falsetruefalsefalsefalse2truefalsefalse11629370001162937falsetruefalsefalsefalseMonetaryxbrli:monetaryItemTypemonetaryIncludes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Footnote 1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 falsefalse242CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)ThousandsUnKnownUnKnownUnKnownfalsetrue XML 28 defnref.xml IDEA: XBRL DOCUMENT No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The net change during reporting period in other assets not otherwise defined in taxonomy. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The excess insurance recoveries compared to the recorded loss incurred from an insured event (including a conversion of nonmonetary assets to monetary assets). An excess would occur from recovery of lost profits, and recoveries at current replacement cost less carrying amounts of assets that were damaged or destroyed. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Description containing the entire other postretirement benefits disclosure as a single block of text. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The net change during reporting period in other obligations not otherwise defined in taxonomy No authoritative reference available. No authoritative reference available. No authoritative reference available. This disclosure explains the activities related to the merger with Alpha Natural Resources, Inc. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Revenue derived from sale of coal purchased from third-party production sources. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Description containing the entire organization, consolidation, basis of presentation and significant accounting policies of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. Additionally discloses any changes in an accounting principle, including a change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. Also discloses any change in the method of applying an accounting principle, or any change in an accounting principle required by a new pronouncement in the unusual instance that a new pronouncement does not include specific transition provisions. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Acquisition of Cumberland No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Description containing the entire disclosure related to black lung and workers' compensation expense. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Cost of revenue derived from sale of coal purchased from third-party production sources. No authoritative reference available. No authoritative reference available. No authoritative reference available. Description containing the entire pension benefits disclosure as a single block of text. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Sum of operating profit and nonoperating income (expense) before interest, income (loss) from equity method investments, income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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Gain or loss recorded from exchange of coal properties, includes the realized gains (losses) on the exchange of proved and unproved coal properties. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td colspan="2" valign="bottom"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">U.S. Treasury securities</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">11,659</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">11,659</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Money market funds</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">U.S. Treasury money market fund</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,399</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">-</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">14,399</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Other money market funds</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">267,000</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">267,000</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Total</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline;">293,058</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; 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font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline;">293,058</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="white"><td valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160; </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160; </font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="white"><td align="left" valign="bottom" width="52%"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Liabilities</font></div></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="52%" style="padding-bottom: 2px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Derivative instruments</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; 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text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline;">(720</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td><td valign="bottom" width="1%" style="padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 2px solid; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="9%" style="border-bottom: black 2px solid; text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline;">(763</font></font></td><td nowrap="nowrap" valign="bottom" width="1%" style="text-align: left; padding-bottom: 2px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">)</font></td></tr><tr bgcolor="#cceeff"><td align="left" valign="bottom" width="76%" style="padding-bottom: 4px;"><div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">Net periodic postretirement benefit cost</font></div></td><td valign="bottom" width="1%" style="padding-bottom: 4px;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">&#160;</font></td><td valign="bottom" width="1%" style="border-bottom: black 4px double; text-align: left;"><font style="display: inline; font-family: times new roman; font-size: 10pt;">$</font></td><td valign="bottom" width="9%" style="border-bottom: black 4px double; 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