Freelandville Purchase

3 Months Ended

Mar. 31, 2016

Freelandville Purchase [Abstract]

Freelandville Purchase

(9) Freelandville Purchase

On March 22, 2016, we completed the purchase of the Freelandville coal reserves and coal sales agreement for $18 million.  These reserves totaled 14.2 million tons of fee and leased coal and will be mined from our Oaktown 1 portal. This purchase also allows Sunrise access to another 1.6 million tons of our own leased reserves that were previously inaccessible. The purchased coal sales agreement totaled 1,435,000 tons (can be adjusted +/- 6,700 tons monthly) and will be delivered ratably in calendar year 2017. The preliminary purchase price allocation for the acquisition was as follows (in thousands):

Purchased coal contract	$	6,407
Advanced coal royalties		1,690
Mineral rights and leases		9,903
Total	$	18,000