CEDAR COAL COMPANY
                 CENTRAL APPALACHIAN COAL COMPANY
                SOUTHERN APPALACHIAN COAL COMPANY
              (COLLECTIVELY, THE COAL SUBSIDIARIES)
      ANNUAL REPORT PER REQUIREMENTS OF HOLDING COMPANY ACT
                RELEASE NO. 24429 FILE NO. 70-7414
           BY MONTH, FOR THE YEAR ENDED DECEMBER 31, 1996



                      THE COAL SUBSIDIARIES
             STATEMENT OF DECLARATION AND PAYMENT OF
             DIVIDENDS OUT OF PAID-IN CAPITAL SURPLUS
          BY MONTH, FOR THE YEAR ENDED DECEMBER 31, 1996
                         ($ IN THOUSANDS)

Month                      Central      Southern
Dividends    Cedar         Appalachian  Appalachian  Total
Declared     Coal          Coal         Coal         Coal
and Paid     Company       Company      Company      Subsidiaries
                                            
January

February

March

April

May

June

July

August       $ 1,000                    $   500         $ 1,500

September

October      

November

December                                $ 1,077         $ 1,077

Total
Current
Year         $ 1,000       $ -          $ 1,577         $ 2,577

Cumulative
Amount*      $20,656       $5,847       $15,588         $42,091


Note:  In 1987, the Securities and Exchange Commission authorized
each of these Coal Subsidiaries to declare and pay dividends
periodically to its parent out of paid-in capital until the amount
of dividends in aggregate equaled $58.4 million, the aggregate
paid-in capital of the companies as of April 30, 1987.

*Amount of dividends declared and paid to its parent out of paid- 
 in capital since April 30, 1987.