Freelandville and Log Creek Purchases

12 Months Ended

Dec. 31, 2017

Freelandville and Log Creek [Member]

Business Acquisition [Line Items]

Freelandbille and Log Creek Purchases

(12)Freelandville and Log Creek Purchases

On March 22, 2016, we completed the purchase of the Freelandville coal reserves, advanced royalties, and coal sales agreement for $18.25 million from Triad Mining LLC.  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). The 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		10,153
Total	$	18,250

On December 12, 2016, we completed a second transaction with Triad, the purchase of their Log Creek coal sales agreement for $4.1 million.  The purchased coal sales agreement included 557,000 tons to be delivered in 2016 and 2017.